Weekly updates and how your startup can benefit from them!
Who is the most important person in a startup? Well, the answer will be the founder, won’t it? But who else will also be an equally critical person for the startup? THE INVESTOR!
Having a business idea and working on it is a highly fulfilling job but having the capital for it to flourish is exceptionally satisfying. However, getting an investor on board can be a very daunting process. This is because so many things have to go right, business presentations, building trust, managing expectations, and whatnot.
There goes a lot of work even before onboarding an investor. An investor has to gauge you and your startup on many parameters before finally engaging with you. Here, the weekly updates can act as a bridge. By regularly providing updates to the investor, the investor and the startup can scope out each other before the investment process begins.
Therefore, what exactly will be the benefits of providing weekly updates to your investors?
1. Visibility
Chances are you will not be the only startup on the investor’s portfolio. As a result, the investor has to compartmentalize his attention to various players, and it’s your responsibility to be visible throughout the process and not be someone in the crowd. Through weekly updates, you will keep showing on the investor’s screen every week with relevant information, which will keep on sparking interest in the investor’s mind about your startup. This visibility will also be useful when you will be sending your updates to potential investors.
2. Accountability
An investor has believed in your ability and agreed to take a chance on you. Hence, you must present that ability through regular work as a startup founder. Generally, reports are presented on a monthly or quarterly basis. Unfortunately, due to this, the details and the nitty-gritty are missed. However, through weekly updates, the investors will be in the loop regularly, and even the slightest pivot through feedback could be of extreme beneficence.
3. Development of work ethic
As you are regularly monitoring your progress, it automatically leads to proactive actions. You constantly find ways to better your business model, improve cash flows, and increase and retain customers. This, in turn, leads to developing a solid work ethic. It’s as if you are not only accountable to the investor, but you are accountable to yourself. As a startup founder, you are in a constant loop of working and getting feedback.
4. Relationship Development
Through regular interactions, your investor or potential investor will understand your true business proposition. Therefore, developing investor-startup relations is of utmost importance because the investor is the one who counts on you, and if the investor doesn’t fully understand your business idea, then they would not be able to contribute richly. Weekly updates will, thus, provide the investor with key insights about your business, and hence they would be able to provide better feedback.
5. New opportunities
We can safely assume that our investor will talk to fellow investors in the ecosystem. Providing weekly updates will provoke the investor to talk to other investors about your updates and general developments. This could lead to the onboarding of more investors and, ultimately, the growth of our business.
Conclusion:
At Bolstart, we believe that developing an investor-startup relationship should not just be a superficial process but a process from which both entities can prosper and find weekly updates to be a bridge to develop those relations!
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