That’s all, you’ve finally made it through the fundraising stage and an outside shareholder, or an investment fund, has just infused your capital! You will finally be able to take a breath and dedicate yourself to your business using all this available money. Yes, but now these new people will want to keep an eye on their investments and to keep them in good shape, you have to maintain your relationships.
There are many ways to do this, even though it is fundamentally good to define and plan for these exchanges from the beginning of the relationship, i.e. at the time capital kicks in, when the excitement of that joint entrepreneurial adventure is still in good shape.
Consider Your Long-Term Shareholder Relationship
One of the first tips to get off to a good start is to consider the long-term relationship with your shareholders. In fact, your current expectations may change over time, so there is a need to anticipate and consider all possible scenarios, both positive and negative. In each case, you should think about how to maintain your interests and the relationship between you. Of course, relationships can be relatively short-lived, especially if someone part ways quickly, but the opposite can set in over time if your company encounters difficulties.
Anticipate the future expectations of your shareholders
From the outset, shareholders express different motivations and centers of interest. It is up to you to understand them and know how to use them as their skills may come in handy when the time comes.
Anticipating the future expectations of our shareholders also means respecting their rights. All shareholders have a right to information about the smooth running of the company, which results in at least one annual management report. Thus they will be able to vote at the general meeting, with the possibility of approval by the manager. He also has the right to control the management and to put in writing any question to the manager which he is required to answer.
Regularly informing its shareholders about the smooth running of the company enables them to know it better and follow its development. That way, they won’t be surprised if you call them for new capital growth, networking, support or even ad hoc advice. The more inclined they feel to support you and talk about your company around them, the closer they feel to the company.
develop relationships of trust
At all times, one of the keys to healthy relationships is to favor transparency and this especially includes the implementation of reporting tools. It is up to you to define indicators that can serve you as a management tool and an information tool for your shareholders, without requiring you to devote 3 days a week to developing them.
One of my tips is to set up, for example, a monthly, bi-monthly or quarterly “shareholder newsletter”, in a short and repetitive format, containing relevant indicators of your activity.
In short, you need to know how to deal fairly with your shareholders, especially during tough times. Alerting your shareholders to your difficulties may make it possible for them to wait financially as well as get their help. Don’t hesitate to communicate!