TheGreenBaron.com - Corporate Strategies - Part Five
Understanding Your Audience – Those who buy and sell your stock:
“Buy” Signals for the Typical Investor – Again; “Investors Listen With Their Eyes – What do They Hear when They See Your Company”?:
Obviously different investors will have different criteria and things they view as positive about a particular company/stock they are at least considering as an investment. The main initial criteria will usually be, what are the odds the stock will or has an above average chance to increase in value after they buy it? We say “main initial criteria” because as stated earlier, “profit” will eventually move down the list to number 4 after “recognition”, “participation” and “empathy”. They will also try to calculate as best they can an approximate time frame for that expected increase to occur by. If the “odds” and “time frame” are acceptable to the investor, and they like what they “hear” when they “see” your company, they will be more inclined to buy the stock – and that is the first step in your efforts to retain them as a loyal and supportive shareholder.
For many average investors/shareholders their interest and/or support (or lack thereof) for a particular stock can and often is at least partially based upon or at least influenced by how many investors the company is informing about the stock – how many of those investors are converting to shareholders by buying the stock, how many of those investors are informing other investors about the stock and how many of those other investors are doing the same. Keep in mind, all of this information can be easily and quickly obtained by most investors using only a few resources readily at their disposal. Investors can use Internet message forums, Social Media, daily trading activity, etc. to calculate investor/shareholder interest, sentiment and support by their fellow investors/shareholders for a particular stock they either currently own are considering an investment in. They will often “look” at those things before they “leap” into the stock. Your job is to make sure they like what they see and hear for the very limited time that you have their attention. Thanks (or sometimes, NO Thanks) to the Internet and our fast paced investing and “communicating” trading environment, if your organization is not the messenger for your company, then someone else most certainly will be. The primary source for credible, accurate and timely information about and from your company should always be “your company” – many unscrupulous investors with an agenda (often contrary to yours) will do everything they can to assume that role for you – especially to other investors. Make sure all of your shareholders and the investment community get all of their information about and by your company straight from the horse’s mouth (you) and not some jackass trying to make a quick buck at you and your shareholder’s expense.
“Sell” Signals for the Typical Investor:
If you were a “typical” shareholder in a company that did little, none of, or not enough of these strategies, (or worse; the opposite) would that fact alone make you more inclined to hold your shares, buy more shares or “sell”? Obviously in our biased opinion, companies that do not implement these proven and effective strategies, or at least not enough of them for this program to be fully effective, is why most Penny Stocks stay Penny Stocks…if that.
The Bottom Line:
How investors feel about your company and stock is often based on how they perceive not just how your company feels about them but also how other investors/shareholders feel about your company and stock as well. How you treat your shareholders is usually how they will treat your stock in return – this includes interest and support. Shareholder interest and support combined creates and maintains shareholder loyalty. Treat your shareholders as if they were “royalty” and they will repay you with “loyalty” – and there is nothing that you and your company cannot accomplish with enough “loyal” shareholders on your team. T.E.A.M. Together Each Achieves More.
The Green Baron’s Recipe for Increasing Corporate and Share Value:
Capability and fame mixed with a large amount of communication – then add Likeability and Trust and before you know it you and your shareholders are pulling a “fortune” out of the oven.
If your company does anything that people want, need or value, and you can find a way to effectively “communicate” with enough investors (fame) that your company can provide what they want, need or value (capability) – trust me; your share price will take care of itself…on its way north! Now, keep in mind; just like the TV series “Cheers” there are plenty of companies out there that everybody knows their name – but investors won’t touch with a ten foot pole. Regardless of what your company builds, sells, does, etc., focus on becoming famous for “likability” and “capability” and “trust” in your company’s ability to do what it’s supposed to do to keep your shareholders and customers satisfied and happy.
The H.A.B.U. Principle - Highest And Best Use:
The fast lane of success for you and your company is to operate both by The H.A.B.U. Principle – Meaning, everything you do should always be the “Highest And Best Use” of your time, resources, capital, and effort. H.A.B.U. is basically prioritizing your time, resources and objectives while adhering to a written plan of action to utilize and achieve them. A “Daily Planner” and/or Daily To-Do list are invaluable in implementing this principle. If your business is worth operating and your life is worth living than both are worth writing down.
