“Equity dilution” or Share dilution by issuing new shares is the most respectable & best way to raise funds for business & to raise business capital
In this video tutorial, we discuss how the business owners should raise business capital by way of Management dilution by issuing new shares to raise capital.
Business owners should learn how to Raise Business Capital by way of “Management Dilution” popularly called as “Equity dilution or Share dilution”.
Big Businesses have now realized that the best strategy to grow, build the business and prosper is by sharing their business earnings & profits with others. Business owners should dilute their ownership & bring in other investors who can pump in their money for the business growth. Managements should dilute their ownerships partially with other investors who are equally convinced & demonstrate the same vision, ideals and values of their company. This is a more practical Business model & survival strategy for the future of the Company.
May be there are quite a few exceptions, but seldom you will come across a big business without multiple partners, investors & share holders. This is a more practical & much better growth model, not only as a survival strategy but also for the prosperous future of the company than a business model that is destined to flop or one that creates ownership for only a select few.
Bringing in new shareholders always means “dilution” to the existing owners & the present management team. Companies should be willing to share their earnings and profits if they have set their goals high. They should create an environment of multiple ownership as this will contribute to a very positive business success. Businesses are more successful when they work as a team.
The best way to raise funds for business, raise business capital is by equity dilution by issuing new shares to raise capital and by share dilution.
Business owners should dilute their complete ownership & bring in other investors who can pump in their money for their business growth. Managements should dilute their ownerships with other investors who are equally convinced & demonstrate the same vision, ideals and values of their company.
