5 Ways Business Owners Can Improve Investor Relations

Investors and Investor Relations are crucial to the success of any business.

Whether you’re looking to secure funding, grow your operations, or increase your market share, maintaining strong investor relations is essential.

Here are five ways business owners can improve investor relations and boost their chances of taking their company to the next level.

1. Communicate regularly and transparently

Communication is key when it comes to investor relations. Investors want to be kept up to date on your business’s progress and performance. Make sure to communicate regularly through email updates, quarterly reports, and investor meetings.

Be transparent about your business’s performance, including both successes and challenges. Investors will appreciate your honesty and openness and will be more likely to continue supporting your business.

In a 2017 survey of 475 institutional investors, 73% of respondents said “shareholder engagement plays a critical role in their approach to responsible investing.”

2. Be responsive and available

Investors want to feel like they have a direct line to the business’s leadership. Be responsive to their emails and calls and make yourself available for meetings and discussions.

Consider setting up regular check-ins with your investors to ensure that everyone is on the same page. Being accessible and responsive will help build trust and strengthen your relationship with your investors.

When company leaders ignore the requests of their biggest investors and stakeholders, things can go downhill very quickly. Look no further than the recent press at Nano Dimension, as promoted by Canadian asset manager, Anson Funds, for an idea of just how fast the winds can change.

3. Focus on long-term growth

Investors are looking for businesses that have a clear plan for long-term growth and profitability. Make sure to communicate your long-term strategy and goals to your investors.

This could mean investing in research and development, expanding into new markets, or scaling your operations. Focus on building a sustainable business that can weather ups and downs in the market. Investors will appreciate your vision and commitment to long-term growth.

4. Provide regular updates on financial performance

Financial performance is a critical factor for investors. Make sure to provide regular updates on your financial performance, including revenue growth, profitability, and cash flow. Use financial metrics to show investors how your business is performing and where it’s headed.

More than 90 percent of S&P 500 companies now publish ESG reports in some form, and so do about 70 percent of Russell 1000 companies, according to a report from McKinsey.

So be transparent about any challenges or issues that may be impacting your financial performance. Investors will appreciate the honesty.

5. Show appreciation for your investors

Investors are taking a risk by investing in your business.

Show them your appreciation by acknowledging their support and keeping them in the loop on your business’s progress. Consider hosting investor events or sending thank-you notes to your investors. By showing your appreciation, you’ll build stronger relationships with your investors and increase their loyalty to your business.

As Jack Welch, former CEO of General Electric, said: “People development should be a daily event, integrated into every aspect of your regular goings-on.”

Remember that building strong investor relations takes time and effort, so be patient and persistent in your efforts.