Inc.com asked me, along with 10 other experts, on best tips for writing those pesky investor updates. My advice is to let the customers speak for themselves—with testimonials. Including a few glowing testimonials gives investors a true insider’s perspective about how satisfied your customers are. It gives a face to your business and showcases how the product/service your investor is backing truly helps your audience. In my experience, this can even re-energize investors and encourage them to get more involved.
Other tips include showing off your progress via milestones, or using a visual report instead of the same old boring text. Begin the update with your runway, since every investor wants to know “how long is this going to last?” If you’re changing directions or plans, make sure those transitions are clearly spelled out. Simultaneously, explain any changes to your tactics or target market early in your report.
Make sure you’re transparent about gross profit and top-line revenue, because you can’t sugarcoat hard figures. Add in short- and long-term goals as part of your report, but highlight possible opportunities while you’re at it. Investors will want to know where there’s money, where there’s not, and why.
