The importance of networking in Investor Relations
Investor relations (IR) is a strategic form of managing communications and relationships, helping showcase business value and garner investor interest. Although IR thrives in digital spaces, the power of in person connections is still wildly transparent in this industry.
Networking develops professional relationships in a way that no LinkedIn profile or news release could ever do. The in-person opportunity to shake hands, share a smile, connect on shared interests, and get a genuine first impression can benefit business in many ways. Whether you share a laugh or exchange business cards and promise to reconnect, the energy of a buzzing networking room can’t be replicated, and this energy can take your business to new heights when leveraged right.
The benefits of networking in IR
To get right to the point — networking can provide access to potential investors and will build relationships that put the people with power in your corner. Building new relationships and foraging genuine friendships is the bread and butter of networking. Yes, you can get perks out of these connections, but the intention should always be to meet new people and build working relationships. Connecting with others can provide opportunities to collaborate or form partnerships. It can also be an incredible tool for knowledge sharing, where you can learn about industry trends or developments, chat through difficulties and successes, or work through collective hurdles. All of the wonderful takeaways that you gain from networking, you also get to give to everyone you chat with.
Strategies for networking in IR
The best strategy in IR networking is to be a go-getter, a planner, and a community builder. Being the person who takes initiative to show up to the right events, invite the right people, and follow up effectively will reap the most from this kind of connecting. Start by making sure that you are attending things that will add value. Attend relevant conferences and events (and don’t waste your time attending ones that won’t propel your business). Doing research to see what the take-home learnings will be and who might be in the room will set you up for a successful experience.
Be the person who connects. Set up meetings to connect with investors, schedule coffee chats to talk to other founders or executives or create opportunities to bring like-minded folks into the same room. You will establish closer relationships by initiating these conversations. And finally, stay connected to professional organizations and associations to expand your network even further. These often provide small-group meetups, a crew of folks to help with brainstorming, and a space to relate to people who are also there to connect.
Following up and maintaining relationships
There is a delicate balance to following up. It shows initiative and intent to stay connected, but too much eagerness or “spammy” emails can become overwhelming. A follow-up is the key to cultivating a lasting relationship, as it provides opportunity to stay connected. Using social media platforms like LinkedIn or Instagram will allow you to stay up to date on the people you want to stay in touch with. Be sure to engage with their content to create a recurring support system and rapport. You can also follow up through email (or any other contact that they suggested/provided in person) but be sure that this important step doesn’t get lost in your to-do list.
Showing up to networking events will show intention and effort. Shaking hands will show initiative and interest. Most importantly, networking effectively will have a direct impact on the success of your IR strategies and overall business development. Even the smallest efforts add up to create a valuable network that you can leverage and be proud of. Enjoy the comradery of like-minded connections and see where the power of networking will take you.
If you’re scoping out your next networking opportunity, check out www.irlabs.ca/events to view our upcoming events and webinars. Happy chatting!
