Making Money in Equity FinanceWritten by William Cate
Making Money in Equity Finance By William Cate Published October 2001 [http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/] Do you offer financial services to businesses outside United States? You could be earning an additional US$300,000/year taking your clients public in United States. Here are ten possible reasons why non-U. S. Companies should go public in America. 1. Their country lacks a stock exchange. 2. The country's stock exchange won't list "growth" companies. In several countries national listing requirements are modeled after those of New York Stock Exchange. This is true of Singapore and Kuala Lumpur Stock Exchanges 3. The local stock exchanges lack credibility. This is true of Vancouver and Alberta Stock Exchanges in Canada. 4. The company understands benefits of being valued in U. S. Dollars, instead of national currency. Currently, USD is World's business currency. 5. The company that wants to be listed on stock exchanges in Europe and Asia and realizes that American filing is key to cost savings elsewhere. 6. The company understands that they can no longer trade their shares in States under a 12g Exemption. 7. The company realizes that their local investors would prefer to hold U. S. Dollar demominated stock. 8. The company suspects that there is a segment of U. S. Market that would buy their stock if it were easily available in United States. 9. The company realizes that having a U. S. Dollar demominated stock allows management to make bargain acquisitions for their stock when national currency's exchange rate falls against USD. 10. Management is taking company global and wants to save on taxes.
| | Bootstrapping Your Company to SuccessWritten by William Cate
Bootstrapping Your Company to Success By: William Cate Published August 1998 [http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]Often, service-oriented businesses can bootstrap themselves to success. Bootstrapping is a policy of reinvesting all money a company earns into growth of that company. The owner may not draw a salary for awhile. It's a process that can take 3 or 4 years. At end of that time, owner has a debt-free business and recovers his recovers their unpaid time from profits business now earns. Over years, I've developed about a dozen businesses using a bootstapping strategy. Here's an example. My wife is a veterinarian. In 1980, she was asked to vaccinate several dogs at owner's home. She spent $25 and bought vaccines. She did housecall. She took money she made and invested it into more supplies. She did more housecalls. In 1985, she had enough housecall clients to buy a building and convert it into a veterinary hospital. The practice continued to grow. Today, she co-owns one of largest veterinary hospitals in San Francisco Bay Area. From 1980-1983, she didn't draw a salary. I think anyone who intends to build a multinational corporation needs to bootstrap a business to success. It teaches them importance of wisely reinvesting profits into growth of a company. Without this lesson, public company officers believe they have a right to live off risk capital of their investors. Too many public companies lose money because management insists upon excessive salaries.
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