TheGreenBaron.com - Corporate Strategies - Part Six
25 Techniques for Gaining, Maintaining and Increasing Your Company’s Two Greatest Assets; Shareholders and Share Value
“I come up with the meaning of life and you call it torture!” – Robin Williams (The Best of Times – movie)
The world is full of “investors” – if you write a big enough check you can tell every one of them about your company. The trick is turning those investors that only know about your company into shareholders that buy stock in it. Wherever there are investors, that’s where you should be – and who you should be talking to. Investors would rather “talk” to someone that owns a public company, especially one they own stock in, than to each other (and certain friends and family). If your company is sending out information it needs to arrive where there are investors – not just your shareholders. It behooves you to spend a little time each day looking for ways to locate and have a presence where investors are and then create or find a way to directly communicate with those investors – ideally in a manner that gets them at least interested in your company as an investment consideration. The more investors you communicate with – the more of them you can potentially convert to shareholders. The more times you communicate with those investors the more of them you will eventually convert to shareholders. Step one; get in contact. Step two; stay in contact.
1. There is no problem you cannot solve, or any goal you cannot accomplish with a supportive and well communicated with shareholder base.
2. All of your shareholders will eventually sell and move on – it is only a question of when and why – you and your company are the key factors in determining both of those.
3. The hungry cat makes the best hunter - you must be “hungry” to attract and communicate with as many investors as possible and “hungry” to convert them into loyal and support shareholders – the main way you accomplish this is by returning that loyalty and support! They’ll notice when/if you do – and when/if you don’t and then react accordingly. Keep in mind; cats are supposed to eat every day.
4. Take advantage of your advantage – if your company has an existing advantage (which may not last?) over a competitor or in the marketplace have an aggressive plan to “take advantage” of it and make sure investors, especially your shareholders know about it and how it “benefits them”.
5. You cannot expect what you are not willing to inspect – just because it was someone’s responsibility to accomplish a certain task doesn’t mean they will accomplish that task. You can dramatically increase your and their chances of accomplishing the task with the following formula; First, write down what you expect them to accomplish. Second, provide them your “written” expectation as well as a written plan for them to accomplish it. (Be sure to include exact instructions, methods, needed resources and time frames) then regularly “inspect” their level of progress and timing. Remember, the two primary keys to running a successful company are control and the ability to delegate with confidence. Just ask anyone who ever ran a business that went out of business. Here’s another statistic to keep in mind; the number one reason people fail to accomplish their objectives is because they “fail” to have a written plan of action. Key words, “written”, “plan” and “action”.
6. Investors invest in themselves not companies or stocks – They just use your company/stock to make that investment in. Put your investors first and you’ll never come in second.
7. If you didn’t do it right, you didn’t do it at all – or as Yoda said in the movie Star Wars, “Do or do not – there is no try.” Many battles were lost that were “almost” won.
8. Not only is silence golden, it’s seldom misquoted – loose lips sink ships, and when it comes to non-public information being made “public” from public companies, it can also get you and your company in a lot of trouble if you fail to adhere to those standards (most established and enforced by Federal regulations and agencies). Have a “single source” for disseminating information publicly about or from your company and make sure that designated source knows exactly what they can and cannot say to anyone; you never know who is really on the other end of that phone or email. Then follow up with Number 5 above.
9. Who was the first man on the moon? Neil Armstrong. Who was the second man on the moon? Who cares? Don’t be afraid to admit to shareholders/investors that you are doing or are going to try something for the “first” time. Investors love ground floor opportunities and will stick with, take the additional risk and support pioneering investment opportunities and efforts longer than established one’s.
10. You have not because you ask not – does your company need anything? Then at least consider asking your shareholders. Chances are they can provide it, or know someone or someplace that can. You’d be surprised what you can accomplish if you’re not too proud to simply ask your shareholders for help. “Pride goes before a fall” – especially in share value.
