Many business owners with a dream to take their company public often neglect to prepare and plan for the future, very few small and mid-size companies have a business plan.
A business plan is like a road map, and can be likened to when you go on a journey. Sometimes you need to change direction, it doesn’t mean your destination changes, you are just getting there via a different route.
A vision is some thing that is birthed in the mind and soul of the individual, some people act on it and others procrastinate for a period of time only to see someone else take their dream and bring it to fruition.
The dream giver will only allow you to sit on your dream for so long before giving it to someone else. You often hear people saying “ I had that idea two or three years ago”, what good is an idea without taking action, but with the action there must be a strategy.
Businesses don’t plan to fail, they fail because they fail to plan. Entrepreneurs usually are visionaries who get an idea and run with it but, if you look at the successful ones they always had a plan, and a team to help them bring their dream to the market plece.
The team can sometimes get you to the top, but it’s the strategy that takes you over the top, so don’t settle for second best, be the best.
If you look at a twenty year chart of Microsoft Corporation, or Yahoo Inc. You will find that at one time their stock traded under a dollar but through brilliant strategies they were able to accomplished great things.
Just like Bill Gates had a plan so must you develop one. Bill Gates also had Paul Allen so must you find someone who can complement your weak point. If you are not a good strategist go out and find yourself one who is not a yes man.
The phrase “no man is an island” is most applicable in the corporate environment, where team work is essential for success.
In small companies the dreamer is required at times to do everything and become efficient in every task, which is beneficial because he should know the functions of every department in the company. But he should have competent personnel in those position in order for him to be able to see the entire picture.
This is where being a public company comes in handy, it allow the entrepreneur to use the company stock as an incentive to attract more competent and better qualified personnel and retain them. It also makes it possible for the company stock to be used for acquisition purposes.
Team work is essential in order to be able to succeed. I remember in the 1980′s investing in a company the appear to have a dream team for it’s management, everyone involved in management had a PHD and an ego to match it. A friend of mine who was the investment banker for the company related to me how he attended a meeting with the company and it was complete chaos, each person appear to think that their opinion was the only one deserving of consideration. Needless to say the company eventually file for chapter eleven.
An entrepreneur must check his ego and keep it under control in order be able to lead those around him, nobody likes to work with an egomaniac.
I believe that meetings can be useful or a waste of time, if all you do at a meeting is inform the staff of what you are doing or what you would like them to do, you are wasting valuable time that could be use to implement the corporate strategy. This can be done with a memo.
In order for a meeting to be of some value it must include a free exchange of ideas, a good leader seeks to know what those who are in the corporate battle field think. Because they are the one who are in the trenches, in a position to be able to hear what customers and employees are thinking and saying.
A good advisory service can sometimes be beneficial to assist in the evaluation of potential merger and acquisition candidates, to help identify potential candidates for joint ventures, or investment. Also helps with the due diligence process, the structuring of the transaction and the development of corporate strategies for growth and investment.
A good advisory service will evaluate your company and advise you as
to the best way to go public, either traditional IPO, Reverse Merger or Regulation D (504) offering.
Once the decision has been made on which method to use in going public (for many small companies is either Reverse merger or Regulation D (504) offering.) The consultant used, must be able to guide you through the intricacies of the public arena. And have financial industry contacts.
Don’t sit on your dream waiting for the perfect situation because it may never come, had Bill Gates waited until Microsoft’s public shares could justify a higher price before going public, he might still be waiting.
Microsoft and Yahoo are not isolated situation but just two of many who looked at the challenge and saw an opportunity. I guess the old saying “ faint hearts never won fair ladies “ is still apropos today.