How to Have a Good Relationship with Your Shareholders

men-1979261_640When you’re running a business, it’s important to maintain a good relationship with your shareholders: they provide the investment that keeps your company running forward, and while you will hopefully be rewarding them by increasing the value of their shares, you can also keep things running smoothly day to day with a number of simple tips.

Starting Well

It’s important to begin your relationship with your Shareholders in the right way. Your approach is a chance to set the direction for how your association is going to go: submitting a well written, realistic business plan when you’re soliciting for investment not only demonstrates you have the necessary qualities to deliver on what you promise, but will also avoid nasty surprises for your investors down the line.

Having a well written Shareholder Agreement is important as well. This sets out the relationship between the shareholder and business owner: exactly what each parties’ rights and responsibilities are, and what they can expect from their investment in your company. This can also help to protect from overzealous investors who may wish to exert more control over the direction of your company than you might like.

Meetings and Honesty 

Shareholders like to be kept up to date with the developments in your company, especially in a new business, where challenges will be met and overcome quickly, and new leads will be found and acted on in the short term.

To fill this need, and also represent yourself as available and reliable, schedule regular shareholder meetings. With increasing access to remote working technology, it’s possible to hold regular catch ups without having to call your entire set of stakeholders into your office. A conference call or Skype video-conference can have this accomplished without your shareholders leaving their offices.

It’s also important to be honest with them: any new business will have ups and downs, and you may be tempted to downplay a temporary set-back or slow down. In the long term, your shareholder’s confidence will be built up for more by being honest with them and accepting feedback in the early days.


Many shareholders are serial investors. Use your contacts in the business world to find a little out about them. You can anticipate their behaviour and get off on a good foot by catering to their particular needs, and smoothing over flashpoints in advance.

Join our newsletter

If you like Critical Financial, subscribe and get our latest content via email.

Powered by ConvertKit

Share this post:

Recent Posts

Leave a Comment


May the 4th Be with You: Star Wars Swag on Amazon

May the 4th Be With You: Star Wars Day Swag

It began as the punniest holiday ever but quickly grew into an earnest (if somewhat random) celebration of the long-running (and still... more →
People count the money to buy a house in future success.

Avoiding Mortgage Scams: Don’t Fall for Unreasonable Promises

If it sounds too good to be true, it probably is. That’s sound advice for almost all aspects of life, including the search for... more →
Eat for free for a whole month via the meal kit companies discounts for new customers.

How To Get a Month of Free Food: 9 Meal Kit Companies Offering Discounts to New Customers

Play your cards right and you might be able to line up a month’s worth of free meals if you were to try out all nine of the meal... more →
Generate extra cashflow -- here are 97 ways.

96 Awesome Ways to Generate Extra Cashflow

Who doesn’t want more money nowadays? We’ve got you covered on that front. Here comes a long list of different ideas on... more →
Valentine's Day gifts that won't destroy your budget

Valentine’s Day Crafts Are Romantic Rescue from Crazy Inflation

Fall for the hype this week and you’re out an average of $143.56 for Valentine’s Day. Crafts and other do-it-yourself tactics... more →

Ultimate Guide to Bitcoin — FREE Ebook!

Have we got something for you: a free ebook about bitcoin! more →
Get a flu vaccine.

Why You Need To Get a Flu Vaccine Right Now

Flu vaccines aren’t just for the elderly  anymore. Here are 25 reasons you should go get vaccinated. more →
Financially successful

Acquire the Trait All Financially Successful People Have

Financially successful people tend to all have a lot of self-discipline. Improving your discipline in one area of your life often spills... more →

What’s the Best Free Recipe App?

The Apple Store and Google Play together offer more digital cookbooks than you probably have room for on your mobile device. So which... more →
New tax law might slow down housing market.

What Will the New Tax Law Do to the Housing Market?

The new tax law will have a profound impact on the housing market, although in ways that go beyond the deductibility of mortgage interest... more →

4 in 5 Households Will Get a Tax Cut in 2018

Four out of five U.S. households will get a tax cut as a result of the legislation that President Donald Trump signed into law today. more →
Will bitcoin reach $100,000?

When Will Bitcoin Reach $100,000?

Bitcoin has accelerated its pace of appreciation in recent months, and if the current levels between $15,000 and $19,000 make you itch... more →
The Dow Jones topped 24,000 -- now what?

The Dow Jones Crossed the 24,000 Threshold. Now What?

Stocks appear to be increasing in volatility, yet the markets closed on Monday, December 4 with the Dow Jones Industrial Average is... more →
Peer mortgage

Should You Get a Peer-to-Peer Mortgage?

If you can’t get approved for a home loan from a bank, you might want to look into applying for a peer-to-peer mortgage. more →
Investment gifting is awesome.

4 Things To Know Before You Donate an Investment

While donations of any kind are appreciated, gifting investments benefits both the giver and the receiver. Here are four key things... more →
Are you wondering: What's the Relationship Between the Stock Market and Federal Debt?

What’s the Relationship Between the Stock Market and Federal Debt?

Wouldn’t it be wonderful if gains in the stock market could actually reduce U.S. government indebtedness? If that were true,... more →

Roundup of Budget Tips

Budgeting is tough and there’s a plethora of advice available online about the various options on the table. The problem is not all... more →