The Truth About Taking Your Business Public
THE TRUTH ABOUT TAKING YOUR BUSINESS PUBLIC
How can business owners prepare their company for a potential exit?
When I started my business at a young age, it was all about whether I could sell the product—in other words, finding product-market fit. Every entrepreneur should begin here: is there evidence of demand and need for your product or service? It’s important to approach this humbly, not assuming demand exists but proving it with evidence.
From there, I learned to run a business as if preparing for an exit. My specialty is guiding small to medium-sized companies through an IPO. We reverse-engineer what is needed, sometimes 12, 18, or 24 months before listing, preparing them for the process. This preparation is the same for other exit strategies, such as mergers and acquisitions or trade sales.
Having systems, controls, and financial reporting in place changes how an entrepreneur runs their business. The next step is bringing in outside advisors to be more transparent in decision-making. This shift moves you from a founder-driven approach to one focused on governance. These components add significant value to the business. Whether you plan an exit now or in the future, or even if you’re uncertain about an exit, tighter systems, controls, and governance significantly increase the value of your enterprise, shareholders, and stakeholders.
What are the main challenges in predicting the future of the investment environment?
There's no crystal ball here. If there was, I'd probably be on an island somewhere. It's challenging to answer because of the many compounding factors. In the U.S., the upcoming presidential election and interest rates are key factors. Without diving into politics, clarity on who will be elected and the economic reality—like the Fed discussing a possible interest rate decrease in September—are crucial components for opening up opportunities.
When these elements are in place, I believe investors will start to open up again. As companies perform well and provide a return on investment, confidence will grow, and capital will be available to support their growth. This shift won't happen overnight, but when the window opens, we'll see it. There are companies in the pipeline, much like cargo ships stacked up at a port waiting to come in. The IPO, venture capital, and private equity markets are similarly stacked up, just waiting for the opportunity to move forward.
What are key factors for business success?
It's really about execution. Some companies achieve hockey-stick growth—40 to 50 percent growth quarter over quarter or year over year—but that stems from demonstrating a track record of execution. You can't just claim, "We're here now, and we'll be there later," without a way to support and defend it. Every entrepreneur needs confidence and a willingness to take risks for reward. That's a big part of what it means to be an entrepreneur.
As entrepreneurs, we are inherently optimistic. We don’t wake up thinking, "I can’t build this business or create value." Instead, there is a need to package and demonstrate your ability to execute, which then makes the fundamentals and metrics more predictable. I work with many emerging growth companies worldwide, and the challenge often lies in bridging the gap between where they are now and where they aim to be.
The more you can close that gap and show consistent execution and outcomes—even if they aren't all 40-50 percent growth—the more predictability you create. This increases confidence for all parties involved.
What risks do business owners face when scaling their operations?
Growth in entrepreneurship involves transitioning from one stage to another, often influenced by fear—fear of the unknown or uncertainty about how to operate. There is always a balance between risk and reward. While there are legal mechanisms to maintain control, that's not the main issue. To grow and scale a business, you need to bring in outside people. Very few can handle everything themselves within a controlled environment, and those who try often don't build sustainable businesses.
I'm more focused on the other side: being careful about whom you bring in. Vet candidates thoroughly and use clear selection criteria. Like the fox in the henhouse, risks exist, and you can't keep everything perfectly secure. If you expose yourself, there is always risk, but it's a trade-off. Do you want to bring in outside capital or advisors? If you are not going to listen to them or leverage their value, it might be better not to bring them in at all.
How can entrepreneurs align their time management with personal and professional goals?
Start with self-awareness. Take a real inventory of where you are in different areas of your life. Then, examine where you are spending your time. This is the ultimate test. Look at your calendar and analyze the past week, two weeks, three weeks, or even four weeks. Study where your time goes, and you'll see what you're truly committed to.
If you're aware of this and take an honest inventory, you'll see where your time is going versus where you want it to go. Then, you can organize your actions, emotions, and awareness to drive toward your personal and professional goals.
How can entrepreneurs maintain motivation and high performance during challenging times?
As entrepreneurs, it's challenging to stay motivated and perform at a high level every day. When you're feeling down, it's even harder. I go back to the basics: start with purpose. Ask yourself, "Why am I doing what I’m doing?" Being purpose-driven can help lift you out of a low point or reignite your passion. This creates energy and excitement, which is contagious to others.
Next is self-care. If I'm not operating at my best, I ask, "What do I need to do to take care of myself?" This could mean adjusting my diet, improving my sleep, changing my exercise routine, or taking some time away to reflect. Self-care is as important as finding clarity in your purpose. It's like putting on your oxygen mask first so you can help others and achieve your goals.
Another key element is having a support structure. Don’t wait until you're in distress to build one. Bring in people you know, like, and trust to support you when you're down or struggling. As entrepreneurs, we all face challenges, and a strong community can add value and provide much-needed support.
What role does self-awareness play in the life of an experienced entrepreneur?
There is some awareness of this at all stages. I started my first company in my twenties, and now, at 60, I've had a lot of practice. This awareness may not always be conscious. There comes a point where self-awareness moves to the forefront instead of staying in the background. For me, this happened during a period of extreme hardship, which forced me to reevaluate everything I was doing—not by choice, but by necessity.
The Great Recession provided such a period. For all entrepreneurs, being an entrepreneur involves struggle in many ways. Shifting to a mindset of abundance from one of survival and struggle was part of my journey. Coming out on the other side of hardship brought me to a place of humility, self-awareness, and a clear understanding of where I wanted to go after losing everything.
*This interview has been edited and condensed for clarity.*
