Dealing with investor feedback is a delicate act and it is an important aspect of running a business. This is a business reality and there is no escaping it. So you must try and get acclimatized to this process:

Know your investor

Some investors are very aggressive and are just interested in the bottom-line, while some others are fairly involved in running the business and do try and help you to achieve your dream. So before taking the funds, you should know your investor well. The personality and nature of the investor is very important to any business.

"Before getting the investment it is also important for you to find out the style of functioning of that particular investor. Some people are hands on and some take the hands off approach and do give you space. Investors take huge risks in advancing you money and expect a fair degree of discipline on your part," says Vinod Keni, CFO & Director, Aavishkaar Venture Capital.             

Constant communication

Investors by their very nature of business would always want to know what value you, the entrepreneur, is adding and there has to be a constant communication process between you and investors.

"Financial investors always look for returns. Because the investor has put in money, it is your responsibility and shows professional behaviour," says Anjana Vivek, founder VentureBean Consulting.

You should have a good reporting system to communicate with the investor on a regular. Both sides need to develop a trust in each other, this will help the business grow.

"There is always give and take in business and you should have an open communication channel with the investor. It is beneficial to take the wisdom of the investor and if his/her criticism helps your business to grow, you should take time to reflect on the points raised," says Anjana.

Regular reporting

Most investors need regular reporting and good corporate governance in running the company. The later the stage, the more is the involvement of investors. So as a promoter, you should not shy away from giving feedback. So, here's the first tip; Giving feedback is part of the process and do not look on it as "interference" on part of the investor.

Like the promoter needs the investors, the investors also need the promoter to maximize the value of their investment. Be faithful and rise above personal interests. Most investors do not get involved in the day to day running of the company but they would always be watchful whether their money is well spent and put to productive use. Monitoring the business is second nature of any investor.

"You should always keep the long term interest of the business in mind and follow the system rather than have ego problems. There should be no personal interest when you are dealing with another man's money," says Amit Grover, CEO, Nurture Talent Academy. An entrepreneur should  have to keep the investor happy and there is nothing wrong in the feedback system. "It will help you to get more investors on board and this will create more value in your company," says Aasif Khan, founder and managing director, FabTech Technologies.

Listen but use your judgement

Investors will come when there are customers for any business. Till the time you don't have customers you have to bear with whatever demand the investor may make. "You should not ignore the investor at all. You should listen to every feedback but should not implement everything said. You should be in the middle," says Amit.    

When to ignore

Some investors by habit demand more and will try and boss over you all the time. If you are a specialist and know your business well, you should ignore unwanted advices of non-specialist investors.

"Advances from these types of investors need to be better ignored and
you should put your foot down," says Keni.

Some salient points

> Feedback is a business reality
> Some investors can prove to be a nuisance but learn to work around the problem
> Know your investor(s) profile well
> Put a communication system in place
> Have a corporate governance plan
> Be transparent in your dealings, this will help with your investor
> Listen but ultimately use your judgment
>Ignore unwanted and unsolicited advise
 

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