The key to establishing and maintaining good investor relations is consistency. Investors want to see that you are leading from the front and that you will deliver on your promises. A business owner must have consistent communication with investors and be transparent with them about their investments. There are some things that are easier said than done, but here are a few tips to help you create and maintain good investor relations:
Communicate regularly with investors. Investors are looking for a sense of connection and trust from your company, so it is important to meet them regularly. Even if it’s just an email or a phone call, it’s essential to maintain a regular conversation. This way, they will see you as a person instead of just another number that they have to deal with. You can also meet your investors face-to-face.
Analyze your investor base. Your IR team must know who your target investors are. The Shareholder Rights Directive II, passed in Europe in 2010, has made this easier. Identifying your target investors will help you identify their preferences and identify any common themes. Knowing who your target investors are will help you craft messages that will appeal to them. They will also help you know how to target them, as well as how to build their trust and credibility.
Create an investor deck. Your investor deck should be transparent and minimal in graphics. Start with an introductory slide that sums up your company’s story and key themes. Explain your business, cite the products, and describe important data. The next step is creating a carefully planned investor relations program to meet with analysts and investors. You should also develop a strategy to meet with them personally. This will help you gain their trust and loyalty and create long-term relationships with your investors.
Communicate your results. Your earnings announcement sets the tone for your company in the market, so it’s crucial to prepare and communicate the results with clarity and precision. Even if the company misses its financial estimates, it’s essential to follow up with a timely market update to reassure them that everything is okay. In addition, you should also establish a single point of contact for investor questions and inquiries. When possible, respond to all investor inquiries with publicly available information.
Be transparent. Shareholders can trust your company’s CFO if they know it’s trustworthy and reliable. As the face of IR, he or she must be credible and likeable. Investors will look for this kind of leadership and relationship building from the CFO. Providing timely and accurate information and communicating with analysts are essential aspects of developing a good reputation and attracting new business. So, how can you make this happen?
A thoughtful investor relations strategy is vital for growth and credibility on Wall Street. A well-designed investor relations program targets your most likely investors. Effective investor relations programs must include a mix of elements. Establish a corporate story and a functional IR website are key to developing a successful investor relations strategy. Once you have your investor relations strategy in place, you’re ready to attract more investors. And with the right team and tools, you can increase the value of your stock.