IN THE OFFERING PROFILE, BEYOND THE ATTRACTION OF FINANCIAL STATEMENTS, WHAT ISSUES SHOULD INVESTORS BE AWARE OF?

IN THE OFFERING PROFILE, BEYOND THE ATTRACTION OF FINANCIAL STATEMENTS, WHAT ISSUES SHOULD INVESTORS BE AWARE OF?

 

In the offering documents, besides the attractiveness of financial statements, investors need to understand 4 issues:

1. People

2. Processes and operational capabilities

3. Products

4. Assets: Tangible and invisible

 

However, before phases 1-10, transition to the professional stage and need to raise capital, the current status quo:

1. People: Equal but not breakthrough

2. Process and operation ability: Understanding implicit but not synchronously controlled when large-scale and scientific tools for strategic control.

3. Products: There is a difference and a reason to exist but not yet aware of this difference or competitiveness, even capable of being outdated and poor ‘keep fit’ & ‘always improve’ advance’ with markets and customers.

4. Assets: Tangible and Intangible

a) Tangible assets: Land, buildings, factories, equipment, means of transport, computers, office equipment…

b) Intangible assets: Goodwill, patents, license, most importantly brand positioning in the market.

 

However, these assets are often:

(a) Not properly recorded and valued on the balance sheet, leading to a decrease in value when negotiating with investors.

(b) The brand’s competitive positioning in the market is not clear, leading to easily leaving the competitive ‘boundary’ and moving to inappropriate models or having spent a lot of effort to get the position in the market, now distracted, let ‘smart & knowledgeable’ competitors occupy and even lose market share when growing bigger.

Because the more monumental, the more stylish, the more distant the leader from the customer, the weaker the brand is in the eyes of investors.

 

How does your business understand competitive positioning strategies and manage them?

Are we aware of that?