It is often seen that PR and Communication efforts are easily cut off or reduced by companies during economic recessions or downturns. While cost management remains a priority in uncertain times, understanding the inherent value PR offers your organization in the face of the public is fundamental.
Looking at the global economy, WorldBank reports that global growth is expected to slump from 5.7 percent in 2021 to 2.9 percent in 2022 which is significantly lower than the initial 4.1 percent that was anticipated in January. The slump explains why businesses are reviewing their runway, cutting down on non-essential costs, enforcing hiring freezes among others.
In relation to VC funding, investors continue to advise startups on the current state of the market, encouraging them to watch their unit economics and burn rate while focusing on gaining traction. This means that VCs are still investing despite the downturn. Quartz shared financial data reports that venture funds have already invested $88 billion in the first half of 2022, which is already equivalent to two-thirds of the previous year’s fundraising.
This is exactly why Public Relations should not be impacted. Laying a good foundation in the media and creating a favorable image takes time and dedication. It is imperative to know that sustaining the same requires even more effort – PR is a marathon not a sprint. During a global economic slowdown, here are a few things to keep in mind:
Have a solid communications strategy
Communication during a recession is vital as clients and investors alike are keeping an eye on the business. Ensuring that you have a consistent communications plan helps to keep stakeholders abreast on company’s updates.
Enrich PR efforts
More businesses are quiet during an economic slowdown, even your competitors, and that is exactly why you should not be. This is the time to enrich PR efforts, establish the management/founding team as thought leaders and experienced leaders in the industry, publish press releases of your funding rounds and product releases, revise pitching angles and continue to court media relations.
Leverage on milestones and growth efforts:
Through effective PR, it is advisable to leverage on milestones and growth efforts during a global recession. This way, your investors and stakeholders (existing and potential) can see your progress. For example, Eversend’s feature on Bloomberg revealed that it has grown 46-fold in 2021 to $232 million in transaction volume.
Showcase strong leadership
It is a good idea for leadership to come forward with their opinion pieces from the challenges faced in current times to solutions and integrations that can help plot growth to the plans ahead. Being honest, communicating clearly and showcasing solid leadership is key
Conclusively, it is important that founders and startups think past the current situation and optimize for long-term success. Make that connection with the media and connect with your key audiences in the most effective way. Economic situations are constantly changing, maintaining PR efforts and communication strategy for startups remains an effective path to standing out from everyone else.