Convertible Notes and Startup Funding
February 12, 2025
Almost every sporting franchise needs a stadium or a venue in order to play professionally. This is because the team needs to train in a certain stadium and also needs a home ground in order to invite other teams and host matches for the franchise. To a certain extent, this helps in raising funds for […]
Behavioral finance is a fairly recent phenomenon. The development of this branch of finance is not more than a few decades old. This is the reason why there is still a lot of ambiguity about behavioral finance. Investors still have a lot of questions about behavioral finance, which they would like to clarify. This is […]
Causes of Failure of Job Order Costing: The following is the list of the most probable causes that would cause the job order costing system of the company to fail: Adequate System Not In Place: Job order costing requires an elaborate system in place. In earlier times this was done with the help of paperwork […]
In the previous article, we have already studied about the peculiarities of the Chinese pension system. We are now aware that the Chinese pension system is quite different from the pension system operating in western countries. The fact that the Chinese system is different does not make it better than the western system. The Chinese […]
Liquidity can be defined as the ability of a firm to make good its short term obligations. Most businesses function on credit. Hence to run a business firms have to both extend credit as well as ensure that they receive credit as well. Liquidity ratios measure the relationship between the amounts of short term capital […]
Almost every start-up firm tries to increase its sales. However, convincing more customers can be a very difficult task. It is common for start-up companies to have significant marketing budgets. However, most of the budget is utilized for direct marketing.
There are very few start-up companies that believe that public relations can help them achieve their objectives.
There is a common perception amongst many start-up founders that public relations can be quite expensive and hence are a luxury that only large companies can afford. They believe that a small upcoming business simply does not have the resources required to indulge in public relations activities.
However, this is not the truth. The reality is that investing in public relations can be very beneficial for a start-up. There are several start-up companies that have benefitted from this approach.
In this article, we will have a closer look at how start-ups are impacted by public relations activities.
Publications, TV channels, and even Instagram influencers carry a certain amount of credibility. When they endorse a product, consumers are more willing to buy them. This is the reason that public relation turns out to be more effective. It should be used in conjunction with other marketing efforts. Public relations creates a sense of familiarity which is important for people when they make a buying decision.
The company can choose publications that are widely read by the target market. Also, with web-based public relations, it is possible to accurately direct the efforts to the intended audience. This reduces wastage and helps the start-up founders get more bang for their buck. If a portion of the advertising budget is spent on public relations, it tends to improve the effectiveness of the entire budget.
Just like customers, employees are also more comfortable building their careers in a company that is familiar to them as well as their peer groups.
Attracting the right talent is vital to a start-up firm. Hence, if public relations helps them achieve this goal, they should be willing to invest more in it.
There are many investors who scour through these publications looking for their next investment. Public relations helps the founders reach a wider investor audience which in turn helps in raising more funds easily and at a better valuation.
Now, since we know why start-ups must invest in public relations, it is also important to mention some of the best practices which have worked for start-up firms in the past.
When it comes to start-up companies, their actions are generally not newsworthy. Hence, if a publication emphasizes too much on the article, then it appears to be motivated by vested interest. However, if the same publication writes an article about start-ups and mentions the company amongst a few other start-ups, then the article seems to be genuine and gets a better response from the audience.
Hence, start-up companies should collaborate with other start-ups to share public relations activities with. This helps all the firms benefit.
It needs to be understood that public relations are an attempt at image building. This happens silently in the background and results show slowly, that too, if the activity is continued for a long period of time.
Hence, start-up companies must start public relations activity only if they can sustain it for a long time. If they run out of funds after articles in a couple of publications, then the activity will be incomplete and odds are that the money invested is likely to get wasted.
The bottom line is that public relations are a very important tool in the arsenal of the start-up founder. However, due to preconceived notions, start-up companies often ignore or underestimate their potential. However, it would be advisable for the start-ups to invest strategically in public relations activities especially if their peers are not doing the same.
Your email address will not be published. Required fields are marked *