Cultivating Good Relationships With Investors

An investment is like marriage. Without trust and commitment, the alliance between the investor and the company will fail entirely or may never reach its full potential.

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Throughout my career, I have witnessed many instances of friction and conflict between investors and business owners. And sadly, a little misunderstanding can actually have a large impact on the business.

To guide you, here are some strategies to help you manage your relationship with your investors:

Interact and communicate. Take the opportunity to know them. Treat them like friends and recognize their value beyond finances. Never select an investor just based on funding. Acknowledge your relationship and like a true friend, always listen.

Set clear expectations. To avoid disappointments and frustrations, do not promise over what you can deliver. Instead, have a shared vision, scale of growth, and potential exit strategies.

Show authenticity and respect. Though you may not feel like it sometimes, interact with your investor on a personal level. Grow together and be real in all aspects of the relationship. Help and support each other as challenges arise.

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Good relationships add value to any kind of venture. In investments, the best results arise when there is trust and commitment—for better and for worse.

Hi! Taihwa Terry Ho here. I am a capital investor by trade and I frequently invest in app development, a field where I see plenty of promise. Follow me onGoogle+ for more of my insights on business and finance.