Benefits in business are costly.
For example, take into account the case of a home-made person, such as raw materials such as spices, meat and packaging and sell the product, then you must give concessions for the sale of the product. So every business needs initial investment for time and money to be successful.
The cost price is, of course, the total amount of money you need to buy for something. Whatever the kind of business you need to look into, you have to spend a certain initial capital to produce a product and later sell the price that profits.
The common costs forming part of the initial capital investment may be one of the following:
1. Production Costs (Including Raw Materials, Machine Maintenance, if Any, and Others)
2. maintenance costs such as office, factories, vehicles, machines, etc.
3rd Personnel costs, eg factory employees, employees and retailers
4. Advertising and PR Costs
5. Other expenses.
The cost that the company faces later may raise funds to leverage additional capital to support growth in production or business expansion. One of the methods is to accumulate additional funding for a company with an IPO or initial public offering. You need to make thousands of dollars for the sale of publicly-issued shares.
Have you considered the costs that arise when the company processes the IPO?
The IPO is the first sale of shares of a joint venture to the public. He calls on several investment banks to sign the procedure. The share-trading company concludes an agreement with the primary insurer to sell these shares to the investor for the public. In exchange, the insurer offers the shares to those traders who want to buy the price.
The long process of IPO, it is certainly cost that depends on the stage of the process. For example, one step in the IPO process is to complete the publication of documents, which is essential to convince investors of the IPO's liability. There is no well-defined business plan that needs to be provided to investors, and there is difficulty in answering questions about publishing a document. In most cases, the business plan will work from 25 to 100 pages, and in itself, in one step, costs $ 5,000 to $ 20,000. In a nutshell, a typical business can spend more than $ 750,000 as the direct costs associated with the IPO. This does not include indirect costs such as IPO time management, such as malfunction, when the company is under the IPO, and a design team, IPO consultants, insurers, lawyers, and professionals.
It's very costly for the IPO. So if you plan to do so, make sure your loans are tied to paying for the first public bidding.
Source by sbobet