Keeping your shareholders regularly updated on the progress of your business is something that’s important but often given little attention by new businesses. They either neglect it entirely or do it in a rather ad-hoc fashion.
It’s easy to see why – you’re busy with so many other things.
So let me explain why I think it should have a higher priority on your to do list.
Follow on investment
If you’re hoping to raise more funds in the future then keeping your current investors abreast of what’s going on is essential. Whether or not your seeders will be involved in your next round, you can guarantee that your new investors will want to hear from them.
Jason Lemkin sums it up nicely in this recent tweet.
@jasonlk completely agree.
— Dave McClure (@davemcclure) July 21, 2015
— Jason M. Lemkin (@jasonlk) July 21, 2015
Help with Problems
My mentor and chairman always said to me that he didn’t mind being the last to hear good news, but he always wanted to be the first to hear bad news.
Your shareholders don’t want to hear that your growth plans didn’t work out 6 months after they could have stepped in with some help and advice.
Your monthly updates shouldn’t just focus on the positive. If you’re facing a challenge or need some help – say so. It’s in your investors best interest to help you out when they can.
Focus and Accountability
It’s widely accepted that you’re more likely to achieve goals that you write down and share. Having told others you’re going to do something by a certain date keeps you focussed on achieving that goal within the stated timeframe.
Focussing on your main objectives is often easier said than done when you’re starting up. Distractions and supposed opportunities pop up every where.
Having your investors know what you’re meant to be focussed on actually keeps you focussed on those things.
But it’s time consuming!
It is if you don’t have a process in place. And that’s where Supdate comes in. It makes the monthly investor update process something that’s easy for you to do, but still useful for investors.
Oh, and it’s free. Create your account and see.