4 Ways To Give Investors
Confidence In Uncertain Times
The No. 1 Thing You Need To Give Your Investors In The New Year
- Communicate – Early and Often
- Be Authentic – Share Good News … and Bad
- Be Prepared – Anticipate Investor Questions
- Outline Your Goals – And Be Accountable
The global economic downturn triggered by the COVID-19 pandemic has been felt in every area of business. While there have been programs such as PPP that offer temporary relief, market conditions continue to be more uncertain and complex than most business owners have – or will ever experience in their lifetime.
As an entrepreneur, you already know that raising sufficient capital is one of the hardest things you will ever have to do as a founder. Whether your business has just one investor, many investors, or you’re starting to think about attracting investors, ensuring they remain confident with their decision to invest – especially in today’s economic climate – is one of your top priorities.
Communication Is Key
Proper communication means knowing your investor audience and understanding each stakeholder’s needs, as well as the investor group as a whole.
It also means providing routine, timely messages to the entire investment group, similar in format and including consistent information for their review.
Be Authentic – Share The Good News & Bad
Building on the theme of communication, it’s important to share your company’s wins – no matter how ‘small.’ Celebrating your company’s successes continues to add a positive spin to your operations and keeps your investors excited about their decision to support you.
On the same note, sharing the bad news when things don’t turn out as expected can work in your favor, too.
Pro Tip: When breaking the bad news, be prepared to share your plan to solve the challenge, and raise your hand to ask your investors for advice, contacts, and ideas to help you.
Be Prepared & Have Your Finances In Order
Investors are busy and can’t spend hours poring through your company’s financials to figure out what’s happening. When finding investment opportunities, a savvy investor will want you to provide them with financial updates that allow for quick review and analysis.
Outline Your 2021 Goals With Timelines
Talking To Your Investors
Providing confidence is the key to a long-standing and healthy investor relationship. This means sharing openly, being transparent, and listening to their feedback in order to strengthen your business.
Like any other partnership built on a solid foundation, approaching investors using these principles will continually remind them why they made the right decision when they placed their bet on you. Is there a better gift than that?
If you’re looking for a financial ally when talking to your investors, contact us today.
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