With the uncertainty in the economy rising every day, businesses are plummeting into a different stage. Much like the current global condition of the pandemic, the economy is also facing an unprecedented state. Investors become morose by the minute since the value of companies are crashing, and the products are being accessed less often. As the online services are being focussed more these days, the other companies can find it difficult to cope up with the status quo. All investors are interested in getting updates regarding the business and the profits they are making. Some investors are even hell-bent on being updated about the financial status and deals every week.
Venture investments will have its pros and cons, and you have to face all that it entails when you are running the business. Once the investors have put money into the business, they will get involved in its deals, offer advice, suggest strategies, foster business development relations, and refer key hires. By providing them updates, you can get information regarding the right opportunities and challenges as the investors study the sales, HR and corporate development information, and several other data. Although creating updates and reports for the investors can be a time-consuming and hassling task, it can be beneficial for your business in many cases. So, here are the right ways to approach the practice of sending updates to investors.
Use the Traffic Signal light Codes
Since the structure of the update is one of the most important factors, you need to focus on keeping that intact. You need to come to an agreement with the investors upon the timeline for sending the updates. By maintaining the updates, the investors are expecting you to increase your business and profits, and it can only be done by using a specific template. Green on the structure will indicate the feats you have achieved, and the yellow indicates the investments you are sceptical about. The red indicates the ones you are likely to fail at.
Making Specific Requests
Through the updates, you must try to make necessary requests for help. Anything ranging from creating new business-development connections and fundraising assistance to hiring referrals can be mentioned in the reports in a conspicuous form. The investors will try and make a difference with these points if they note it. They might do it despite the lack of time; also, since every minute counts, present it in the best form so that the investor doesn’t need to sift through the details.
Investors have the ability to comprehend the situation the right way; so, you should express your concerns at the right time. Every investor will expect a certain amount of updates every year, and if the number keeps dwindling, they can come to conclusions about the future of the company. Be transparent about your company’s progress in your updates so that the investor has an idea where things are going wrong. They could help you out with the situation if you mention the apprehensions and main concerns within the company.