The Importance of Investor Relations Consulting in Providing Exposure for Startup Enterprises

Developing companies face a number of challenges. Many such companies know they have a good idea, whether it be a new technology, human service, or something else. They know their idea can have a major, profitable impact. However, the conditions have to be right. These companies often rely on a new, unknown, and untrusted idea, concept, or product. They may also face difficult competition from more established players in their market. In an environment defined by these sorts of marketing challenges, it can be difficult to gain sufficient startup capital to establish a competitive market footprint. Moreover, these challenges can be greatly exacerbated in a weak economy. In a pool of diminishing resources, consumers are cutting back on all but the most essential goods and services, and suspicious, funds-short investors are wary about anything that does not look like a sure bet. Many larger, established companies have specialists permanently on staff to help the company frame its information flow in the face of this kind of skepticism, but it may not be financially feasible for a startup to hire such a specialist on a permanent basis.

A good investor-relations consulting firm can help a company facing these daunting prospects. There are a variety of consulting firms available, such as Emerging Markets Consulting, that specialize in working with startup enterprises. These consultants offer strategic planning to help the fledgling company better position itself in relation to its peers. Oftentimes, the biggest challenge to startups is visibility. A new company may be an unknown quantity in a field of established, trusted competitors, and what little exposure the company does have may do more to hurt it than help it if that exposure is not conducted in the proper manner. In such conditions, the new company needs to construct a compelling story that can convince potential investors that what the company has to offer is worth an investor’s money. A good consulting firm will provide the coaching needed on how to use both traditional and digital media—including websites, webcasts, mail, and email—for the company to make a compelling case for the viability of its product or service. An effective consulting specialist will understand how best to deploy these media vis-à-vis developing market trends to create an attractive profile that puts the client company’s long-term prospects in a positive light and that helps the company aggressively answer potential investor concerns. Consultants will also be able to provide sound advice regarding how to properly follow oftentimes complex federal regulations.

Perhaps most importantly, a quality such consulting firm will have access to concrete resources. Investor relations specialists are in the business of building relationships in the investment community, and the best such specialists are trusted by expansive networks of contacts. They can oftentimes put startups in contact with precisely the right people needed for the company to establish a strong capital base.