TheGreenBaron.com - Corporate Strategies - Part Four
The process for building share value and a loyal and supportive shareholder base:
1. Company informs investor about their stock
2. Investor researches the stock
3. Investor buys the stock and becomes a shareholder
4. Shareholder informs other investors about the stock
5. Those “other investors” research the stock
6. Those “other investors” buy the stock and become additional shareholders
7. Company gives all shareholders participation, recognition, empathy and (ideally) a profit
FAME = FORTUNE:
The owner of a company wakes up each morning in a bed that is advertised – Brushes their teeth and showers with products that are advertised – Gets dressed in clothes that are advertised – Eats a breakfast of food that is advertised – Drives to work in an automobile that is advertised – Then arrives at their company that does not advertise. But don’t worry, sooner or later that company will advertise – itself…FOR SALE
Investors Listen With Their Eyes – What do They Hear when They See Your Company?
The process for building share value and a loyal and supportive shareholder base”? Commitment and communication! That means commitment to communication between the company and investors – especially your shareholder base. Did you notice we used the word “between” regarding “communication” as opposed to “from” or “to”? It’s a two-way street. Communication is the key component and driving force behind increasing share value while attracting and converting investors into loyal and supportive shareholders and that takes commitment and communication by you and your organization.
“The servomechanism of the entire propositional laburnum is always the coquetry bronchoscope when it comes to sphagnum and/or the vituperative appurtenant”.
Did you understand everything you just read? If not – now you know how most of your shareholders feel when your company talks to them. Find a friend or family member not directly associated with your company and read them your last press release. Then ask them exactly how that information benefits your shareholders? Most Penny Stock investors care more about the stock they own than they do about the company they own that stock in. The reason is simple; one they can make money on – the other they can’t. No matter what the “benefit” to your company is contained in your news releases and other public statements, your shareholders only care about one “benefit” – the one to them. Make sure when you “talk” to your shareholders you clearly explain in understandable terms how that information benefits them as shareholders. That is their “bottom line”.
The key to effective communication is “knowing the lingo” when speaking to your target audience with an “understandable” message to sufficient numbers of recipients that both receive and understand what your message means and how it benefits them. In addition to effectively communicating your objectives and accomplishments to your shareholders and investors in general, as well as how and why your message “benefits” them, when it comes to building a large and supportive shareholder base it’s also a numbers game. The more investors you “communicate” with, the more shareholders you will attract – the more shareholders you attract, the more your share value will increase – the more your share value increases, the more your corporate value increases – the more your share value, corporate value and shareholder base increases, the more resources, additional shareholders and opportunities you will attract. Keep in mind this is an ongoing “process” - not an event. It will take time and effort (and don’t forget “commitment”) – so hang in there and don’t give up, especially if you do not see immediate results – again, it is a “process” not an “event”.
The Green Baron has helped hundreds of public companies write and distribute thousands of press releases over the years and along the way we’ve learned a thing or two about what shareholders and interested investors want to hear from the companies they own stock in or are considering owning stock in. Mainly, how will owning shares of your company’s stock “benefit” them. Ideally for your company with “recognition”, “participation”, “empathy” and a “profit”. Make sure all company communications with shareholders and the investment community addresses each of those issues in concise and understandable language the shareholders/investors can see the benefit of to them.
The Three Types of Effective Communication:
 Auditory: Any form of transmission that is based on hearing. “Audio” communicative forms are found in such platforms as Podcasts, Webinars, TV/Radio based Media venues, Webcasts, etc. The audible part of “communication” is based on content that reaches a single person or groups of people that provide the receiver with the ability to “hear” the content.
 Visual: The conveyance of ideas and information in forms that can be seen. “Visual” communication is a broad spectrum that includes signs, typography, drawing, graphic design, illustration, industrial design, advertising, animation, color, electronic resources and in person.
 Kinesthetic: A method/style of communicating in which learning takes place by the receiver of the information carrying out physical activities, coming into direct physical contact with the content, rather than listening to a lecture or watching demonstrations. It can also include the communicator’s body language and body movements
Effectively Communicating Shareholder “Benefit” in Company Statements:
 Who you are and why you are qualified to own/operate your public company
 Why you are excited about your company?
 Why investors and shareholders should also be excited about your company?
 What you are going to do or are doing to increase share value?
 What are you going to do or are doing to increase investor awareness about the company/stock?
 How and where investors/shareholders can contact and/or learn more about the company and its investment opportunity.
 Why investors/shareholders should be “excited” enough to contact and/or learn more about the company and its investment opportunity. (Hint: “Benefit to them”)
Do your best to include all three types of communication listed above when delivering any message to any shareholder or potential shareholder – even if it takes several venues/mediums to accomplish that. It’s worth the extra time, effort and cost.
And the Beat Goes On:
Public companies attract and create investors – investors attract and create shareholders – shareholders attract and create more investors – more investors attract and create more shareholders – and more shareholders create increased share and corporate value.
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