Secure and define the interests of investors
Give employee stock owners proof of ownership
Specify terms of a business deal
Define your relationship with shareholders
Set written terms of a stock sale
Provide full disclosure to potential investors
Set terms of number and price of stock sale
Secure investments from private investors
Buy back a stockholder's shares in your company
Set terms for purchase or transfer of owner shares
Document the exit of a board member
Define the rights of shareholders in writing
Control who buys shares of a company
Grant management authority to an investor
Opt out of shareholder meeting notifications
Work with investors and shareholders FAQs
Investors are primarily looking for one thing: ROI. How investors attempt to decide if they will see a return on their investment usually include:
Your Business Plan must be exceptional and smart. Investors look through thousands of Business Plans; yours must stand out. You must show in your plan how well you manage challenges, such as how your product or service meets market demand.
They are looking for a team with the talent and time required to meet business objectives. They may even ask to interview team members and/or ask for their qualifications.
No matter how much you love your product, it doesn't matter to investors if there is no market demand for your product or if the market is already saturated.
Investors want to know how long they'll have to wait to see their investment pay off. They may decide to not invest in a company if they feel it will take too long to see a profit.
Not only do you need a Business Plan to show investors, but you should also go through the process to help you thoroughly evaluate the needs of your business. While writing your business plan, you'll need to consider your team and business structure, the market, budget and finances, product offerings and services, and funding needs. These are business topics you need to be thinking about anyway. Keep in mind that your Business Plan is just a starting point and the document can evolve as your business does. We provide a Business Plan document builder as well as tips on how to write an effective executive summary.
You should establish a plan for how you intend to communicate with your shareholders. A similar plan could also apply to stakeholders. You want to keep your shareholders informed, but you don't want to over-communicate. Over-communicating could slow down processes and interfere with meeting project or production goals or it could cause doubt where doubt is not needed.
To communicate with your shareholders, you may consider: