Everest Business Funding Lists Ways to Improve Investor Communication as an EntrepreneurBy David Thompson, UniversityHerald Reporter
When starting a business, many entrepreneurs build capital with the help of family and friends or even use their own personal income to cover startup expenses. Another way entrepreneurs gain capital that allows their business to develop during its beginning years and beyond is through investors.
Everest Business Funding, an organization that provides alternative finance options for small business owners, highlights one of the most critical actions an entrepreneur must take when incorporating the aid of investors to achieve business success: maintain open communication.
Constant communication between an entrepreneur and an investor leads investors to stay on board with supporting the organization and continuously investing. Investors trust the businesses that they fund, so Everest Business Funding shares these ways entrepreneurs can uphold the responsibility of nurturing investors' trust:
1. Answer All Questions with Urgency and Clarity
Entrepreneurs should mentally train their brains to address all investor questions with urgency. That means imagining all incoming questions from investors are labeled with a "reply as soon as possible" sticker. If a lot of communication is done with investors via email, marking investors' emails as "VIPs" will help entrepreneurs never miss an important question that comes their way.
In addition to avoiding putting investor questions on the back burner, entrepreneurs should strive to supply clear and transparent answers. Investors do not want entrepreneurs to paint false pictures that seem appealing; they want the complete picture or the truth about where their money is going and what real challenges and obstacles the business faces. No business is a smooth, perfect ride, which investors should know. Yes, entrepreneurs want to focus on company momentum during conversations with investors, but that does not permit an entrepreneur to exclude the entire truth if answers involve both the current operation's ups and downs.
2. Schedule Reoccurring Meetings
An efficient strategy to keep open communication rolling between an entrepreneur and investors is to schedule a time to ensure everyone is on the same page, in-person or virtually. Making a point to schedule reoccurring meetings to keep investors up-to-date with the latest organizational news and changes will help investors feel more "in the loop" about what is happening in the business without needing to overwhelm investors with day-to-day updates. It can also be a great strategic time to ask and answer questions. Depending on the organization and its growth stage, these meetings can be scheduled monthly, bi-monthly, or quarterly.
3. Meet the Investor in the Middle
A significant piece to open communication is to communicate effectively. Sometimes, the most beneficial way for an entrepreneur to converse with an investor is through whichever means the investor favors using. Whether the preference to communicate is through email, text, phone call, in-person meeting, or Zoom, allowing the investors to choose how they individually want to share information gives entrepreneurs a greater chance of better receiving their messages and vice versa.
4. Use Metric Reports
As the saying goes, you cannot argue with the facts. When speaking with investors, bringing metric reports to the table helps show investors how the business is doing through factual information. Incorporating metric reports contributes to boosting clarity when communicating with investors.
About Everest Business Funding
Everest Business Funding is a small business owner's trusted partner. They support entrepreneurs by providing them with working capital to expand their businesses and operations. The entire application, approval, and funding process is completed in record time. When you need cash for equipment, staff, renovations, inventory, marketing, or anything else, Everest Business Funding can help.