Corporate Expansion And Raising Capital: How To Do Both Effectively
When a corporation grows stagnant and lacks growth and the financial reserves are drying up the company’s C level executives need to give the three thousand foot analysis and look at all angles of the corporate entity as objectively as possible to find leaks and chinks.
First let’s look at the obvious and controllable, the board of directors and advisory board, if you don’t have both then that could be part of your problem. The difference between the two is the board of directors is the most elite of the two. The board of directors are C level pedigree with an extensive track record of success and are typically compensated in restricted stock and some type of annual option and the advisory board is typically used for the occasional introduction, advice etc and is typically brought on for far less compensation without options. The advisory board members are usually building their resume and hope to eventually make it to the board of directors.
Both BOD and BOA must have extensive contacts and contribute those contacts in a way that is conducive to expedient materialization of strategic alliances, conversion of securities into cash, distribution sources and globalization/expansion strategies. A BOD typically meets around 5 times per year but is on call anytime you need them and the BOA may meet one time per year and should be eager to get a call from you so they can earn their keep. Use your BOD and BOA as much as possible to grow the company, if they are not living up to their contractual obligation, dump them and recruit a member that will give you the attention you deserve.
Next, brainstorm with company executives. Sit in a room and mind map every possible solution to increasing distribution, branding, publicity and alliance expansion. Take not of the executives who are not participating or have little to contribute as these are the people you want to replace as soon as possible.
By the end of the meeting have a list of names, number and companies that you will be reaching out to as a group to solidify relationships that will result in a win/win for both sides. This should actually be done once per week even if your company is experiencing the required growth.
There are multiple other processes that should be built into your business model to grow but to get to the point the next and final issue that we’ll cover in this article will be publicity. You should have a clear channel of targeted recipients for your press release distribution and a press release should be authored and distributed for anything and everything that your company does that would be considered noteworthy such as a new: client, contract, employee, location, alliance, affiliate, product, service, etc.
You should also offer your opinion and expertise to local radio and television news affiliates. There is no better way to gain the status of an upper echelon existence than to be an panel expert on talk radio or TV interview.
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