⚡ Get All Content for 20% Off ⚡

The One Simple Tool for Transforming Your Relationship With Investors Creating a MAP will take no more than an hour of your time every month and will keep the lines of communication open, ensuring relationships with investors remain strong, and ultimately helping early-stage startups succeed.

By Will Ford

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Venture capitalists poured an eye-popping $48.3 billion into new U.S. companies in 2014 -- the most since 2000. The 2014 total was up 61 percent from 2013 and was more than double the total invested in 2009. But once new businesses have secured funding, how can entrepreneurs foster a strong ongoing relationship with their investors?

As the co-founder and president of monthly subscription service Petbox, I have found one simple tool that can ensure a strong relationship between early-stage startups and their investors: a monthly MAP, or marketing action plan.

The concept behind the MAP is simple: It provides a full report of everything that happened in the previous month and spells out your goals for the next 30 days.

Related: How to Find the Right Investor for Your Business

To get the best out of this guide, make sure your MAP is detailed and specific. Bring your investors in on your process and your progress. Provide specifics on your cash burn, demonstrating how you are operating "lean and mean," something investors always appreciate. Share the good and bad news. If you've had success, show it off. If your company has had setbacks, don't shy away from including them in your MAP. Early-stage startup investors know that building a new business is not easy, and they understand there will be challenges along the way. If you tried something that didn't work in the previous month, the MAP is your chance to lay out your action plan for new approaches.

How is the MAP different from the monthly check-ins, where founders have to provide investors updates? Most investors are looking to be included in your journey when investing in your early stage start-up business. Compared to a typical monthly update, the MAP provides a deeper dive into what your business actually looks like on a monthly basis. The result is that you will keep your investor base engaged throughout the journey. It is critical that you maintain strong communication channels with your investor base, because you never know when you might need help along the way.

Related: Choose an Investor Like You Would a Spouse

What to include in your MAP:

  • Summary of previous month's activities and numbers
  • Objectives for the month ahead
  • Updates on key areas including Development, Sales & Marketing, and Operations
  • Media coverage, as well thought leadership pieces and key blog posts published by company leadership
  • Updates on new partnership programs
  • Advertising campaigns
  • Update on funding
  • Staffing updates, including a full list of the current team line up

In addition to helping transform your investor relations, the MAP can also yield some additional perks for your business. For instance, by laying out your monthly goals and objectives ahead of time, you will have a much easier time avoiding distractions and keeping your business on-track. Another bonus? Most investors will share the MAP with their friends and associates, which will often lead to new investors.

The MAP is a key tool for the first year of operating your business. Creating a MAP will take no more than an hour of your time every month and will keep the lines of communication open, ensuring relationships with investors remain strong, and ultimately helping early-stage startups succeed.

Related: 5 Questions the Right Investor Will Ask You

Will Ford

Co-founder and President of PetBox

Will Ford is the co-founder and president of PetBox, a subcription delivery service for your pets.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Remote Side Hustle a 43-Year-Old Musician Works on for 1 Hour a Day Earns Nearly $3,000 a Month: 'All From the Comfort of Home'

Sam Ziegler wanted to supplement his income as a professional drummer — then his tech skills and desire to help people came together.

Business News

Costco CFO Reveals Uncertain Fate of $1.50 Hot Dog and Soda Combo

CFO Richard Galanti reveals that the price will stay the same — but only "for a while."

Business News

The Most Unexpectedly Popular Side Hustle of the Decade Has Low Startup Costs and High Markups

A new report shows that vending machines are a popular investment — and the industry is set to grow up to $3 billion by 2031.

Marketing

Ever Wonder Why Certain Websites Rank Higher Than Yours? This SEO Expert Reveals The Secret to Dominating Search Results

It's often the smart use of SEO, now supercharged with AI, particularly in keyword optimization.

Business News

AI Is Impacting Jobs. Here Are the Gigs Affected the Most, According to an Analysis of 5 Million Upwork Postings

The researcher said in the report that freelance jobs were analyzed first because that market will likely see AI's immediate impact.

Leadership

Former Interrogator Shares 5 Behaviors Liars Exhibit and How to Handle Them

Five deceptive behaviors to look for and how to respond to those behaviors when you encounter them.