Private or Public Company

Private or Public Company

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I was having a conversation with a friend who was talking about the advantages and disadvantages in making a publicly traded company. Essentially, the advantage in his view was that it can be easier to raise funds and you are essentially using other people’s money to help create something great.

The main disadvantage is that a company would obviously lose a lot of control as you now have to try and satisfy all of your investors. That can often lead into situations such as a company wanting to do something that they think will be great, but because it doesn’t sound like an extremely profitable venture they have to scrap it.

I guess it kind of falls under the general more risk equals more reward route. Depends on what state of mind you are at in regards to your business I suppose to determine which route is best.

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