11. If you worry about your shareholders – you’ll never have to worry about your shareholders. (Please see this entire program for exact instructions)
12. If you always do what you’ve always done, you’ll always get what you’ve always gotten. As discussed in number 9 above, don’t be afraid to try something new once in a while – or in this case, abandon something old that isn’t working or could be working better if certain adjustments are made. Be sure to effectively convey to investors, especially your shareholders, why you are adjusting course and what results you expect and if possible, by when. Just be careful when it comes to setting exact dates. The problem with date setting is shareholders expect you to actually keep them. They’re just funny that way. And like we said, don’t be afraid to try a new project or direction - remember, first-time amateurs built the Ark – experienced professionals built the Titanic.
13. So called “experts” and investors may try to predict your future share price – but you are the primary factor in determining it. “If it is to be – it is up to thee”.
14. If it is possible for any other company, then it is possible for your company – it is only a question of how and your level of commitment to accomplishing it – and maybe with a little help from your friends. AKA your shareholders.
15. There are a million ways your company can lose the support and loyalty of your shareholders – but there isn’t one excuse! So, what would you rather spend your time making – money for your shareholders, or excuses to them?
16. The past does not equal the future – but the past can certainly influence your company’s future depending upon your ability to influence it otherwise. The past is like the wake of a ship – it doesn’t indicate where the ship is going – only where it’s been. If investors don’t particularly like where your “ship” has been – they probably won’t be too enthused about where it’s going – or at least enough to book passage on it. Don’t be afraid to discuss with your shareholders that of course past success does not guarantee future success while also reminding them that past failures do not guarantee future ones either. When shareholders (and you) are worried about yesterday, that creates regret – when they (and you) are worried about tomorrow, that creates doubt and the last thing you want today is worried and doubtful shareholders – or worse; having any regrets about their investment. When dealing with or communicating about any negative situation either in the past or perceived to occur in the future, keep your focus on what you and your company are doing today – especially if it can fix what went wrong yesterday and/or make sure it doesn’t go wrong tomorrow. Every company has negative “issues” of some sort – the key is to acknowledge them openly and provide a plan to solve future ones and fix current ones. Remember, the trick is not only knowing how to get out of trouble – it’s also knowing how not to get in to it in the first place – so have a “plan” for both.
17. Borrow some brains – President Woodrow Wilson once said, "I not only use all the brains that I have, but all that I can borrow." – Which goes directly back to a key component for successfully running your enterprise; “The ability to delegate with confidence”. Also keep in mind when utilizing other people’s “brains” talent and resources; that applies to inside and outside your company by remembering that your shareholders are a great source for experience, resources and talent.
18. The greatest obstacle to success is not ignorance – it is the illusion of knowledge. Corporations are full of “experts” – but so are homeless shelters. If you know that you don’t know something – there’s hope, because then at least you do know that you must learn it. However, if you only think you know something when in fact you don’t – what hope is there? because you don’t think you have to learn anything. The “illusion of knowledge” keeps you headed in the wrong direction which means eventually you’ll arrive at the wrong destination – unfortunately often bringing your shareholders with you.
19. You need to talk to at least one investor a day about your company and stock – and while you’re at it ask that investor if they know of any other investors they can tell or put you in contact with to talk to about your company and stock. Statistically 80% of shareholders report first learning about the companies they own stock in from another investor and/or shareholder. By asking one investor/shareholder if they can tell or refer you to other investors you “statistically” increase your odds of attracting new shareholders by 80%. With this method it is possible for you to literally gain several shareholders from only one investor that may not even own stock in your company…yet! Adding a couple dozen new shareholders every month is well worth an email and/or a few minutes on the phone each day.
20. Know the difference between “sounds” good and “is” good – if you have a stock symbol after your name you are both a magnet and a target. You are a “magnate” that can attract resources and opportunities, some good, some not so good. You are also a “target” for people with an agenda that want to use or even take away your resources and opportunities to make money for themselves – and in exchange they will promise you things that “sound” good. Therein lies the problem; the difference between “sounds” good and “is” good. And if it sounds too “good” to be true – it usually is. The best way to maximize the “magnet” aspect that attracts those opportunities and resources and to also minimize yourself as a target is exactly what we discussed above; “control” and “the ability to delegate with confidence”. If you gain and maintain just those two things, and don’t relinquish or share them with someone else just because they promised you something that “sounds” good, you will maximize your opportunities and resources while also fending off those “targeting” your resources and opportunities for their own benefit and gain. Sometimes the best deal is the one you don’t make.
