Clark Nichols does something very interesting, but that’s not talked or written about much — he takes companies public. Going public is a lot easier and cheaper than you might think, but there are advantages and disadvantages to it, so entrepreneurs and business owners need to go in with their eyes wide open. Join John and Clark as they discuss the ins and outs of taking a company public, and stay tuned to hear some simple tips and tricks that you can use if you’re planning to take your company public.

 

Key Takeaways:

[:18] John introduces his guest for this episode — Clark Nichols.

[1:13] Who is Clark? What is his history?

[6:10] Why would a small company want to go public?

[9:40] When John's company went public, they had negative cash flow, but that is unavoidable to build the infrastructure required for a much larger, profit-making company.

[10:58] Having a business plan is crucial when it comes to going public. Clark elaborates on this with an example.

[13:22] John simplifies the concept — going public creates currency for your company.

[17:13] A public company is usually worth more than a private company. John shares the example of Warren Buffet and Duracell.

[20:19] Going public from top-down is very different from going public from bottom-up. Use the Internet as a resource to find people to support you.

[21:33] First, you have to understand the critical difference between marketing and public relations. Clark shares an example from his personal experience.

[27:08] Everything Clark does is outside the box. Remember, he's working from bottom-up, just like all the entrepreneurs out there.

[27:55] There's something like a pre-entry level market on the New York Stock Exchange for smaller companies, that allows access to all broker dealers who can promote your stock for you.

[28:56] Clark talks briefly about PIPE (Private Interest and Public Equity) and the pros and cons of some methods of raising capital.

[32:57] Raising capital by going to the bank used to be possible, but now, banks want to hedge their bets against assets.

[34:33] There are platforms that you can tap into to get access to companies that are looking to give money away. Unfortunately, it's a real challenge to get any money from them.

[35:24] Clark shares another trick to get companies to say “yes,” to giving you money.

[39:27] Running a public company is like running a whole other company from the one you started off with, and you need to be prepared to deal with that. Is it worth it?

[42:30] Clark gives entrepreneurs a tip to avoid failure. It's all about solving problems, starting with the most important one first.

[45:33] Contact Clark via his website — Clarknichols.com!

[47:15] A concluding word of advice from Clark about writing your business plans — stick to the facts! Don't use it as a sales instrument.

 

Mentioned in This Episode:

Financial Gravity

The Financial Gravity Podcast with John Pollock

Clark Nichols and Associates, LLC

Upwork (Formerly Elance-oDesk)

Peter Drucker

Strategic Coach

Diapers 2 Dividends Cartoon