Small businesses are missing the mark when it comes to creating and sending investors monthly business reports that contain the correct information, delivered in a timely fashion in a concise and easy to read format.
Duane Jackson, founder of online business reporting service Supdate, invested in many start-ups following the sale of his first company in 2013. He was surprised at how many of the business people he had invested time and money in failed to recognise the importance of providing regular updates.
“A nightmare scenario for anyone just starting a business with the financial backing of an investor is to suddenly lose that support”, says Duane, “they’re dull but business reports are essential in maintaining an open, productive relationship with the investors in your business.”
Investors bring more to the table than just the monetary boost to your accounting books; they also bring experience and knowledge along with a keen interest in you and your business venture. As Duane says, “If we aren’t kept up to speed with what’s happening in our business how are we supposed to help you when things get tough?”
While many entrepreneurs are on the ball pre-launch when trying to secure funding for their business ideas, once the deal is sealed many seem to forget their investors still exist and aren’t simply a source of finance in times of need.
By maintaining open and honest communications with those with an interest in the business you are not only giving them peace of mind that something is actually happening but also allowing them to provide on-going feedback and advice as the business grows rather than an emergency helpline in rough waters.
Using his time investing in other businesses Duane decided to create a free service designed to help small businesses create monthly business reports with a simplistic and intuitive service. Duane said, “I founded Supdate in an effort to help those just starting up get to grips with their reporting structures.“
Business reporting is an essential tool for entrepreneurs during the early stages of a business’s life cycle, keeping investors informed is crucial to maintain a good working relationship that flows both ways.
