A company has five stages of growth.
- Seed Funding
- Growth / Expansion
- Public Listing
Watch the video below where business funding advisor Ching Chee Pun shared about the five stages of business growth.
Initially there’s a pre-seed. Pre-seed is when the individuals or companies have an idea, concept. They would then require funds for their product, or proof of concept, or business plan.
The second stage is Seed Funding. This is the start-up funding. This is when a company is in the process of setting up or has been in the business for a short period of time. During this time, a company would require capital for commercialization to do some marketing and sales.
The third stage is growth/expansion. When a company gets a little bit of profit or break-even already, they can then go into more production and expand market. In Malaysia, most companies are only at the growth and expansion area. Banks prefer to fund this area over pre-seed and start-up. Again, that doesn’t mean that pre-seed and start-up can’t get funding. It only means that the majority of banks like to fund in this area. Pre-seed and start-up can be funded with some limitation.
After that, the fourth stage is what we always call the Pre-IPO stage. A company goes through a company cycle like products go through a product cycle. After they grow, we encourage, if possible, the company to go for IPO (Initial Public Offering), to go public. So, the fourth level is in fact when a company has come to a stage that they can jump onto another level and go IPO. They would then be a seeking capital, advisor, a partner to assist in the proper listing because they need more funds. They need more funds to go for market expansion.
Fifth and final stage is going for IPO or public listing. Many SMI/SME think that IPO or going for public is a distant goal. Sometimes they don’t even think about it. But, I encourage, even if you’re a start up, even if you’re a really new company, to always dream to go for IPO. I believe that when you want to go for IPO, you will increase your sales and bring your company to a higher level. You will do well eventually because you have a final image in your mind for the company – that is IPO.
A lot of SMIs I talk to think that this is too fast for them. It’s not. Nowadays, if you plan well, then this is a very attainable target or objective for a company. When I have a chance, I’ll share with you guys the benefits of IPO listing.
For Founder Method members, you can watch the full replay of this training here:
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