What are the best practices for writing investor communications?

1 Know your audience

Before you start writing, you need to understand who your audience is, what they care about, and what they expect from you. Different types of investors have different needs and preferences, so you need to tailor your tone, style, and content accordingly. For example, if you are writing for potential investors, you need to highlight your value proposition, your competitive advantage, and your growth potential. If you are writing for existing investors, you need to focus on your achievements, your challenges, and your plans for the future. You also need to consider the level of detail, the format, and the channel of your communication, depending on your audience's familiarity with your business and industry.

2 Be transparent and honest

Investors value transparency and honesty, especially in times of uncertainty and volatility. You need to be upfront and candid about your financial situation, your risks, your opportunities, and your goals. You need to avoid exaggeration, hype, or jargon that might confuse or mislead your investors. You also need to acknowledge your mistakes, explain your actions, and demonstrate your accountability and responsibility. By being transparent and honest, you can build credibility, trust, and loyalty among your investors, and avoid legal or reputational issues.

3 Use clear and simple language

Investor communications are not the place to showcase your literary skills or your technical expertise. You need to use clear and simple language that is easy to understand, follow, and remember. You need to avoid long sentences, complex words, acronyms, or abbreviations that might obscure your message or create confusion. You also need to use active voice, positive tone, and concrete examples that convey your confidence, enthusiasm, and clarity. You need to make sure your communication is consistent, coherent, and concise, and that it answers the key questions of your investors: what, why, how, when, and what next.

4 Provide evidence and context

Investor communications are not just about stating facts and figures. You need to provide evidence and context that support your claims and show your progress and potential. You need to use relevant data, charts, graphs, or images that illustrate your performance, your trends, your benchmarks, and your goals. You also need to provide context that explains the external and internal factors that affect your business, such as market conditions, customer feedback, competitor actions, or regulatory changes. You need to show how you analyze, interpret, and act on the information you have, and how you address the challenges and opportunities you face.

5 Engage and inspire

Investor communications are not just about informing and persuading. You need to engage and inspire your investors to connect with your vision, your mission, and your values. You need to tell a story that showcases your purpose, your passion, and your personality. You need to use emotion, humor, or anecdotes that appeal to your investors' interests, values, and aspirations. You also need to use a call to action that invites your investors to take the next step, such as contacting you, visiting your website, or joining your community. By engaging and inspiring your investors, you can create a lasting impression, a positive relationship, and a loyal partnership.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?