Wednesday, January 18, 2017

Chris Sacca Talks About Using Student Loans to Build Businesses, Venture Capital & Becoming A Billionaire

Famed investor and entrepreneur Chris Sacca has an interesting past from his humble beginnings to being one of the world's most savvy tech investors.  In this interview he explains his rise and how he created and formed his investment fund.

Hope this helps you become a better innovator, business person, entrepreneur, investor or future mogul.

-Nick Coriano

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About the Author: Nicholas Coriano is a Business Consultant.  He is a graduate of The University of Connecticut Business School and the John Marshall Law School in Chicago.  He has worked at Merrill Lynch, The New York Stock Exchange and is currently a partner at Cervitude Intelligent Relations, which specializes in Investor Relations for companies valued under $1 Billion USD.

About MicroCapCompany.COM: MicroCapCompany.COM (The Blog) is a blog focused on providing articles, news and information on the micro cap sector and start-ups.  The Blog is a free service offered by Cervitude™ Investor Relations - a micro cap investor relations firm for micro cap companies and penny stocks.  If there is a particular topic you would like to see covered on The Blog, email us. If you would like to advertise on The Blog, click here. 


Friday, January 13, 2017

How Micro Cap Companies & Penny Stocks Can Take Advantage of The 3 P's of Business

Penny stock companies and micro cap companies are just like any other company; except they may have gone public to early.  Many penny stock and micro cap companies are looking for funding, new shareholders or volume in their stock.  Their eventual goal is constant liquidity which brings in more institutional investors to buy into their company. 

Let's keep it basic.  Finding investors for a public micro cap company works the same as finding investors for any business.  The investor needs to believe your story and business model AND needs to believe that the management team in place can pull of the business plan presented if they acquire more investment dollars. 

The 3 P's of Business

  • People
  • Product
  • Process
People: You can have a flawless business plan but if you do not have the team to execute the business plan than you will be left with a hole in your plan.  Many investors glance over the business model/plan and skip straight to the management section of your presentation to see if the team has the resume or experience to do what you are proposing will be done with investor money.  And sometimes they don't care at all about the business plan or idea.  In comes the analogy "Bet on the jockey not the horse."  If Mark Cuban or Jeff Bezos retire from their current position and seek investment money from a venture capital firm... you better believe that the group of prospective investors are taking into account the past successes of these gentleman. 

Pro Tip: If you are looking for funding, putting together a pro-forma management team (one that will be activated upon funding) may help your public company, startup or business idea.  A team of 1 or 2 will have a harder time getting large sums of funding versus a well rounded team with experience within a certain sector or industry.

Product: Regardless of what industry or business you are starting you will need to sell something.  Whether you are selling a service or a physical product or even have a SAAS model... this can all be classified as a product (yes services can be classified as a product, at least for this example).  The more polished your product the better off your company will be to succeed.  The better the product, the better the sales and the better the sales the better your prospects are to grow, scale, find investors, attract talented team members, etc. 

Process: This is also called a business model.  Process is defined as "a series of actions or steps taken in order to achieve a particular end."  A business model can be described as a repeatable set of steps that produce a profit for your business.  When companies are looking to scale their business, understanding what components need to be repeated is critical to the businesses success.  The process of how a company achieves a profit must be able to scale, in other words the company business model (process) must be able to cope and perform under an increased or expanding workload.

Our MicroCap ProTip Points
  • If you attract the right people to sit on a penny stock, microcap company or even startup the company will thrive. 
  • A better product will always win the marketplace and microcap companies must be innovative and well positioned (branding, pricing and supply-chain pipeline) to compete effectively.
  • The process in which you decide to make revenues must be able to be repeatable and streamlined for growth. 
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About the Author: Nicholas Coriano, JD is a Business Consultant, at Cervitude Intelligent Relations, which specializes in Investor Relations for companies valued under $1 Billion USD.

About MicroCapCompany.COM: A blog focused on penny stocks, microcap companies, investor relations, startups and business strategies & tactics.   If you would like to advertise on The Blog, click here. 

Have tips, advice, questions, comments or suggestions about this article??  Comment below or start a conversation by mentioning us on twitter!

Friday, January 6, 2017

Tech Giants: Mark Zuckerberg & Michael Abrash Discuss Virtual Reality The New Big Industry

I have documented several times how I believe that great mentors (like Mark Zuckerberg) are easily accessible by video and that entrepreneurs and executives can benefit greatly by studying and following the moves of these people.  In this video,  Mark Zuckerberg & Michael Abrash Discuss Virtual Reality The New Big Industry...


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Tuesday, December 13, 2016

How Targeted Location Based Pay Per Click Advertisements Can Help Penny Stocks, Crowdfunding & Entrepreneurs Grow Their Business

Penny Stock Companies, Micro Cap Investor Relations, crowdfunding campaigns and entrepreneurs can explode their business sales and marketing efforts for just pennies on the dollar through pay per click ads. 

