By William Rosellini – How you manage investor communications plays an integral role in your business journey, which is why the successful management of your investor communications should be a priority at all times. Steering this aspect of the executive responsibilities will unlock a plethora of immediate and long-term benefits.
As with any crucial aspect of business management, however, a detailed plan of action will be required. Here’s how to manage investor communications in style.
Step 1: Remind yourself of the incentives
Every business owner can appreciate the value of their investors, but it’s never a bad idea to remember that strong investor communications are just as significant for you as they are for the investors themselves. Key benefits include, but are not limited to:
- Boost your hopes of securing further financial backing.
- Secure an injection of liquidity due to increased share trading.
- Gain increased trust and leverage success from investor insights.
- Get a fair valuation of stock and key business assets.
- Make the business more attractive to employees and customers.
Furthermore, when you present information to investors, it encourages you to implement meticulous attention to detail. It also provides an opportunity to spot risks and obstacles that you may have previously missed.
Step 2: Understand different types of investors
No two businesses are the same, which is why investor communications should be tailored to the DNA of your business. One of the first issues to consider is the type of investors that you have gained backing from.
Institutional investors are likely to own a larger percentage of the company, which is why they bring in a far bigger level of capital and may also crave a more active role. They have conducted their due diligence when researching the company and will expect solid communication, not least in relation to the performance levels and future proposals of the company.
Private investors usually hold a far smaller stake in the company, but their capital injections are still very important for the company. You should look to understand whether their investment is incentivized by capital gains, tax efficiencies, or other issues like philanthropy. This will determine whether it’s best to focus on your dividend policies or capital growth opportunities.
Step 3: Provide Regular Investor Communication
The world of business never stops, and investors need to be kept in the loop throughout the duration of their investment. This should be facilitated through a range of face-to-face and digital interactions. There are several powerful tools to consider, including:
Monthly Investor Updates
A monthly investor update will keep investors in the know regarding any developments that have occurred in the last month. This could relate to a number of Key Performance Indicators, such as sales figures, staffing additions, new marketing campaigns, and more.
The investor update is usually sent as a convenient PDF download that covers one topic on each slide. The best solutions will use visual content to illustrate points clearly while they highlight professionalism and keep your business fresh in their minds.
Quarterly Investor Board Meetings
Quarterly investor board meetings are a great way to turn the interactions into a two-way dialogue. They allow you to discuss the company structure, KPIs, future strategies, risks, opportunities, and plans of action.
Some companies choose biannual meetings rather than quarterly ones. Either way, they should be supported by board decks and other pre-meeting materials. They allow investors a chance to prepare and show your attention to detail.
Press releases are a great resource for detailing key developments within the company. For the best results, investors should receive the press releases that are sent to all recipients as well as separate press releases exclusively designed for the investors.
The use of press releases is particularly useful as it does not require a response from investors. Instead, it simply allows them to receive key news quickly while they can digest the necessary data at their convenience.
Step 4: Get Your Board Involved
It’s far easier to keep investors updated with everything going on with the business when your board members are involved, and their influence should not be limited to investor board meetings. There are many reasons for taking this approach, including:
- Some investors may naturally form a better bond with your board members.
- It encourages board members to take investor management seriously.
- Having more people on the job makes you more responsive.
- They can often explain the dynamics of the market with greater power.
- It removes the weight of pressure from your shoulders.
Encouraging board members to get involved can also promote a level of consistency that will subsequently benefit investor meetings and other key moments within the process of managing investor relations.
Step 5: Encourage Self-Discovery
While you need to take the initiative in most aspects of investor communications (at least in opening the dialogue), it certainly pays dividends when investors look to find out information for themselves.
Social media cannot be a substitute for effective investor meetings and updates. Nonetheless, it is a resource that can be used to keep inventors in the loop of certain issues. For example, your business is more than happy to disclose details of awards, new recruitments, and related issues.
For starters, this insight is of good interest to the investors. Moreover, they may be impressed by the high follower counts and engagement levels. It can enhance the existing relations while also making a big impression to attract prospective new investments.
Step 6: Be Available
Finally, you should ensure that investors are able to contact you when needed. Offering this service will encourage trust, remove any sense of ambiguity, and allow them to seek answers that could potentially impact their investment decisions. In many cases, this could actively steer them away from alternative opportunities.
No business owner wants to field daily calls as this would disrupt productivity. If the steps above have been completed correctly, this won’t be an issue. For most investors, it’s just nice to know that contact can be made when required.
To learn more about managing investor communications and/or using templated documents to support the process, get in touch today!
William Rosellini is the President of CytoImmune Therapeutics, Inc, a clinical stage biotechnology company. Previously, William Rosellini was the CEO of Perimeter Medical, Inc. (TSX:V “PINK”) where he oversaw 2 510K clearances, an RTO and $30M in capital raised. Prior to that William Rosellini was the CEO Nexeon Medsystems, Inc., (“OTC:QB, NXNN”)a medicaldevice manufacturing company that went public in 2017. Before that William Rosellini founded, raised $16M across A/B rounds and led Lexington Technology Group, LLC, a database company commercializing an electronic health record database solution to an exit (“DSS” NYSE). Before that William Rosellini founded Sarif Biomedical LLC, a stereotactic cancer microsurgery with IP spun-out of Medtronic and led company to an exit with Marathon Patent Group, Inc. (“MARA” NSDQ). William Rosellini subsequently served on the Marathon board of directors and chaired the Audit committee. William Rosellini completed 2 acquisitions to form Telemend Medical, Inc. a clinical engineering services company and led that company to an exit in 2016. William Rosellini was also CEO at Microtransponder, an implantable neurostimulation developer with solutions for stroke rehabilitation. William Rosellini is a former minor league pitcher with the Diamondbacks of the Arizona League, holds a JD, MBA, MS of Accounting, MS of Computational Biology, MS of Neuroscience and MS of Regulatory Science.