The importance of relationships with existing shareholders / investors

Taking the time to understand who your shareholders (or other investors) are, what their needs may be, and why they invested in or bought your stock puts you in a stronger position to get their attention when you are looking for support, whether in the form of needing to raise more funding or in the form of a shareholders vote. This will establish a strong business/investor relationship and creates an environment of trust and comfort for mutual success.

Don’t just communicate with your investors when you need something from them. Keeping an open dialogue, or at least an open door, ensures that your investors are as up to date on the company as they want to be, and further strengthens the relationship.

If you have some shareholders that you haven’t seen in a while, or that you have only seen when you need money from them, it may be worth your while to go and meet with them. Provide them with an update on the business and see if they have any questions or concerns that you can address. Putting in the time to maintain and strengthen an investor relationship can be, and often is, the difference between keeping a long term supporter or not.