Avoid Alienating Your Commercial Investors

In this article we will have a look at how to Avoid Alienating Your Commercial Investors.

An investment is a gesture of trust, but also an agreement that you will, at some point likely already agreed, provide an essential return. Now, depending on the kind of contract and arrangement you’ve agreed to, this may give an investor a complete overview of your accounts, or payments by a certain time. They may expect the share price of your company to rise to a certain level by a certain time, or perhaps simply have the credit of furnishing your success with their name.

The terms your contract specifies, we cannot say, nor is it our business to ask. However, if you’ve entered an arrangement, you’re no doubt hoping to honor it in any way you can. Using other’s money, no matter where it comes from, can give you a sense of responsibility and obligation like never before.

So, in this post, we’ll discuss how to avoid alienating your commercial investors ahead of time. With a little care and effort, your investor will curate a properly distanced and healthy relationship with you:

Be Transparent & Give Scheduled Reports

If you can keep your investor reports comprehensive but set to certain dates, you don’t have to have them breathing down your neck while you’re trying to make good on their investment. These reports can include many different metrics, from the production capacity of your business to your outreach, your SEO approach, your client acquisitions so far, or even something as simple as your prototype product development. Be transparent, and document everything. It will allow your investors to see your progress, even when not accelerated, is steady and focused.

Take Regular Inventories & Know Your Own Figures

As the owner of a business, it’s important to be aware of every fact and figure you can use to showcase your development, including regular inventories and being able to document your figures capably. For example, being able to showcase your balance sheet, your accounts and growth with several charts, being able to carefully list your stock and assets, and never holding more on the books than you’re comfortable with, you will be able to answer any question to hand, or at least have a functional set of notes that help you refer to the facts requested. This way, you can avoid overestimating or overpromising.

Correctly Manage & Track Your Obligations

With obligation management software, you can ensure that your appropriate obligations are correctly handled, such as delivering reports at the right time, accessing aloof your documentation, benchmark key provisions, and ensure that all of this remains transparent and easy to sort through. When investors know you have your documentation properly managed, they have faith that the records of the company are tangential and not simply kept in your mind. This way you can leverage your data to reduce expenses and figure out where your proverbial tyes may be spinning, and in the long run, that can have a profound effect.

With this advice, you’re sure to avoid alienating your commercial investors. It’s also important to set boundaries where necessary – you’ve taken money and may have some obligations, but your business is still your business to control, and that must be communicated.

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Haider Khalid

IP Network Consultant (CCIE# 52939) | Service Provider | Data Center Networks
Haider Khalid is an IP Network Consultant (CCIE# 52939) who has worked with several ISPs & Telecom operators in Pakistan, Middle East and the UK. He is always keen to learn new technologies and likes to share them with his peers and other people. In case of any questions or feedback, please feel free to drop a comment below or connect with him on LinkedIn.

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