If you’re someone who’s already married, you know how much work it takes to keep communication going so you keep a good relationship going. Dealing with a major financial investment for your corporation is no different, even if you normally think you should keep investments strictly business.
You’ll find a lot of “tips” articles talking about how to create better financial communication with a married partner. In the corporate world, you can easily apply the same principles, though with even more transparency.
This isn’t to say you should do this in a suspicious way since any kind of investment you’re dealing with needs to establish trust. If it looks like you’re too non-trusting, another corporation may feel likewise.
Let’s take a look at best practices on investor relations and how to communicate better with your corporate investment partners.
Maintaining a Level of Simplicity
When conducting an investment deal with a company partner, keeping it simple is one of the best ways to communicate. This is always the best way to approach financial communications when working with another corporation new to investing.
We’re already living in a time when the constant flow of data can easily become misinterpreted. Making an investment deal can become confusing as well when using arcane terms, especially with millions of dollars at stake.
So make all communications as straightforward as possible to avoid misunderstandings. In the corporate world, they’ll likely already have financial advisors who speak your investment language with clarity.
Putting Your Foot Forward On Communication
Don’t decide to outsource when communicating with a corporate investment partner. Creating a fruitful partnership is going to mean you starting communication first with an invitation to meet in person. By meeting executives for lunch and getting to know one another, you’re nurturing immediate trust.
Being as honest as possible about your investment you’re doing together is going to make a huge difference in the long-term relationship. During times when you can’t meet in person, it’s important to at least communicate by phone or mobile device.
Conference calls often help to get everyone on the same page, especially when you have multiple corporate investors involved.
Sending Financial Reports
Some investments take time to finalize, so communicating with investors is going to mean keeping them in the know about financial details. It may require sending profit and loss statements to assure everyone the health of the investment is still sound.
Mobile devices easily enable financial statement sharing so you get everyone on the same page. During times when you run into delays on finalizing an investment, sending financial reports at least every month keeps everyone informed without panic setting in.
One good way to put these together is providing a summary on the first page so everyone involved gets the gist of what’s going on. When there’s multiple corporations involved, doing this is another way to avoid snowballing confusion.
Understanding the Corporation Being Invested In
To enhance your communication further, it’s essential for all investors to learn about the company being purchased. Investing in a company requires considerable research on the business’s financial health to assure future profit. In other words, taking time to understand the corporation is imperative.
As with the group of investors, it pays to meet in person with executives running the company and bring some transparency to the table. They should provide all their financial sheets and give a definitive timeline of all they’ve accomplished financially.
You’re going to need a good investment management firm to ringmaster all of this.