Why Communication Matters in 2015

Investor relations is one of the most overlooked aspects of running a business. Many people do not realize the time and effort that goes in to managing investor relations or how it can affect a business. The good news is that many companies do not put the time, money, or effort in to their investor relations that they should and it is not hard to stand out in the investor relations industry. There are several steps that any business can take to radically improve their overall investor relations and serve as a model for the rest of the investor relations industry.

How To Improve Investor Relations

Investor relations is one of the keys to running a successful business. However, many businesses simply do not understand what steps to take in order to improve investor relations for their business. One of the biggest things that businesses can do is simply sit down and go over what investors in their business want. Sometimes, what management want in a business and want investors want are two totally different things. When leading a company, if someone does not understand where the investors point of view is coming from, it is going to be hard for them to understand how to fix any outstanding issues. This will also give the leaders of the company the opportunity to touch base with investors and build a relationship with them for the long term.

Why Are Investor Relations Important

Investor relations are important simply because unhappy investors can make running a company miserable. When people invest in a company, they expect some return relative to the risk they are taking in the market. Some large and established companies have a much lower risk threshold than companies that are just starting out. For those companies just starting out, the risk profile is higher and investors in those businesses are going to expect a higher return out of that business on their money because they are taking on more risk. Taking the first step and going out to investors to explain that you understand how the process works and why the profitability of your business is important is a great first step. To be an authority within the investor relations industry, you must take the first step and have pristine investor relations with those people that you need it from the most. By setting the example in the industry, more people will follow the lead.

Jeff Ramson is the Chief Executive Officer of PCG Advisory Group Who Resides in New York City.