Today we will try to explain in more detail why we are doing our Loyalty Share Program. We will borrow a few excerpts from the introductory article. The signing is coming in leaps and bounds, so we have to explain all the pros and cons…
Do we want to sell the company? No!
No, this isn’t really selling the company. We are not planning to sell the company. That’s what we said at the very beginning, when we started the company.
Recently, we have received several general (and sometimes specific) offers to sell the company or to sell part of our stake in the company. We refused. We have also received several offers to take over other companies we (our competitors). Twice we have received a proposal to merge companies (ours and a competitor’s). Most of them were from the Czech and Slovak environment. We’re not selling the company. However, it inspired us to think that there might be interest in a similar solution that we are now presenting.
Isn’t that an exit from the company?
As mentioned above, it is not a sale of the company or a sale of part of the company and a share payment. This is a method where all funds will be used ONLY for the further development of the company. We will present more specifics in future articles.
Why are we doing this?
You may say that the founder of the company is not interested in financing the development of the company from his own funds. Yes. That’s a small piece of the truth, but more importantly, it’s a combination loyalty program to retain existing customers. Provided, of course, that the quality of service is maintained and that they are offered the opportunity to participate (and earn together with us) in the future development of the company. If we do well, so will your investment and ours.
The shareholder will be a customer forever
We want to get satisfied customers who care about our success and will become our best salespeople as a result. They will praise and recommend us because it will be in their own (economic) interest.
Faster yet safer growth
With the capital we have raised, we can expand faster. At the same time, we will be able to finance the entire development as before – without any loans and leases, which may be a “road to hell” for other companies in the coming crisis.
For the company, a solution like this is an ingenious solution that enables faster, but above all safer growth. You have “committed” customers who are salespeople for the company (they literally recommend their company). You don’t have leases and you don’t have loans and you don’t have leases… What more could you ask for…
We meet the needs of those interested
We want to meet the needs of our existing clients who trust us. We don’t want big investors, we don’t want strategic partners, we don’t want financial investors, we want clients who believe in us and want to experience our success with us. We’re not talking about large sums of money. We are really talking about hundreds of crowns here.
We want to grow faster, we want to grow more dynamically, we want to grow in other areas. At the same time, we want to “oblige” our existing customers, to whom we will offer quality services cheaper. They won’t have a reason to leave and we’ll make them our best sellers.
Benefits of the Loyalty Share Programme for WEDOS
If our program succeeds, we have an incredible number of advantages over our competitors. We will introduce the basic benefits for WEDOS Internet, a.s.. In future articles we will also mention the benefits for potential shareholders.
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).
Existing advantages over competitors:
- own building, i.e. we don’t pay any rents, built by our own efforts, without foreign resources,
- everything is built with the lowest possible electricity consumption in mind, with energy-saving technologies including energy-saving processors,
- the datacenter is directly on the fiber optic backbone cables,
- own technology, everything built without outsourcing, we have our own team of programmers and engineers – no expensive outsourcing that would have to feed other armies of managers, directors, advisors, consultants, …
- we are not dependent on anyone, we do everything to our own exact specifications, so we are able to better optimize for our needs,
- full automation, we have no services without automation
- no leases or loans,
- experience since 1997, expertise and professionalism,
- high quality professional technical background, ecological and economical operation,
- more convenient location (e.g. with regard to wages),
- safety, reliability and high quality,
- modern technology,
- 24-hour customer support, customer service,
- revolutionary service parameters,
- revolutionary service prices,
- good name, excellent reputation,
- the possibility of further dynamic growth (both spatially and organizationally – we build everything from the beginning “for a big company”)
Some of the arguments were used from our“Why come to us” article and some from our“Why we have such low prices” article.
The new benefits of our programme:
- loyal and faithful customers(to commit clients to us forever, because why would they buy anywhere other than “ourselves”),
- make customers into salespeople – we will make clients the best “salespeople”(they will praise their company),
- further dynamic development without leases and loans – the company receives funds for faster development, expansion and growth, which it does not have to directly (and necessarily) return and pay interest on (as to banks and leases), but “returns” only part of it in the form of a dividend (in case of profit and only if it is successful),
- if the offer is successful, it can be repeated to raise additional funds for faster growth,
- Incredible opportunities for further development – funds can be obtained to develop into other areas of operation (in the IT sector),
- the possibility of building another datacentre,
- you can do various “dog pieces” with the shares (increase the capital, sell the shares, exchange them for shares in another competing company),
Our newly introduced Loyalty Stock Program would be a very strong competitive advantage for us.
We will present our plans and ideas for the future in the next article.
Why not take out a loan or lease?
Leasing or credit is a relatively simple matter. Share subscription is more “demanding” and more profitable. Unlike a lease or a loan, you do not have to repay the funds raised when you subscribe for shares, or repay them with interest. If you raise funds from shareholders, you may lose some of your stake in the company, but you get funds that you don’t pay back (except for any share buybacks) and you don’t have to pay interest on them (except for dividend payments). So you only pay “interest” in the form of a dividend, which you only pay if you make a profit. Making a profit, especially when starting a business, is more difficult because you have to invest a lot. If you do well one year and make a high profit, you’ll be happy to split. If you do less well the second year or have to invest more, shareholders get less. You always have to pay the bank or leasing company, no matter what stage of development you are in or how well your business is doing at the moment.
Isn’t this the safest solution for further dynamic development? I’m sure it is.
Does that make sense?
We have the prerequisites to become the most successful company in the industry on the Czech market, and thus significantly value all investments (both current and future). We want to take advantage of these assets and we do not want to miss this opportunity.
It may sound hyperbolic, but we do everything we can to ensure our success. When we started, nobody believed in us. Everyone said we had no chance of success. Today we host almost 6% of the Czech market and we are growing by another tenth of a percent every month.
What’s next for our programme?
Let’s see how this first step turns out. If there is interest in our program, we can proceed with another round of public subscription. If there is no interest, then of course there is no point in continuing. If the program meets (or exceeds) our expectations, we can fund our continued growth much faster than we can from our own operating revenues, while gaining loyal customers who will care about our success.
The next step stock exchange?
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.
How complicated is the process of subscription?
What preceded it? It is not an easy process. It’s many months of preparation. Hundreds of papers, going around the offices, dealing with notaries, auditors, forensic experts, etc.
We believe it will pay off.
The result of several months of preparations is finally an increase in the share capital from the original 2 million to 20 million, changes in the existing shareholder structure of the company and also changes in the company, which we will present later. These changes are now awaiting registration in the Commercial Register. Now we will reveal a little bit, which will be presented in detail in the following articles. The next step will be a public offer for subscription of shares with a nominal value of CZK 3 million. We will offer a total of 13.04% of the company.