Don't Forget Who Brought You to the Dance

While you are trying to attract new investors, do not forget your existing shareholders, especially the top ten or twenty to make up your core group of investors. These people already believe in your company's potential and are your biggest supporters. Make sure you keep them on your side by maintaining a constant line of communication.

Use email to send your shareholders press releases, articles, and other news. Keep them up-to-date on the company's progress through letters from the CEO. Make sure that they have a point-of-contact at the company to call with questions. Also, be sure that you are open to their comments and suggestions. Let them know that you take them seriously and value their opinions.

If they believe in the company and see it making progress, many shareholders will see it as a buying opportunity when the stock it is down. They are you most receptive audience, so do not forget about them.

Remember, smallcap investor relations is all about the story and how you present it. Your job is to craft the right story and then use the basic tools of IR to make sure that investors understand it. If you do it correctly, you can decrease volatility, increase liquidity and build your shareholder base, even in these trying times.

Wayne Jenkins is president of IR Specialists, Inc., a boutique financial communications firm focused on helping smallcap companies. His firm provides expertise in investor relations, mergers & acquisitions, and venture capital.