Jon Arrington Omaha | 3 Great Ways to Build Investor Relationships
According to Jon Arrington Omaha it's very important that you just try this the correct way. It's almost even as important what you are doing after someone places funds with you as what you are doing before.
Here's why: your single biggest source of additional capital as you grow your business is...your existing private investors.
If you are doing it the correct way, after you have got 5 or 6 private investors (and it always doesn't matter what proportion they need to be invested) you ought to not need to spend much money or time with outside marketing for personal money.
You should be able to raise the maximum amount of private money you would like from referrals, testimonials, and extra capital invested from your existing investor base.
Of course, you will go outside again together with your marketing if you would like to lift $5MM or $10MM blocks of capital, except for property investors that want to create some hundred grand p.a. flipping properties or with income - a solid investor base to start then working off that base can pay huge dividends.
With that in mind, here are three great ways by Jon Arrington Omaha to make your relationship with a non-public investor after they place funds with you:
1. Regular correspondence - at a bare minimum, you ought to send your private investors a quarterly statement which details for them how the investment in your company is performing.
Show the investment amount, interest accrued or paid so far, year-over-year return on investment. Make this statement look and feel professional.
Always include a private note with the statement that re-affirms the investor's decision to put funds with you. you'll also use the statement to plant the seed for referrals.
2. Gifts - just about a no-brainer that you simply should send: birthday, Christmas, and anniversary gifts to your private investors. Spending may be some hundred extra bucks annually is well well worth the goodwill and special feeling that this can create in your private investors.
Remember: you do not want people to merely "think favorably" about you - you would like stark raving lunatic fans that scream about you to everyone at the highest of their lungs. Imagine this: your private investor has a celebration at their house.
A guest notices a pleasant bouquet or thoughtful gift that you simply sent them and asks about it. Your investor is quick to pipe up that they got it from their realty investment trust.
They are going on to inform their guest that they get treated like gold and that they get great, hassle-free returns on their money. consider the difference that might make...
3. Outings - In terms of relationship building, nothing is more important than some good face time. Several times p.a., perhaps 3 or 4 times each year, you must spend a night or an honest part of daily together with your private investor and/or their spouse.
Take them to a sporting event. Invite them to an extended lunch. Take them resolute an elaborate dinner. Face time is incredibly important. you should not speak about business the whole time.
In fact, it's almost better if you do not. allow them to see that you are a complete person and they'll fall more taken with you. People feel good about investing and doing business with people they like and trust. Why not go as far as you'll be able to go toward building trust at rapport?
These are only 3 ways - there are many others - that you just can use to create relationships with private investors. Be creative and original. Sending cinema or restaurant gift certificates is nice, but a private touch and learning what people like will facilitate your stand out more.