By aucklandnorth. Posted in Business Growth, Cloud Software, Contractors, Small Business, Solutions, Startups.
This is a featured Blog from our friends at SeederBoard.
You never know when you might need to ask them for more funds.
They already believe in your vision and business idea (hence the investment), so are great at spreading the word about your company!
They often have a specialisation or some domain expertise outside your field (lawyers, accountants etc.) and can chip-in and help with some of the major issues you might face. It’s in their interest after all.
Future investors always like to talk to existing investors. By keeping in contact, you’ll give them a reason to say great things about you.
Raising funds for any business is notoriously difficult. Any number of factors can slow things down or get in the way, preventing you from taking your business to the next level.
Once you have completed endless elevator pitches, a frantic search for due diligence paperwork, then working out a fair term sheet, you might finally close the fundraising round.
How do you keep existing Investors happy and get them to help your business grow even more?
Four points to remember about Investors:
So how do you manage effective investor communications without spending all your time writing reports, emails or talking on the phone?
Share high-level financial reports: balance sheet, profit and loss, and executive summary.
Measure your progress: share your key performance indicators (KPI’s). Meaningful business metrics demonstrate you are focusing on building your business. You might ask major investors if they require specific numbers for their own reports (especially Venture Capitalists and Angel Funds).
Report briefly & regularly: every month or quarter is usually sensible (but check your investment agreement for any other requirements). Send over short, snappy updates to keep them interested, for example any new deals, new products, big changes in strategy, major discoveries.
Be transparent: share good and bad news. In business, bad things happen too. Investors will be happy to know you can be transparent and overcome problems.
Ask investors for their input when it’s appropriate: more often than not, stakeholders are happy to help out a growing company they have invested in.
The process of reporting and gathering business numbers also gives you an excellent view of your own business from a high level. Many businesses struggle to achieve this, which is why many businesses fail.
As your business evolves, the focus on certain areas or specific metrics might change but very quickly you will understand how to spot threats and opportunities from a distance. The picture builds of where your own business is going and how much real progress you are making.
Over time, all of these elements build up investors confidence and are an effective for proving your business track record.
Simply put, you’ll run a better business.
Tim Boeckmann is CEO of SeederBoard, an online startup investor relations platform that integrates with Xero. SeederBoard makes life easier for startups and investors, helping make smarter business decisions.
Try it free for 30 days, available on a monthly subscription from £17.99 thereafter.
Psst… If you’re looking for Accountants in London that can work with SeederBoard and provide this level of regular reporting, timely information & unlimited support – check out our Sidekick packages.