How to Let Your Investors Know When There are No Exciting Updates as a Startup Founder
It is very important for founders of startups and business owners to forge and maintain connections with investors.
If it is necessary for you to send cold emails or to share key performance indicators with interested investors or potential customers, you should know how to communicate effectively.
When should you send an email to investors?
So when should you send an email to investors? There are some times when it is best to send an email and other times when it is better not to send one.
- You want feedback on your product or business plan.
- You want to ask for a meeting.
- You want to ask for funding.
- You want to send them a link to your website.
- You want to follow up on an email or meeting.
- You want to ask for a business introduction or market opportunity.
- You want to ask for a referral or customer base.
- You want to send them an important document about your business model or the possible future performance of your company.
- You want to send them a link to a podcast or video.
- You want to give them an update on your business and corporate strategy.
But sometimes the opposite happens. Instead of you wanting to connect with investors, it’s them who want to ask you for updates about your startup. After all, they want to know whether their investment cash is going to be in good hands.
So, what if there’s no update you can share with them?
How to let your investors know when there are no exciting updates?
When you are a startup founder, it is hard to let your investors know that there is no exciting update of a business plan to share with them. There are times when you need to convey this message.
For example, when your product is still in the testing phase and nothing is interesting or new to say about it. You might be spending a lot of time and money on the product, but it may not be ready for release yet.
Or perhaps you are preparing raw materials for an investor meeting or an important presentation.
Whatever the reason, here are some ways to communicate with your investors without letting them know that you have nothing new to say about your startup or product.
Possible solutions:
There are many ways to let your investors know that there is nothing new and exciting to report about your startup and its product development process. Some of these methods include:
1) Start by sharing the overall picture of where you stand in terms of the product development process, financial status, etc., including a description of what challenges remain in front of you as a startup founder.
You can also describe how you plan on addressing these challenges over the next few months or quarters before finalizing the product development process and making it available for sale or distribution at a future date.
2) Let your investors know that you have completed a full assessment of the product development process, and have determined that it is time to continue with the process at a later date.
You can share with them the reasons why you need to delay finalizing the product development process for a certain period of time. For example, perhaps some problems need to be resolved before finalizing the product development process.
3) You can communicate with your investors by describing the results of a full assessment of your startup’s financial statements, as well as what steps you plan on taking to address the issues facing your startup.
Let them know how much money you will need to get things back on track. You can also describe how long it will take for your startup to reach profitability again and begin generating profits again after raising additional capital or restructuring its operations.
4) If you want to let your investors know that there are no exciting updates or news about your startup or its product development process, then you should tell them that things are going well and explain why they are going well.
You can describe how satisfied you are with where things stand at this point and how much progress you have made so far.
5) If possible, show a slide during a presentation or meeting to demonstrate the progress being made by sharing information about the testing phase of the product development process.
Investors can become impatient and frustrated when they are not hearing anything about the progress being made by your startup. They might even become worried that something is wrong with your startup or its product development process.
If you want to let your investors know that there are no exciting updates or news about your startup or its product development process, then you should let them know in a way that makes them feel more confident about the progress being made by your startup.
Final Thought:
Being a founder of a startup is a challenging and rewarding experience. It is hard to let your investors know that there are no exciting updates or news about your startup or its product development process.
However, if you want to keep them happy and satisfied, then you should find ways to communicate with them without letting them know that you have nothing new to say about your startup or its product development process.
By implementing the above-mentioned solutions, you can communicate with your investors without letting them know that there are no exciting updates or news about your startup or its product development process.
About the Author
I hope that my post has helped you know more about Startups. Feel free to leave a comment and tag me and I will answer them. Follow my profile to get the latest content I post to stay ahead of the curve.
I am the Founder of Cudy Technologies, a full-stack EdTech startup helping teachers and students learn better. I am also a mentor and angel investor in other Startups of my other interests (Proptech, Fintech, HRtech, Ride-hailing, C2C marketplaces, and SaaS). You can also find me on Cudy for early-stage Startup Founder mentorship and advice.
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