7 Ways to Build Rock-Solid Relationships with your Investors

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Investor-Entrepreneur Relationship.

Starting a business isn’t easy but what is harder than this is finding an investor and keeping them for a lifetime. A business is made of relationships, be it with your with co-workers or client. The relationship an entrepreneur shares vary from person to person. Similarly, an entrepreneur has to maintain a rock-solid relationship with an investor as well. You may need your investor at any point of time, so make sure you maintain a healthy and fruitful relationship with your potential investors.

Most entrepreneurs only focus on getting an investment without thinking much about the future. Both entrepreneur and investor share the common goal that is the growth of the company. But getting an investor for your business is just a beginning. As soon as an entrepreneur collaborates with an investor, they form a relationship, but the real task is to maintain that relationship, keep an investor happy and grow with them.

A successful investor-entrepreneur relationship will lead to the successful building of a startup. 

Here are some ways in which you can develop a rock-solid and professional relationship with your investors.

1. Think beyond finances

Investors have potential to take your business to the next level. Never ever keep think of your investors from the money perspective. Form a genuine relationship with your customers and acknowledge it. Share your ideology and form a strong bond. Engage them, ask them for advice, take their suggestions and value their feedback this will not only help you in developing a mutual relationship.

2. Taking their concerns into account

You and your investors have a common term of the agreement, you both want to prosper and succeed. You must have a clear communication about the strategy you're making, risks you're willing to take and have their opinion on everything. In that way, you'll form a more understanding relationship with your investors.

3. Share your interest

Build a relationship beyond finances; know more about their passions and interest. Communicate in a language that you both share, common interest and know them more. Be it personal or business; Show your passion towards everything.

4. Set clear expectations

As an entrepreneur, you must set some clear expectations to your potential investor in the beginning. To be on the same page as your investor, you must share insights, growth strategies, revenue model and exit plan.

5. Communication is the key

Talk about your wins and the setbacks you've faced recently. Provide them with all the necessary information, so that they can come up with something nice and will help you sail through the hard times. Investors like to know about your recent success and accomplishments. Do not involve them on full basis but a time to time update on your progress will be appreciated.

6. A mediator for communication

What if you and your investor do not share a common language or culture or there is a difficulty in understanding them. Hire a mediator in that scenario; a mediator will develop an effective communication between you two.

7. Be genuine

Develop a relationship which is based on mutual trust and respect. Nothing will work out if you're not genuine. Never be afraid to show their true self and connect on a personal level with your potential investors.

You may think of this as a petty issue and may not realize the importance of your investors now. But there will be a time when you will feel the need of having a perfect relationship with your investors. Developing an ideal relationship with your investor not only guard your present but assure you a secure future also.