Providing updates can be as simple as a casual oral heads-up to your colleagues or as detailed as a multi-page letter for overseas investors. Regardless which type of update you are responsible for, any respectable professional should know how to structure updates through the written word – because an interconnected world and business place means you’re inevitably going to have stakeholders who aren’t in the same room as you. What’s the best approach to take when sharing your latest developments? Join Wordsmith as we give you the lowdown on updates!
Update letters?
Unlike most letters, updates are more of a report than a correspondence. Don’t sweat the pleasantries and small talk, instead, you need to focus on retelling of what has happened since the last update and have everything sorted in order of importance – all with a healthy dose of metrics (if applicable), foreseeable challenges, current challenges and next steps.
Aside from being status updates, Joshua Brueckner (a contributor to TechCrunch) notes that such letters are vital for establishing trust between you and your stakeholders, especially financial backers. “These updates demonstrate to investors your commitment to progress and learning through trial and error. Over time, this builds trust while allowing you to leverage investor expertise and their networks.
“With enough trust, these investors may participate in your next round and refer you to new potential investors too,” adds Brueckner. This is especially true for startups and fresh entrepreneurs, as word of mouth about your reliability is key for bridging new networks. Even if you are a small cog in a big company, how well you draft your update letter is a direct reflection of your company’s professional image!
Breaking down the letter
Tone
Before you start writing, you need to consider the tone of your letter. Since you are aiming to be honest and genuine about your updates, taking a straightforward and transparent approach is the best.
Even if you have to deliver bad news, don’t feel like you have to sugarcoat the pill – the reason for this is twofold:
· Update letters aren’t meant for beating around the bush. Good news or bad, a direct statement is preferred
· Sugarcoating can be interpreted as being dishonest or disingenuous (especially if the stakeholder is a hard ass or stickler for procedure) – this can negatively affect your image
Formatting
Depending on the nature of your update letter, your formatting should be flexible – a monthly update is less intensive than a quarterly or even annual update! According to Brueckner, standard updates fall within 250 to 750 words, whereas quarterly and annual updates can go up to 1500 words.
The first topic on the agenda should always be what stakeholders consider to be most important. You’ll need to exercise a bit of discretion here because every update will vary in content – however, anything that directly impacts or affects the project may be considered a priority.
For example, if logistics for an essential component were set back because of airline protests, then that would definitely constitute a priority… as all subsequent steps of production would be affected. On the other hand, if one truck driver got into an altercation and 10% of the components on board were toast… it’d still be a problem, but nowhere near as devastating as the first scenario.
There are also visual elements of your letter to consider. Even if you sorted everything from most to least important, a single blocky paragraph is difficult to read and prevents stakeholders from being able to skim for specific details.
Just like with business writing, you want to use headings, subheads, lists, charts, graphs and pictures if relevant. Even if your update is entirely in text, different visual hierarchies (such as using various tiers of headings or formatting elements like underlining and italics) are invaluable tools for breaking up large chunks of text and making the letter easier to skim through.
Timing and consistency
Make sure you give yourself enough time to draft and edit the letter. Otherwise, just like trying to read through an entire novel and write a book report in the same night, you’ll struggle to absorb key information.
At least one week before the update letter is due is when you should start working on it. “If you have a team, work with them early to gather the latest information,” advises Brueckner.
As for how often you’ll need to submit these updates, it depends on the nature of your business. Startups and new enterprises will generally want monthly and annual updates, whereas more mature businesses will lean towards quarterly and annual instead. Regardless which stage you are at, Brueckner points out that a consistent update schedule is key for transparency and trust.
The components
· Subject line – if this is an email, you’ll definitely need to include a subject line, otherwise “(no subject)” as the default subject line is pretty suspicious to get in your inbox. A simple [Business name] update followed by the update period or date is both short and to the point!
· Introduction – the CEO (or project manager) makes a short opening statement on his/her own opinion of the project’s status, around three to four sentences maximum.
