Have you successfully landed investors for your company? That’s great news! Now the job is to keep them happy. The following are tips for staying on good terms with your company’s investors.
Stay in Touch
Keeping in touch with your investors is a vital component to a successful relationship. If you secure an investor early on and then don’t reach out with updates for months, they will likely become worried, angry, or both. What are some effective ways of keeping your investors up to date? Send them monthly updates via email or phone calls. Provide your investors with information they will likely want to know, such as data points, sales figures and projections for upcoming quarters. Keep in mind that investors are helping your company get off the ground and it’s your job to stay in touch with them.
After you secure your investors and begin going about business, there are bound to be challenges within the company. Instead of trying to keep bad news hidden from your investors, be completely transparent and honest with them. Investors will eventually find out the bad news; trying to hide it will only upset them. “No one wants to learn from an outside source that your business is about to burn through its accumulated funds,” says Vanessa Kruze, CEO of Kruze Consulting.
Be a Contributor to Investor-Friendly Media Outlets
Ellie Cachette suggests that your company try to figure out which media outlets are being read by both current and potential investors and see if there is something you can contribute there. Why is this a key step to staying on good terms with them? By participating in the same channels that your investors do, it shows them that your business is not only relevant but involved. It keeps your company in the front of their mind and allows investors to hear your thoughts without even having to reach out.
Maintaining quality, clear communication between your business and its investors will be vital to the success of your company. Make sure you are keeping in touch with them frequently, avoid surprises and contribute to investor-friendly media outlets. These three tactics will help facilitate communication between your company and your investors.