Unlike before, it is quite easy to start and run a business across the globe. Entrepreneurship is a significant element that powers economies worldwide. To put it straight, economic growth is hindered when the entrepreneurship rate decreases. The more people open up businesses, the more employment opportunities are created. It also enhances resource utilization and the overall development of regions and countries.
However, any business in its early stages is susceptible to failure due to a range of factors. The latest business failure statistics indicate that more than 18% of businesses fail within the first year, over 49% within the first five years, and only 25% operate beyond 15 years. There are many well-known causes of business failure streaming from cashflow issues and competition among others. However, did you know that poor communication can lead to business failure?
This blog explores what strategic communication is and why startups need it. Let’s take a deep dive into it!
Strategic Communication
Effective communication is very crucial when it comes to ensuring smooth business operations, aligning present goals with the future, or fostering sustainability. Good communication can also foster a positive work environment which helps employees to work optimally. The fact that businesses in their early stages are more likely to face immense challenges presents a need for a strategic communications strategy.
A strategic communications plan refers to the strategy that a startup aims at following to communicate effectively with its target audience and related stakeholders like suppliers. A strategic communication plan generally showcases the mediums through which information will flow from one person to another or from one party to another; internally and externally.
The purpose of a strategic communications plan is to detail the communication actions that will help a startup achieve its goals; short-term and long-term. A strategic communications strategy must show who, what, why, where, and how information is transferred. For some startups, it may be necessary to develop a communication team that ensures a smooth flow of information within the organization. Or to effectively communicate with external parties.
Reasons Why Every Startup Needs a Strategic Communication Plan
You may need to formulate a strategic communication plan for many reasons, but the major ones are;
1. To Ensure Effective Management
There is a range of critical success factors in business, but communication is the common denominator. Effective communication in a business can help the management align company operations with long-term goals. A strategic communication plan can be an excellent way to define how the information will flow from the top management to the employee.
This hierarchy can eliminate miscommunication or the flow of critical information to unauthorized personnel. Defining who shares a given type of information and how prevents startup managers from leaking vital information to competitors.
Effective communication strategies can also increase trust among employees. Additionally, they enhance employee morale and productivity which ensures smooth operations.
2. To Communicate Effectively with the Target Audience
Relationships are key to running a successful business. Effective communication can foster professional and strong relationships, whether within the business or outside. For a startup to survive the initial stages, it must create ways of communicating with the target audience. This can be its customers, suppliers, or legal authorities.
Excellent communication between the startup and the customers can help it build brand identity and awareness, and attract new customers. Customers are very important to a startup because the more customers a startup secures, the more it improves its ROI. This ensures smooth management and success.
Startups can consider improving communication with external parties like customers by building a strong online presence. That can be through social media with effective copywriting tips. This eliminates physical barriers and helps customers understand the business’s mission or vision.
3. Fosters an Atmosphere for Growth
When everyone within the organization knows what to do and how to do it, this creates room for business growth and sustainability. Poor communication within a startup is a catalyst for failure. It sets a platform for project mismanagement, delays, low productivity, and increased expenses leading to business failure.
However, effective communication offers an avenue for the smooth running of the business. A strategic communication plan can enforce the lawful flow of information which ensures a positive work environment. Also, it can detail how external stakeholders such as suppliers and customers must be handled. This reduces operational costs hence allowing the startup to thrive.
4. To Minimize Risks
Poor communication in times of crisis can exacerbate situations. Besides that, it can hamper decision-making processes and lead to delayed solutions. Effective communication is a tool that a business manager can leverage to clarify matters. It can provide a platform for reliable decision making leading to the development of informed decisions.
Moreso, strategic communication can increase transparency between parties leading to the achievement of SMART goals. Whatever crisis a startup faces, strategic communication can help it survive and thrive in the long run.
5. Helps Scale the Business
Business scalability is ensured by strategic communication. When employees know what to do and how to do it, this makes it easy for the managers to scale up. Scalability is when a business can grow with increasing demand.
For example, when it can adopt better technologies where necessary, meet customer demands, and enter new markets. However, the absence of strategic communication can prevent vital information from reaching the concerned stakeholders which in the long run hinders scalability.
Bottom Line
A startup means a business or a company in its initial stages commonly within the first five years. Businesses are normally susceptible to a range of challenges during this period and it can lead to their closure. However, besides capital and resources, effective communication is another key element that can affect business growth. If you want to know more about starting a business, you can also find relevant information at canadacompanyformation.com.
Communication is vital for success and with that, a startup requires a strategic communication plan to clarify how it will communicate with its stakeholders. A strategic communication plan mainly aims at reducing risks that may arise due to improper communication.
Or eliminating problems that may arise due to improper communication. This blog details several reasons why every startup requires a strategic communication plan. When considered, we’re sure that they will help you operate smoothly during the initial stages.
