Business

The importance of managing your shareholders

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managing your stakeholders

Shareholders are the lifeblood of businesses. They not only take up shares in companies, but they also play an important role in all aspects of a company’s operations and control, including financing. Shareholder interest can be seen as what keeps businesses afloat because, without them, there would be no business to operate.

As marketers, it is important to keep your shareholders in mind. Your shareholders are the people who invest money into your company and deserve a return on their investment. You need to show them that they made a good choice by managing them well and being transparent with all the information they need.

Know Your Investors

The biggest shareholders should be the main focus of your efforts. Know who they are and what their interests in you are to better understand where potential conflicts may arise within your company.

Be Inclusive

For those who like to be in the know, it’s important to pay attention not just to major shareholders but also to smaller ones. The small shareholder can represent a big block of equity that is often overlooked or ignored by investors and company executives alike. 

For example, Manifest CEO Sarah Wilson recommends “making information available” because they may have valuable insight about what we don’t see otherwise- pesky things such as understanding how an overseas investor might view our annual report or disclosure.”

Use an Equity Platform 

An equity platform that puts founders and investors in control of their ventures can be a real lifeline when it comes to shareholder management.  There are a few great options available at the moment. Ensure that you choose one that resonates with you and your company.

A good online equity platform will make equity in financial management easy. With features that support funding rounds, employee share schemes, end-to-end deed execution and more, these equity platforms make it straightforward to manage the entirety of your company’s shares in one place.  

Communication is Key

Communication is key to building a solid, communicative relationship with investors. This builds mutual understanding and can help mitigate the risk of any hostility towards management. Shareholder engagement needs to be regarded as an ongoing process that should continuously improve over time so it better reflects both company objectives and investor priorities.

Prepare for the Unexpected

Shareholder protection insurance is a must for any business and unfortunately, it usually isn’t paid by the company. Shareholders who are not at risk of losing their shares should still consider taking out this type of policy to protect themselves in case anything were ever to happen.

Consider Offering Shareholder Benefits

Shareholders come first. A good shareholder relationship is the foundation of a solid company, and that takes more than just assets to maintain. That’s why you should consider offering perks for your shareholders; it keeps them engaged in your business as well as their own investments.

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Tech Junkie is a small word for Vikas Kaushik. Whether the latest game on the market or a new gadget launch he is the go-to person. He drives his motivation from the fast-paced technological advancements. He ensures that the right news reaches niche audiences. An avid biker and movie buff he has deep-rooted faith in upcoming technological inventions and is a torchbearer for the tech revolution.

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