6 Strategies to Win the New Initial Public Offering Game Businesses don't have to be big in order to prove they're self-assured in the changing world of IPOs.

By Vineet Jain Edited by Dan Bova

Opinions expressed by Entrepreneur contributors are their own.

superspamus | Foap.com

Entrepreneurial tech giants such as Larry Page, Sergey Brin and Mark Zuckerberg have incited changes in initial public offerings (IPO). The new IPO processes have resulted in entrepreneurs setting initial prices higher, raising more money and filing for IPOs more quickly.

The New York Stock Exchange saw more than $12 billion in proceeds from IPOs in the first half of 2015 alone. While the second half may reflect different numbers it's safe to say that tech entrepreneurs have changed the game.

Related: Great Achievements: An Intriguing IPO Filing and an Exciting Incentive

But what can entrepreneurs do to instill confidence about their businesses' futures and adapt to the changing IPO world?

1. Be confident in business plans and road maps.

One new IPO approach has been to tailor road shows to marketing and entertainment, using flashy multimedia to attract clients. Approximately 82 percent of institutional investors cite a road show's quality as a component of their buying decisions. Investors can, however, spot the smoke and mirrors and consider quality road shows to be those where flashiness is not covering up inferiority.

Businesses don't have to be big in order to prove they're self-assured. Focusing on a single need is enough to build a business plan and road map.

2. Don't hide from weaknesses or problems.

Another new trend has founders writing long and personal letters to investors regarding their hopes and worries with going public. Instead of writing about uncertainties, offer solutions to any problems moving forward.

3. Appeal to all parties as investors, and educate them.

Feed audiences concepts that are intellectually challenging and digestible. Clients need to be informed with simple messages distributed in easy-to-assimilate formats. Include information about all expansions beyond the initial business to foster long-term relationships.

Related: What You Must Do Before Taking Your Company Public

4. Build customer loyalty with clear road maps and superior support.

Customer satisfaction is no longer measured through revenue. Companies can be successful even if they are not profitable as long as they have wide varieties of users who love their products.

Establishing long-term relationships through professional services, support and ongoing road map updates is part of the value included in IPO prices. Take advantage of the new fact that companies can be linked with the personalities of their founders, their abilities to execute over the long term and their reputations.

5. Focus on long-term market opportunities.

The public itself poses a potential problem in its tendency to be prone to fads. Unless secure structures are in place, executives risk losing control of their companies as the pressure mounts to move forward. Find long-term market opportunities to avoid becoming another blip.

6. Track data analytics constantly, and act on that knowledge.

The new IPO methods may offer comprehensive approaches that go beyond dry numbers. However, in order to demonstrate to potential investors that you know where your product fits in the market, have the facts to back it up.

Be careful with this knowledge. Companies are becoming subject to heavy public scrutiny, which can affect business decisions (even though data the public can't view might serve as better decision-making tools).

Even if a business is not ready for an IPO, these six strategies are something entrepreneurs should think about as they continue developing their products until they are ready. Beyond road shows and personal relationships, the new IPO world includes more consumer-facing tech companies, as well as companies backed by venture capitalists -- and mini IPOs that are accessible to everyone.

Joining this world is becoming increasingly easier as IPOs continue to be approachable, so don't be afraid to participate -- or even win.

Related: Facebook Defeats Shareholder Litigation Over IPO

Vineet Jain

CEO and Co-Founder of Egnyte

Vineet Jain is the CEO and co-founder of Egnyte, a Mountain View, Calif.-based company that powers adaptive enterprise file services for thousands of customers worldwide. Jain has 20 years of experience building nimble, capital-efficient organizations.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Science & Technology

101 Small Business Ideas to Match Your Personality, Investment, Skills & Goals

Still stuck on what biz to start? Use AI to uncover 101 custom ideas aligned with your skills, values & lifestyle—plus a 90-day roadmap to launch with clarity.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Side Hustle

She and Her Sister Started a Side Hustle to Help People Elevate Their Homes — Now Their Brand Pulls In Hundreds of Millions: 'Get to Work'

When Lee Mayer moved from New York City to Denver, Colorado, she wanted to find an affordable, fun way to decorate her home.

Business Solutions

Access 25 Hours of AI Training for Less Than $20

This e-degree gives you hands-on AI training that's perfect for entrepreneurs wearing many hats.

Growing a Business

Why Storytelling (Not Selling) Is Your Most Powerful Branding Tool

A thought leader is a sum of their stories. Learn why sharing your unique thoughts, feelings and perspectives can help you stand apart from other experts in your field.

Starting a Business

How to Build a Side Hustle That Stands on Its Own — Without Burning Out

Ready to take your side hustle to the next level? This article shows you how to turn it into its own unique brand that gets noticed and grows on its own.