By Joshua Denne
What does it take to keep your investors happy? My goal is always to become an influencer in an investor’s world. I have a formula that breaks it down into four simple factors.
1. Friends First. Whether someone’s an investor, a client, a vendor, or anyone who’s involved in your business at any level, I seek a friendship first with that person. I want to get to know them, know what’s important to them, because everything starts with a relationship — especially with someone who’s going to invest in you. We all like to do business with people that we know, like, and trust.
When you and your investors are friends first and you’ve built that relationship, they’ll want to invest more in you if you need it, and they may introduce you to other people who may help you in other ways than just capital.
2. Consistent Communication. I think one of the pitfalls of many small business owners is they have so much going on daily, they forget to communicate. But the investor doesn’t know what’s going on unless you tell them.
It’s a good practice at the end of the week to write down all the great things that happened in your business that week. Keep a journal of it and at the end of the month, send out an email to your investors outlining it all — here’s what happened, here’s our revenue, here are all the good things that happened.
But don’t rely on texts or email alone. It’s important to pick up the phone. Investors want to hear your voice. They want to feel your enthusiasm. An email doesn’t have emotion; there’s no real feeling to it. I don’t care how many emojis you put in there!
3. Share Challenges. It’s inevitable in any business that challenges
will arise. Don’t be ashamed or afraid to share them with your investors. Most entrepreneurs tend to see the world through rose-colored glasses — they have an optimistic view. And that’s a good thing; you need to have that. But you also need to be realistic when there’s a problem and share that problem with your investors.
Now, I’m not saying every problem – just those that really pertain to the growth of the business. Say “Hey, we’ve experienced this, we’re looking for solutions.” And asking your investors if they have any solutions can be a great idea. We are all eating off the same plate, and we all want to win together.
4. Go Perform. You took someone’s money, so make them proud. As an entrepreneur or as a small business owner, you have a fiduciary responsibility to go get the job done. Go work as diligently as you possibly can to make it a success. Be a good steward of that capital.
There’s an old proverb that says, “Measure three times before you cut once.” To me, that means make sure your processes are always done right. Do what you say you’re going to do when you say you’re going to do it. And keep in mind that little expenses become big expenses when not resolved.
These are all the ways you can become an influencer with your investors and build strong relationships that sustain over time. When you treat an investor right, you’ll open up a well that can potentially feed you for a lifetime.
There’s more where this came from! If you enjoyed this chapter, download our FREE ebook, Mulligan Funding’s Ultimate Guide to Business Relationships, to access 9 additional chapters jam packed with practical tips and guidelines to maximize your business relationships.