· Report in a nutshell – “summarise key points in order of importance, including major news and top-line review numbers,” explains Brueckner.
· Asks – aside from reporting what’s been going on, an update letter also reports on what you need moving forward. It can be more manpower, connections to a business that you think will benefit your project, more focus on a specific element of production, revised shipping arrangements… as long as what you ask is relevant (and feasible to implement), then it should be included. Including an [Ask Type] with each listed item may be helpful if you have multiple ask!
· Performance review – how did your project do during this period? Achievements, metrics and lessons learned are all valid things to put in here. Brueckner recommends using “real numbers” here (or your actual numbers as is without rounding or generalising) to make your metrics as genuine as possible. Consider also comparing your numbers to your goals and industry standards for a better gauge of your progress as well.
· Future outlook – what are your goals for the next period? Will you need to take any new actions to achieve said goals? And if you had bad news to deliver, then what did you learn from the ordeal and how can you make sure it won’t happen again? It’s best to be as specific as possible to help stakeholders understand what you intend to do!
· Uplifting news – if space allows for it, then this section offers a great way to show positivity (especially if your updates weren’t too optimistic). “Highlight positive news and key hires and show appreciation for investors,” suggests Brueckner.
· End with a CTA – like with any letter, you’ll want to include a call-to-action to let stakeholders know what you want to do with them next. Just remember, your CTA should be something simple like arranging a video call or when stakeholders can expect the next update letter, it is not the place for requesting more funding or support – that’s for your “asks” section!
Now let’s try putting everything together into a monthly update email:
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Subject: Big Ben’s Bike Rentals Update – September 2024
Hello, project manager Jeff Totes here and we made some substantial progress this month on renovations for our shop at Bridgeport. Many locals have also expressed an interest in renting bikes considering the shop’s proximity to the local national park.
Nutshell:
· Walls and floor renovations complete
· Rental bike supply to be delivered in mid-October 2024 once shelving and storage decks complete
· Estimated monthly revenue of about $21,000 based on forecast, but monthly costs will be raised due to city’s increased tariffs for 2025
· Food and beverage stalls within the park (namely Buck’s Hot Dogs and Jane’s Lemonade) are interested in arranging a partnership deal
Asks:
· [Introduction needed] Councilman Dave Jones for community event opportunities
· [Hiring & suggestions] Looking to hire a full-time social media manager and advertiser for the business a month before the shop opens on November 1. Aside from social media proficiency, are there any other specific qualifications that we should be looking for?
· [Advice needed] Renovators noticed that the lights are a bit spotty in the left storage unit. Should we get an electrician to check out the place again?
Performance review:
· Renovations currently on schedule
· Shelving and storage decks estimated to be complete by October 15
Future outlook:
· City is raising water tariffs by 2.5% in 2025 – our monthly maintenance costs are now estimated to be $2,500 with the updated values
· We’re looking to also target tourists with rentals during late autumn, as the park is a popular destination for watching autumn-blooming flowers. Our new social media manager should make targeted adverts for nearby cities and towns
· Provided we connect with Dave Jones, we can try to arrange sponsored cycling events around the city – especially if we can catch the early weeks of winter before we hit single digit temperature
Good things:
· Many thanks to Stephanie Smith for introducing Sal’s Renovations to us – they are great to work with and very capable at multitasking
· We’ve hired Joel Chandler and Sarah Jones as our two employees for the location
We’ll have another update ready for you same time next month and thank you for your continued support. In the meantime, please don’t hesitate to contact me with any suggestions or concerns.
Best regards,
Jeff Totes
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No matter how tough sifting through all the information may be, just know that you are the first (and likely only) line of defence for your stakeholders. Remember, update letters aren’t just about regurgitating what’s going on, they’re about prioritising messages and presenting them accordingly. Making the information easy to read and digest is vital for your stakeholders’ continued support.