History is On Your Side

In times of market volatility, doubling down on comms can help you pull ahead of the thousands of public companies clamoring for the attention of investors and the media. For small caps in particular, this is the moment to take a proactive-optimistic stance and communicate your company’s story to the investment community and the media. An ongoing cadence of information will help investors make better decisions and enhance your ability to effectively raise capital should the need arise. It’s really a defensive position, and could even be viewed as a pre-emptive stance, especially when you incorporate the many large-scale forces driving change in the current environment. Remember: investors need to be sufficiently cognizant of your company’s momentum to invest at a certain share price.

When the markets are in correction, investors more than ever, need confidence. That’s why savvy small caps need to get creative with outreach and PR. This approach can also help minimize potential negative consequences and better position you to seize opportunities when your peers are either retreating, sedentary or slashing costs to stay afloat.  

History shows that bold leaders who charge through chaos by investing in marketing when times get rocky will be handsomely rewarded. As can be seen in this snap shot of advertising expenditures (below) during the recession of 1974-75. Firms that increased their spend on marketing, fared much better during and after a downturn. In fact, there is a direct correlation between rising market visibility and a long-term, positive impact on perception (and sales).

So, we’ll say it again: now is not the time to pull back on IR but the moment to give chase. Keep your investors close and your potential investors even closer. History is on your side.