What are the best active listening techniques for understanding your investors?

1 What is active listening?

Active listening is a way of paying attention to what someone is saying, not just hearing the words, but also noticing the tone, emotions, and body language. It also involves showing interest and empathy, asking questions, reflecting back, and summarizing what you heard. Active listening helps you to clarify and confirm the message, avoid assumptions and biases, and demonstrate respect and appreciation.

2 Why is active listening important for understanding your investors?

Your investors are not just sources of money; they are also partners, mentors, and stakeholders in your business. They have their own goals, expectations, and concerns, and they want to be heard and understood. By practicing active listening, you can show them that you value their input, that you are open to feedback, and that you are willing to learn from them. Active listening can also help you to discover their needs, preferences, and motivations, which can help you to tailor your pitch, your updates, and your proposals to their interests.

4 How to practice active listening?

During the conversation with your investors, you need to demonstrate active listening and understanding by utilizing verbal and non-verbal cues such as nodding, smiling, leaning forward, and maintaining eye contact. You should also ask open-ended questions that start with "what", "how", "why", or "tell me" to elicit more information. Additionally, it’s important to reflect back what you heard in your own words to check your understanding and show that you are paying attention. Lastly, at the end of the conversation or at key moments, summarize the main points that you heard and ask for confirmation or clarification.

5 How to follow up after active listening?

After the conversation with your investors, it's important to follow up with some actions to demonstrate that you are not only listening, but also taking action based on what you heard. A thank-you note is a great way to express your gratitude and appreciation for their time and input. Additionally, it's essential to implement their feedback promptly and effectively, and then share the results and impact of their feedback. Furthermore, it is important to keep your investors updated with regular communication. Share your progress, challenges, and achievements with them, and seek their input and feedback when necessary. This will show them that their partnership and involvement are valued.