Bear marketWhen the economy starts to experience a downturn, investors start to feel uneasy.  It is your job to reassure your investors that you and your team will be able to withstand this economic environment and set a course for success in the future. Here are three things they need to hear from you.

 

You have a team in place

 

It is critical to let your investors know that you have an executive team in place with the ability to make decisions and with the experience necessary to navigate this challenging economy.   Ideally, you will replace the uncertainty of the market with the message of your team’s experience and stability and give reassurance to your investors. Communicate to your investors that you have a team of leaders who use innovation and creativity in their approach to making decisions during these challenging times.

 

The writing is on the wall

 

Investors don’t want to see you just hoping for things to turn out well.  Hope is not a plan. They want to know you have a plan in place and to know that you are being proactive rather than reactive to the situation in an effort to save money.  By having a plan and showing it, you demonstrate that you are aware of what is happening in the industry and that you are carefully navigating to get to the other side.  It also shows that you are protecting your assets while doing so.  

 

You are agile

 

By communicating that you are nimbly maneuvering your company through the downturn, you are showing that you have what it takes to keep enough cash flow on hand and your company moving forward.  It’s vital for you to demonstrate that your company is diversified and that downturns in certain product lines or industries are not going to break the bank.  Additionally, communicate that your maneuvers are quick but not hasty.  Let your investors know that there is not a big bureaucracy slowing things down as you take advantage of your strengths to preserve your market position. As much as investors need to know the plan, they need to know that you can make it happen as well.

 

These three points are key to reassuring your investors during the down economy.  Your confident communication style will make them feel much more comfortable about their investment in your company as you continue to lead your company and investors through these challenging times.