Can you dominate in an industry where competitors are compromising quality, service or pricing? Developing a premium product or service that truly meets customer needs will drive early adoption and loyalty. Remain true to your focus on building and shipping world class products.
4. Track Record.
Has your company sustained or increased growth at a high enough rate to attract investors? “Investors consider several factors when deciding if a new stock can yield a return on investment with an acceptable degree of risk: your company’s business plan, management depth, potential for growth and ability to maintain strong sales and earnings.”
5. The Road Show.
An IPO is all about marketing and promoting your company, its products and services. Every successful IPO is fueled by a carefully crafted publicity campaign to gain company visibility, attract stock holders and court investors. The best companies highlight their positive attributes, capabilities and long-term investment potential.
6. An All Star Team.
Most successful entrepreneurs realize that they mustn’t be the smartest person in the room. Management decisions are essential to a company’s long-term growth and IPO viability. Recruiting talented people with a proven track record will better equip a private company to go public and manage the nuances associated with doing so.
In contrast to what some may think, a company doesn’t have to be “perfect” to gain IPO traction. As George Leong of the Wall Street Pit asserts, “Facebook is not exactly making tons of money from its 900 million users. In other words, the company has yet to figure out how to drive revenues from its users the way Google has done with its advertising and other broad Internet services and assets.”
“Facebook will deliver huge trading profits with a massive surge at the open. The company will need to produce stronger results to justify the share price.”
What do you think of Facebook’s IPO? Let us know in the comments section below.
Photo Credit: Techi
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