Tag Archives: godaddy

When NOT to go public by GoDaddy’s Bob Parsons

It seems that nearly every business owner out there has dreams of taking their company public.  This is especially true in the technology industry where you can be losing money but generate a windfall of cash by offering shares to the public.

An article earlier this month by Bob Parsons, founder of GoDaddy.com outlines why, after doing all the filing needed and receiving SEC approval, he decided to withdraw his registration with the SEC to become a public company.

One of the primary reasons cited in his post are the stringent accounting methods that the SEC would require them to use if they wanted to be public.

With the ridiculous Sarbanes-Oxley Act requirements, many companies (and their the CEOs who are now ultimately responsible for financial errors) are deciding to either not go public, or to go public in a foreign market to avoid the overbearing requirements of the US market.

SOX was a typical over-reaction to the Enron/Tyco/etc scandals of the past few years.  Just like preventing you from bringing hair gel on an airplane probably doesn’t make you any safer, but makes you feel safer because “at least they did something“, many of the SOX requirements don’t do anything to stop fraud, while making it much harder to do business as a public company.

Do we really want US companies to feel like that have to go to foreign markets if they want public investment?  Business is what drives our economy.  Let’s figure out how to make it easier for business owners to operate, not hamstring their efforts to grow (and create jobs, and buy buildings, and pay taxes).

Bob Parsons of GoDaddy – 10 Rules

This is a great posting by Bob Parsons, the founder and CEO of GoDaddy, and former founder of Parsons Technology (sold to Intuit for $64 Million).

One of the interesting things from his business history is that with both of the companies he founded he was the sole investor.  He never raised money and created two companies with revenues in excess of $100M.

Of the 16 rules Parsons has come up with, here are a few that are my favorite:

1. Get and stay out of your comfort zone. I believe that not
much happens of any significance when we’re in our comfort zone. I hear
people say, “But I’m concerned about security.” My response to that is
simple: “Security is for cadavers.”

7. Always be moving forward. Never stop investing. Never stop
improving. Never stop doing something new. The moment you stop
improving your organization, it starts to die. Make it your goal to be
better each and every day, in some small way. Remember the Japanese
concept of Kaizen. Small daily improvements eventually result in huge
advantages.

8. Be quick to decide. Remember what General George S. Patton
said: “A good plan violently executed today is far and away better than
a perfect plan tomorrow.”

You can view Parsons’ entire post at Bob Parsons – My 16 Rules.