There are three main reasons why you need to use social media to communicate with potential investors. You must get with the times and use social media, but you must do so in the right way. Cover each of these three bases to ensure that you are relating to your investors in the best way possible.
Investors Live On Their Computers
There is not a single person who has capital to invest that does not live on their computer or phone. These people are constantly looking for new places to invest, and you could catch their eye if you are on social media. According to a New York Financial and Social Media expert Jonah Engler, “One of your posts could be shared by one of their friends, and you could be in their crosshairs for the first time. This is a wonderful way to reach people who are already on the computer for most of the day.”
Investors Need It To Be Simple
You would have to have a business model that would change the whole of the global economy to have an investor come running to give you their money. Most investors want it to be simple. They want to run across you, and they want to be able to do a great deal of their research based on what they can find out about you online.
If you are posting to social media often, investors can see what your business is all about. They can cobble together a great deal of information just by reading your social media posts. Jonah Engler feels this is a great strategy for anyone in IR; “They will come to you with only a few questions, and you will not have to tell them much. Your social media feed did most of the work for you.”
Crowdfunding
You can use your social media accounts for crowdfunding purposes. You will be able to start a campaign that could turn hundreds or thousands of people into small investors in your company. However, most people are not going to find out about your company if they cannot find you on social media. Anyone who would be led to give you a few dollars in a crowdfunding campaign should be able to read up on your business online. You can post the campaign online, and you could close the campaign with your social media account in just hours.
When you are using social media properly, you can find all the investors you need. Social media creates a platform whereby anyone can learn about and invest in your company.
