Sunday, October 8, 2017

What Do You Want To Do With Your Life?

In addition to consulting micro cap and small cap public companies on business strategy, investor relations and marketing...I commonly consult with startups and entrepreneurs launching or growing their business.  Regardless of the size of the company I frequently realize that people are more interested in other businesses.  Not because they have entrepreneurial A.D.D., but because their passion is in another field. 

I digress.  If you are trying to figure out what you want to do with your life, here are two questions that can help.

There are two questions you should ask yourself when you are trying to figure out what you want to do with your life.


Question 1:
What would you do if money was no object? If you were a trillion-dollar person, what would you spend your time on?

Write it down. No matter how stupid it sounds, write it down.

Question 2:
What do you want to be remembered for?

Write your eulogy. Yeah you heard that correct. Write down what someone will say about you at your funeral. Write out your timeline and your story. Tell the people at your funeral all of the accolades you have accomplished in your life.

The combination of these two questions should lead you to determine what area you are interested in working in throughout your life and what drives you. It will also give you a list of benchmarks and accomplishments that you want to achieve before your death. The clock's ticking. In my experience, the thing or career path you should be taking is something that you loved as a child and for years and years. You just haven't figured out how to make money doing it yet. But the first step is figuring out exactly what you want to do and what makes you happy, and what you want to be remembered for. Once you know that, now it's time to make a business model out of what you love.  Hope this helps, I know its' helped me...

-Nick Coriano

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About the Author: Nicholas Coriano, JD is an Entrepreneur &  Business Consultant.  He has worked at Merrill Lynch, The New York Stock Exchange and is currently a partner at Cervitude Intelligent Relations.  Learn more about him here. He is the author of Rules For Entrepreneurship available now on Amazon.

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. 

Sunday, October 1, 2017

Talking with Charles Dreifus About Micro Cap & Small Cap Investments

19 Years at Royce Funds and counting for Mr. Charles Dreifus.  Charlie R. Dreifus manages the firm’s Special Equity mutual funds that attempt to combine classic value analysis, the identification of good businesses, and accounting cynicism. In 2008, he was named Morningstar's Domestic-Stock Fund Manager of the Year.

Prior to joining Royce in 1998, Mr. Dreifus was a General Partner and Managing Director and a Limited Managing Director of Lazard Freres & Co., LLC. He was also the Portfolio Manager of Lazard Special Equity Portfolio, formerly Lazard Special Equity Fund and Special Equity separate accounts. Prior to that, he was employed by Oppenheimer & Co. as a Limited Partner and as the manager of Quest For Value Fund (from May 1980 to November 1982) and by Oppenheimer Capital as an Executive Vice President.

Mr. Dreifus holds a bachelor's degree from the City College of New York/Baruch School and a Masters of Business Administration from Baruch College. He is a CFA® charterholder.

"A deep understanding of accounting principles gives me a chance to get at the veracity of a company's finances by scrutinizing the financial reports… I spend a lot of time going over the numbers. Frankly, I benefit, because not everyone does."   — Charles R. Dreifus

Royce Funds has built itself into a leader in the small cap investing space and as we have said many times here on MicroCapCompany.com, you should want to learn from the best.  See an interview with Mr. Dreifus here:



-Nick Coriano

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About the Author: Nicholas Coriano, JD is an Entrepreneur &  Business Consultant.  He has worked at Merrill Lynch, The New York Stock Exchange and is currently a partner at Cervitude Intelligent Relations.  Learn more about him here. He is the author of Rules For Entrepreneurship available now on Amazon.

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. 

Sunday, September 24, 2017

How To Use Your Micro Cap Company Stock To Grow A Profitable Business

Penny stocks and micro-cap companies commonly have the same problem. They lack revenues and human resources to achieve their goals and growth.  Many of these companies have gone public too early or were forced to go public for one reason or another. Many of these CEOs thought that going public was the Magic Bullet. They figured being a public company was the answer to finding investors since many larger public companies are well capitalized. But the ugly truth is that going public does not guarantee that investors will buy your stock. In fact, in many smaller IPOs, the company has a best offering IPO instead of a firm commitment IPO. This means there was no firm commitment (or guarantee) from broker dealers to buy the stock before the initial public offering. This also means that the company has gone public and has no big investors to buy the stock in the offering, or the investment that was made into their company before they went public was not enough to fund the offering. This, in turn, means that the public company executives are scrambling around trying to find financing just to make their burn rate.  So irrespective of whether or not it was a good idea for the company to go public in the first place, here are some ways you can use stock to grow a profitable smaller public business.

