Blog Posts by Brian Hamilton

  • 5 Myths about IPOs: The dangerous narrative of “the next big thing”

    With the recent Twitter public offering, we may see "Mom and Pop," or retail, investors racing to invest in the "next hot IPO." Unfortunately, many of these investors will come out on the losing end of the equation.

    Granted, some IPO deals are good for retail investors, but I'd argue the odds of that happening are stacked against you. Regulatory rules, designed to protect IPO investors, generate reams of disclosures about the company and the offering process, but unfortunately, many investors neither read nor understand these.

    On an individual level, of course, there are strong companies that go public and yield high returns for initial investors. However, what I'm concerned by is a certain "narrative" about IPOs that relies heavily on several perceptions that are highly problematic.

    Myth #1: Investing in an IPO gets you in on the ground floor.

    People assume an IPO is an opportunity to "get in on the ground floor" of owning a good company. In reality, you're coming in on something like the

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  • How Entrepreneurs Should Use Their Accountants

    Accountant

    Being entrepreneurial doesn’t end at starting a business; it means constantly striving to perfect your business model and quickly and continually adapting to change.

    While “big data” has become a buzz word and the ability to readily capture data to inform business decisions has significantly increased in recent years, overlooked in this data grab is the importance of financial data and accountants, specifically.

    You may just think of your accountant when it’s time to file your taxes, but he or she actually holds the secret to how healthy your company is and what to do about it.

    What the accountant has is a mass of financial data, and with the right amount of financial data, a good accountant can almost instantly identify a business’s strengths and weaknesses.

    Are your costs of goods sold too high? Are your prices too low? Do you have a manager whose team is particularly productive?

    Your accountant likely has the answers to all of these questions and the data to back them up.

    Entrepreneurs

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