Laying the Proper Foundation for Going Public, with Steven Birdsall (Part 1)

In this episode, I have the pleasure of speaking with Steven Birdsall, a 3X CRO and 4X COO, of both private and public companies.

Together, we explore pivotal nuances between private and public companies, with a focus on the challenges and opportunities of going public as well as the strategies for optimizing go-to-market approaches, including insights on maintaining focus, achieving margin expansion, and the significance of the "rule of 50" in creating value.

So much so that like mentioned in the outro, I had to seperate this epic episode into 2 parts. Stay tuned for part 2.

Steven Birdsalls Linkedin Profile

Laying the Proper Foundation for Going Public [00:01:12] Discussion on the importance of laying a strong foundation for a company before going public.

Difference Between Board Expectations in Private and Public Companies [00:01:41] Exploration of the contrasting expectations from boards in private and public companies.

Experience with Taking a Company Public [00:07:58] Stephen Birdsall shares his experience of taking Anaplan public in 2018 and discusses the different scenarios he has encountered in his career regarding IPOs.

The significance of changing the go-to-market model [00:11:27] Stephen Birdsall discusses the importance of changing the go-to-market model when preparing for an IPO and the challenges faced in the planning software market.

Creating a pod-based go-to-market strategy [00:14:20] Birdsall explains the concept of a pod-based go-to-market strategy, focusing on the benefits of streamlining different functions and creating accountability at a TAM (Total Addressable Market) level.

Building scale through industry-level TAMs [00:17:08] Birdsall talks about the next step in scaling the business by creating industry-level TAMs and how it leads to a more efficient go-to-market strategy centered around specific industries.

Focus on Industry and Geography [00:18:00] Companies under $100 million should focus on a specific industry or geography to maximize their opportunities and scale.

Traditional Go-to-Market vs Pods [00:19:00] Sub $100 million companies selling to specific personas, such as CFOs, should focus on traditional go-to-market strategies instead of implementing pods.

Private Equity Rule of 50 [00:23:34] Private equity-backed companies aim to achieve the Rule of 50, balancing growth and margin expansion to ensure profitable growth in the business.

Solving Math Equations [00:27:15] Explanation of how to solve math equations by separating known and unknown variables and the importance of setting up the problem correctly.

Different Approaches to Learning Math [00:28:10] Discussion about how kids learn math differently today and the importance of coming to the same solution regardless of the approach.

Growth at All Costs Mentality [00:30:28] Exploration of the concept of growing at all costs and the potential consequences of disrupting the rule of 50 in terms of profitability and workforce.

Private Equity's Value Creation Mode [00:36:43] Private equity firms aim to create value by acquiring rule of 50 companies and unlocking their potential.

The Importance of Rule of 50 [00:37:40] Having a plan to reach rule of 50 is essential for creating value and attracting investors in a company.