Some people think that a business has achieved success when it starts offering shares to the public. While an IPO can generate the required capital to expand the business, people should not mistake it as a sign of success. Many small and large businesses have achieved greater success without going public.
Setting aside a hefty budget to start a business may not guarantee success
Most startups are always lucky enough to get financing. But they make a big mistake by setting aside a big chunk of the money for advertising. This doesn’t guarantee success, as there is already a ton of statistics of businesses that burnt money doing advertisements but failed eventually. Some companies even shell money to the tune of $50 million dollars to appear on front covers of major magazines. These days, selling a lot is not about how much you spend on advertising, but the quality of products, and level of customer service you offer. In fact, most businesses today are setting aside a big chunk of their budgets to perfect their technology in order to produce high-quality products consistently.