Byron Johnson: 5 Ways to Improve Investor Communication as an Entrepreneur

7 mins read

As Byron Johnson shares his experience as an entrepreneur, he says that it can be hard to keep investors up-to-date on your business. They’re busy people, and you’re busy raising money for your company. But investor communication is one of the most important parts of fundraising—for both sides—which means that it has to be done right in order to be effective. Here are five best practices given by Byron Johnson for improving communication with investor:

Build a Strong Relationship

When you build a strong relationship with your investors, they’ll be more likely to listen to and take your advice. Byron Johnson emphasizes the importance of keeping in touch with investors and making sure they are on the same page as you. You need to know what their goals are, what their concerns are, what their expectations are and what timeline they have set for themselves when it comes down to investing in an entrepreneurial venture like yours. The better you understand each other’s needs before anything else comes into play, the easier it will be for everyone involved at the end of the day when things start falling apart around us all too quickly for comfort.

Be Honest and Clear

Byron Johnson sheds light on how to be honest and clear through his personal experience: 

  • Be transparent about everything.
  • Don’t sugarcoat bad news.
  • Don’t try to hide bad news.
  • Don’t be afraid of bad news.
  • Don’t be afraid to admit mistakes or ask for help when you need it (or both!).

Don’t Hesitate to Share Bad News

Bad news is unavoidable, and there’s no point trying to hide it. In fact, Byron Johnson recommends being the one to share it first if you can be sure of what the issue is and what you’re doing about it.

Don’t try to hide bad news. I know this sounds counter-intuitive, but hear me out: if a key member of your team leaves or there’s an issue with your product development, don’t try to keep that information under wraps until everything has been resolved. You may think that will help things go smoothly or give you time to figure things out, but these are usually wrongheaded approaches that end up hurting investor relations in the long run.

Don’t get defensive when someone asks questions about something they see as negative—even if they don’t mean anything by it or aren’t trying to criticize your company or ideas at all! If an investor asks why sales were down last quarter—or whether there was a problem with inventory management—respond with honesty rather than defensiveness, and yes…you should probably ask yourself why those numbers were lower than expected.

“Someone who wants nothing more than positive answers from people who have nothing but positive intentions shouldn’t be given any reason not to trust them!” – Byron Johnson

Share Good News, too

Share good news, too. If you’re getting recognized for your work, or if you’ve made a major accomplishment, it’s important to share that good news with your investors. “It’s not just about building trust—it’s also about building relationships, reputations and even brands. And all these benefits will help you build your company!” – Byron Johnson

Remember there’s a Human being on the other Side of that Email/Phone Call/Conference Room Door/Etc

You may not remember it, but your investor does. Byron Johnson stresses on the point that they are not just an investor, they are your partner and want to help you succeed. Make sure that in all of your communications with them, you treat them with respect and as a peer—not just another number on your spreadsheet.

Keep an Open Line of Communication with your Investors

Communication is one of the most important aspects of running a business. It doesn’t matter if you run a multi-million dollar company or you have just started your first business, communication is crucial in any situation. Byron Johnson spotlights that you need to communicate with your customers and employees, but equally important is communicating with investors.

In the end, great investor communication is one of the keys to a successful venture. It’s not just good manners—it’s good business.


About Byron Johnson:

Byron Johnson is a founder, entrepreneur, and CEO known for founding several businesses, including an insurance agency, construction and remodeling company, and commercial real estate investment firm. Byron Johnson is an owner of 150+ units of commercial property located in the up-and-coming Seminole Heights area close to downtown Tampa. Additionally, Byron is a recognized WSOP Poker Player who won 1st place in the WSOP Poker series in Tampa, FL in 2020. 

For more information on Byron Johnson, visit ByronJohnson.com or visit his Cheap Car Insurance Guru YouTube Channel where he gives back by sharing free car insurance tips and valuable insurance info daily. 

Learn More About Byron Johnson:

Byron Johnson on Youtube

Byron Johnson on Facebook

Byron Johnson on Twitter

Byron Johnson on Instagram

Byron Johnson on Linkedin

Byron Johnson on Crunchbase

Byron Johnson on INC


Opinions expressed by Portland News contributors are their own.

Joshua Porter

I'm Joshua, a public school teacher. During my free time, I love to wander in the woods and do photography. I also share my knowledge through blogging, and I write about education, lifestyle, and entertainment.

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