Ways to improve communication with investors
Updated: Sep 23, 2020
I'm often surprised at how little thought is given to how to address investors. Having spoken to scores of CEOs over the years there is often a disconnect between what the CEO thinks their investors want to hear and what investors actually need to hear. I've had so many CEO tell me the market doesn't understand us or what we do. Its not the market that doesn't understand, its you who doesn't understand what they want. Plain and simple the investor wants the truth without flowery platitudes. The want to know why your plan may not have worked and what you're doing to fix it. Offering up great news headlines while burying the bad news is cutting off your nose to spite your face. Worse yet is using the Form 8K to sneak out bad news on a Friday afternoon. Don't think anyone will see it? Yeah, they will. Great companies communicate their plan and execute their plan. When they hit a road bump they don't try and bury it in the details of a report. They provide answers to the questions before the questions are even asked. To every CEO out there, it doesn't matter whether your investor has put in a dollar or ten million dollars, that money is precious to them. You lose it and expect to feel their wrath. The best way to be prepared is to imagine yourself talking to a CEO that you just invested in. What do you want to hear?