21. On board or over board – does your company operate more like a battleship or a cruise liner? If it’s more of a “cruise liner” then put out the deck chairs and get to work serving your passengers. If your company operates more like a “battleship” then the order of the day is all hands on deck – or learn to swim; “on board or over board”. If The Green Baron had a dollar for every public company we’ve encountered where the only one “on deck” was the owner/CEO, while the rest of crew were busy sunning themselves on the deck chairs, we would have enough money to buy any one of those companies. If there are members of your crew that spend more time working on their tan than their job – start the swimming lessons.
22. Finish old business before beginning new business – Here’s a quick test to see if you’ve developed the habit of starting “new” business” before finishing “old” business. Do you happen to use or own a briefcase that has a combination lock latch? How long have you used/had that briefcase? Is the combination still set at its default triple zero, or, before you went on to the “new business” of using the briefcase did you follow the instructions on the little enclosed card and change the default combination? (that anyone who has ever owned that type of briefcase knows is triple zero). Studies prove the number one cause of burn-out and frustration among senior company executives and employees, and the number three reason companies go out of business is not finishing what they start – it also creates a “defeated” mentality that will quickly spread among senior executives, support staff, the company itself and eventually the shareholders.
23. Knock three times – Regardless of what sector your company is in or what product or service it provides, if your company is “public” then you are also in the business of “selling” – and the wares you are peddling would be your company’s stock. As any skilled and experienced sales professional will tell you, it takes asking for the sale an average of “three” times to make the sale. The same is true for the average investor before they buy what you’re selling. They must have either direct and/or indirect contact with or from the company on the average of “three” times before they make the purchase (your company’s stock). Just because an investor may sign up for your company newsletter, follow you on Social Media and/or monitor your stock, doesn’t mean they will convert from “investor” to shareholder – but when implementing the third time’s a charm method, your chances of making that conversion from interested investor to loyal shareholder increases dramatically and exponentially, especially after the third “knock”. Remember, before you reach home plate, there are “three” other bases you have to touch first before you can score.
24. We all know there is never a good time for sellers to show up. When that happens…and it will happen, your shareholders will be the first to notice. The next thing they will do is start looking at your company with a “what are you going to do about this?” expression on their faces. If your answer is “nothing” – the next thing they will do is stop “looking” at your company and divert their eyes to the SELL button in their brokerage account. We strongly advise having a plan in place to increase investor awareness and shareholder support at those crucial times, and at least show your shareholders that you are aware of the situation and care enough and are prepared enough to do something about it.
25. The Wall Street “School of Hard Knocks” is different from other schools – on Wall Street, first you get the test, then you get the lesson. Study for the former and learn from the latter. In fact, here’s a good test; at the end of each business day write down at least one “lesson” you learned that day about attracting investors and/or converting them to shareholders. By the end of the month you’ll have 20 new ways to increase your shareholder base. Which unfortunately is about 20 more ways than most Penny Stock companies currently have. Congratulations! You just learned your first 25.
STRATEGIES MOST INVESTORS TRADE BY – KNOW THY SHAREHOLDERS
As the owner/operator of a public company we strongly suggest you also read our Trading Strategies - “Wall Street Fighting Rules” on this website to give you valuable insight into why investors and shareholders (two separate entities) act, react and think the way they do. Investments change – investors don’t. Those trading strategies were created by The Green Baron to not just help investors – but just as importantly to help public companies better understand their shareholders and investors in the hope that you will learn and implement those strategies to better attract and gain the support and loyalty of as many shareholders/investors as possible. You owe it to your company and just as importantly you owe it to your shareholders.
If you would like to learn more about The Green Baron Investors Society or become a member please visit the homepage of this website for additional information.
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