If you have taken on investors since starting your company, you have probably realized that it adds complexity. You suddenly have external stakeholders hoping for return on their investment, and most will try to help you get to that point as well. In order to do that, they need information about your current situation.
There are multiple ways of informing your investors, but know that poor stakeholder management can lead to you spending more time updating investors than actually returning their investment. On the other hand, great stakeholder management can significantly increase your chances of succeeding. And one of the best ways to do this from our perspective, is through brief monthly updates.
Spending an hour each month to update your stakeholders can help you move faster. From our perspective, these are the main arguments as to why you should do this:
Focus: Such updates forces you to write down updates on the metrics that are most important for your business (users/customers/revenue). If these numbers aren’t changing, you should probably consider changing something.
Scale: Sending these updates is the best way to scale up how you deliver news and ask for help. No more spending hours on ad-hoc status requests from investors.
Help: It’s a lot easier to help if you clearly articulate how you need help. Also easier to help if you’re top of mind (investors are busy). Monthly updates solves this.
There are even more arguments for doing such regular status updates (for example, see SV Angel / YC’s take). Few investors will force you to add this routine, but if you believe additional focus, efficiency and help is beneficial for your business, here’s how to get started:
- Find/create a simple template that you will use for reporting. One suggestion could be to start with this template.
- Edit the template, so that it fits your business better.
- (Some companies also share less revealing (as in no lowlights, financials) updates with advisors, supporters, potential investors etc)
- Schedule a recurring calendar entry, eg. first Tuesday every month.
- Write and share updates with your key stakeholders.
Share your updates with your investors, and get more help easier. Let us know if you want input on your updates — we're always happy to help!