Raising capital with an IPO, also called ‘going public’, is one of the most common ways to release products onto the open marketplace for sizeable returns. However with this major life change, founders need to prepare thoroughly to make sure that they are able to fool the market and get their personal wealth pointed in the right direction.
If you are thinking about raising capital with a PRE-IPO, here is a step-by-step plan for getting your business ready and succeeding in an industry where only 1% of new businesses earns over $50MM per year after ten years.
PRE IPO (pre-initial public offering) being a business-growth strategy optimises the pre-IPO solution to set up IPOS. PRE IPO has various steps, some or all of which may be omitted, or reverse in some cases depending on the needs of the business.
Some of these are set out below:
This is an extremely important stage as you will need to understand who your target markets are and what they want. You will also need to detect any early warning signs that may indicate whether or not you should register for PRE IPO right away, invest more time researching your product, or bring your idea to management.
There are many steps that are involved in the process of making a successful IPO. One of the first things that should be done is client identification. The best way to identify these clients is by knowing their goals and objectives.
This is because by identifying their goals and objectives, you will be able to understand how to reach them and what they want – this will help you find out how they view the world and what they want out of it.
The part two of step one is discovery. Discovery involves researching about your clients, their competitors, and also understanding what markets exist for your clients. After you have found all this information about them, you can then align your marketing efforts with their strategies’ goals and objectives to make sure that all your efforts are making an impact on the right people at the right time.
The two major objectives of PRE-IPO are to build a decentralised, peer-to-peer distribution platform for content creators and advertisers, as well as establish a new model for content monetization that mitigates the need for ads on customer end.
The first objective will reduce dependency on ad revenue by building a direct communication between brands and consumers. The second objective will help increase brand awareness by giving advertisers more control over their campaigns.
PRE is currently focused on three main goals:
- Development of the first version of their platform with an initial focus on video content distribution
- Acquisition of customers through targeted marketing campaigns
- Growth through revenue sharing with creators, marketers, and influencers
A company with a solid strategy will have a higher chance of success post-IPO. The company needs to have a strong focus on their brand and the quality of the product as well as the marketing for it.
Their marketing strategy ideally should be tailored to grow user base and customer loyalty, building brand awareness, and creating a competitive advantage.
In addition, they need to pay careful attention to their economics from the outset by being mindful about how much inventory they have on hand and how much is sold every day.
This down preparation process is about gaining basic knowledge of the company’s current status and gathering essential data for future database developments. Data can be gained from different sources such as social media, smartphone analytics, market survey, company data history databases and other content.
The summary of this step includes five parts: competitive analysis; establishment of preliminary operational budget; identifying potential public investors; setting profitability-related milestones; projection of essential product or service database development plan for future database developments.
One of the most important tasks for any business is to define its strengths and weaknesses.
What are those things about our company that sets us apart from others?
What does our company do better than anyone else?
For example, some companies specialise in customer service.
This is a pivotal strength for them, but it may not be a strength for another company.
Strengths are the key points that make your company stand out from others. They are the things that you do better than anyone else. When it comes to something like creating a business plan, these are the points that will make you stand out in front of investors.
To define your strengths, you should ask yourself two questions:
1. What makes our company unique?
2. What is our competitive advantage over other companies?
Answering these questions will help you determine what provides your business with its competitive advantage in the capital market. You can then build on this to create a list of your strengths which you can use when developing a marketing strategy during the IPO process for example for an investor presentation or in-person meeting when presenting with potential investors.
An IPO is a company’s initial public offering of stock. The company offers shares to the public to raise money for its business operations, often in exchange for ownership shares.
It is important to understand the market dynamics before coming up with a tagline for company’s IPO.
A tagline is a slogan or catchphrase that conveys the goals of the company. For example, Nike’s “Just do it” tagline inspires people to be active and take on big goals.
Some one-liners for brand new companies:
• “We want to make you smile”
• “We power your enthusiasm”
• “We inspire you to do the best you can”
Investing in pre-IPO stocks instead of IPOs helps you avoid the risks that are associated with investing in an unknown company. The investors who buy shares before the company goes public may experience large gains, as long as they stay ahead of the curve.