Guide to Investor Relations

Investor relations—consistent communication with investors—remains key to elevating your company's standing and industry position. Investor relations services can help you develop a strategy and give guidance on delivering the company's message to potential investors.

There are thousands of publicly traded companies in the US alone. To rise above all the others, you need to develop an effective strategy in dealing with investors, one that recognizes shareholder value. Studies indicate that companies who utilize an investor relations firm significantly increase their disclosure, publicity and trading activity, among other things.

Consider the following factors when choosing an investor relations firm or consultant service:

1. Choose from investor relations agencies who have worked with clients similar in size to your own company. Ask for references and check them out. Also, ask for examples of past work. Evaluate the creativity of the message. Would you invest?

2. You'll most likely be working with your investor relations consultants long-term. Make sure it's someone you can work with comfortably.

3. Choose from investor relations companies who have a variety of contacts to get your message across.

4. From e-mail alerts to interactive newscasts, find an investor relations agency that takes full advantage of all available technology.

Action Steps
The best contacts and resources to help you get it done

Develop an investor relations strategy

Your investor relations strategy should cover a variety of facets including marketing and tracking investor perceptions, relaying important financial information, and communicating news and events. A variety of educational opportunities exist to freshen up your skills when it comes to developing sound strategy in investor relations. It's important to be clear about the company's objectives to potential investor relations firms.

I recommend: Check out the available courses sponsored by the National Investor Relations Institute. Rice University's Jesse H. Jones Graduate School of Management offers a download of an "Investor Relations for Dummies" PowerPoint presentation. Although some of the information may seem basic, use it as a refresher to make sure you have all your bases covered.

Consider investor relations consulting firms

A consultant who specializes in investor relations may be just the ticket you need to get your own investor relations program and strategy on the right track.

I recommend: Check out the services provided by Dallas-based Carla Kienast Consulting. Links on the left side of the page can also be used to find out about fees and past clients. Or consider The Piacente Group Inc. The consulting firm is based in New York City but also has offices in California and China.

Investigate potential investor relations firms

If you want a firm to handle all of your investment relations issues, it may be best to hire a hands-on investor relations firm that can jump in with development and work through implementation.

I recommend: From identifying your business message and analyzing the audience to preparing a communications kit, Christensen has many different options to help you with your investment relations goals. Based in New York City, Brainerd Communicators, Inc. is another full-service investor relations firm. Check out their services and then seek out their client list.

Tips & Tactics
Helpful advice for making the most of this Guide

• Reputation is important to investors. Choose an investor relations firm that you want to be associated with and is well-known in the investment community. The firm you choose should reflect the credibility of your company.

The official source of Investor Relations is the Investor Relations page at Business.com