Westwicke's "6 Tips for an Effective Annual Letter to Shareholders" advises adherence to the sound principles of accuracy, clarity, brevity, credibility, and consistency - together with a rigorous review process on par with the company's press releases and other public statements - for developing an optimally effective annual letter to shareholders, along with this suggested sample letter outline:
- Open with an introduction that sets the tone and characterizes the year.
- Summarize your financial benchmarks, including revenue, earnings, research and development progression, etc.
- Review the balance sheet and measures of financial health.
- Discuss your important achievements, milestones, progress, and other key business indicators.
- Provide your outlook. What do you hope to achieve in the current year, and what are the longer-term goals?