Investor relations: why founders keep the conversation

Key takeaways

Investor relations in a small business is the founders' job. Investors back people as much as plans, and they expect to hear from the founders directly, especially when news is bad. An outsourced team can prepare the numbers for updates, maintain the share register and cap table, and manage meeting admin. The message and the relationship stay with you.

• Founders write investor updates and take investor calls.
• Send a short update every month or quarter, good news or bad.
• Outsource the numbers, cap table and meeting admin.
• Bad news comes from founders first, with a plan.

Why should founders own investor relations?

Because trust is the asset. Investors judge whether founders are candid, in control and learning. An update that reads like it came from a provider tells them the founders are distant. And when the business needs more money, the investors most likely to help are those who have heard from the founders all along.

• Which business processes should you never outsource?
• Processes only the owner should run

What goes in a good investor update?

Keep it to one page and send it on a schedule.

• Headline numbers: revenue, cash and runway.
• Progress against the goals you shared last time.
• What went wrong and what you are doing about it.
• Specific asks: introductions, hires, advice.

• Board packs: outsource the preparation, keep the story
• Company goals: a process the leadership keeps

What investor admin can be outsourced?

Preparing the numbers and charts, maintaining the cap table and share register, tracking investor documents and consents, scheduling meetings and filing records such as share allotments at Companies House on time. These are precise, deadline-driven tasks that suit a provider working to your instructions.

• Companies House filings: your accountant files, you answer
• Keep the decision, outsource the admin around it

How should bad news be handled?

Early, directly and with a plan. Call key investors before the written update, explain what happened, what you have learned and what you need. Investors are rarely surprised by problems; they are surprised by silence.

• Crisis spokesperson: who speaks for the business?

What does this look like in practice?

A pattern we see: founders skip updates when numbers are poor, and investors assume the worst. Founders who send a short update every month, with numbers prepared by an outsourced finance team, keep goodwill through difficult quarters.

• See client work
• BPO Solutions for UK businesses

Investor relations checklist

• Set an update schedule and keep to it.
• Founders write the narrative.
• Outsource numbers, cap table and filings.
• Call key investors before sharing bad news.
• Include specific asks in every update.

• Financial controls that never leave the business
• Tax returns: your accountant files, you are responsible

Next step

If you have not sent an investor update in three months, send a short one this week. Numbers, progress, problems and asks.