If you run a business, I highly recommend you start up an Investor Update list.
You don’t even need investors (we have none).
I use it as an accountability tool – every month, it forces me to think about what’s happening with the company. And over time, you can see how things have evolved.
Furthermore, having a list of people interested in your company is excellent optionality – even if you have no desire to sell today, how knows what happens tomorrow?
Maybe some financial emergency happens. Maybe you get burnt out. Maybe you want to cash out a little bit (like my buddy Nathan did):
Furthermore, you build a more robust network by talking about what is going on.
And finally, it’s also an opportunity for you to ask for help explicitly.
All upside, minimal downside.
The format I use:
- Big announcements
- KPIs? / Milestones Achieved / Metrics (traffic, etc?)
- Problems/ concerns
- Lessons Learned
- Team Updates / Hires
- Asks & How you can help
- Social media love
I do recommend you write in your voice – no need to be necessarily formal – imagine as if you’re talking to a friend of yours.
Growing the list
Examine is in a bit of an interesting situation because every couple of weeks we get at least one legitimate investor/VC/PE contacting us about potentially investing or even buying out the company.
We just add them to the Investor Update’s list.
Really the goal is to get people you respect and have a relationship with (and could help) on the list; don’t bother with rich or famous names unless you know them.
Get it going
I usually knock it out in a few hours – one round to build out the outline, and then round two on another day to see if I missed anything.
Don’t overcomplicate it – you don’t need snazzy graphics, you just need to update people as to what is going on with your company.
I do suggest you be honest – you’re not trying to impress, you’re trying to think through the process of running your business.
Serious about being an entrepreneur?
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