Every business needs a fund source. A business, whether an MNC or SME, without a funding source, will struggle to keep its operations functioning. This is why investors are essential. Capital from investors can be compared to a car’s fuel, without it, the vehicle will not run, the same concept applies to any business. It is therefore very important to build and keep successful investor relations.
Aside from the fact that business owners are liable to provide the transparent report, it is a good practice to keep your investors’ trust in your company. These can be attained through various methods depending on the nature of your business. So, in order for you to start on the right foot with your investors, we will give some advices on how to achieve and keep a good business relationship with your investors.
How to Build Successful Investor Relations:
Keep Your Communication Open
It is not easy to impress possible investors to finance your company especially if you are new in the business. And it is even more difficult to keep them satisfied once they have decided to finance you. So, in order to ensure that targets and goals are transparent to everyone, you need to make sure that communication is constant and clear. From convincing potential investors until the ROI (Return on Investment) has been met. If your business is starting to expand internationally and becomes a MNC (Multinational Corporation/Company), it is significant to acquire a professional and qualified translator should there be a need of discussion in another language. This will help build better communication and trust within stakeholders, thus, resulting in a better business flow.
Be Transparent with the Good and the Bad News
Once proper communication has been established, everything related to the business should be transparent to the investors as well. This includes the good and the bad news. It is a moral and professional obligation on your part to make sure that the status of the business is clear. If there are marketing campaigns that have been done, do send them a link or a clip of the advertisement. If there are setbacks that caused financial losses, give them the information and reports. Make sure to include an accurate translation of these updates to your investors who are in another region or who are using a different language. Aside from providing your stakeholders with the right to know, it will also help you manage their expectations better. This will help you plan better for the company’s future.
Proper Documentation and Reports
It is essential in every business to keep track of the progress or regress of the company. In providing these reports, always ensure that business updates, financial records and annual reviews are correctly done. Translation of these materials should be meticulously processed especially if the business is a multi-cultured company. Since accounting practices differ from region to region, it is therefore crucial for the translator to have an ethical and professional understanding of the business’ nature. This will ensure that the documents and reports are translated in a meaningful and accurate manner, eliminating any discrepancies and confusion within you and your investors.
Ask for Advice and Business Guidance
Your investors are not only a source of fund, remember that they can also be a source of advice and guidance for your company. This can be essential especially for the ones who have been in the business for a long time. You can always seek their professional counsel. Aside from giving them the feeling of importance in this endeavour, you are also giving them the chance to provide insights and guidance. This might even result to a better turnaround of your business and it keeps everyone involved.