The Importance of Investor Communications
Trust is the real currency between a company and the people who back it. Investors, lenders and partners can forgive a bad quarter.
Dear Sir or Madam,
Trust is the real currency between a company and the people who back it. Investors, lenders and partners can forgive a bad quarter. What they struggle to forgive is surprise. That is why I believe clear, consistent investor communication is one of the most important habits a growing company can build — long before it has a formal investor relations team.
Why communication matters as much as performance
Capital follows confidence. When the people supporting a business understand what it is trying to do, how it measures progress and what could get in the way, they make better decisions and stay patient through the hard stretches. When they are left guessing, even good news can feel suspicious.
Good communication also disciplines the company itself. If you have to explain your plan clearly every quarter, you have to know your plan clearly every quarter.
The principles I follow
- Be consistent. Report on a regular schedule and use the same measures each time, so progress can be compared honestly from one period to the next.
- Be balanced. Share what is not working alongside what is. Bad news delivered early, with a plan, builds more credibility than good news delivered late.
- Be plain. Write so a smart person outside your industry can follow along. Jargon hides more than it explains.
- Be careful with the future. Separate facts from plans. When you talk about what you expect to happen, say clearly that it is an expectation, not a promise.
- Be fair. Material information should reach everyone it concerns at the same time, not a favored few first.
What a strong update includes
A useful investor or stakeholder update usually covers the same ground every time:
- A short summary of the period in a few sentences.
- The key numbers — revenue, cash on hand, monthly spend and the handful of measures that drive your business.
- Progress against the goals you set last time, including the ones you missed.
- The biggest risks and challenges ahead, and what you are doing about them.
- Specific ways your audience can help: introductions, hires, customers or advice.
Choose the right channels
A young company might send a simple written update by email. As a company matures, that grows into a dedicated investor page, recorded calls and formal reports. Whatever the channel, keep a single source of truth so every audience hears the same story. Public companies operate under strict disclosure rules; private companies have more freedom, but the same spirit of fairness and accuracy serves them well.
Communicating in difficult moments
The real test comes when something goes wrong. In those moments, speak sooner rather than later, state what you know and what you do not yet know, explain what you are doing, and say when you will update again — then keep that promise. Silence is rarely neutral; people fill it with their own worst guesses.
How we approach it at Boston Made
Across our companies, we try to communicate the way we would want to be communicated with: openly, regularly and without spin. That is why I write these letters myself. You deserve to hear directly from the person responsible for the company, in plain language, about where we are going and why.
If you are building a company of your own, start the habit now. Send the update even when it is short and even when the news is mixed. Over time, that rhythm becomes one of the most valuable assets you have.
This letter is general information and is not investment, legal or securities advice. Nothing here is an offer to sell or a solicitation to buy any security.
