This is one of 186 strategies and applications that will appear in Putting Your Small Business on Steroids — 186 Strategies to Increase Your ROI, by John Gifford and Matt Hall.
Henry Ford, in his formative years as an entrepreneur, used two strategies to good advantage in facilitating his automobile start-up: publicity, and attracting a key supporter who would bring more to his cause than just money. A third strategy, flexibility in means of compensation for stock, was also crucial to Ford Motor Company’s early growth.
Henry Ford didn’t really like racing his automobiles. But, in order to generate publicity and to capture the attention of rich and influential potential backers for his nascent company, he enlisted the daredevil Barney Oldfield to race the “999″ at a track in fashionable Grosse Pointe, Michigan. Oldfield broke the world record for three miles and Ford gained notoriety and a wealthy backer–Alex Malcomson, a Detroit coal dealer–for the start-up of his automobile company.
Malcomson not only offered his own support, but valuable connections as well. Several of his acquaintances contributed money for stock in the new company, Albert Strelow received stock for use of his shop which would be the factory location, and John and Horace Dodge contracted to produce motors and transmissions for the company.
The strategic model that Ford used could be implemented today for a web hosting and web design firm that wants to expand its scope by buying other similar firms and provide its full line of services to these newly added customers.
To find investors for his company, the CEO could generate publicity by selecting the right kind of speaker to attract specific individuals he is looking for: private investors or larger companies wanting to invest in smaller companies. As an example, the CEO could get a well-known attorney who deals with angels and other business investors to speak about a topic dear to his heart: an Indiana-specific tax break that allows those that invest in small businesses to write-off 20% of their contribution.
If given at the right venue with optimal marketing and promotion, the targeted kind of individuals will attend, those that are interested in investing in small companies. After the presentation, conversation will be encouraged, those who are interested in taking advantage of the tax-break program will sign-up for detailed information on the program, and contact will be maintained with these individuals. There could even be a mini-presentation period for 2 or 3 companies seeking funding (guess who will be one of those presenting?).
Should one investor like the web hosting and design company’s expansion plan, he is likely to know one or more investors whom, if he himself is convinced of the investment potential of the plan, he can and will convince to invest also.
Know whom you want to meet and plan so that it will happen, putting you in the best light.
This is one of 186 strategies and applications that will appear in Putting Your Small Business on Steroids — 186 Strategies to Increase Your ROI, by John Gifford and Matt Hall. If you would like to be notified when the book is available, please send an email with the Subject: Book Notification to johng@indysmallbiz.com.
Tags: indianapolis, small business strategies