Acquiring strategic management with corporate stock.


A potential investor in a microcap company or penny stock will undoubtedly look to see if the management is capable of achieving their business plan or continued growth. Microcap companies should utilize their currency, also known as their stock, to attract and retain industry sector Professionals in their field. A well-rounded board of directors and confident management team will bring confidence in the marketplace and attract investors. In addition, a good management team will help successfully scale a business. A good board of directors is strategically connected to assure that the business moves in the right direction. When growing a microcap company, stock options and stock should be used to incentivize the management and the board of directors. Longer holding periods and clauses in contracts that state management and the board of directors cannot sell before a certain period of time will help achieve long-term objectives of the publicly traded microcap company or penny stock.

Buy profitable businesses with the public company stock.


Of course this is easier said than done, but public companies with small market caps and no revenues should be buying public or private profitable businesses. They can achieve this by buying income producing businesses with their stock. This is not easy. Mainly because many of the penny stocks and micro-cap companies with little to no revenues have market illiquidity. Generally their stock is not trading at a high enough volume to make it attractive enough for someone to exchange it for an income-producing property, since they will not be able to sell their stock if it is completely illiquid. What forward-looking thinkers & entrepreneurs understand is that by inserting an income-producing business into a public company that has no revenue, will make the public company investors understand that the company is now generating revenue. With a revenue-producing company comes stock buyers and this makes the stock liquid. In a buyout situation where a micro cap company does not have much liquidity, executives should leverage the future prospect that is likely to happen, that is, that investors will jump into the company once it is income producing.  Public company executives with no revenues should overpay for businesses that are profitable and will inject cash into their public company. This is because the cost of being public and not running a profitable business or a business with no revenue will only lead to a lower stock price and eventually delisting. Or running a company in debt forever. Either one is not good for the public markets, the executives reputation, or the economy as a whole. Businesses that are profitable and will get the attention of investors can include, income-producing real estate, franchises, income-producing e-commerce businesses and just about anything that is income producing.

The buying of income producing assets and the art of bringing on management are the two best ways microcap companies can use their stock as leverage. 

Thoughts? Opinions? Comments?  Put them below to start the conversation. 

-Nick
Connect with me on Twitter : @NicholasCoriano
Connect with me on LinkedIn : Nicholas Coriano
Buy My Book on Amazon : Rules to Entrepreneurship

Sunday, September 17, 2017

What is a Stock Certificate?

The stock certificate is a piece of paper that represents the legal ownership of a certain percentage of a company.  This percentage is commonly known as stock in a company or shares in a company.  Further defined:

In securities law and corporate law, a stock certificate (also known as stock, certificate of stock, stock ownership certificate or share certificate) is a legal document that certifies ownership of a specific number of shares or stock in a corporation.

A stock certificate has several elements on the face including the signature of an executive or executives authorizing the shares for transfer to the buyer, how many shares the stock certificate is worth, the par value of the shares, the type of stock (whether preferred or common shares), the name of the company and any restrictions or disclaimers made by the company as to the representation of the stocks issued via the stock certificate.  

In today's digital era, stock certificates are rarely issued.  In fact, many stock brokerages now charge a fee if an individual would like to have the stock certificate mailed to their physical address.  Having a physical stock certificate in some ways provides security.  For example, you own the stock directly; as opposed to holding it in a brokerage account where the broker has legal title to the stock in your name.  A stock certificate held in physical form can also be a bad thing.  Many banks and brokers need time to process the sale of a physical stock certificate which means if there is a sudden spike in the price of the stock, and you want to sell, it can not be done instantly like online via a stock trading account. 

