Why Most Entrepreneurs Dismiss Going Public (and Why They’re Wrong)

When most entrepreneurs hear the phrase “going public,” their first reaction isn’t excitement — it’s skepticism, confusion, or outright dismissal.


They assume it’s a Wall Street move reserved for tech unicorns, billion-dollar startups, or companies with private jets and IPO roadshows.


They assume it’s too expensive, too complex, too regulated, or too far out of reach for their business.

They assume they’d lose control, drown in paperwork, or spend their lives explaining quarterly earnings to analysts.


And so they dismiss it — never realizing they’ve just turned away from one of the most powerful and underutilized growth levers available to them.


But here’s the truth:


Going public is not just for billion-dollar startups.


It’s not only about raising capital.


It’s not as expensive or as complicated as most people think.


And for the right entrepreneur — with the right mindset and strategy — it can be the most transformative business decision they ever make.


Let’s explore why most entrepreneurs rule it out… and why they might want to reconsider.


1. “Going Public Is Only for Massive Companies”


This is the single biggest misconception — and the most limiting.


Entrepreneurs picture Amazon, Facebook, or Airbnb when they think of going public. But the reality is that many small-cap and micro-cap companies go public every year — many of them with $2M to $20M in revenue.


These are not tech unicorns. They’re HVAC companies. Business services firms. Healthcare providers. Digital marketing agencies. Home services rollups. Even niche manufacturing firms.


In fact, going public is especially powerful for companies that aren’t sexy enough to raise traditional VC or PE money, but are profitable, scalable, and acquisition-minded.


If your business has $500K to $2M in EBITDA, and you’re thinking about acquisitions or capital raises, you’re exactly the kind of entrepreneur who should be considering this path.


2. “It Costs Millions and Takes Years”


Yes, a traditional IPO can cost millions — and yes, it can take years.


But most entrepreneurs going public don’t do it through an IPO. They use:

  • Reverse mergers: where you acquire an existing public shell and inject your operating business into it
  • Direct listings: where you go public without raising capital, enabling liquidity and structure


Both options can be completed in months — not years — and typically cost a small fraction of a traditional IPO.


When you understand that the public company structure is the prize — not the capital raise — the process becomes far more accessible.


3. “Going Public Means Losing Control”


Many entrepreneurs assume that going public means handing over control to investors, analysts, or Wall Street.


But with a properly structured transaction — especially in a direct listing or reverse merger — you can go public without giving up control.


In fact, most founders retain majority ownership and full operational authority post-listing. There’s no boardroom coup, no hostile investor, no quarterly earnings call if you’re not raising institutional capital.


You’re still in charge — only now you have a more powerful set of tools.


Think of going public not as a loss of control, but as a leverage event. It allows you to:

  • Raise capital faster (and on better terms)
  • Acquire companies more efficiently
  • Retain more of your equity long-term


That’s not giving up power. That’s multiplying it.


4. “It’s Too Complicated and Risky”


Yes, going public introduces regulatory requirements. You’ll need audited financials. You’ll need to file disclosures. You’ll have to play by the rules.


But none of that should scare a serious founder.


If you’re already operating a profitable business, the path to compliance is straightforward. And with the right advisory team, the complexity becomes manageable — even predictable.


What’s truly risky is:

  • Trying to scale with no leverage
  • Giving up 40–60% of your equity in a VC or PE deal
  • Missing out on acquisition opportunities because you weren’t credible or capitalized


The real risk isn’t going public. The real risk is staying private when you shouldn’t.


5. “I Don’t Need to Raise Capital”


Perfect. That makes you an even better candidate.


Going public isn’t about raising capital — at least not initially.


Most entrepreneurs who go public through our process don’t raise any capital at the time of listing. Instead, they:

  • Use structure to build trust
  • Complete acquisitions using creative financing (seller notes, preferred shares, SPVs)
  • Build a track record before accessing institutional capital


When they do raise capital later, they do it:

  • At a higher valuation
  • With less dilution
  • From a stronger negotiating position


Going public first actually makes capital raising easier — and cheaper.


6. “I’ve Never Heard of Anyone Doing This”


Exactly. That’s the opportunity.


This strategy isn’t talked about on Twitter. It’s not taught in accelerators. It’s not pitched by most attorneys or brokers.


But it’s real.


We’ve used it to help entrepreneurs in multiple industries:

  • Go from $300K to $14M in revenue in 5 years
  • Grow from $1.5M in revenue to a $240M cash acquisition in 7 years.
  • Go from a $10 million to $65 million valuation in 4 years.


These weren’t IPOs. They weren’t VC-backed. They were just smart entrepreneurs using public structure as a growth multiplier.


You don’t hear about it because the people doing it are too busy building.


7. “It’s Not the Right Time”


This might be the most honest objection of all.


Going public isn’t for everyone. And it’s not for every phase.


But here’s what we tell entrepreneurs:


If you’re already growing through acquisition… If you’re raising capital (or thinking about it)… If you want to retain control while building something much bigger…


Then the right time might be sooner than you think.


You don’t need to wait until you’re “big enough.” Going public is how you get there.


And if you have the mindset, team, and track record to move fast — you may already be ready.


Final Thought


Entrepreneurs dismiss going public for one reason: they misunderstand what it really means.


They think it’s expensive, complicated, and risky. In reality, it can be lean, strategic, and transformative.


If you’re a founder with vision, traction, and the desire to scale — don’t let old assumptions hold you back.


Going public isn’t just for billion-dollar startups.


Sometimes it’s the smartest play for the $2M entrepreneur with a $200M idea.


Want to explore whether this is the right strategy for your business?