Tips for effective investor communications

On Behalf of | Dec 23, 2022 | Business Formation & Planning

Maintaining strong, above-board communication with investors makes business sense. Besides the fact that it can keep value strong and keep lucrative relationships afloat, clear communication with investors is a legal requirement for businesses. Here are some tips Oregon businesses can use to support positive and sound investor relations: 

  • Have a plan: When going into earnings calls, it is important that business leaders think carefully about what they are going to say and that they are ready to answer follow-up questions that may arise. 
  • Stay balanced: Business leaders should share the good and bad news with investors, ideally balancing both in updates to provide a clear outlook of what is and is not working. 
  • Showcase the depth of the management: When meeting with investors, it can be a good idea to bring different members of senior management along each time. Whether it is the head of marketing, Chief Medical Officer, or even the head of a division, investors often appreciate being able to talk to people beyond the CEO and CFO. 
  • Be upfront and visible: While it is important to be attractive to investors, transparency is paramount. Especially following a mixed quarter, it is critical to keep the lines of communication open and not appear to be dodging questions or accountability. 

Investor relations can be a challenging and precarious aspect of business ownership. While there is a need to market to these individuals, the law also requires a high level of honesty in these interactions. Business owners can benefit from working with an experienced Oregon business lawyer to understand their responsibilities and best options with regards to investor relations.