Securing investment – the importance of sharing the vision

3 August 2017

Securing investment is perhaps one of the key challenges for a growing company, assuming you have already found your ‘big idea’!  These days there are multiple ways to potentially source that investment which means one fundamental truth for today’s entrepreneur – you need to be able to share your vision.

Your ability to tell your story is key, and it is not a question of doing so once and sitting back; no, these days all your means of communication with your stakeholders, be it by Twitter, LinkedIn, blogging, or more traditionally by means of your Annual Report and Accounts, require you to report in a concise and transparent way that demonstrates that you understand the information needs of your stakeholders and can provide what they need in a concise and transparent manner.

A business story well told requires you to set the scene; identify the issue; build the case for action; offer the solution; and provide a course of action for the reader to join you on the journey.

The International Accounting Standards Board (IASB) is currently undertaking a project on disclosures seeking to address issues around financial reporting where there are concerns around:

  1. Not enough relevant information being included;
  2. Too much irrelevant information being included; and
  3. Ineffective communication.

Key to this project is the objective of providing investors with the information that they require in a format that is understandable and fairly presented, that ultimately enables them to make their investment decisions based on quality information.

In today’s digital environment, with the push for real-time information and reporting, the pressure is on. Trust and confidence in your vision can easily and quickly be lost by one slip of the pen, or one missed keystroke. How can you ensure that you address the varied needs of the innumerable stakeholders?

Crucially, it is a question of spending some time analysing those stakeholders – Who are they? How important are they to you? How are you best communicating with them?  How can you engage them, maintain their interest in your business and keep them and their investment and secure the long-term success of your business – EASY, you just need to talk to them. Find out their concerns, reassure them of your plans and convince them of your team’s ability to deliver.

Building confidence and trust takes time: be realistic in your objectives, but try and be consistent in your story-telling. You don’t need to produce lengthy tomes – keep it simple and be clear about your ambitions and how you intend to get there.

If you’d like to talk to a corporate finance expert about securing funding for your business, or if you have any questions about this blog, please contact me or your local UHY corporate finance specialist.