Speaking of Time and Money – Beware the Time Bandits; They Steal Both:
“Time Bandits” are exactly what the name implies and you don’t have to “waste your time” (pun intended) looking for them. Trust me – they’ll find you…they always do. Because they are everywhere! What is your “time” worth to you? We guarantee it’s worth a lot less (if anything) to everyone else. Giving your time to someone or something that has not warranted it – or values it, is the same as you going around selling ten dollar bills for a quarter; same concept - or even worse, giving them away for free. Does that sound like a recipe for success? FYI; Your sphere of influence, be it personal or professional will place the same value on your time as you do – in fact, often less – if any value for it at all. You decide what your time is worth and it won’t be long until you notice that others will begin to give it the same value. There are several useful print, audio/video and online resources available dedicated to effective and proper time management.
You Have Not Because You Ask Not:
Short of your company inventing a light bulb that lasts forever, the fastest method for you to gain shareholders, or at least keep the attention of investors that showed some interest in your company is to build and maintain an opt-in subscriber newsletter database – in addition to, not instead of, your other methods for directly communicating with your shareholders and interested investors.
Yes, we know those little newsletter submission pop-up boxes on a website can be annoying to visitors – but they also increase newsletter sign-ups by over 1,300% - if you choose not to go that route, then at least display the subscription offer as prominently as anything else on your website – because it’s just as important as anything else of your website.
“If a tree falls in the woods and there is no one there to hear it – does it still make a sound?” – Who cares? No one heard it! If your company makes an important announcement and no investors to hear it – does it still make an impact? You better care! Your share value depends on it and your shareholders are counting on it.
Although they may own shares, not all of your shareholders or interested investors are closely monitoring your stock/company for new developments on a daily or even regular basis. The same is true for other venues of information such as your Social Media and/or their trading platform’s “Company News Alert” settings. Now do you see the importance of having a list of investors you can email and/or contact via Social Media anytime you need to that have not only given you their contact information but permission to contact them (opt-in / follow) about your company and stock? If your website does not currently offer this opportunity to your shareholders and other interested investors – stop reading, get your webmaster on the phone, and get that sign-up box on your company website NOW! Then follow the strategies outlined in this program for effectively communicating with your shareholders and investors. Always send out your company newsletter at the very least when your company releases news or has any significant development. Every newsletter should include a suggestion that the recipient also “set their news alerts” and follow breaking developments on your Social Media venues and website.
When we send out The Green Baron Report to our subscribers we always include an invitation to sign up for the report. At first you might ask why would we invite someone to subscribe to our report who has already subscribed to our report? We asked that same question at first too when we would receive multiple sign-ups from a single report sent to an existing subscriber. Then we discovered the answer; the original subscriber was “forwarding” our reports to other investors and they were the one’s subscribing for the first time. That’s how one subscriber directly creates several subscribers and it’s the same way one shareholder can directly create several shareholders – by asking them to; Communication.
Consistent and persistent communication is the key to maintaining shareholder support and loyalty – and turns investors into shareholders. Communication should be utilized with every method at your disposal, every time. Remember, your shareholders have put not just their money into your company but just as importantly, their hope. Trust me; they want to hear from you about both.
READ PART ONE: The Basics of Gaining and Maintaining Loyal and Supportive Shareholders - Implementing the Plan - Working With Your Shareholders - Turning Business Contacts into Personal Relationships - Using your Company to Attract Investors and Shareholders
READ PART TWO: Creating Your Own Success Story – Tools of Your Trade - Exponentially Increasing Your Shareholder Base – Control and the Ability to Delegate With Confidence - Getting Your Team on Board - Effectively Handling Good and Bad News
READ PART THREE: Your “Stock Company” Versus Your "Corporate" Company – Investor Relations Versus Shareholder Relations – What Shareholders Want and Expect From Your Company - Addressing Shareholder Priorities
READ PART FOUR: The Process for Building a Large and Supportive Shareholder Base – Using Effective Communication to Create Fame and Fortune - The Three Types of Effective Communication - The Cycle of Converting Investors Into Shareholders
READ PART FIVE: Understanding and Retaining Shareholders – Working For Your Shareholders – Increasing Corporate and Share Value – The H.A.B.U. Principle – Effective Time Management – More Techniques for Converting Investors Into Shareholders - The Real Bottom Line
READ PART SIX: The Green Baron's Top 25 Techniques for Gaining, Maintaining and Increasing Corporate and Share Value - Understanding Investors and Knowing Your Shareholders