R. Shawn McBride recently spoke about investors as your second line of business.
Hey, everyone, it’s Shawn here. Talking today about why you need to think about investors as a second line of business and why doing so can make you make really good investment decisions. So, a long time ago one of the lawyers I work with, a great guy, told me that you have to think of being in the investment business or having investors in your business as a second line of business. And not only now do you have your core business, the thing you’re raising your money from and doing great things with, but you have a second line of business of keeping those investors happy and explaining what’s going on.
Investors should generally want a lot of information. The most sophisticated investors have documents they require, even timelines, and they are going to be looking over your shoulder at what you’re doing to make sure you’re doing a great job. So it’s a lot of work to bring in an investor and you want to do it right. You want to understand how that looks and what’s going to happen when that investor comes in there. So you want to be ready for being in a second line of business. This means good procedures, good controls, the right staff, and the ability to get these reports out on time because if you don’t do that, you’re going to upset your investor. And so you need to understand how this second line of business is going to work. You need business processes and systems around it.
And guess what? Bringing in investors costs money because you have additional compliance costs, you’re going to be preparing these reports. You’re going to spend time interfacing with the investor which is going to take you away from your core business. So you want to understand all that from the beginning – that you’re going into a second line of business. You want to have a business plan almost, for how to interface with the business. What is my staffing, what is my budget, how does it look, and how does it work? You build all of that and now you’re doing something great.
If you’re dealing with management challenges in your business and you’re growing and you’re working for challenges you’re just the kind of person we’d love to talk to. You are meeting the profile of clients I work with and I’ve been pumping out lots of free content for people like you. So subscribe to the McBride for Business YouTube channel, get these videos sent to you regularly. Go to The R. Shawn public page on Facebook, like it, be a fan, and we will make you part of our community. Let me know what you’re struggling with. When I hear enough of it I create videos for it so everybody can benefit.
And of course, check out our blog at www.mcbrideforbusiness.com and www.mcbrideattorneys.com, both are going to have great information for you on managing your business. And if you haven’t taken the time to do it yet, get the business valuation checklist at McBride for Business I think it will help you do more with your business. Let me know how I can help you. R. Shawn McBride signing off for today.
Make sure you download our free checklist to assess your business.
This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Gregory Kazarian.
About the Author
R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment, gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can email R. Shawn McBride or (214) 418-0258.