Hey Lykkers! Ever spent days preparing a financial report, only to present it and be met with blank stares or questions that show your partners just aren't "getting it"? You know the data is solid, but the connection isn't happening.
It's a frustrating feeling. The truth is, partners aren't looking for a data dump. They're looking for a story—a story about trust, opportunity, and risk. So, what are they really scanning your reports for? Let's get inside their heads.
<h3>They Want the "So What?", Not the "What"</h3>
Your partners can read numbers. What they need from you is the translation. A wall of figures is meaningless without context. They're thinking: "What does this number mean for our shared future?"
Did sales in Q2 jump by 15%? Don't just show the upward-trending line. Explain why. Was it the new marketing campaign? A seasonal spike? Then, answer the crucial next question: "So, should we double down on that campaign for Q3?" Connect the data directly to a strategic decision. As Warren Buffett, investor and business leader, says: "The one easy way to become worth 50 % more than you are now — at least — is to hone your communication skills — both written and verbal. If you can't communicate, it's like winking at a girl in the dark — nothing happens."
<h3>They Want a Crystal Ball, Not a Rearview Mirror</h3>
Anyone can tell a partner what already happened. A true partner tells them what’s likely to happen next. Partners are inherently future-oriented. They invested in a future outcome, not a historical fact.
Your reports must bridge that gap. After presenting the past quarter's results, dedicate a section to what it implies for the coming months.
<b>Cash Flow is King:</b> They want to know if the company will have the fuel to seize opportunities or weather storms. A projection of cash runway is often more critical than last month's profit.
<b>Leading vs. Lagging Indicators:</b> Don't just focus on revenue (a lagging indicator). Highlight leading indicators like sales pipeline growth, customer acquisition costs, or website traffic. These are the gauges on the dashboard that tell you if the engine is about to overheat or perform beautifully.
<h3>They Want Clarity and Honesty, Especially When It's Bad</h3>
Nothing builds trust faster than transparency, and nothing destroys it faster than surprises. Partners need to know they're getting the unvarnished truth.
If a metric is underperforming, address it head-on. A messy chart with a dozen lines trying to hide a problem is a major red flag. A simple, clear chart that shows the dip, accompanied by your concise analysis of the cause and your proposed solution, is infinitely more reassuring. It shows you're in control and have a plan.
<h3>They Want to Know Their Investment is Secure and Growing</h3>
At the end of the day, your partners have entrusted you with their capital. The fundamental question on their mind is: "Are we better off now than when we started?"
Your report should make the answer to this question unmistakable. This is where key metrics come in:
<b>Profitability:</b> Are you making a sustainable profit?
<b>Growth:</b> Is the top line (revenue) moving in the right direction?
<b>Efficiency:</b> Are you making smart use of resources (e.g., improving profit margins)?
Present these metrics clearly, benchmark them against your industry if possible, and show progress over time.
So, Lykkers, the next time you prepare a report, do a quick audit. Are you just listing numbers, or are you telling the story of your partnership's success and future? Shift your perspective from "reporting facts" to "building confidence," and you'll see those blank stares turn into engaged, trusting conversations.