How Start-Ups Can Use Public Relations’ Role To Raise Money
There are many challenges that come with launching a new business or company, especially in today’s highly competitive environment. One of the biggest hurdles for starting a new business is having the financial means to get things moving. This is where PR can help.
Most people think of PR as a way to gain exposure and build reputation. However, PR is a highly undermined tool in the early stages of a startup. With the help of PR, startups can build a strategy that aligns with and supports the companies fundraising efforts. Here are a few ways PR strategy can help with fundraising:
Create a PR strategy that aligns with business goals
It is important that your product or service has a unique voice. This is essential to building a personality around your product, which in turn results in creating an identity and establishing a reputation. If you PR strategy and business goals are aligned then your PR efforts will have a far-reaching effects.
Create a PR strategy that compliments your business model and goals. This will eventually lead to outcomes that promote your business, such as networking activities, building partnerships and raising capital. Additionally, aligning PR campaigns with sales and fundraising cycles can be beneficial to achieving business goals. Just make sure you avoid clashing fundraising announcements with product launches, as coverage can get divided.
Focus on what makes your product stand out
In order to build a strong identity and solid reputation, your product or service needs a unique voice that sets it apart. This also means finding your USP, or unique selling proposition, that makes your product or service better than the rest. Whether it’s the competitive price or the stellar features or the ease of use, make sure you establish your identity based on why a customer should purchase product or service, as opposed to a competitor’s product..
Focusing on your USP will build a credible image that will indirectly play an important role in the fundraising process. Use branding and storytelling to address issues and highlight your USP. In this way, you can the age-old PR tool of messaging as a pitching tool.
Continuous engagement with the press
Getting a story published once in a while won’t be the PR boost that a startup needs. Rather, it is more important to have a continuous and active engagement with the media. Focus on telling relevant stories as well as sharing thoughts and opinions on latest industry trends. When there’s a relevant story, try getting a quote or a feature that highlights your brand and product. Media engagement is not a one-off event, so make the most of opportunities with the media. Having a strong and enlightened media presence adds to brand value and will go a long way when it comes to fundraising time.
Thought Leadership
Become a thought leader in your industry or field of expertise. Investors are not only investing in a brand or in ideas, but they also invest in people behind the brand. Therefore, building trust by establishing yourself as a thought leader can be a means to attract money.
-5WPR CEO Ronn Torossian
