For any relationship to survive it must be based on respect, sensitivity, confidentiality and most prominently, loyalty. Business comprises numerous relationships with; customers, suppliers, venders, employees, bankers and investors. Customers, whose positive word-of-mouth endorsement brings in more sales, Suppliers, who offer superior products and above normal service, Venders who are dependable, Employees that are devoted, Bankers that are considerate, and Investors that offer encouragement and strength.The relationship with investors is the most important to the business success but is the most difficult to manage and maintain. Investors come in all shapes and sizes, some invest money and anticipate a return on their financial investment, others invest advice (time and expertise) and expect shares as payment, and then there are investors who are family and friends that demand more intangible rewards.
Respect must be given for constructive contributions and for maintaining control (not doing the wrong thing). A major well-known investor can in many ways, for many reasons destroy an organization; through indecent behavior, disclosing business secrets or bad talking other key connected persons. If the investor is publicly disrespected or privately humiliated that investor must be replaced (resign as a director and buy-out those shares) to save the business.
Sensitivity in all communications enforces that needed bond to develop trust and dependency. All potential investors must understand the business and key persons that they are getting involve with, by carefully reading and studying the investment prospectus. They must further engage themselves in all public news and reports on and about this organization and its key people. If elected or appointed to the board of directors; one must understand the personal liability risk, the responsibility to other shareholders and the accountability to regulators and taxes. Investors depend on directors to protect their interest.
Confidentiality is crucial in all business plans and transactions. Non-disclosure agreements with strong penalty clauses are widely used to protect sensitive strategies and materials. Noting that business grows in two ways; increasing its market share or through mergers and acquisitions, the need for secrecy in business is clear. Negotiating a sale or project contract, a line of credit, employment agreements or the purchase of another business are all highly volatile matters, subject to extreme emotions and ruthlessness and can be very destructive to the organization and all connected, if details where to be revealed.
Loyalty is the key ingredient to a successful business relationship. It is about being the first to point out negative thoughts and actions that will damage the relationship. It is about publicly defending while privately improving. It is about humility without humiliating. Business that cultivates an atmosphere of trust, decency and honesty at the policy-making levels, will always design procedures based on real intelligence and achieve its mission.
Rationale
T.A.J & Associates Company Limited uses this occasion to comment on topics that have been covered, both academically and by the mainstream media, to add its opinion and point out investment opportunity, not to invoke any social action.
