When you have the kind of company that has shareholders, it’s important to always make them a top priority. Shareholder essentially own a small part of your business, to a certain degree, they are taking some professional risks. On one hand, if all goes well and your company earns a profit, they can make money from their investment; at the same time, if the company loses money, it will definitely affect their bottom line as well.
That’s why it is important to develop a process to effectively communicate with your shareholders on a regular basis. I have worked with many high level national companies including telecommunication companies Simply Headsets and Infiniti Telecommunications and strong shareholder communication was a key part of the businesses early success. You must do all that you can to develop a strong and lasting relationship with those individuals as a way of making them feel appreciated and also confident in your leadership. If you’d like some tips on how you can do that, please read on.
Be real and transparent.
Although there used to be a time when a lot of companies basically lived by the motto “What you don’t know won’t hurt you,” thanks to the internet, that’s not an effective or accurate approach. For one thing, information is a lot easier to get a hold of than ever before. Secondly, even if you do happen to have some bad news to share, it’s always best if your shareholders hear it directly from you rather than through some media outlet or a social media page. That’s why it’s always a good practice to make sure that you’re as real and as transparent as you can possibly be at all times.
Even if you don’t have any news to share that you might consider “big,” it’s always going to work in your favor if you put forth the effort to send your shareholders information on what’s going on with your business. It could be something as simple as a new staff member you’ve hired or a new approach to marketing that you’re considering. By staying in touch with your shareholders, it lets them know that you want to keep them in the loop. And that always works in your favor.
As the CEO of a company, of course you’re going to have your hands full with the daily demands of work. But you must remember at all times that your company would not be where it is without the assistance of your shareholders. So, whether it’s by phone or email, it’s important that you convey that your door is always open, and that you are available to talk with them should they have any questions, comments, or concerns. That will establish a level of trust that will make them more confident in your abilities.
Say that you consulted with someone in management who works at a company like Broadridge Financial Solutions about something else that you can do to communicate effectively with your shareholders. Something that they might say is that it’s always a good idea to be progressive when you engage your shareholders.
Have social media pages where they can post comments. Host webinars from time to time where everyone can connect with one another. Send out surveys where they can share suggestions. The more make connections with your shareholders, the better the relationship will become.
Be positive (at all times).
Although it would certainly be awesome if you were always earning a profit, there are going to be times when some months are better than others. As previously stated, while it’s imperative that you are honest, it’s also essential to be as positive as you can be, too. Your shareholders need to feel like their CEO believes in the company they are investing in. That’s what helps them stay around – in the good times and also in the bad.