Retail vs. Institutional Investors: Timing in Common
Posted by
Beth Kurth on Tue, Feb 07, 2012 @ 11:13 AM
There are many differences between retail and institutional investors – different motivations, resources, pressures and parameters. However, there is one similarity that is very, very important for companies engaging in outreach. The clock. Whether it is a group luncheon with retail investors or a one-on-one with a Fidelity portfolio manager, do not go over your allotted time.
Whether you are speaking to individual or institutional investors, make sure you know the time frame. Typically retail investor meetings are scheduled for one hour. But that does not mean the speaker has a full 60 minutes. Nor should it. Rather, every opportunity to speak with potential investors is an opportunity not only to make the case for your investment story, but also to absorb feedback. This can be in advance of the formal presentation during the informal “meet and greet.” Ask – “How did you hear about our company?” Or, “What do you look for in an investment?” Feedback can be garnered during the presentation if you monitor if there are times when people are disinterested and skipping ahead in the hand-out. And, most obviously, during the question and answer period at the end of a group presentation.
I have seen speakers rebel against a “hard stop” time limit; as if somehow the audience will be deprived of vital information. This is flat out wrong. Time constraints are a gift that help refine a message. Disciplining your presentation to fit within the allotted time will allow for a clear focus on the message.
In fact, the best advice for public speaking I ever saw is from the book pictured at left: “Don’t tell them what you want them to know. Don’t tell them what they should know. Tell them what they must not forget.”
People will love it if you finish early but will get increasingly upset with every
minute that passes beyond the planned end time. That is not one of the things
you want them to remember.