Uncertainty – the Archnemesis of Wall Street – became the central setting.
In the past quarters, we have returned from record highs to lows, driven by tariff concerns.
The streets are back to questioning whether AI is a bubble. Meanwhile, the highly anticipated important IPO activity appears to be stalling while SPACS is returning.
News drivers are at best inconsistent, promoting long-term anxiety and putting more pressure on CFOs to reassure investors.
During the revenue season, CFOs have a great opportunity to infiltrate investor trust and confidence into one simple but often overlooked strategy: authentic communication.
Genuine communication is true and transparent. That's to ensure that your audience, the investor, in your case, has a reason to trust you. And not only do they believe in you, they believe in you.
Investors want to be confident in their ability to make sound decisions. An uneasy time to show how important CFOs are to a company is a major opportunity for CFOs. While CEOs hold their cards in the future, their vision must be more than epic hopes, dreams and ambitions. It should be based on metrics, particularly on the path to profitability or profitability.
Additionally, corporate governance and leadership skills are important. If you are questioned about your ability, especially your integrity, profitability, revenue growth, or the amount of acquisitions, will not overturn the negative impact of lack of trust.
Building Trust
Warren Buffett said, “It takes 20 years to build a reputation and five minutes to ruin it. If you think about it, you'll do it differently.”
Clear, consistent and proactive communication builds trust. And trust builds reputation.
Given its importance, why is it difficult for leaders to be directly involved in investor communication?
First of all, it is generally difficult to decipher what needs to be shared and how to explain it. Times of uncertainty make things worse. And of course, no one enjoys being the bearer of bad news.
Every company has a unique story, but the basics of how to build trust with authentic communication remain.
Communications early and frequently. For public companies, revenue calls are clearly made when the CFO needs to communicate. I'll go even further than that. Practice communicating regularly with key investors. Promote relationships with them and consider them as the authentic part of your team. If you are a private company, establish quarterly practices that will present revenue to the board. Let's get into the habit. It forces you to see the big picture of your business.
I'll come forward. Take advantage of the opportunity to let the public know about yourself. It reveals your personal and professional values. Don't hide behind revenue calls or press releases. I'll come forward. Use forums such as LinkedIn and Acquisition Media to express what's going on in the industry. Although we cannot share sensitive information, we can explain our views on industry trends. What's more, it's worth it to be a visible voice with company announcements that go beyond strict financials.
Face facts. Don't filter yourself when you're preparing to update your material. Resist the urge to focus on what you say and the investors think about it. Look at the facts. Next, we evaluate the meaning of the facts. You cannot send a message to yourself about problems or desires.
Identify unknowns. Remember, you don't have to have all the answers. You need to be clear about what you know and what you are working to achieve. On a recent tracking perspective podcast, I spoke with Yahoo! On-air correspondent Alexandra Canal. About finances, what executives can do to reassure investors. She said that the companies they share will send a message that they are confident in their strategy, even if it's not the ideal information. The tariffs present an opportunity to implement this. Demonstrate proficiency in calculating strategic planning that takes into account risks and opportunities, known and unknown factors.
Answer “Why”. Once you have organized all the information, analyze it. What does analysis mean? Create a context for why facts matter. Practice authentic communication with your CEO. If necessary, guide the CEO to revise the course and use the data as evidence of what works and what needs to be changed. Together, we bring the solution to the forefront.
Predict investor feedback. Based on the information available, predict what investors need and want to know. And if they are uncomfortable and need peace of mind. What concerns do your investors have? What surprises them negatively or positively?
Be the voice of reason at city hall meetings, board meetings, or public revenue calls when communicating confidently and consistently clearly. That approach would pay dividends to maintain the trust and trust of investors. It solidifies your positive leadership reputation and introduces the true power and need of the role of a strategic CFO.
