After I sold my own firm to an Internet company, we tried (and failed) to go public—twice. That was the dot-com era, a time when so many technology firms were going public that cynical observers believed that “IPO” meant “it’s probably over-priced”—and for good reason. Remember Webvan and Pets.com? Yet there is no denying that plenty of dot-com millionaires are now relaxing on their yachts.

Today the market is—pardon the pun—all atwitter at Facebook’s IPO. It certainly looks as if it will do well. After all, in its regulatory filing the social networking service said it expects to raise $5 billion in the offering and it reported a net income in 2011 of $1 billion on sales of $3.7 billion. Impressive stuff. Facebook will likely be the biggest Internet or technology IPO ever.

However, technology companies planning to go public would be wise to be careful. This isn’t the “dot-con” era of the late 1990s where even the silliest idea could garner huge amounts of money. Today’s more mature companies have real financials and metrics that can be evaluated, rather than just a lot of hype about how many “eyeballs” a website is getting. Add to that the fact that the global economic collapse of 2008 destroyed much of the wealth among retail investors, while the global economy continues to be on the rocks. . . . Well, let’s just say investors are likely to heed the rock band The Who’s memorable anthem, “We won’t get fooled again!”

Indeed, technology IPOs in 2011 were largely a bust. Sure, LinkedIn (the business-related social networking site) ended the year up 42 percent since its IPO, and Groupon ended up 14 percent. But Yandex (the “Google” of Russia) ended down 20 percent; Nexon (the Japanese maker of video games for Facebook) ended down 11 percent; Renren (the “Facebook” of China) ended down 76 percent; and Tudou (the “YouTube” of China) was down 62 percent. Even Zynga (the social network game company and creator of FarmVille) went public on December 16, 2011, and promptly lost 5 percent. It’s pretty much been treading water ever since.

So, if you’re planning on taking your technology company public, how should you proceed? Obviously it starts with having a sound business with a solid and consistent financial track record. But other things are just as critical. One is your road show. To be successful, you need to have a cogent investor value proposition—namely, one that clearly answers the question: Why should an investor buy and hold your stock? This entails stating whom you have chosen as your strategic investor base, what unmatched opportunity you offer to them, and how you will deliver significant returns.

Beyond that, you need to set your company apart and gain the confidence of the investor community. Here are six specific ideas to consider:

First, build credibility through your lead customers by promoting your relationships with them. If an Intel or Cisco or Apple views what you offer as very appealing, make that crystal clear.

Second, turn any possible “negatives” into “positives.” Many people don’t realize that, when Starbucks went public, there was a nationwide recession, and Americans were actually drinking less coffee. Starbucks successfully argued that, while this was true, data showed that people were actually drinking better coffee, and the company was uniquely positioned to capture this growing segment.

Third, demonstrate that you have a breakthrough business model. Investors want to see a business model that drives superior customer value and is fundamentally different from everyone else. eBay is a perfect example. In essence, it offered the first online “garage sale” and tapped into an enormous—and largely unseen—market.

Fourth, clearly show the upside market potential. Investors are looking for major returns, and you need to be explicit about why they should expect this. DoubleClick, the global provider of online advertising, successfully tied its own success to the growth of the Internet. Not only did it survive the burst of the dot-com bubble, but Google acquired it in 2008 for a whopping $3.1 billion!

Fifth, promote the fact that you have a balanced leadership team. Since a strategy is only as good as its execution, a management team that has both vision and operational leadership inspires confidence in potential investors. That’s why you’ll see that many technology companies combine youthful, visionary innovators with seasoned executives who have solid operational experience.

And sixth, demonstrate your ability to grow and achieve scale. One way a smaller company can do this is by creating strategic partnerships with large, reputable corporations and leveraging the strength of their established brands. For example, Jive Software has strategic arrangements with such well-known corporations as Infosys, CSC, and Akamai.

The bottom-line? Good start-ups combined with good positioning and marketing can overcome the toughest market conditions.

“Write what you know” is perhaps the most quoted saying about writing. Though it is likely apocryphal, it is most often attributed to Mark Twain. P.J. O’Rourke, on the other hand, has said that any creative writing teacher who utters these words should be “confined to a labor camp.”

No matter. When I started forming the plot for Terminal Value, I confess that I did start by writing what I knew—specifically, what it was like to be an entrepreneur who decided to take a gamble and start a company. Make no mistake: MobiCelus bears no resemblance to my firm, and Dylan is not me! However, the experience of taking the plunge of starting an enterprise, and then making the difficult decision of whether or not to sell it, is definitely familiar territory.

I’m often asked for advice from would-be entrepreneurs who seem to think that I know what the magic sauce is that will ensure success. I don’t. No one does. Indeed, data from the U.S. Small Business Administration show that, regardless of the year when they are founded, the majority of start-ups go out of business within five years, and two-thirds are no longer operating after 10 years.

What are the keys to launching a successful start-up? While there are many experts out there who have published thousands of books and articles on this subject, most seem to have differing views (though pretty much everyone will tell you it all begins with a great business plan). By all means, read up. But, based own my own experience, here are seven things to consider:

First, have a very clear vision of exactly what your business will be. One way to do this is to create a unique customer value proposition—basically, a statement that defines your business from the customer perspective. It clearly and concisely identifies your most desirable customers, defining what unique and attractive value you can deliver and how it is that only you are able to deliver it.

Second, make sure you are well financed. How much you need depends on what kind of business you are going to launch. Some require a lot of money, and you may need to seek financing or be backed by venture capitalists. (Warning: taking money from venture capitalist means you are ceding some degree of control of your enterprise to others, which may come back to haunt you!) Others require far less capital. I funded my business myself by not taking any income for the first year. Of course, not everyone can do that.

Third, be dogged about lining up your customers—preferably before you even get into business. Talk to prospects, tell them what you plan to do, gauge their interest, and if possible see if you can get a commitment. This is critical—I’ve met too many entrepreneurs who spend endless hours fiddling with what their logo should look like when they should be taking potential customers to dinner!

Fourth, assemble the very best people you can possibly find. There is an old adage that “A” players attract “A” players, and “B” players attract “C” players. Don’t just hire people for the skills you need; hire people who are so good they scare you. If you think that they could someday take your job, you’re definitely on the right track.

Fifth, run your business very lean. No need for fancy offices, furnishings, or employee perks when you are getting started. What money you do have you’ll want to focus on two simple things: marketing and selling as efficiently as possible, and delivering value that far exceeds your customers’ expectations. Quickly building a strong reputation is everything.

Sixth, stay adaptable. Markets change, innovation is a constant, and your business can easily be demolished by a disruptive technology that makes what you offer no longer relevant. Pay attention to what is going on that could blindside you, not only in your part of the business world but in others.

What is the seventh key to success? Guts. I can’t tell you how many incredibly brilliant people I have met in my life who talk endlessly about starting a business—but never do. Yet there are plenty of successful entrepreneurs who didn’t get a fancy MBA from Harvard. They just did it. What’s the worst thing that can happen? Simple. After a year or two, if it doesn’t work out, you just go get a regular job like everybody else.