The small and micro-cap market is an essential part in bringing small and mid-size companies public through Reverse merger and Regulation D (504) offering, these are two most popular methods used by small and mid-size companies to go public.

This two avenues are prefer by small and mid size companies because they simpler and less expensive than traditional IPO, It can be refer to as a simplified fast track method by which a private company can become a public company.

I described process in detail how small and mid-size companies can go public in previous articles, if you miss them, you can email me and I will be happy to explain it.

I have over 25 years of experience in securities industry as market maker and trader. In my own brokerage firm and with a couple of largest wholesalers in Wall Street. I believe my experience qualify me to write on subject with clarity and honesty from a birds eye view.

I believe in short selling as a legitimate way of providing liquidity to market as an essential part market making, that is not what I am referring to.

A short position is established when somebody sells a stock they do not own hoping to be able to buy it bac at a later day for a lower price.

There are several reasons why selling short stock of companies that have gone public through a reverse merger is profitable and easy, I will identify them and suggest ways that this can be stopped once all for all without affecting legitimate short seller who are willing to sell and bear risks associated with carrying a short position. Reason number one (1). Corporate shells, in order for an operating private company to go public in a Reverse merger it must merger with a public shell. A public shell is what remains when a public company is bankrupt or liquidated, also some shell are created as Blank Check companies,

A Blank Check company has shareholder and maybe some cash in its books but nothing else, they are created by enterprising entrepreneurs for sole purpose of merging an operating private company into it.

What happens is that when shell owner sell shell to private company he retains 5-15% of shares for himself, on top of collecting any where upward of $500,000.00 for himself. And even if he signed and agreement not to sell for a year, most of these people can not be trusted and will at some point dump stock or have somebody create a short position in their behalf.

Having stated that, some businesses still seem to excel in customer service and get rave reviews from consumers, surely they have a different strategy.

Internal Customers Remain Same

It is my view that everyone joins a business team to do their best. It is culture of business that affects their performance level. There is an African saying “the boss casts a long shadow” and this is especially true when it comes to standard of customer service we experience in businesses. Everyone wants to excel at customer service, but starts from a different point and performs to cultural expectation levels of business.

The consumer experiences customer service based, in my view, on different levels: Level One: Synthetic Service Level Two: Genuine Service Level Three: Super Service Is it understanding of team and implementation process that make difference.

Synthetic Customer Service

This is based on all team members being trained to provide a ‘customer service’ act. They are given a script, told to remember their lines and to repeat same process with every customer.

This approach is common in fast food industry and is often criticized by many business people, due to its artificial approach. But, in my opinion, it does have a role. Not every one has experience and attitude to provide customer service at level two or three.

Most young people do not have life skills to move to level two or three. The same is true when employing people from a different culture to your target customer.

Companies that provide awesome customer service appreciate that not everyone will be awesome. They therefore ensure they have a rigorous training programme to make sure all team members are trained and skilled at least in level one customer service.

Genuine Customer Service This should be mainstream customer service. It is based on employing a team member with personality and then giving them confidence by providing product knowledge and skills training in selling.

Genuine customer service is often labeled Customer Relations Management. It requires team members to open conversations using “open questions”. They then rely on their listening skills and product knowledge to build a relationship and foster loyalty with customer.