It combines elements of these techniques but adds a dimension that can be very powerful for you. DPOs are often used to secure clients, employees, suppliers or distributors as an added arm for your success while giving you the cash you need to grow. Essentially, they allow small business equal access to the capital markets that are enjoyed by their big corporate brothers and sisters. Conventional thinking in terms of business development, in financing, or in marketing, all pay very poor dividends today.
Competition is just too tough.
The use of a DPO can be the novel approach that gives you the capital you need while simultaneously marketing your product or services. DPOs have been used successfully for pure start-ups as well as firms that had existed and been privately financed for decades. Over the last 15 years, Fortune 500 companies have reduced their workforce from 16 million to five million. Over the same time period, small business has added 20 million new jobs. The SEC has developed a hands-off approach for much of small business stock offerings, preferring that regulatory responsibility he principally with the states.