How to Keep Investors Once You’ve Earned Them


Establishing the foundation of trust needed for a savvy investor to commit funds to your cause is by no means a mediocre feat. If you’ve managed this much, take pride in realizing you’ve pitched your property’s worth masterfully; the rock-solid strength of your market offering has cracked the cautionary shell of a shrewd financial vet, and like freshly poured mortar, new cash will soon flow. To cement your assets’ status as not just a framework, but a secure financial structure, you need only adhere to a proper plan. Lay the bricks right, and you will build an excellent investment.

I’ve spent years as a finance coach, mentoring budding startups as they grew into profitable enterprises, and I’ve seen how a few poorly calculated actions can instantly reverse investors’ enthusiasm for even the most fabulous product. Far more frequently, however, I’ve watched smart companies consider their audience, evolve when needed, and successfully carve out a niche in the market. Nearly every financial endeavor I’ve been a part of has convinced me that foresight makes all the difference between success and failure. Therefore, to help companies with great entrepreneurial vision receive equally great support, I’ve listed a few methods to help maintain the investments you’ve worked so hard to earn.

Don’t get complacent.

You’ve gained a financial foothold, but realize that a fresh foothold can easily bottom out without warning. Even signed assurances and supposedly guaranteed investments are susceptible to implosion. Investments can be especially fragile during the time between a confirmed agreement, and the transfer of funds. Be sure to hold off on purchasing anything in lieu of the investment until funds have actually been received. When the money does come in, try to prioritize spending which creates value for investors before doing things like refurnishing the office or giving salary raises.

Keep investors informed.

An investment isn’t just a lump handout, it’s a faith-based assumption that you will take calculated action to ensure a tangible return. It is your responsibility to confirm that investors’ trust was warranted by providing regular updates. Effective info-sharing methods include quarterly statements, annual audited financial statements, and direct letters highlighting achievements, major changes, and overall goal progression.

Though it may be uncomfortable, it is also your role as investee to accurately report negative events, failures, and crises. Presenting business shortcomings aside potential solutions is preferable here, however, if you don’t have a solution, don’t panic. Investors will likely be able to leverage their experience to help you create a fix.

Consider hiring an IRO.

Investor relations officers (IROs) are trained to facilitate relations between companies and investors. Finding an IRO familiar with your area of industry could vastly boost your appeal to current and potential investors. A good IRO will streamline communications between upper management, banks and investors, and tailor your roadshow and marketing efforts for maximum draw.

Consider implementing these concepts. You can’t go wrong by doing everything you can to keep your investors informed, happy, and confident in your abilities to handle their investments properly!


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