Get Strategic: Investor Communications Play Key Role in Business Growth
In the emerging cannabis industry, competition for investment dollars is a high-stakes game. Investors are looking for companies with strong credibility and long-term growth potential. They want substance, not hype.
After all, investing comes with a certain amount of risk: the industry is new, regulations are still evolving, and there is a lot of cash involved.
For cannabis companies, like any public company, this means their business models will be tested, questioned, and assessed by investors. And a single error can have a lingering impact on reputation and value.
So strategic investor communications play a fundamental role in showcasing your company’s growth potential and the plan in place to achieve it. Because once investors give you money, they expect results. You want to avoid the classic pitfall of over-promising and underdelivering if you’re going to succeed in the long game.
Why You Need to Bring Outdated Assets Up to Speed
That said, many companies still have outdated investor communications. They use technical jargon instead of easy to understand, inviting language that draws people in. Often websites aren’t easy to navigate, or reports aren’t clear and succinct, to help find the information prospective investors are looking for. Or companies don’t actively engage potential investors or existing ones through email marketing and social platforms.
Transparency and communication is critical to building long-lasting relationships with investors. Without strategic and up-to-date communications, companies are missing out on opportunities to really get a foothold in the market.
Ready to Pitch? Make Your First Impression Count
If you are looking for funding, you often only get one shot to pitch—so make sure you are prepared. What kind of information will investors find online about you?
For starters, does your website target investors with a simple-to-find section with the kind of information they’d be looking for? Info would include a company profile, stock information, financial summary, annual report, your management team, and news releases.
Another must-have is an investor sales deck that potential investors can download. It spells out your company’s value proposition and competitive advantage. Here you can introduce and demonstrate why you have a great team, a solid business plan, and other details investors need to make decisions.
You want to demonstrate to investors that you have sound fundamentals and that your go-to-market strategy will succeed, as well as exactly how and when they will see a return on their investment.
As legal cannabis emerges as the new wealth generating industry, now’s the time to take advantage of increasing investor interest and always have a pitch ready and available.
Follow Up on Investor Leads with Email Marketing
When you have email contacts from prospects who have downloaded your investor deck, these new leads will be part of your email marketing newsletter sent to existing and potential investors.
This communication builds rapport with your future investors. It can be used to share recent news, products, team updates, and showcase your company. Considering how many emails we all get, it pays to work with a professional marketing company who can create tailored, targeted email newsletters designed to get the most eyes on it.
Curate Your Social Media Profiles with Care
Make sure your messaging is consistent, compelling, and credible. Every message, conveyed by email and your social media accounts should support your brand position and story, and offer quantitative “Reasons to Believe.”
Have your company’s leadership team rehearse your key messaging to deliver consistent and influential content across channels and opportunities. Keep a unified voice.
Recognize that social media has incredible reach. “It’s shocking how many deals come through social media,” says Cheryl Shuman, founder of the Beverly Hills Cannabis Club, who spoke at the O’Cannabiz conference in Toronto. Shuman was also named one of the most powerful women in the industry by Fortune magazine.
You are looking to build a credible, trusted relationship with investors. Social media, including your company LinkedIn profile, provides a quicker, more efficient way of gathering data to influence investors’ judgments and decisions.