Entrepreneurs are very well aware that, an investor plays a crucial role in one’s concern. Having a cordial and harmonious relationship with the investor helps you deal better with your future as well current business venture. Because they are the individual’s who actively participate in your business activities, so it is very important that you make an effort to build a strong relationship with them. An entrepreneur who undergoes the fund-raising process very well understands the role of an investor to his business. Though infusing trust and honesty in any kind of relationship is quite a tricky and complicated task, but at the same time, it is essentially important in the long run of the betterment of the individuals involved.
It largely depends on you and your efforts to form a strong relationship with the investors. In this piece of article we bring in to you some of the key tricks and tips that can be adopted to maintain a good and strong relationship with your “investors”:
Be Clear From Day One:
Clarify the expectations and the aspirations of the company. Make sure you and your investor have a common vision right from the beginning, so as to function smoothly in the long run. The motto, scaling and expansion, growth, plans, policies and procedures should be discussed openly and clearly at the initial stages itself. Doing this would save you from getting disappointed at the later stage.
You can take an initiative in developing a trustworthy relationship with the investor. For which all you have to is communicate the true facts and figures with them. Always make it a point to discuss the challenges and setback’s faced by your company along with the successful news. Because an investor has all the rights to know both the good and bad terms about the growth, team, the product, the market conditions etc of the company. Thereby treating them one among you and communicating things transparently would be a good thing to do.
Start Constructing Relationship Prior To The Need:
An entrepreneur should definitely go in with the approach of, constructing a relationship with the entrepreneur prior to the actual need. Because it becomes very difficult to know and study a person when you suddenly come in contact with them. So striking a conversation and making efforts in developing the relationship beforehand with the potential investor would prove to be helpful when you actually need investment. Above all, such relationships tend to stay stronger with time.
Communicate Your Passion:
Don’t assume that an investor is only concerned and interested in your business or idea or company. Because it is “you” who they are investing on, since your passion and convictions are the ones which would lead to the success of the concern. So, in that case, feel free to share your dreams, aspirations, motives, passion, and convictions etc with the investor. As this would make them feel more confident towards your business in turn increasing the amount of faith and respect.
When things are done in a disciplined manner according to the norms and procedure, it becomes impressive. So when it comes to business networking play a crucial role. A proper networking and communication between the investors and the entrepreneur solve almost all the misfortunes. Responding each and every message, be it through phone or e-mail does a lot good. At times, replying or responding to little mails may be daunting, but doing it would create a good and harmonious atmosphere.
Lend Your Ears To Their Ideologies:
As you all know, an investor is an active participant in your business. So when it is about the happenings in the business they care as much as you do. Because even they wish the business to achieve successful heights. Thereby, make sure that you encourage them to freely speak their opinions, ideas etc. Lending ears would also help you understand your investors in a better way, as you can know the risk taking capacity of your investor, his ideologies and thoughts.
Extending your hand towards building a good relationship with your respective investor would help function your business in a correct path without much diversion. Trying to know the quality, metrics, thoughts, interest of your investors would also lend you scope to learn many new things from them. Therefore, when you are bound in a good relationship you would truly feel their concern, worry and care for your business.