The corporate domain is becoming all the more competitive and complex with every passing day. In such a scenario, it becomes crucial for firms to start giving more emphasis on the element of investor relations (IR). Scott Tominaga says that nowadays an investor relations department has become important in medium-to-large public enterprises as it plays a major role in providing the investors with an accurate and systematic account of the affairs of the company. These details invariably aid the investors in making well-informed choices and decisions as they opt to put their money into a company. The IR department of an organization typically has to be well integrated with the legal and accounting department of the company, and has to maintain smooth communication with its executive management team as well.
Scott Tominaga provides some pointers that help in building and maintaining investor relations
Investor relations help in making sure that the publicly traded stock of a company is being traded in a fair and systematic manner with the help of proper dissemination of crucial information that enables investors to properly determine whether a firm would be a good investment according to their requirements. Scott Tominaga highlights that the professionals working in the IR department typically communicate with the shareholders, government organizations, investors and other shareholders of a company about various types of crucial matters. Here are a few important points that the professionals working in the IR department must try and follow to develop efficient investor relations:
- Balance promotional with visibility: It is important for an enterprise to stay active in various types of investor conferences, and participate in distinguished non-deal road shows. Such events significantly help in keeping a firm properly visible among the current shareholders, while also assisting them to develop connections with discerning new ones. It, however, is important for companies to make sure that they do not appear to be way too promotional in these events, so that it leaves the investment community wanting for more and keep the demand of the firm alive. The credibility of a company can witness a significant positive influence by maintaining a balanced approach towards business promotion.
- Develop relationships on the basis of mutual benefits: Building relationships and networking is vital to all modern businesses. Managers must try to start building relationships much before they plan to seek out investments. The relationship between the investors and the company should be developed on the foundation of mutual benefits and opportunities, which includes specialized expertise, mentoring and knowledge sharing. This would enable companies to connect with investors that can effectively aid them to flourish and succeed.
Scott Tominaga also recommends professionals to think beyond finances if they want to achieve maximum success. It is vital to take note of the fact that investors are professionals in their own right, and do not consider them to be just walking additions to the budget. By choosing to network with them properly, one can also seek out valuable guidance and help from the investors.