IPOs AREN’T JUST FOR THE SUPER-SIZED

should be looking at, including government grants, subsidies, venture capital and bootstrapping. Many of these can even complement each other. Founders who take just one path may be doing themselves a disservice.”

The biggest misconception about listing is that you need to be big to go public, he says. “People need to be reminded that in Canada we are fortunate to have one of the only stock exchanges geared to small-cap companies.”

So why do entrepreneurs opt for the IPO route? Kousaie says it’s typically for these three reasons: “First is their desire to retain greater influence over business decisions and gain access to a broader group of investors. Second is that it enhances their profile and credibility with customers and employees. Third, it can facilitate future growth. You can grow through acquisition more easily and efficiently because you can quickly raise capital or use public shares as currency.”

Granted, there are some complexities and costs associated with filing and ongoing reporting requirements. “There may be higher standards of disclosure for a public company,” he says.

For Shahbazi, the disclosure demands were a positive. “It created a discipline around reporting for our management teams. It was a very good road for us and gave us the capital we needed to grow. It’s tough to argue we did the wrong thing.”

To help entrepreneurs, TMX. com provides free online toolkits that include a number of educational and information resources on going public, including listing requirements for specific industries. TSXignite.com is another resource that can help founders and entrepreneurs.