At some point or the other, all business owners realize that they would need a fresh influx of capital in order to facilitate the growth of their venture. Scott Tominaga mentions that to acquire this capital, a business has to either attract fresh financiers or build lasting relationships with experts who can one day turn into investors. Approaching new and existing investors, as well as developing positive relations with them for a long term are no way an easy task. A good level of experience and expertise is needed to be successful in investor relations.
There is an old phrase that says failing to plan basically means planning to fail. This saying is especially true when it comes to investor relations strategy. Scott Tominaga mentions that even though strategic investor relation planning is important as any other aspect of a business, not all companies put the needed emphasis on it. As a result, they often find themselves scouring for funding in times of need. To avoid such an eventuality, one must have a proper plan in place that not only helps them to attract investors, but also nurture them for the long-term.
Investor relation planning is largely about delivering the right story to a well-defined audience, while refreshing the core message in a manner that it still resonates with the investors. Optimal investor relations planning must be done while having at least a 12-month horizon in mind. A comprehensive and thoughtful plan should be developed that prioritizes time with investors, as well as allows for the cultivation of new relationships with sell-side analysts in order to make the best use of the time of the management while.
According to Scott Tominaga, a failure to produce and adhere to a schedule when it comes to earnings and for general annual planning has consequences. The earning season can get derailed quite fast in case something unexpected comes up. Hence, to make sure that an investor relation plan works as per the needed, strategies to get things back on track under unexpected situations should be put in place. Moreover, it is vital to consider the expected news flow around key milestones when it comes to building the investor relations plan.
A clear and compelling message about the company is the key to investor relations efforts. It shall not only bolster the credibility of people with the investors, but also help them to better understand the business and its opportunities. However, while formulating this story, entrepreneurs must focus on highlighting their offerings without overhyping them or creating any wrong image. It also is vital to showcase the place of the company place within the broader industry landscape and showcase its strengths without losing investors in a flurry of detail. In simple terms, one must carefully explain where the company is heading and the entrepreneurs plan to achieve their corporate goals and provide value to the investors in the long run.