Most business leaders would agree that the key to triumph is having adequate funds and people for growth. In many cases, this means finding shareholders and maximizing capital to get your business out in the open. While some may put off the process to extend a hand towards an investor, the reality is that in business, it is all about the money and whom you know. That said, how you treat your shareholders and maintain relationships can set the tone for your business.
Truthfully, just because you enticed a shareholder doesn’t mean you won’t need them again in the future. These parties have the power to offer farfetched resources and business acumen that can aid your company for years to come. If all goes well, you’ll be connected to other partnerships or developments in the future. And if it does not, a shareholder who thinks highly of your brand may offer direction for – or even back – your next effort. However, these positive outcomes depend on your strategies to strengthen your relationships with your shareholders.
To help you get your ties intact, here are a few strategies to build and maintain strong relations with your shareholders:
1. Speak your shareholder’s language
Instead of sticking to the tools with which they are most relaxed, successful consultants can adapt to their investors’ style, etiquette, and preferred method of communication. For example, your investor may prefer video meetings or desire to communicate via text message rather than email. Every interaction must be tailored to that specific person—everyone speaks differently. Some people want facts, while others prefer to converse. The key is to be flexible and not go into a conversation with a pre-determined dialogue. But instead, have a plan for what you hope to learn from the interaction. You must also encourage regular physical meetings as they will raise your business’s ability to make good use of time and resources.
Moreover, you can rent rooms if your business setting does not allow you to host conferences due to limited spaces. For this purpose, The Executive Centre is one valuable enterprise that will enable you to reserve rooms for special meetings so that you can maximize conversation and profits. Just ensure to use your emotional intelligence to understand why your shareholder approaches situations the way they do. Then, tailor your communications and engagement accordingly.
2. Utilize advanced technology for stock sharing
Shareholders are always on the lookout to ensure that you’re effectively managing their money. You can demonstrate this by handling the company shareholder information in a blockchain-enabled system. There are numerous advantages to managing data with a viable and reputable company. It also allows you to monitor information and use predictive analytics to make wise choices, which shareholders appreciate. Still, it also shows that you’re willing to leverage modern tech.
If you manage stock information safely, they can accept that you’re running the business well. A well-secured platform also allows real-time employee stock plan tracking, which your workers will appreciate. But it is also something your shareholders will enjoy because it indicates that you take a thorough, interconnected approach to business matters.
3. Keep your word at all times
A promise takes only a second to make, but do you have the resources and time to follow through? If you want your business relationships to be optimistic and fruitful, you must always keep your promises. If you don’t, people will lose trust in you, and your relationships will suffer as a result.
When it comes to solid bonding with businesses, openness and integrity are highly valued. If you cultivate these traits through your existing relationships, it’ll lead to more appealing connections.
4. Always exceed expectations
A compelling way to ensure the development of solid shareholder relationships is to establish a reputation as an independent professional who provides excellent results. Make sure that you do not oversell yourself or make unrealistic promises with them.
Establishing reasonable expectations allows you to impress the investor with the final project and position yourself as someone they wish to continue working with for years.
5. Keep surprises at bay
It is also critical to be truthful with your shareholders when communicating. Any business will experience highs and lows, and you may be tempted to downplay a temporary hiccup or steady decline. In the long run, you’ll gain far more confidence from your shareholders if you are honest with them and accept criticism early on. Good numbers will satisfy shareholders and, of course, should be shared with investors. When there are problems, explain why and what your plan of action is. Some variables are under your control, while others are not. Explain the difficulties you’ve encountered and your ideas for overcoming them.
6. Be open-minded
Shareholders should be able to trust and rely on your business to build solid and long-lasting relationships. That is why it is critical to maintaining an open policy regarding your expert opinions and point of view about the best preferences of the project. It can be enticing to appear agreeable to avoid unpleasant confrontation and give your genuine opinion about something. However, these practices are not only ineffective, but they can also harm your reputation, reducing your chances of a long-term relationship. Your investors will respect your initiative and desire for excellence if you boldly express your authentic opinions.
By implementing these ways (even one), you can form and improve relationships with your business shareholders. While you might wish for your investors to fade in the background, it is good for them to get involved in your business. So allow them to address issues head-on and provide opinions that could lead to changes or potential improvements in your business operations. Moreover, focus on creating an affirmative relationship with your business shareholders. Soon, you will be regarding them as team members rather than merely people who invest in your business.