Following up with private investors (new shareholders, or members) is key to continued success. It’s also a great way to keep them from calling once a week to check on company progress.
Many entrepreneurs make the mistake of failing to plan for what comes ‘after’ the capital is raised, that is, with regard to shareholders. After capital is raised and the Reg D offering is closed, one needs to send out the stock shares, member certificates or promissory notes as agreed. One could also set up an investor follow up system using the same type of system used to market to clients; after-all, investors are clients of a different sort. This is called ‘Investor Relations.’
Investor Relations is actually an industry. There are thousands of professionals who have made a science of keeping shareholders informed and appeased, after-all, shareholders are owners of the company. Smart entrepreneurs incorporate Investor Relations systems for keeping shareholders up to date with progress on major projects, such as, global software implementation, additions to executive leadership, acquisitions, large sales transactions, year-end accounting reports, etc.
Note: It’s important to refrain from sending too many reports. Applying some discretion to the information is highly recommended.