Over the weekend, I was deliberating about stakeholder contribution and their business involvement. We liked some people because they have been long-time friends. We like some others because of having worked together in some capacity. Aside from that, we consistently interact with people whom we also consider to be potential investors, partners, prospective employees and interns. And I tried to pencil all of these down into a matrix to see where all the different stakeholders fit in. Bottom-line: The interests of all co-founders have to be fully aligned, but more than that, each person also needs to demonstrate competency Opportunity costs are an important factor in aligning interest. Put it simply: If founders are in the venture as a 'hobby' or on a part-time basis, the venture probably isn't going to work out Cheer-leaders, idea generators and business evangelists should not be paid, unless they are personally committed to and vested in the business, either in an executive or non-executive role.

My maiden Carousell transaction. The attempt of communicating with the seller led me to discover a new estate in Singapore.

I have been through corporate budget planning processes. They can be quite uncomfortable. Some of my colleagues used to comment that the numbers keep going up every year, recession or not. The numbers usually involve an estimation of the revenue opportunity based on current pipeline and their probability of closing. In some cases, revenue shadowing is being applied, especially when a huge client is being serviced by multiple parties within a bank, a relationship manager, an industry specialist and a product guy. This "30-year" plan was charted out in what was supposed to be IJK's annual meeting. in 2018. Looking back, this has to be one of the most ridiculous budgets and firm targets ever to be drafted. It's nice to have big dreams and ambition, but it's more important to stay real and keep your feet on the ground. Also, this "astronomical" plan also serves as a gentle reminder to never listen to dubious people whose credentials and experience are questionable.

Blatage Coffee. My typical (and definition of a) quiet weekend in Shanghai - chilling by the 黄浦江 on the Pudong side.

There are many merits to taking a company public – prestige, a sense of accomplishment, the publicity and glamor that comes with it, and also the ability to further raise capital from subsequent offerings. Behind the 400-page prospectus of legal disclosures and marketing taglines are hours of laborious work invested by an army of bankers, lawyers and accountants. Despite the tedious process of taking a company public, many shareholders insist on taking this route. On average, nearly all IPO bankers commit to a timeline of 6 to 12 months, subject to regulatory approvals and customary due diligence being in place. In reality, this process takes somewhere closer to 2 years and in some cases even up to 4 years. The costs of going public is more than you think. According to a survey conducted by PwC, more than 80% of CFOs commented in a survey that the one-time expenses relating to an IPO were in excess of USD 1 million – these are costs relating to the engagement of legal counsels (both onshore and offshore), accountants, commissioning a market study report, the book building process (gathering investor demand) and other miscellaneous expenses. These costs also vary according to the complexity of the company structure and the readiness of the company in terms of being compliant with regulatory requirements from the authorities. All these excludes the underwriting fees charged by banks which are typically 6-7% of gross proceeds raised. As an example, the listing of e-commerce company Y Ventures on the Singapore Catalist last year in July 2017 grossed in approximately SGD 7.7 million in proceeds, of which SGD 1.7 million (more than 20%) went to listing expenses. While this could be a unique case given the incredibly small size of the offering, average costs for public offerings of up to USD 100 million were anywhere between 7 to 30% of total proceeds raised. This number comes down to between 4.5 – 9.0% for deal sizes of between USD 250 to 500 million and 2-3% as we approach the billion-dollar mark, which is fairly in line with market practice of advisory fees being 2 to 8% of transaction size. Post IPO expenses – not something to overlook. Oxford Economics and PwC estimate that at least USD 1 million of additional costs annually are required to maintain a public company. The largest part of this goes into a more robust accounting and auditing process, but there are also additional resources that are required to be put in place such as investor and public relations, information technology and internal staffing costs amongst others. To put this in a financial perspective: If your company is performing at an annual run-rate of USD 50 million, this will put a dent of at least 2% in your net profit margin every year. Most companies are just not functionally ready. Most companies do not have the necessary resources for executing a stock exchange listing. For most, it is also probably the first time they are taking a company public. Shareholders and management try to do a number of things to compensate for this gap – including hiring full-time senior professionals who have prior experience in capital markets (usually ex-investment bankers), assembling a team internally to execute the transaction and conducting a beauty parade to select the best bankers and lawyers to lead the process. On the surface on it, the deal could look well-orchestrated with an international line-up of the top firms. However, this usually results in an intricate mesh of numerous professionals with somewhat polarized personal agendas leading to overburdensome workload on the company’s management and IPO team as they try to coordinate the various working parties. If not handled well, this additional workstream will create undue stress on the operational team which should be focused on the day to day workings of the business. If you are a small to mid-sized company with a great product, solid business model, fantastic equity story and looking to raise capital for expansion, you are better off working with a strategic partner such as a private equity or venture capital firm who could potentially be more helpful in growing your business and sourcing for capital. If the IPO roadmap is something you must take, work closely with a trusted advisor right at the onset to minimize the need for mobilizing too much company resources and reduce decision fatigue for senior management and key stakeholders. As key issues in the IPO process get progressively resolved and transaction starts to take shape, the company can still onboard more banks to execute the book-building process.

The picture speaks for itself.

Learning, knowledge and staying up to date with the news and what's going on in the world is your own personal responsibility. The same goes for your health. Nobody was ever hired into a smooth sailing job. You were hired to fix a problem or to clear up a mess. Take the cheapest and happiest mode of transport wherever possible. Never look down on anyone because of what they do or where they are from. Usually, no one is incompetent. Everybody is good at some things and bad in others. Some people are just placed in the wrong places at the wrong time. Work hard, but make time for adventure every now and then. Have faith - even if you feel victimised. Over-deliver, don’t over-promise. Let making a great product be your primary focus rather than try adjust your output and deliverables based on dollar and cents paid. Optimism almost always triumphs pessimism. The change in mindset is usually all a matter of crossing a thin line or seeing a whole new perspective. In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing. Take responsibility for your own decisions and actions. Embrace both the good and bad things that happen. Never compare with others, thinking that they were lucky or fortunate. You make your own luck. Pursue work excellence with a balance. Life is full of bad decisions, screw up and then just move on. Never show a black face unless you have to. Impulsive anger and frustration may come back and bite you. Rather than being annoyed, be amused. Instead of getting angry, become curious. In place of envy, feel admiration. Don't let success get to your head or failure get to your heart. Prove the doubters right by making mistakes, before proving them wrong in the long run. Avoid the “fake it ’til you make it” belief and focus only on making it. Wake up earlier than others. Talk about ideas, not people. Put in more than you get in return at first. Stick to a strict schedule, even if it makes less time for excessive fun and relaxation. Support the success of others, rather than hoping they fail. Sacrifice your social life and weekends. Admit you need help and ask others for guidance. Accept insecurity and fear as unavoidable emotions. Do what others would say is an impossible task, without making excuses or feeling like a victim. Get up after getting knocked down, stronger and more prepared than before. Smile at the people who doubt your abilities. Material possessions are overrated. Own less. Focus on the things that really matter. Success is a lifestyle not a result.