Businessman
Deciding whether to become a public or private company is essential to your business success. You should carefully consider your options before making this decision.
Investment
Investors will give their money to public companies easily because the production details must be published to the public. Private companies do not have to publish their data, and have a harder time recruiting new money. The stock of private companies is held by a few individuals who are intimately involved in its operations. This is the opposite of the stock situation for a public company; anybody can purchase shares of a public stock.
Stock Market
Wall Street
Private companies do not have to worry about the stock market. Public companies are subject to the stock market's downswings.
Hostile Activity
Public companies are subject to investors sabotaging their stock. This is not likely with private companies.
Outsourcing
Private companies can outsource their operations anywhere without a public backlash. Public companies are always under the watchful eye of the newspapers.
Shareholders And The Board
Board Room
Public companies answer to shareholders, who do not always know what is best for the business. Private companies only answer to their board of directors, which is usually a very informed group of leaders.
Conclusion
There are many important factors that may affect your success in business. Deciding whether to be a public or private company is an important decision. You should talk with a business consultant before making a final decision.