Iconic stock certificated become collectible even if the company goes out of business.  Some stock certificates are held in physical form because old school investors like the way they look.  For example, the silhouette on a share of Disney stock has Mickey Mouse and has long been revered as one of the most beautiful stock certificates available.

Thursday, September 14, 2017

Business Plan Writer Reviews & What To Ask Your Business Plan Writer

My intent was to write a yearly review of business plan writers and consultants back when I wrote the blog post 2014 Summer Review of Business Plan Writers and Consultants, but I was too busy writing business plans and reviewing my competition didn't make the top of my priority list.  Nevertheless, I like to review the landscape of business plan writers so that entrepreneurs understand the options available to them. 

Business Plan Writer Reviews


In the past I gave a quick review on business plan writers Cayenne Consulting, GrowThink, software Bplans.com, MasterPlans.com (software), PlanitBusiness.com (whom I met online via a Twitter chat), Butler Consultants and of course my services via NicholasCoriano.com and MicroCapCompany.com.  A recent search for business plan writers turned up others such as; gobusinessplans.com, businessplancity.com, liveplan.com (a division of bplans.com), and a host of business plan writers on upwork.com & fiverr.com (freelancer websites).  While some have no clue how to develop of a business plan, other companies and business plan writing services have top notch talent in-house to write your business plan and financial projections. 

My advice when sorting through this maze of business plan writers is to carefully vet each potential professional. Other websites commonly give reviews and the longer the business has been established, the more likely they are to be credible.  Give them a call, reach out, if they don't answer...this is a tell tell sign that they may not have availability to focus on your business plan right now.  Review their resume to make sure that the person writing your business plan has the experience and know-how to develop a business plan that is tailored to your needs. 

What To Ask Your Business Plan Writer


A few questions you should ask a business plan writer before hiring them include:
  • How many business plans have you written?
  • What types of business plans have you written?
  • Are you a full time business plan writer?
  • Do we have to meet in person to write the business plan?
  • How long does it take to write my business plan?
  • How much does it cost to write my business plan?
  • What information do you need from me to write my business plan?
Of course, I am an extremely bias writer currently.  After all, I'm reviewing business plan writers....as a business plan writer.  Get enough information to feel comfortable.  I have written a more in-depth list blog post on "Things to Consider When Hiring A Business Plan Writer".

Options For Entrepreneurs to Write a Business Plan


Well, there are really only two options, you either
  • Hire someone to write your business plan, or
  • Write it yourself (with the help of some software or a business plan template)
If you need to hire someone, please do consider my business plan writing services I offer on NicholasCoriano.com and Cervitude.com.  If you are looking to write your own business plan, make sure it's complete and has all the appropriate sections.  I put together a series of free videos on YouTube adequately titled "How To Write a Business Plan" where I go over how to write each section of the business plan including the executive summary, the company description, the SWOT Analysis, market research, the marketing plan, management summary and organizational planthe financial projections, and the conclusion

Nevertheless, I hope this post was helpful. 


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About the Author: Nicholas Coriano, JD is an Entrepreneur &  Business Consultant.  He has worked at Merrill Lynch, The New York Stock Exchange and is currently a partner at Cervitude Intelligent Relations.  Learn more about him here. He is the author of Rules For Entrepreneurship available now on Amazon.

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. 


Monday, September 11, 2017

What is Regulation D?

In the United States under the Securities Act of 1933, any offer to sell securities must either be registered with the United States Securities and Exchange Commission (SEC) or meet certain qualifications to exempt them from such registration. Regulation (or Reg D) contains the rules providing exemptions from the registration requirements, allowing some companies to offer and sell their securities without having to register the securities with the SEC.  A Regulation D offering is intended to make access to the capital markets possible for small companies that could not otherwise bear the costs of a normal SEC registration. Reg D may also refer to an investment strategy, mostly associated with hedge funds, based upon the same regulation. The regulation is found under Title 17 of the Code of Federal Regulations, part 230, Sections 501 through 508. The legal citation is 17 C.F.R. §230.501 et seq.

On July 10, 2013, the SEC issued new final regulations allowing public advertising and solicitation of Regulation D offers to accredited investors.