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7 Costs To Consider Before Taking Your Startup Public

Startup Professionals Musings

Despite the fact that the number of IPOs (Initial Public Offerings) for startups have continued to stay low, I still hear it touted often as the preferred exit strategy. There are real ongoing costs of maintaining a public company. million in annual recurring costs as a result of being public.

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7 Reasons To Reconsider A Planned IPO Exit Strategy

Startup Professionals Musings

Despite the fact that the number of IPOs (Initial Public Offerings) for startups have continued to stay low, I still hear it touted often as the preferred exit strategy. There are real ongoing costs of maintaining a public company. million in annual recurring costs as a result of being public.

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An IPO Exit Strategy Puts the Entrepreneur at Risk

Startup Professionals Musings

They don’t realize that this option would likely be their worst nightmare, since it costs millions for the road show, usually dilutes your equity to a tiny fraction, and takes away all your entrepreneurial control. Their synopsis of the key risks should make you look hard for an alternate exit strategy: Increased risk of liability.

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How to Pitch to Investors in 10 Minutes and Get Funded

Up and Running

How much will it cost? Your financials should easily allow you to calculate your customer acquisition costs. Your exit strategy. If you’re seeking large sums of investment capital (over $1M), most investors will want to know what your exit strategy is. How will you reach your customers?

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The Ultimate Guide for Starting and Running a Business at Home

Up and Running

Can I afford the cost of any adjustments that need to be made? Think about an exit strategy. But establishing an exit strategy is another important piece that forces you to look toward the future of your business. Like the rest of your business plan, your exit strategy does not need to be set in stone.

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7 Ways To Balance Your Heart And Logic With Investors

Startup Professionals Musings

For example, if you have ever watched the Shark Tank show on TV, they always ask about the cost of customer acquisition. Show that you anticipate this, how they will react, and how you have ongoing strategies to stay ahead. Present a viable exit strategy for investors to cash out.

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Every Startup Goes Through Distinctive Funding Phases

Startup Professionals Musings

It won’t work, it costs time and money, and hurts your credibility when you need them later. Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy). They are not trying to make money, but simply to recoup their costs over time.

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