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Top Tips on looking after your investors post-investment

It will come as no surprise to know that many investors feel kept in the dark once they have invested a lot of money. True, many investors will request monthly or quarterly updates on where their assets or money has gone well into the future. But in some transactions where there is no interest on that parties investment, whether it be a donor or a fund-raiser that investor is simply forgotten about once the ‘good deed’ has been closed. Here is a small list of top tips to keep your investors happy once the deal has closed, for both interested and non-interested parties.

  1. Avoid hidden fee’s

Remembering that investors are people is something that is all too often overlooked by entrepreneurs and investors. With their eye on the prize and dollar signs lighting up there soul they are almost impervious to the needs of others. I am talking of course about hidden fees and unnecessarily complicated payment options. Hidden fees will almost certainly put an investor off any future involvement as the feeling of being cheated is not one easily rendered. Also, by implementing complicated payment structures (out with the investors’ knowledge) put a strain on that person’s patience – something you want to avoid at all costs!

  1. Don’t forget about me!

If you forget about your contributors you may live to rue the day further down the chain. As an investor, don’t be surprised if after 6 or 12 months when you look for follow-up interest that person has turned away because of a lack of follow-up or correspondence. Simply thanking that person after the deal has closed and providing monthly updates on progress and changes is enough to allow you scope for follow-up involvement. Not much to ask I know but could be the difference to your investment opportunities well into the future.

  1. Take it a bit further.

Investors love to be asked about social and societal involvement for their contributions. The opportunity to be recognised as 1.An investor and 2.As a good contributor to good causes, business and entrepreneurship. A simple invitation to attends open days – a hospital, school or even a book launch will enhance theirs and your public relations. This is what will keep their interest in your portfolio for investment opportunities for the future.

  1. Remember where we were once!

Many investors were once entrepreneurs like you. Forget this at your peril. They may not shout about it in the interests of scoping you out, so tread weary around investors. Because they have been there before they will know how they should be treated and despite knowing every trick in the book will appreciate your involvement and updates. Just be expected to play hard ball.

  1. It’s their idea

The final point is related to your management skills and influence. When looking for a capital injection remember that your investors and shareholders will no doubt have to approach others themselves. Take advantage of this by contacting them yourself or by at least keeping everyone involved up to date. Also, convince your investors that it was their idea (or at least involved in the decision) to raise the amount of capital. You can bet they will be much more likely to follow-on with any future investment if things go well.

As an entrepreneur, it is your job to look after your investors. With these easy steps you can rest assured your investors will continue to monitor your progress with interest and look for continued investment well into the future. Shareholders deserve this attention too, even more so for majority shareholders from your point of view. Take this opportunity to build your contacts, investment portfolio and profile by making sure you keep those responsible for your rise to monetary success front of mind.

Image courtesy of Renjith Krishnan / FreeDigitalPhotos.net

Muzahed I.
Muzahed I.http://financepitch.com/
I am Muzahedul Islam. Executive Editor of Financepitch.com. Reach me out for writing opportunities on this website.
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