A company’s success relies on how well it does its job. Getting people on the market to talk to each other has always been essential. This is because people buy and pay for things from others. So, every company wants to give investors the tools they need to communicate well, no matter how big or small.
It has been shown that the organization’s information policy positively affects the cost of the equity it raises. This is demonstrated by the fact that financial analysts are more interested and that market analysts and investors know more about the issuing company and its securities.
What do both sides stand to gain? The company hopes for more money, income, technological advances, platforms, and tools. At the same time, investors are always looking for new businesses and ideas that will make money. They need to take every chance they can to look at the path they’ve taken together.
They must know the company’s plans and ideas, how much it costs and spends, and how much it is growing. They also need to understand why people are successful. Investor relations is the job of putting in place an information policy that will get the attention of potential investors.
Rule 1: Manage the IR department
The need for this step varies from business to business. The reason is very complicated. An organization can be significant but not care about what the market thinks, and it can also be small but work hard to grow on the exchanges. In the first case, work in investor relations can be as simple as responding to emails and phone calls.
The primary idea is to send annual reports and have one-on-one business meetings with potential investors. It’s about taking the fewest steps necessary, not in a systematic way. But if you want to improve your company’s reputation and get it noticed on the stock exchange, you need to have a strong IR dept that does various tasks.
The IR department will do strategic, goal-oriented work to build investor relationships. Its job is to do different things to build good relationships with shareholders, investors, financial experts, investment banks, government entities, creditors, and other groups.
It takes consistency, creativity, problem-solving, and getting to know each person as an individual. There are so many things to do! The excellent information is that there is no single example of how the department should work. You’ll pick your style.
Example 1
Discovery Channel is a significant company with many different areas of business. It has to be open to the public and make it easy for investors to talk about it. For instance, Discovery Channel has been working with the charity Oceana for the past couple of years to protect stingrays from the cruel shark fin trade, killing up to 73 million sharks every year.
The Meta company, which works with different individuals and partners, is the same. Some companies use their resources for research and development and know that the power of change is boosted by forming solid partnerships.
Rule 2: Split the audience.
You should divide your investors into groups like content managers do to ensure they get the correct information and can be heard. You must decide how to talk to group investing partners to build relationships. Depending on how important, urgent, and kind of event it is, you may be able to handle that. Five main groups of people are the main focus of investor relations.
- Brokers and investment banks. The people who work for official organizations.;
- Some employees may have a say in how the company invests its money. Also, they may be investors;
- Even though most interactions with competitors are indirect, this group is very involved in the company’s strategy, plans, knowledge of the business, and financial results;
- Suppliers are the primary audience because their understanding of the company’s goals and strategy is a big part of how well it will do.
- People on the market can be influenced by what the mass media say about a company and the industry in which it works.
How well communication with investors works depends on how thoughtfully and purposely the IR managers act. For instance, you may utilize press releases, e-newsletters, studies, press conferences, and investor and analyst meetings.
You can also display information and round tables and set up interviews with the company’s top management for the media. The company’s website is also a must-have. You can use the TrustMyPaper service to find skilled writers if you need to write blog posts. They can do any writing sample.
So, IR uses all modern forms of communication, which can be broken down into three groups. Those were written or digital messages, but some notes were said out loud. This last idea includes meetings between investors and corporate execs, working with financial media, attending conferences and roadshows, and holding conference calls.
Example 2
A roadshow is a carefully planned presentation of the company’s production activities, financial situation, market, products, and services. After giving the information, the show leader from the company’s management usually takes questions. The meetings could be back-to-back or even in different countries or cities.
The primary objective is to make the investors feel like they are part of a successful organization and give them information about how it works. People also choose to go digital to avoid spending more money on the road and in hotel rooms. You can provide visitors with a great time, share their values, and make them feel inspired. They’ll feel like a big deal.
Rule 3: Get your SDG out there.
Sustainability goals are essential. It is about being aware and having the same values as investors. They talk about government, social, and environmental responsibilities. It will be a win-win position if you match the goal or encourage partners to help nature or people. Not only is it the right thing to do, but investing in companies that work toward the SDGs also makes business sense.
Investors get safe and steady returns from companies aligned with the SDGs. So, use the Internet’s features, such as databases, online services, and email. You can ask the best essay service to write about the topic you need. They will make copies for you that are clear and full. By the way, the main benefits of these ways to talk to investors are that they are fast and cheap.
Example 3
LEGO is a business that makes toys for kids. But for this to be used in early childhood development and education worldwide, it has the power to change things. They want the famous bricks to be used in the classroom. That is about the growth and development of motor skills.
In 2018, the company took part in several events worldwide that focused on sustainability to support SDG 4, which says that everyone should have access to quality education and learn throughout their lives. It put out a LEGO model of a wind turbine with a guidebook that told people about global warming and wind energy.
The communication initiative must come from inside the company and the industry to share with the investors. The business needs investors, so it needs to get their attention.
