Most people feel investor updates are cumbersome and a drag to business operations. In most cases, businesses de-prioritize them, while some remove them entirely from their activities. The truth is that monthly updates are more than just a way investors track the successful progress of their startups.
After raising enough capital, your business will look for shareholders. The shareholders will probably invest their money in getting a return for your company’s profits. For this to work, most investors share money, leave and invest time to achieve that return on the bottom line. Therefore, it is essential to keep updating your investors regularly.
Updating your shareholders keeps them in the loop with your operations to get advice and help from them. Investors want to feel involved in your business processes and establish a pattern that they can follow to track their investments. According to experts, an investor invests in lines, not points, requiring an established track record.
The worst thing that can happen to your business is ignoring your investors and contacting them 12 months later asking for money. It is far better to share information about your company and let your shareholders decide whether to read it or put it up for later. The goal is to show you want to involve them in all your operations.
Reasons Why Frequent Investor Updates Are Important
Regular investor communication is essential for various reasons. Here are the four big reasons you ought even if you don’t have investors.
- Keep your investors in the loop: Investors want to know what is going on in your business as it relates directly to their investment. As shareholders, they don’t have to ask for such updates.
- Make your startup a priority concern: In most cases, investors have various things to take care of, including other businesses. It would help make your business stand out and be the priority concern.
You will be sharing issues you are facing by asking for advice, and they will keep thinking about those problems to help you solve them. Also, when you ask for help, they will have already figured out the solutions to enable you to continue with operations seamlessly.
- Shows respect to your shareholders: A communicative entrepreneur shows that they appreciate investors’ contributions to your business. It is the right way to treat your people, and it will also be valuable when you want to request anymore help, such as funding. Furthermore, when you intend to create another business, it will be possible for your investors to continue working with you without hassle.
- Your growth strategy keeps changing. With business growth comes new processes that you need to fulfill to maintain your growth. It would help to address these changes for your investors. They will help you evaluate your development with advice or by increasing funding.
Updating your investors is crucial to protecting investor relationships. The information can also be valuable when you don’t have investors. Regular updates give you a bird’s-eye perspective of every business operation. It will be easier to streamline these operations and have unique strategies that will drive your business growth.
Writing Investor Updates
Depending on your business model, you can adopt a unique way to update your investors. The approach should be familiar to your investors to ensure they get the intended message. However, we recommend that you respect their time. Make your updates urgent and skimmable with direct language.
As an entrepreneur, you will often get lost in the day-to-day hustle. These updates will give you a wider picture of your business. At PS Group, we help you prepare effectively and invest in your business for success. Submit your application today to get started.