While companies may see going public as a scaling method, this may not be the answer, according to one CEO.
"Going public is not for every company and a company should not rush into going public," Nasdaq's Bob Greifeld told CNBC.
He noted that in 13 years of heading the stock exchange he's seen hundreds of entities hold initial public offerings, and in his experience, successful public companies have a business model that's proven, repeatable and one that can grow on a consistent basis.
"When you go public, you're facing what I like to say is an endless series of quarters," he said.
Once a company decides to take the IPO plunge, the key is to understand the difference between a private and a public company, Greifeld said during the interview.
"Your report card comes every three months and your outside investors, that put faith in you, are really counting on a certain level of performance," he said.
Still, performance is not the most pivotal component to a good relationship with shareholders, transparency is just as important, Greifeld said.
Similarly, the CEO thinks that building a strong management and accounting team before going public can prepare a small company to successfully maintain the big launch.
"You have to have the finance and accounting structure in place with a rigor and a discipline that does not typically exist in a private setting," he said. "Act like a public company before you are in fact a public company."