So by putting it in simple terms, executing a good Market Feasibility Study can help your business before moving on to the next step. Maintaining good relations with potential and current investors is important. Coming up with a strong and convincing investment thesis and selecting a target market must come first before an IPO. Keep in mind that you must inform the public about your product and convince them to patronize it. Coming up with different strategies for managing your investor’s understanding of your product may help as well.
Create an investment thesis that is convincing and strong.
Think like an investor, ask yourself why must you invest? Is it beneficial? Where must you invest in the capital? Or Does it have potential? This will give you an idea of how to come up with a convincing and strong investment thesis that can win over potential investors.
Cite out the advantages of what your company offers and how it differs from other competing businesses and investment opportunities.
Clarify and indicate what investors can gain if they choose to invest with your company. Keep in mind that you are targeting what the investors will value in the future, and not in the past. It’s your responsibility to give your potential investors a positive outlook on your company’s performance so you can convince them to invest in your business.
Also remember, business strategies are always evolving, even your convincing and strong investment thesis may eventually change as it evolves. That doesn’t mean that you have to get rid of your investment thesis, it plays as the foundation on how you communicate with both investors and stakeholders. As it evolves, re-think offers that can further attract investors by supporting facts, and relay information as clearly and as simply as possible.
Know who your target investors are.
Before planning on going public, first, consider the fact that not everyone is your target. Only a few of those who have the same mindset and goals as you do, are the ones you need to think about. Make sure they agree and are positive about your investment thesis and what you offer. Don’t waste effort in blindly venturing to find potential investors, choose your target investors carefully, and hit them with everything you’ve got. As the saying goes, “One shot, One kill.”
Provide your target investors and stakeholders the correct information they need to give value to your stock.
The right kind of information on how and where to invest your capital and how to value certain stock is what the market always needs. Your business needs to know and determine the information that the public needs to know before your IPO, So you can have a general overview of your business and what it’s all about, and how investors may treat your stocks and invest in them. Get everything ready before the launch, carefully plan out the information you let out to the public, who will generate the information, assign tasks, make sure the information is well disseminated, so the market can put value to your stock. Consider what your image is in the eyes of the market, and how they analyze it. You may use different tools and models that can help you keep track of your performance and identify the latest developments in the market and how your stocks perform. This is where the phrase “Do or Die” “Make or Break” “Float or sink” applies. Everything depends on what actions you take with your business at first.