How to keep your shareholders happy?

Are you dreaming of running your own company? If you can afford to operate a company without any help, good for you. But unless the company you’re starting has low operating costs or you have the funds to cover your business operations wholly, you’ll need someone to finance it.

There are many choices for financing your small company, such as investors stockholders; they have the right experience to help your company succeed, so every idea and suggestion is in your best interest. 

They know how to listen to concerns, so take their feedback seriously. Before communicating your ideas, have a well-written plan and how the company should look. Make sure you set reasonable expectations for your shareholders. However, you should never underestimate the importance to keep your investors happy. 

One way to do it is to give them great ROI. But until it happens, there’s plenty to do to make sure your shareholders are your best supporters. Happy investors send a positive sign to potential future investors, which is the reason why you should consider getting in the habit of simplifying your ventures. 

Less hassle, just business. Stop wasting time and manage your company on multiple software tools. Shareholder management is necessary for business, so get an equity management platform that saves your time. WE.VESTR is a platform where entrepreneurs manage their company performance, cap tables, and shareholders, all in just one platform. 

How to increase your chances of success? 

Be honest 

Investors hate surprises, generally, especially if they’re bad ones. The majority of investors know that only a couple of companies develop based on a plan. Don’t hide something from your investors; let them know if something goes wrong, and share your ideas, techniques, and suggestions with them. Most entrepreneurs out there are likely to tell their investors that everything goes right until the day that you plan to deal with the issues. These types of surprises put your investors in a bad mood.

Treat your investors the same.

This is an important rule to follow and be very careful with. If you deal with many shareholders simultaneously, it’s essential to provide them with the same information. It’s easy to do it: send regular reports to all shareholders at a time and include information like necessary questions they might have. Treat your shareholders the same to avoid annoying or losing them. Doing so will prevent future problems and send them a clear message of justice; this is a fact very appreciated by shareholders.

It’s inevitable to encounter the type of shareholders that will contact you for just a bit of information and forget to end the call. Politely and firmly explain that there are answers that will be sent at the right time and that it should be evident that there’s no exception to this rule. 

Go Digital

The easiest way to communicate with your investors is to go digital. Why? Because you will look after them more accessible, and provide information Like Q&A and essential data, as mentioned. Having all critical information in one place shows how much you care about them. 

Companies tend to need plenty of investments, especially as they develop and grow. For example, it may be that the business model needs new support and thus, would benefit from extra funding. 

If an investor chooses to invest in your startup, the chances are that they’ll continue doing it as your company grows. But you must communicate with them, day by day, and they’ll “fall in love” with you as an entrepreneur. Be the first-in-line to help them. 

A survey made in 2018 by the British Business Bank stated that 39% of shareholders invest in a startup to show their experience in that field. Most successful entrepreneurs like to invest in the same sector because they know it, understand it, and they can provide valuable mentoring. If the business struggles, don’t hide it from them because they’ll help you get off the ground. 

Be organized 

Investors are very busy people. They run their own business while supporting another startup. Thus, it’s your responsibility to ensure that everything is organized and available when investors need it most. However, you must learn to be organized: not two investors are the same. One might be more involved than another, and they probably have different ways of communicating. Keep it personal. Investors want to keep in touch with humans, not robots. So, consider standardize some of your communication, primarily if you work with many shareholders. 

Allows keeping your investors updated clearly and concisely. 

If there is any significant news about the business, they should be the first to know about it. They have expectations from your business, so they’ll be pleased to be the first ones to announce the great news. Celebrate with them when something good happens. They will feel more satisfied and optimistic about your company. 

Sharing bad news is also important, as they’ll find out from other sources, anyway. But this will help them build trust and strong relationships. 

Each shareholder wants to know their money are safe. They want to make sure that they’ve made the correct decision to support your business. To convince them to invest in your business, you must show that you are determined and have the right skills to achieve your goals. No one starts a business if they know they will fail. They invest because they have the same philosophy as you. They want to feel they’re part of the company that is responsible for increasing the performance of the business. 

Once you find the right investor for your business, it’s your responsibility to keep them happy. Be organized, and keep everything managed. You should be able to communicate with investors daily to ensure you build trust and strong relationships. Don’t let your investors down; value them as your customers. So, if you want to find an investor, please consider keeping them happy while securing the future of the business.