Institutions Are Built Before They Are Listed.

Last Friday, I had a call with a founder from a very promising industry. While having the call, he was a little concerned about one fear and that stayed with me…about whether he should bring an IPO or not, and the main fear factor was losing control.

While understanding his business, I could see that, if he gets capital and the vision, he can take the business to the next level.

Then, I specifically asked, what’s the concern, he mentioned “It’s about Losing Control. Since inception, it was me and my CXOs taking major decisions, how will it change?”

Honestly, I’ve heard this concern from many promoters over the years.

And every time, I see it a little differently.

I strongly feel there is no such sort of concern, because ultimately, it’s more on the governance side.

If you’re a CEO running a business, reporting to the board, there is no loss of control, but it’s a better control in terms of you having stronger governance, better systems, and experienced voices on the table that supports you.

What it does is, ask you to build an institution instead of a founder-dependent company.

You still lead the business. You still make the important decisions.

Apart from losing control, what’s the most common misconception you’ve heard from promoters about going public?