We are gradually introducing the principles of our upcoming loyalty programme. Today we will present the second part, which is dedicated to stocks.
As we described in the introductory article, our loyalty program consists of two parts. We introduced the first part (loyalty) last time. Today, we will be looking at the stock part, quoting in part from our introductory article.
Stock program
We will issue the shares and anyone can buy them from us. By doing so, you will put money into our company and we will have money for further investment and development, including expansion into other industries and areas. You become a shareholder. Consequently, these shareholders will have certain advantages over others(discounts on service extensions) and will receive a percentage of the profits (dividends) in the case of (expected) profits. Of course, as our (and thus your) company appreciates in value over time, so will the value of your investment.
Shares
The shares will be (in the words of the Act) in certificated form and registered. This means that each share will have its own serial number (including, for example, the issue or series number) and each share will have its owner (shareholder) assigned to it. The share will therefore be “tied” to a specific person (natural or legal) and will therefore be assigned to a specific birth number or a specific identification number (ID number). We will keep a list of shareholders in electronic form. A change of shareholder will of course be possible. Authorization will be similar to the process for domain holder changes.
The nominal value of one share will be precisely determined (details another time). Shares may be issued in the future at different values, which we do not plan to do yet, but we cannot rule it out.
Why are we doing this?
We have decided to go the stock route because our success will be your success, or a success for our shareholders. Through this close connection (between us and our customers as shareholders), we will gain more than we would have gained through a loyalty program alone. It will be clear to every shareholder that our economic success (profit) is also a success for them (dividend and growth in the value of the company and thus growth in the value of the shares).
Any good shareholder will support their company and become our (best and most active) salesperson. We’re not looking for door-to-door salesmen. The point is, if you are really happy with us, tell others. Mention that you are a guest with us, tell us about your satisfaction with the quality and the service we offer and our prices – that’s the best advertising. Your friends may appreciate similar information. We are looking for walking (live) advertising that actually does advertising unknowingly.
We doubt that any reasonable person who has invested (even a penny’s worth) in our (your) company would harm our (your) company and thereby jeopardize our (your) investment.
We have no problem growing, we have no problem financing our current growth. But we want to grow faster. We have offers from investors, we have offers to sell (part or all of the company), but we don’t want that. We are looking for the aforementioned “vendors”. We want to turn our customers into “sellers” while keeping them “forever” attached to us. That’s why we chose this (almost unexpected) way.
Of course, the stock program has other advantages for the company. Why would we delude ourselves that we don’t. The advantages of the share programme from the company’s point of view include:
- tie clients to us forever (why would they buy anywhere other than “yourself”)
- we will make our clients the best “salesmen”(they will praise their company)
- the company receives funds for faster development, expansion and growth, which it does not have to directly (and necessarily) return and pay interest on (like banks and leases), but only “returns” part of it in the form of a dividend (in the case of profit)
- if the offer is successful, it can be repeated to raise additional funds for faster growth
- funds can be obtained for development into other areas of activity (in the IT sector)
- the shares can be used for various “dog pieces” (increase capital, sell shares, exchange for shares in another competing company)
This makes the company extremely stable and resistant to external influences (market changes or economic influences). Thanks to this we can build something quite interesting and great together (with our customers – shareholders). We can’t do it without our customers, and they probably can’t do it without us. We need each other.
(Highest) level of relationship between company and customer
We consider our program to be the highest possible form of relationship between the customer and the company. There really can’t be a closer relationship.
Each shareholder will be able to participate in:
- company management
- company decision-making (we plan to include electronic voting on important matters)
- directing the company and determining its strategy
- share in any profits
Of course, the shareholder can sell his share (more on that another time) and thus he may be able to appreciate his investment.
Why don’t other companies do it?
You’d have to ask them, but of course we have our own opinion on that and there are certainly objective reasons. It is clear that if we succeed, other companies will try to do something similar.
Preparing a similar share offer is a challenging process. The chances of success (i.e. that the shares will be interested and the issue will be bought by interested parties) are small (we do not know of any case where someone has succeeded). Of course, the company must be attractive to potential clients (e.g. through growth or a good reputation), which is fulfilled by significantly fewer companies… And so we could go on.
Of course, the owner (or owners) of the company must have the courage to take such a step, and at the same time be resigned to the fact that they will no longer be the unlimited rulers of their company. This is also an incredibly difficult decision (perhaps the hardest part of the whole event). In our case it was even easier because the only existing owner had already sold a similarly interesting company years ago and thus is freed from economic and emotional (when you consider the company as your “child”) connections. Simply put (from the perspective of the current owner) – it is better to own a smaller share of a large company than 100% of a small company.
We don’t promise mountains mines
We don’t promise mountains. Certainly not at the beginning. However, in the future, in the years to come, our results may be quite interesting. It is quite realistic that our profit will be in the order of 20% (or more) of turnover in the future. We’ll discuss this further in future articles.
We are currently in a growth phase, and this growth is very dynamic. At the moment we are constantly investing in development and therefore we are not making a profit. At some point the situation will change and our investments will start to yield results. The goal of our efforts, the goal of our business, is to make (and regularly achieve) a profit. We did not invest (literally) tens of millions of crowns “just for fun”, but with the aim of recovering them, including the corresponding (and recurring) profit.
Should I join?
It’s up to you. We can’t force anyone and we don’t want to. Above all, we are looking for people who are our satisfied customers and who trust us. Only people who trust us and know our services and are satisfied with them can be beneficial to us, and that’s who we do our program for.
Is it an investment in a startup or not?
We don’t like the word (startup) very much. It is too popular and unnecessarily often used. Even we ourselves don’t know whether or not we are a startup. It’s a popular word, but I don’t think we feel that way. With our concept, ideas and plans, we can probably be classified as a startup. The way we’re still basically at the beginning, I guess. On the other hand, we have many years of experience, we have our own facilities (building, equipment) and we already have beautiful results. I guess we’re not a startup anymore.
So you have to decide for yourself whether it is also an investment in a startup or not. Investing in startups tends to be riskier, but on the other hand, when the investment succeeds, it is also more profitable.
What the funds will be used for
As we have already announced, all funds will be used only for the development of additional services and activities aimed at faster growth of our company.
No funds will be used for other activities or, for example, to pay out shares to existing shareholders who will thereby reduce their shareholding. Everything is only for development, because it is in the interest of the current shareholder and all future shareholders.
Possible questions
You want to go to the stock market? At present, any such considerations are premature, but nothing can be ruled out in the future. Going public would of course make the situation more interesting for shareholders, but on the other hand we would not get “our sellers”, but only investors we are not interested in. Currently, the Prague Stock Exchange has started to offer the Start programme, which is for companies similar to ours. However, that’s where you get funding, but not customers (and vendors). And you certainly won’t create such a close bond between the company and its customers.
Will it be possible to sell the shares? The sale of shares is of course possible, without restriction. You will be able to sell to anyone else, anywhere, anytime. Of course, you will also be able to offer them to other shareholders.
How do I sell them? You will be able to transfer them in our administration. The system will be similar to the domain transfer system.
What kind of shares will they be? The shares will be registered registered shares and the list of shareholders will be kept in electronic form.
When will we know the details of the underwriting? We will publish details in a future article.
Is there an age restriction? There is no age restriction for share ownership, but any actions in relation to the shareholder’s rights would have to be carried out (for persons under 18 years of age) by a legal representative. That means you can own. You can purchase in your own name (officially through a legal guardian), but you would need to be represented by a legal guardian at the general meeting.
Risks
Yes, of course there are risks. It’s an investment and every investment comes with risk. We will explain all the risks in the following articles, including how we intend to minimise these risks.