The Indexes of Learning & Growing Businesses
Table of Contents
Change the Way We All See Business
Change the Way We Work Together
8. Index all the good businesses
Change Ourselves: Everybody is a Producer.
Comparative indexes are the keys that will transform everything. When people are indexed with other businesses, they have a basis to learn where they are, where they have come from, and they can make appropriate changes to decide where they are going.
1. The Small Business Index of Learning Companies
Every good business that is recommended by the small business advocates within a community (and confirmed by the local National Trade Association) will be listed, linked and slated for a local episode of the show.
They are given access to courses, collaborations, and interactive questions to create their transcript and case study as the platform to be profiled for an episode of the show.
2. The Small Business Index for Growing Companies
A trust muscle has been exercised. These businesses share key critical ratios after every closing. A small program automatically uploads the ratio information and it becomes available to each business owner within their business sector and to compare across business sectors.
This is the beginning of real transparency within the private business sector.
3. A Private Business Index for Growing Companies
A subset of the growing companies index will be those businesses that are looking to take equity out of their business. They may want to maximize the valuation of their business and establish an exit strategy. They may be to maximize their valuation for acquisition. They may want their business to be sustained beyond their involvement.
There is an entire episode that looks at the eight possible exit strategies and the eighth looks at this option in detail.
Now each National Trade Association is in a position to help shape the future of the community.
Basic assumptions. A listing of the 400,000 of the best small business will fascinate the world. Pension and mutual fund managers seeking more diversification, are looking closely at efforts by American Express Financial Services, Nasdaq, Morningstar, Thomson Financial and the Private Equity Investors (PEI) to open a small business equity-liquidity model.
There is a desire to participate in the best small business on Main Street; and to date, there is no equity access to these businesses and liquidity thereafter. That is changing.
Online reporting: The tools currently exist for small business owners to join an index and automatically upload their key financial ratios at the end of every closing so they could do an analysis of their business by the averages within their industry. That same mechanism creates transparency if a business were to decide to take on equity capital for either succession or an expansion. The SEC began to encourage such a development back in 1982 with the initiation of their annual "Small Business Capital Formation" conference. They further encouraged it with the development of the Reg D formulation, particularly with Rule 504 which is described as a "Small Corporate Offering Registration, also known as a SCOR.
If such a model were to evolve for the businesses on Main Street, it would challenge Wall Street for an equal level of transparency. It would be good for business and for investors.
4. Comments & Questions
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Over the years, the feedback of our viewers has been most encouraging.