Quarterly earnings reporting is one thing, but a key way to build long-term loyalty with investors is to regularly share bigger picture plans with them. It can prove beneficial for several reasons. One, it can get investors thinking beyond just immediate return on investment in the forms of stock gains from business growth and put a long-term plan in front of them that assesses where a business currently stands, where it wants to get to and the means for how it will get there. And two, the transparency in doing so can be a real win with both investors and employees, creating necessary buy-in.
While sharing longer-term plans may be uncharted territory for many firms, the benefits of doing so can be well worth it. In this post, we’ll share three key reasons why it makes sense to share long-term business plans with your investors. Here’s a look:
3 Reasons to Share Long-Term Plans with Investors
1. Proof You’re Looking at the Big Picture
Investors don’t want to continue to put their faith in a company that seemingly has no long-term plan — they want to see a vision, goals and a means of reaching the set goals. That’s one of the ways sharing plans with investors can be so impactful. It can increase buy-in, ease any fears and also lead to conversations with stakeholders about where a specific industry — and company — is headed in five, 10, 15 or even 20 years down the road. Sharing plans with investors shows you’re thinking about the future, and that’s always a good thing. After all, if you’re not continuously improving, acting proactively and anticipating what could be coming, you’re likely to be playing catchup sooner rather than later.
2. Transparency with Investors, Employees
Investors don’t like to be kept in the dark, they like to be in the know about what’s going on with a company and what management’s perspective is on its successes, challenges and the road forward. Even in times of difficulty, it can say a lot for a company to come forward and stay transparent with its key stakeholders. It’s this communication that can be a key retention tool — and not just with investors, but with employees too. Studies show companies that focus on and present longer-term plans are able to also secure longer-term investors and longer-term employees. It’s these “investor allies” that often prefer this more long-term planning and management forecasting. Transparency is key in any company, but it can be particularly essential when it comes to earning goodwill with stakeholders.
3. Help Investors Understand Challenges, Opportunities from a Business Perspective
Investors like to think that they have a keen eye for a good business or a business that at least has a major upside. But many investors don’t understand all there is to running and managing a business. Then there’s the aspect of environmental, social and corporate governance, or ESG, also known as the three key variables for measuring the functionality of a business. Oftentimes, investors just think about investing in terms of return on investment (ROI) or dollars and cents. Communicating long-term plans with stakeholders can help investors to better understand ESG from a management perspective.
Contact Cochran, Cochran & Yale Today
For more information on the value of sharing long-term business plans with investors, contact our executive search and recruitment professionals today. From recruitment searches across all industries to leadership development services to management consulting and training, the staff at Cochran, Cochran & Yale have the know-how and expertise to get your business on the right long-term path, positioning it well with investors. Contact us today for more information.