If the plan doesn’t work change the plan. Not the Goal! Expanding your Market Capitalization through a Sales Pipeline on Wall Street!
Growth is painful. Change is difficult. But to do nothing is fatal.
Understanding the Sales Relationship between Wall Street and the Public Company: Risk, Value and Price!
Risk, Value and Price, how does your company interact with Wall Street professionals regarding your company valuation. First you MUST explore these areas to understand the broker, RIA or fund you are chasing because they are the cornerstones of your success … or failure.
The relationship between risk, value and price in the eyes of the Wall Street professional is complex.
- Risk of Regulation
- Risk of Income
- Risk of time and value
Because, if they are wrong the broker or professional has much more to lose than a trade. That’s a fact.
The relationship between risk, value and price in the eyes of the sales person is not always as well defined as it might be. Most CEO’s are often confused and assumptive. They make sure that all other aspects of their business is set up correctly but leave the Wall Street portion orphaned.
That observation is one that is based on my extensive work on Wall Street.
For a true investment to be made by a broker for his book of 300+ clients in a company’s stock there needs to be clear line of sight in the brokers mind. The risk/value must be understood for their individual clients and the time horizon in terms of the financial and execution risk needs to be determined for a true look at return and time versus just a quick story.
For our team at Acorn, that’s a lot of things to uncover, explore, define and incorporate as part of the sales process and presentation. That’s why we have developed an 8 step sales process.
Our process is well defined and understood. We development the necessary story and accompanying thesis that we deliver as we make over 3000 phone calls a month per client. We focus on the relationship, information discussed and the RISK. The investment thesis must be razor sharp, clearly stated and readily understood with a defined time horizon’s and valuation catalyst for the market.
CEO’s must Stop hoping for someone to figure it out and EXPLAIN it clearly.
Refusing to Explore the Investment Thesis, Stock and Market Risk, Execution Risk, Projected Value and The Current and Projected Relationship Verse Competitors Will Cost You Shareholders
Most IR will ignore this exploration to a large degree, hoping that the companies features and stock benefits will sell itself easily enough…this approach won’t get it done over the long term and rarely works in the short term. This create little value, wasted effort, misconceptions of effort and as you repeat this action you are doomed to the exact same results and traction issues that you currently find lacking your shareholder base and market capitalization. No-one really wins.
Now understand that building a filtration system to manage your sales pipeline to Wall Street professionals is critical, just as every other aspect of your business is including sales, marketing, R&D or management pipelines. You must build a stable sales cycle over time. It’s not instant but it is definable.
Acorn builds and explains a company’s investment thesis to brokers constantly to drive long-term investors through their trusted broker to own a company because they understand the reasons to do so, because it was presented in a broker style that the broker will comprehend. Acorn understands the need to steadily increase the shareholder base and creating a truly sophisticated market.
Our sales pipeline is focused on how many brokers can we explain your company to over a many personal phone calls while describing your business, risk, reward and investment theory. This results in how many brokers can and will begin buying for their books of business over the next month, quarter, year, or any other defined period.
Most IR and marketing people will conduct a low level discovery around the issues associated with risk and value, maybe erring more on the value side than they ought to…and they’ll lose sales because they are simply selling the ‘positives’ and totally ignoring the negative responses.
People will invariably do more to escape pain then they’ll do to seek profit…so you can see why just selling the positives will stifle your shareholder base and more than likely you will be disappointed with you results. Just stop wasting money doing the same thing over… and over….
What’s the Broker Really Thinking About?
A typical broker has turned off your investment thesis because hearing a typical sales pitch will rarely have focus primarily due to the fact that they don’t know where the focus belongs. WHY? Because they don’t understand the objection first. They have not heard all the objection because the fact is they are not making 3000 phone calls a month to hear them. They can’t fix what they just don’t know!
This is done by creating relationships and explain the investment thesis to professionals.
Your typical buyer’s mind will be reaming through the endless list of objections involved with risk, value, timing and price …etc... That’s the list that Acorn concerns itself with. YES’s are easy and remember everyone gets those, it’s the NO’s that make the difference.
Most companies in their efforts to keep away from anything overly contentious, will avoid this MUCH BIGGER area of reward and that will leave your stock just lacking.
YET, exploring this area brings the greatest rewards, for the broker, stock and market capitalization.
How Can Acorn Help You Get to Scale?
Discover how Acorn can gain a razor sharp focus in the market for your company, stock, value time horizon and price because we make the biggest difference through our conversion rate and therefore your shareholder base, it’s our pipeline and your market valuation you need to value.