What are the most important things to consider when deciding when to take a public company? originally appeared on Quora – the knowledge-sharing network where compelling questions are answered by people with unique ideas .
Response from Dheeraj Pandey, Founder, CEO and President of Nutanix, on Quora.
Four things to consider before taking a business audience:
- Predictability predictability, predictability. Machine on demand funnel science, customer / recurring business, customer churn rate, cohorts from one year to the next, leverage (acquisition costs of customers), distribution costs, etc.
- If the company developed the "thick skin" to ward off short-term disruption, knowing full well that perseverance is the key to this hoarse public procurement colosseum.
- The liquidity of the employees so that they can make a checkpoint on their hard work, breathe deeply, and then start the next sprint in this company's marathon.
- For B2B companies, penetration within rich customers. The Global 2000 takes longer to trust a new story, and they like the open financiers to judge the longevity of their innovative "partners". Go public can help with this trip, provided that the intermediate market customer of the early majority has blessed and cooked the product and customer service for a few years. The brand can get a bullet in the arm if the company had an honest story on Main Street for Wall Street. The two Streets can go hand in hand and help each other in a virtuous cycle, if the business was genuine. By genuine, I mean, just the right balance between honest products / services and a dreamy narrative.
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