Keeping Shareholders Informed About the Dealings and Success of the Company

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One of the best ways a company can keep its shareholders happy is ensuring it keeps them informed on what is happening in the company and ensuring they get a return of their money.

Maintaining a long-term professional relationship with investors is not something to underestimate as you both need each other’s support. Until that happens, there is a lot to do to ensure you maintain your current shareholders.

Keeping Shareholders Informed About the Dealings and Success of the Company

Satisfied investors create a positive signal to your future investors and introduce you to other potential investors. Here are different ways company executives can keep their shareholders informed about their dealings and success and what they should know.

1. Keep Them Informed Always

There are overwhelming results when a company keeps its shareholders informed regularly and the consequences of not doing so often. Some might want to know about the executives of the company and their net worth, just like Jeff Wilke net worth.

Avoid keeping your shareholders off your company activities. Report to them after every three months on its successes and other dealings. Whether good or bad, report it to them and be honest when you need more funds from them. Having an outstanding level of financial control and transparency is pleasing to your company shareholders. It always sends a positive message to them and your potential future investors.

Regularly reporting to your shareholders inspires them to invest heavily in your upcoming funding. However, there are also disastrous consequences of not reporting to your company shareholders.

Some companies only reach out to their shareholders when they run out of cash and fail to report to them for months. As a result, the shareholders end up not trusting the company’s management team, writing off their shares, and not investing in the imminent funding round. Such negligence has failed many companies.

Reporting regularly to your company shareholders is beneficial to your company, and it is one of the essential roles company executives should include on their regular must-do list.

2. Treat Your Shareholders the Same

One of the special rules to keep in mind is how your investors receive your company information. Shareholders should receive the same company data at the same time. The easiest way to do this is by sending the company’s regular information to all your investors and noting down that they are allowed to ask questions in case of clarity and that you will answer the questions in your following report for all shareholders to get the answers.

This will help you avoid information irregularity among your shareholders that is bound to annoy them. Treating your shareholders the same enables you to prevent future problems and shows fairness which most shareholders appreciate.

In most cases, you come across investors that contact you to acquire more information on your report. Stand firmly on your ground and politely explain that you will answer all the necessary questions in the following statement that you will send to them at the same time. There is an exception to this rule when the shareholders are part of a company’s board of directors as they will have to receive confidential information.

3. Be Authentic

Shareholders are not good at receiving surprises. Be truthful to them. Most shareholders are aware that many companies do not develop as planned. Do not hesitate to let them know of the company failures and what solutions you have to deal with the shortcomings. Failure to be honest with your investors makes your message unreliable. You may tell them everything is going well, but things end up going out of control when you suddenly need financing because things are not going as planned.

This type of surprise is likely to turn off your investors, and the outcome may lead to little to no funding, and you may end up struggling to acquire new shareholders. The best way to gain your investors’ full support and make your business grow is by being honest and telling them how everything is happening in the company, including how you will use their funding and what they will gain.

Reporting regularly and honestly to your company’s shareholders goes a long way in earning more support from the investors during bad and good times.

Shareholders know that a company doesn’t always follow a clear path to its success. So while they desire to see the company succeed, they also want to see how their hard-earned money is used and how you are working towards its success.

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