If you haven't heard of pay per click (PPC) marketing yet than let me take this opportunity to explain to you the newest and most cost effective way to market your business.  Let me start off by saying that I am a skeptic so when I heard you can effectively market you business for just $1 per day I did not believe it, not even for one second.  But after testing PPC via Google Adwords, Facebook and Twitter I am truly a believer. 

Here is a screen shot of me boosting a post from one of my many Facebook pages.  In this screen shot I am looking to advertise a property I have for sale in Kingman, Arizona.  The property is located directly between Phoenix, Arizona and Las Vegas, Nevada.  Facebook allowed me to target where in the country the people are that will see the advertisements. 
Also Facebook allows me to advertise to people that are interested in certain things, like "real estate investing". 

While each platform is different almost all PPC allow you to target geographically your potential customer so your display is only shown to people in certain States, Cities or Countries. 

Google Adwords, which is the way to pay Google to advertise allows you to customize your advertisements to words that people searching the Internet type.  So for example if I wanted my add to ONLY show up when people search "Land For Sale in Kingman Arizona" than I could run ads for just that keyword phrase. 

How does it work?  Well you only pay if someone clicks on your ad.  Which means in the example above if no one ever searches the words "Land For Sale in Kingman Arizona" than you will pay nothing.  The cost per click depends on the keywords so the more demand normally the higher the price per click.  For example "banks" would probably cost more than "paper clips for sale". 

Further more many programs including Adwords by Google and Facebook advertising allow you to start advertising for just $1 per day.  I do not only love this but I advise clients and colleagues that you should never raise the price of your budget.  I have several successful businesses running on $1 per day and when I want to grow the business, I make more ads versus adding to the budget.  This is because no matter what your budget Google/Facebook spread out the budget to be as effective as possible.  Also a bigger budget does not mean more people are searching for product or service.

So how does this help penny stock executives, crowdfunding efforts or entrepreneurs? 

Well if you haven't noticed already targeting by geography can be extremely effective.  For example targeting investors in Greenwich, CT will have a higher likelihood of having a millionaire see your ad versus target a small town like Little Falls, NY (one is a rich suburb of NYC and the other a small town in upstate with a few thousand people).  Same would be true if you are trying to target customers for skis (which may be a hard sale in Puerto Rico and an easier sale in Colorado). 

Targeting based on interest or words searched (for Google) is also extremely effective.  On Facebook targeting people that have an interest in Entrepreneurship or Private Equity may make it easier for a penny stock to find a ready and willing buyer.  Even more narrow only showing your ad to those interested in "TDAmeritrade" or "ScottTrade" will probably yield great results since both are broker dealers of OTC Market companies.  And even more narrow target keywords on Google like "Mining Penny Stock To Buy" or "Skis For Sale in Colorado" or "New Penny Stocks in NY" will lead a potential customer right to your door step and now you absolutely know what they were looking for before they got there. 

If you have had any experience with any of these platforms and feel like you can ad to this conversation, please comment below.  I hope this was helpful,

-Nick Coriano

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About the Author: Nicholas Coriano is a Business Consultant.  He is a graduate of The University of Connecticut Business School and the John Marshall Law School in Chicago.  He has worked at Merrill Lynch, The New York Stock Exchange and is currently a partner at Cervitude Intelligent Relations, which specializes in Investor Relations for companies valued under $1 Billion USD.

About MicroCapCompany.COM: MicroCapCompany.COM (The Blog) is a blog focused on providing articles, news and information on the micro cap sector and start-ups.  The Blog is a free service offered by Cervitude™ Investor Relations - a micro cap investor relations firm for micro cap companies and penny stocks.  If there is a particular topic you would like to see covered on The Blog, email us. If you would like to advertise on The Blog, click here. 

Have tips, advice, questions, comments or suggestions about this article??  Comment below or start a conversation by mentioning us on twitter!

Thursday, December 8, 2016

What Does Liquidity Mean?

Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price. Market liquidity refers to the extent to which a market, such as a country's stock market or a city's real estate market, allows assets to be bought and sold at stable prices. Cash is the most liquid asset, while real estate, fine art and collectibles are all relatively illiquid. Accounting liquidity measures the ease with which an individual or company can meet their financial obligations with the liquid assets available to them. There are several ratios that express accounting liquidity.

BREAKING DOWN 'Liquidity'
Cash is considered the standard for liquidity because it can most quickly and easily be converted into other assets. If a person wants a $1,000 refrigerator, cash is the asset that can most easily be used to obtain it. If that person has no cash, but a rare book collection that has been appraised at $1,000, they are unlikely to find someone willing to trade them the refrigerator for their collection. Instead, they will have to sell the collection and use the cash to purchase the refrigerator. That may be fine if the person can wait months or years to make the purchase, but it could present a problem if the person only had a few days. They may have to sell the books at a discount, instead of waiting for a buyer who was willing to pay the full value. Rare books are therefore an illiquid asset.

