This article was originally published on Forbes.com on February 22, 2023
Rachel Kule, Pursuit PR
Forbes Councils Member
A company preparing to raise capital needs to be very clear on who they are, what they stand for and how they are going to achieve their corporate mission. In a recent Forbes Expert Panel, I advised that it is essential for C-suite leaders to dig deep and understand not only what attracts investors but how the company will be evaluated against its broader goals. “Ultimately,” I wrote, “being clear on these aspects will enable the company to communicate its relevance and value.”
This applies to venture capital (VC)- and private equity (PE)-backed companies considering a public offering via an initial public offering (IPO), special purpose acquisition company (SPAC), or merger and acquisition (M&A) transaction. The exit is an important milestone—and it is also just the beginning. Once public, the company needs to sustain both communication and performance.
With markets as uncertain as they are, proactive communication must be a constant. The need to earn and sustain relevance becomes even more important. It is easy to communicate during the best of times, but it is critical during challenging times, as I’ve written about before.
Use the key elements of a strategic communications plan for capital markets.
Companies need to be able to articulate their marketplace position from a total stakeholder perspective. This starts with a strategic communications plan based on answering six main questions.
Who are you as a company?
Investor audiences expect a clear and succinct summary of the firm. Experience and knowledge of the business have to be honed into a description that is accurate and meaningful, beyond the details of what the company does or the products and services it offers.
What are your values as leaders?
Corporate executives have extensive professional experience and unique knowledge, but credentials don’t always differentiate a company from its peers.
Executive eminence has the potential to transform a company’s reputation. For example, thought leadership programs can result in new business leads, accessibility of new investor capital, positive client feedback, increased new hire interest and employee retention, and more opportunities for strategic partnerships.
Investors are also interested in the long-term viability of a business. The sustainability of the business is reinforced by the leadership’s ability to communicate operational excellence and strong corporate governance.
What does the company do?
A strategic communications lens is essential to developing an overarching company story. It requires a deep understanding of the nuances of the business, as well as connecting to the bigger picture of stakeholder perceptions and needs. As the company matures, the C-suite, department leaders and staff all need to be able to articulate exactly what the organization does as a whole, in addition to its other services.
What do you stand for?
Corporate mission must go well beyond just a website statement. To be most effective, it needs to live and breathe throughout all corporate communications. It needs to reflect the leadership’s core values, to become an authentic part of the guiding principles that advance the corporate vision. Otherwise, it will lack substance or appear unattainable. Investors expect a transparent mission—and strategic corporate communication creates such clarity.
What is the company’s vision?
A steady vision remains essential. One that is actionable, realistic and backed by solid traction generates confidence in the company’s overall viability. Vision alone cannot carry the company forward. However, it plays a strong role in articulating the connection between the business of today and future prospects.
Why does your business matter to the market now?
When it comes to going public, relevance has a strong bearing on private and public investor perception. Be clear on the demonstrable impact you are having on the market and why it matters now. Consider:
• Alignment of company performance with its purpose.
• Business model strength—including both revenue and profitability, or the ability to demonstrate a path to profit.
• Communicating company value—both perceived and real value for key stakeholders.
Corporate positioning necessitates a total stakeholder approach.
A strategic communications plan, with corporate positioning at its core, takes time to unpack, develop and elevate. The answers to the questions evolve along with the company and need to be revisited often. The most effective plans often also incorporate an ongoing executive thought leadership program that helps promote the firm’s latest insights and achievements.
A comprehensive assessment also needs to transcend internal perceptions. Investor, employee and partner expectations matter. For example, Stripe recently communicated their IPO intentions to employees along with a timeline for a decision and alternatives for cashing out. By employing a total stakeholder approach, the most relevant information can be shared based on understanding internal and external beliefs and interests.
Maintaining a strategic communications plan is a constant throughout a company’s growth journey—whether private or public, it requires fresh eyes, genuine scrutiny and refinement. It must be ongoing and not limited to key milestones and inflection points. The time to start is now.