Preparing for an IPO

Once you set a goal to take your company public, your company will begin a new phase of development. Gone will be the days of doing deals on handshakes, bartering, informal record keeping, etc. — things that were okay when you first started. Now you will have to adopt a new mentality in which you will be accountable to many others.

You may already be thinking, “Gosh, I liked it better the old way.” But remember, you’re doing all this for a good reason — you hope to bring in a vast number of new investors. Think about it. People that you don’t even know will soon be investing in your company.

If you want them to trust you and believe your company is a good investment, you must follow the rules. Your job will be to provide extensive, accurate information about your company finances and to set up effective systems of operation. In return, you will receive potentially unlimited amounts of new capital. While you may look back nostalgically on that sidewalk lemonade stand you once set up as a kid, going public brings a whole new set of opportunities.