Market Liquidity
In the example given above, the market for refrigerators in exchange for rare books is so illiquid that, for all intents and purposes, it does not exist. The stock market, on the other hand, is characterized by higher market liquidity. If an exchange has a high volume of trade that is not dominated by selling, the price a buyer offers per share (the bid price) and the price the seller is willing to accept (the ask price) will be fairly close to each other. Investors, then, will not have to give up unrealized gains for a quick sale. When the spread between the bid and ask prices grows, the market becomes more illiquid. Markets for real estate are pretty much inherently less liquid than stock markets. Even by the standard of real estate markets, however, a buyer's market is relatively illiquid, since buyers can demand steep discounts from sellers who want to offload their properties quickly. 

Tuesday, December 6, 2016

How Building A Social Media Following & A Shareholder Base Have Similar Functions

Working in the penny stock investor relations field has shed light on a few things.

  1. Most micro cap & penny stock public companies hiring investor relations firms are looking for increased liquidity and an active shareholder base that increases the average volume of the stock (just another way to say increased liquidity)
  2. While many penny stock & micro cap companies are building awareness in the public markets about their company they are also seeking to close a round of financing (either through a direct investment via a purchase of a large block of shares, a private placement (PPM) or via some sort of partnership), and 
  3. The penny stock or micro cap company's management seeks a positive return on investment (ROI) on the investor relations program (in other words they are seeking to spend less than they make or raise from the investor relations program or company awareness campaign).
Disclaimer; I promote and actively suggest to public company clients that social media and online marketing are under-utilized tools for (1) gaining investor awareness to a public company (2) increasing the volume and shareholder base of public companies (3) telling the story of a smaller public company and (4) building a base of people interested in your company and your company's stock.

Building a Social Media Following Can Accomplish Many Of The Same Things That An Investor Relations Campaign Seeks To Accomplish

So you want to increase liquidity of your stock and want investors and traders to learn about the company and then purchase the stock...right? Your story will not be told in one press release or even with one visit to a website.  Now some investor relations (IR) professionals may argue with this but the solid story telling and brand building happens over a period of time.   Collecting people on social media sites like LinkedIn, Twitter and Facebook allows you to directly communicate and update your core following on news about your company without the additional expenses traditionally found in antiquated marketing tactics.  

I've heard this line a few times in my career in penny stocks and micro cap companies:
"But the investors we are looking for are not online."
Are you kidding me!  There are 7.5 billion people in this world and half (3.5 billion) have access to the Internet.  The notion that an investor (and a sophisticated investor at that) does not have access to the Internet or is not on a social media platform is insane.  

Back to your social media following.  Why not kill two birds with one stone?  If you are a company with a solid product or service you need to target potential customer anyway.  The same way you can build your customer base online is the same way you can build a group of ready and willing buyers of your stock.  Most executives would not be surprised to understand the overlap.  Many potential customers are also potential investors in a particular micro cap company. 

Building your social media following in conjunction with a strategy to build a network of potential investors also brings down your long term investor relations costs.  Many penny stocks and mirco cap companies partake in "campaigns" or "promotion runs" that are limited to a week, a month or a quarter.  Meanwhile most investor relations professionals and penny stock executives know that investor relations and company awareness campaigns need to be a staple strategy for a company; a strategy that is implemented continuously rather than for a period of time.  

Both investor relations campaigns and social media marketing accomplish the same functions.  They both create awareness about your company.  The only difference is that most investor relations campaigns end without a captured base of perspectives.  In other words investor relations campaigns unlike social media do not keep the person(s) around after the campaign so a company may re-market or re-advertise to the person(s).  Are you taking advantage of the full power of the Internet?

Hope this was thought provoking,


-Nick Coriano

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About the Author: Nicholas Coriano is a Business Consultant.  He is a graduate of The University of Connecticut Business School and the John Marshall Law School in Chicago.  He has worked at Merrill Lynch, The New York Stock Exchange and is currently a partner at Cervitude Intelligent Relations, which specializes in Investor Relations for companies valued under $1 Billion USD.

About MicroCapCompany.COM: MicroCapCompany.COM (The Blog) is a blog focused on providing articles, news and information on the micro cap sector and start-ups.  The Blog is a free service offered by Cervitude™ Investor Relations - a micro cap investor relations firm for micro cap companies and penny stocks.  If there is a particular topic you would like to see covered on The Blog, email us. If you would like to advertise on The Blog, click here. 

Have tips, advice, questions, comments or suggestions about this article??  Comment below or start a conversation by mentioning us on twitter!