Keeping your investors happy – how to talk about your numbers

Posted on by Kat Wellum-Kent

You’ve done the hard work and got investors on board. But what next? Investors will expect regular communication about how the business is performing against the strategy and forecasts you presented to them. At best, ineffective communication with your investors will mean the relationship isn’t as supportive as it could be. At worst, it will mean that further funds aren’t forthcoming when you need them.

How can you avoid these issues when talking about your financial results? Here are a few tips:

  1. Get clear on your key metrics, track them and talk about them consistently

    Everyone will have a different set of key metrics, as they’ll be linked to what your business does, and the strategic objectives. Each objective should have a KPI that can be used to measure progress. Think about having a mixture of lead and lag measures (e.g. If your objective for the quarter is to increase Monthly Recurring Revenue by 50%, MRR would be the lag measure and no. of proposals sent out could be an appropriate lead measure)

  2. Agree on a communication timetable and stick to it

    Investors will have different expectations on the regularity of communication. So it’s important to give them clarity by telling them how often to expect communications and when they’ll be sent.Once you’ve agreed the timetable, make sure you deliver. This will show them that you can be trusted to do what you say you are going to doing. This trust will then radiate out to what you’re doing across the business.

  3. Create a structure for reporting that can be delivered consistently

    You’ll have a million competing priorities, so you need to make the communication simple but effective.Set up a template structure with key sections. Don’t overcomplicate it. This needs to be something that you can deliver when things are quieter (does that every happen?!) or when nothing is going to plan.

  4. Delegate and Automate

    Now you have a template structure and a communication timetable, think about who can help with preparing this.

    1. Are there other people who could be responsible for different sections?
    2. Could your VA help with formatting and circulation?
    3. What KPIs/other information do you need? Can this information be automatically calculated?

Trello, Asana or a similar tool can be helpful to manage this process and keep everyone on track. For more advice on this subject get in touch today!