I like this blog entry because there are simple clear parameters that can be used by a company in defining its investment message. It’s sourced from the company blog for Q4 Web Systems a leading provider of on-demand software for corporate and investor websites. The text below is a direct extract from Q4 Web Systems Blog, an excellent resource for IR best practices
“Today’s challenging economic environment has made building investor confidence a top priority for companies. The IR website still remains a leading source for the investment community to verify and gather company information. There are several things to consider for your IR website.”
First, it is essential that you consider your key audiences and provide entry points for potential, current and long-term investors.
Second, if you want me to have confidence in your company as an investor, I need a company snapshot in order to understand your industry and your position within that industry.
Third, the market opportunity (supported by reliable statistical information), must also be conveyed.
Fourth, I need to know that your company has defined its objectives for growth and that you have a clear strategy to execute on these objectives. I need to know that you evaluate this strategy on an ongoing basis to keep pace with market conditions.
Fifth, I need to know that your people are connected to your strategy and that they were chosen for specific knowledge and skills that make them ideally suited to execute the corporate strategy.
Sixth, add to this a robust “Why Invest” section that shows stable growth as indicated in your financials and when results are lower than expected, I need a sound explanation and to see that there’s a clear strategy to address this moving forward.
Finally, using technology that is suited to your business needs as well as integrating additional tools such as social networks will increase your audience reach, empower people to engage with your company and give them a better understanding of your investment proposition.”