Four tips for better Investor Relations
Investor Relations is a company's relationship with shareholders and the capital market. Many larger companies and corporations have a specific function that works with the type of communication that is aimed at shareholders, analysts, journalists and the general public. There is a lot of information and rules to follow when it comes to Investor Relations. We, therefore, list four tips that improve Investor Relations.
Communicate with different recipients
In IR, it is essential to be able to communicate the same message to several different recipients. These recipients can be anything from a small saver who comes into contact with the company for the first time or professional stock traders and analysts who have followed the company for a long time. As the recipients vary with previous experience and knowledge, it is important to work on a long-term plan to reach several different recipients.
Evaluate trust
It is of utmost importance to guard the trust you get from the market. Having credibility in IR is a must. It can be challenging to find the balance to achieve credibility that reaches out in some situations. Therefore, it is essential to communicate their messages and give straight, honest answers to complex questions to build on trust and credibility within the company.
Invest in long term relationships
In IR, it is vital to have a long-term perspective and work out long-term relationships. IR encompasses everything from individual and more private relationships with investors to relationships with hundreds of investors, analysts and journalists. Regardless of the relationship, it is important to build and nurture the relationships in the long term.
Evaluate previous years and develop an action plan
Draw lessons from previous years and evaluate the good and the less good. This can also be useful when you set new goals for the coming year. Develop an activity plan with potential communication initiatives for the year. This should be done throughout the year; one way to do that is to take an inventory of any news angles and identify events and other events that can be used to reach your message and break through the noise.
Planning and evaluating IR strategies that get through the noise can be resource-intensive. For smaller companies, there may be many more opportunities to use external resources effectively. We at Ava understand the meaning of a solid IR strategy and communication efforts. We work every day with communication advice to large and small customers. We help you find new and creative ways to work with business communication. Welcome to contact us to know more about how we work!
