How do you keep your financial partners engaged?

Keeping your financial partners engaged is crucial for any small business that relies on external funding, whether it is from investors, lenders, or grantors. Financial partners want to see that you are using their money wisely, that you are achieving your goals, and that you are communicating clearly and regularly. In this article, you will learn some tips on how to maintain a positive and productive relationship with your financial partners, and how to avoid common pitfalls that can damage your credibility and trust.

1 Know your expectations

Before you accept any funding from a financial partner, you should have a clear and mutual understanding of what they expect from you, and what you expect from them. This includes the terms and conditions of the funding, the milestones and deliverables, the reporting and feedback mechanisms, and the potential risks and challenges. You should also establish how often and how you will communicate with your financial partner, and what kind of information and updates they want to receive. Having a written agreement that outlines these expectations can help you avoid misunderstandings and conflicts later on.

Add your perspective

Tolulope Abikoye

Tech Enthusiast | Sales | Global Account Mangt |Strategic Partnerships |Sales Management |Business Analysis | GTM Strategy
Report contribution
It is fundamental to ensure all parties have a clear and shared understanding of the expectations. Honest and open discussions can prevent conflicts and ensure both businesses seeking funding and financial partnership are in sync. Another point to note is to have the terms and conditions which includes funding nature, interest rates, repayment terms and any other fees are important. A formal, written agreement is crucial. Information Sharing: Clearly define what information needs to be shared, such as financial statements, performance metrics, and operational updates. Understanding the financial partner's specific information needs ensures that you provide relevant data.

Like

2 Deliver on your promises

One of the best ways to keep your financial partners engaged is to deliver on your promises. This means that you should meet your deadlines, achieve your targets, use your funds responsibly, and report your progress honestly and accurately. If you encounter any problems or delays, you should inform your financial partner as soon as possible, and explain how you are addressing them. You should also celebrate your successes and acknowledge your financial partner's contribution to them. By showing that you are reliable and accountable, you will build trust and confidence with your financial partner, and increase the chances of getting more funding or referrals in the future.

Add your perspective

Tolulope Abikoye

Tech Enthusiast | Sales | Global Account Mangt |Strategic Partnerships |Sales Management |Business Analysis | GTM Strategy
Report contribution
I agree with this statement. Maintaining a high level of trust and transparency and delivering on promises with financial partners is a fundamental aspect of business relationships. Reliability and accountability are cornerstones of healthy financial partnerships; meeting deadlines , achieving targets and using funds responsibility show that commitments are taken seriously. Another important bedrock is communication; timely communication when issues arise is key. In essence, delivering on promises and maintaining transparency and accountability is a win-win for both parties involved in a financial partnership.

Like

3 Seek feedback and advice

Another way to keep your financial partners engaged is to seek their feedback and advice on your business. Financial partners are not just sources of money, but also of expertise, experience, and connections. They may have valuable insights and suggestions on how to improve your product, service, market, or strategy. They may also have access to other potential customers, partners, or investors that can help you grow your business. By asking for their input and listening to their opinions, you will show that you value their perspective and involvement, and that you are open to learning and improving.

Add your perspective

4 Be transparent and respectful

A third way to keep your financial partners engaged is to be transparent and respectful in your communication. Transparency means that you should share both the good and the bad news, the successes and the failures, the opportunities and the threats. You should also be honest about your challenges, mistakes, and uncertainties, and how you are addressing them. Respect means that you should communicate in a professional and courteous manner, that you should respond to their queries and concerns promptly and clearly, and that you should acknowledge their feedback and advice, even if you do not agree with it. By being transparent and respectful, you will demonstrate that you are trustworthy and credible, and that you appreciate their support and partnership.

Add your perspective

5 Keep them updated and interested

A fourth way to keep your financial partners engaged is to keep them updated and interested in your business. This means that you should communicate with them regularly and consistently, according to the frequency and format that you agreed on. You should also provide them with relevant and useful information, such as your financial statements, your customer feedback, your market trends, your product development, or your social impact. You should also try to make your communication engaging and compelling, by using stories, visuals, testimonials, or data. By keeping them updated and interested, you will show that you are proactive and enthusiastic, and that you are making progress and impact.

Add your perspective

6 Ask for their support and referrals

A fifth way to keep your financial partners engaged is to ask for their support and referrals. This means that you should not be afraid to ask for their help or guidance when you need it, whether it is for solving a problem, finding a resource, or overcoming a challenge. You should also ask them to spread the word about your business, and to introduce you to other potential financial partners, customers, or collaborators. By asking for their support and referrals, you will show that you are confident and ambitious, and that you value their network and influence.

Add your perspective

Tolulope Abikoye

Tech Enthusiast | Sales | Global Account Mangt |Strategic Partnerships |Sales Management |Business Analysis | GTM Strategy
Report contribution
When businesses seek support and referrals from partners , it is indicative and reflects confidence in your business and an understanding of the interconnected nature of success in the business world. When you ask for assistance or guidance , you acknowledge that no business operates in isolation, and you value the expertise and experience your financial partners bring to the table. This collaboration often leads to innovative solutions and better problem solving

Like

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

Add your perspective

How do you keep your financial partners engaged?

1

2

3

4

5

6

7

1 Know your expectations

2 Deliver on your promises

3 Seek feedback and advice

4 Be transparent and respectful

5 Keep them updated and interested

6 Ask for their support and referrals

7 Here’s what else to consider

Small Business

Rate this article

Thanks for your feedback

More articles on Small Business

More relevant reading

How do you keep your financial partners engaged?

1

2

3

4

5

6

7

1 Know your expectations

2 Deliver on your promises

3 Seek feedback and advice

4 Be transparent and respectful

5 Keep them updated and interested

6 Ask for their support and referrals

7 Here’s what else to consider

Small Business

Rate this article

Thanks for your feedback

Explore Other Skills