Advice on how to make Updates for my Regulation A+ Offering work well.
Regulation A+ Offering Updates
You’ve heard it time and time again - communication is key. When it comes to Regulation A+ equity CrowdFunding, this is especially true. Potential investors are the backbone of your offering. It is important, to be honest, transparent, candid and emotionally open from launch day through completion and on an ongoing basis thereafter.
Potential investors choose to help fund your offering in part so they can be part of the process, to enjoy the entrepreneurial journey. So when offerings go weeks or even months without so much as a “here’s what’s going on” to their potential investors, they get antsy- and rightfully so. We have seen issues pop up regarding communication with potential investors time and time again. It’s up to the offering company leader, usually the CEO, to be the spokesperson for their company with the potential investors, so take a look at these tips so you’re able to keep your potential investors informed starting from launch day. Developing a rapport with your followers and potential investors is key to success. They want to know who you are, they want to get to know you and they want to share the journey. Use video when possible and make the updates personal.
Updates are exactly what they sound like - updates about your offering and your company. These are the #1 way to communicate with your potential investors about what’s going on behind the scenes. The first updates can be anything from saying hello and introducing yourself to your new followers, to announcements such as when the offering will open for investment, or reaching x% of your goal in four weeks.
The first updates don’t have to have much content, but they should have some sort of news to them. However, as time goes on, you’re going to want to let your potential investors know about the progress of your company and of the offering itself.
Something as simple as showing a picture of your warehouse or a product or announcing a significant development with a new customer will give your potential investors something to reflect on and gives them a sense of what you’re doing behind the scenes.
Once your offering is completed, do not forget about your followers and investors. It can be an extremely hectic few month rushing to get the offering completed, and dealing with the new challenges of growing your business with the new capital you just raised, but don’t forget the people that made all of that work possible. Keeping in contact every two weeks will often be sufficient for followers and investors as long as you’re consistent with your posts.
Being able to explicitly show your potential investors and actual investors what you are working on and the progress their money has helped you make will keep them happy and supportive.
If you end up running into any bumps in the road, don’t hide it from your potential investors. This will just make things more complicated as time goes on. Be sure to tell them if there is a snag and why. Also be sure to let them know what you’re doing to fix any issues. Additionally, make sure you follow up with any new information and let them know when the issue is resolved. Most people will understand and appreciate your candor.
Potential investors have strong opinions and they know their stuff. It can be easy to create a comeback defending your work to an enthusiastic follower who has a different opinion than yours or is saying something bad about your product. However, make sure you keep calm in your response and see everything from their point of view. Say something along the lines of “I understand what you are saying and I appreciate your feedback…” to show them that you understand and appreciate their opinions.
Keeping your potential investors happy is an easy process if you are able to be there for the people who are single-handedly making your offering a reality. Updates and being kind and transparent to your potential investors will keep them happy, even when you run into any bumps in the road. If you can use some help managing your Regulation A+ equity crowdfunding offering and communicating with potential investors, contact us.