The Pick n Pay approach
Day 9 - The Pick 'n Pay Approach
day 9 - The Pick n Pay approach
| the_pick_n_pay_approach.mp3 |
Another idea, especially for startups, even if you're not a startup, because you're constantly trying to raise capital, think about the concept of the stock exchange. What is the stock exchange? A atock Exchange is just a market where companies that have that have proven themselves and that have good, strong hope for the future that they'll continue to do better than they have done in the past. They go in and say okay, we'll put our stock available for a group of small investors to buy a small piece of our business and and then in exchange for them, of course, earning a return on their investment. And we will collect all of those monies as the company and we will put that money in and capitalise our business and grow the business and explore new markets. Why can't you do this with your business?
You don't have to list? I mean, think about it. I don't have to read Mr. Raymond Ackerman's book, The Four Legs Of The Table, which I would recommend highly, where it tells the story of how when he wanted to buy the first four Pick 'n Pay stores for a value of about R600,000 in 1966/67. He just didn't have enough money. And he persuaded a group of about 53 if not 56 investors to invest about R3000 in his business, and half of the 3000 was a loan and another half was was equity. Why can't you do this?
Why don't you go out there and convince a group of small guys? Come up with the package. Sell a stake in your business. Connect with a group of small guys invest R1000, R5000, R10,000, R50,000 with you, in exchange for equity in your business. You could structure it in such a way that it's, it's that the debt and equity deal where you know that the company will pay them back, if you don't want to sell a huge chunk of equity of your business, you know what I mean? But this is this way can definitely capitalise your business. But obviously, you need to really have a vision and you need to, to make sure that you limit the risk for your investors as much as you can. Because what's the point of taking other people's money, if you're not going to ensure that the risk you limit the risk and you, you control, anything that you can control in the process?
You don't have to list? I mean, think about it. I don't have to read Mr. Raymond Ackerman's book, The Four Legs Of The Table, which I would recommend highly, where it tells the story of how when he wanted to buy the first four Pick 'n Pay stores for a value of about R600,000 in 1966/67. He just didn't have enough money. And he persuaded a group of about 53 if not 56 investors to invest about R3000 in his business, and half of the 3000 was a loan and another half was was equity. Why can't you do this?
Why don't you go out there and convince a group of small guys? Come up with the package. Sell a stake in your business. Connect with a group of small guys invest R1000, R5000, R10,000, R50,000 with you, in exchange for equity in your business. You could structure it in such a way that it's, it's that the debt and equity deal where you know that the company will pay them back, if you don't want to sell a huge chunk of equity of your business, you know what I mean? But this is this way can definitely capitalise your business. But obviously, you need to really have a vision and you need to, to make sure that you limit the risk for your investors as much as you can. Because what's the point of taking other people's money, if you're not going to ensure that the risk you limit the risk and you, you control, anything that you can control in the process?