Stockholders Valued by Companies
July 03, 2006 (PRLEAP.COM) Business NewsIrvine, Ca. / Southern California’s most effective Corporate Marketing Company is teaching its clients the importance of having stellar relationships with their stockholders. “Any company that has investors/stockholders needs to focus their positive P.R. efforts on their stockholders first “said SCM President Chuck Salisbury. He explained “your stockholders own your company and they should be treated as owners not as a nuisance.”
Any company that raises money immediately recognizes the importance of their investors because it is that initial risk capital that created the company. After the formation the management team may feel that their sweat equity is more important than the capital contribution of the investors. The importance of the investor crops up again and again as the company grows and need new investments. The company finds a market maker and begins trading its stock on the Pink Sheet or Over the Counter market and hopes that positive news releases will attract new investors so that there is active trading in their stock. Power still remains with the existing stockholders as they decide daily if they should continue to hold their shares or use this new liquidity opportunity to sell and depress the price. Every seller must be balanced against a buyer just to maintain and balance the share price.
If a company does a poor job informing their initial stockholders on the progress of the company then the run the risk that they will sell at the earliest opportunity. It is so much easier to keep stockholders happy rather than constantly trying to attract new investors. Also, when you need additional capital, the best source to raise that needed capital is from contented, informed and current stockholders.
SCM helps companies understand the importance of happy stockholders http://www.scm-inc.net/whatwedo_shock.html and structures a guideline for a company to follow in order to communicate properly with its stockholder base. A 24/7 toll free hotline should be created that has a recorded message that offers a continuous update on company activities. The recordings should be updated anytime something important happens. Key employees within the company can be included in the recording to keep it personal and help introduce key employees. The larger the company the more important that good communication becomes. The “Hot Line” should be available to Market Makers and potential investors as well as current stockholders. The Hot Line is a continuous P.R. effort.
Nothing is more important to a growing company than informed and happy stockholders. When you need them, they will continue to be there for you.