How do you avoid the five common mistakes in communication?
At a time when financing dynamics are constantly changing, the importance of effective communication is clearer than ever. By looking at current financing trends, we recognize the need for a proactive approach based on open and transparent communication. Avoiding theses typical mistakes in communication can pave the way for successful corporate financing.
Often, close ties develop between the companies and their respective financiers, who are seen as part of the corporate family. Regulatory processes at banks require for “at-risk” cases a reorganization of responsibilities. Companies lose their usual contacts and must turn to new risk specialists, which can lead to potential problems. Recognizing and accepting changes in the responsibilities of financiers at an early stage enables a rapid and constructive dialogue with the new contacts for entrepreneurs.The new contacts need all relevant information promptly and in full to assess the situation and develop initial action plans.
2) Trust issues due to unstructured and unclear communication
Unstructured communication can cost trust. Superficial approaches to new supervisors give the impression of incompetence and fuel uncertainty among financiers. In a crisis, a well-considered communication strategy is crucial: companies should define clear objectives for contacting financiers, establish an appropriate sequence and present decisive information and concrete proposals for solutions. Instead of proceeding impulsively and unprepared, companies should carefully consider what information is relevant for the financiers. It is important to understand what influence this information has on the decision-making process of our dialogue partners and what overarching goal our communication is intended to achieve.
Capitalmind Investec has extensive experience in advising on financing solutions. With dedicated financing experts across Europe, we can help you achieve your strategic goals.
Click below to read and download the complete brochure.
