Importance of Investor Communication–Even When Times Are Hard


It is human nature to hide when something goes wrong. Think back to a time in your childhood when you broke something that was “special” or “important” to your parents. Thoughts run through your head like packing up the knapsack and heading for the hills or hiding in your room and don’t say a word… maybe your parents will forget.

This childish behavior can find its way into your company as well. The stock is down and you hide from your investors. BAD MOVE! It is in the bad times that communication is most important. If you aren’t talking with them, it is easy for the worst to be assumed.

Here are a two things to remember while communicating in a down market:

  • Provide the facts. It is hard when the story you have to tell isn’t a positive one, but you will be in worse shape if you are trying to “spin” the facts into something they are not. You will lose trust and credibility instantly.
  • Provide direction. As always, it is important to share the direction you are headed as a company; but in hard times vision and leadership are desperately needed

So the next time you want to avoid being present on the call, think twice…your investors need your leadership.


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