2020 was a difficult year for many businesses. As 2021 kicks off, a similar level of uncertainty continues to linger. As a business owner, the ongoing economic crisis can be difficult to navigate, especially if you have investors who are looking to you for answers.
Here are a few examples of different pivots that many businesses made during the pandemic. You can use them to calm investor concerns and show them that you’re well-positioned to continue to both survive and thrive in the months ahead.
Showcase Good Organization
One of the simplest ways to put investor’s minds at ease is to show them that you know what you’re doing. In other words, you don’t have to show a 150% boost in earnings to demonstrate to them that you have things under control.
Often, all you need is to show them that you’re organized and that your business response to the crisis is well in hand. One of the easiest ways to do this is by showing them financial documents such as a clean and clear balance sheet to demonstrate that things are well organized in spite of the ongoing chaos.
Concentrate on Transparency and Trust
While showing organized numbers is a good start, it should also be accompanied by a confident and honest presentation. Now isn’t the time to sugarcoat or withhold information.
On the contrary, be confident and decisive as you show the damage of the last year and how you plan to fix it going forward. Remember that this is a crisis that is out of your control. Covering problems with shallow solutions isn’t wise.
Instead, lean on transparency and trust with your investors. Show them that you’re looking for solutions, and foster their reassurance through faith in your problem-solving skills. This is infinitely better than simply minimizing the extent of the damage. Doing so only kicks the current issues that your business is facing further down the road.
Highlight Positive Long-Term Changes
The pandemic led to many pivots in the business world. Some of these are temporary, such as a restaurant closing their dining room and only doing curbside pickup. Others, though, are good in and of themselves, and can be a useful tool in reassuring investors, as well.
For instance, the crisis has forced many companies to recenter their activities on their customers. This shift to a customer-centric business model is always good for business, and should absolutely be explained to investors as an overall positive for the future of your business. Other pivots and adjustments that can be highlighted include:
- Improving your operational efficiency through things like direct deposit, cashless payments, and other cutting-edge fintech that companies have used to weather quarantines.
- Embracing remote work and the savings that come with minimal overhead for your workspace.
- Shifting toward a more aware ESG (environmental, social, and corporate governance) model for your enterprise.
Emphasize Your Growth Mindset
Simply put, a growth mindset is the belief that your talents, abilities, and intelligence can be improved over time. This may sound obvious, but many individuals tend to operate in a fixed mindset where they assume that their current knowledge and abilities are the end of the line.
For most entrepreneurs, a growth mindset is part and parcel of business life. The ability to adapt and remain flexible through various challenges is as normal as breathing. However, it’s important to remember that not everyone sees the world that way.
If you want to reassure your investors that your company is positioned for a resurgence in 2021, make sure to back up your assurances with the fact that you’re ready to adapt and work with whatever situations may present themselves.
Confidently Calming Investors’ Nerves
These kinds of changes may be important during a pandemic, but the truth is, they are effective ways to manage and promote a business at all times. By highlighting them, you can help investors calm down and relax as you demonstrate how your business is prepared for whatever the future may hold, pandemic or not.