Communications can’t fix business fundamentals

In today’s market, many companies turn to strategic communications with the hope that it can drive up their stock price or bolster their market position. While the stock market has been surging, especially in sectors that benefited from recent tech buzz (AI!) and investor optimism, there’s still caution in the air. This is especially true for companies with longer timelines to impact, profitability, and revenue. The corrections we’ve seen in private markets, particularly for companies that saw inflated valuations driven by hype cycles, also play out in the public markets.

Here’s the hard truth: Communications alone can’t fix business fundamentals. If your financials or core business model aren’t strong, no amount of press releases or media hits will magically turn that around. What strategic communications can do is help companies weather the market’s ups and downs, providing clarity, control, and consistency in turbulent times.

Over the years, we’ve worked with companies across various sectors—from biotech to enterprise tech and climate tech—and have gleaned valuable insights on how communications can help companies navigate the ride, especially when the market gets bumpy. Below are five strategies that have stood the test of time:

1. Quality over quantity

When times are uncertain, there’s often a knee-jerk reaction to flooding the market with news—more announcements, more updates, more everything. The thinking is that if you can show momentum and stay top of mind, it’ll bolster confidence. But more is not always better.

Overloading the market can create confusion and even signal a lack of focus. A barrage of announcements without a clear, cohesive strategy can dilute your message and even make investors nervous. Instead, aim for quality. If you have a significant milestone—like a validating partnership, a breakthrough product development, or a strategic investment—build an integrated communications strategy around it. Leverage that moment across channels to maximize its impact.

2. Anchor to your strategy

For public companies, that S-1 you filed before your IPO wasn’t just a legal requirement—it was a strategic roadmap. It outlined your long-term vision and set expectations for growth and profitability. When communicating with investors—whether during earnings calls, press releases, or direct engagements—make sure you’re tying your announcements back to that roadmap.

Investors appreciate companies that stay the course and provide updates about their established timelines. This is especially important for industries with longer horizons, like biotech or climate tech, where achieving key milestones may take years. Reinforcing your original strategy helps investors understand that the business is progressing, even if it’s not hitting short-term growth metrics.

3. Provide clear, transparent guidance

Transparency is key in a world where surprises can make or break investor confidence. If there’s a delay in achieving a milestone or you’re adjusting your timeline, it’s better to be upfront about it. Explain why the delay happened, what steps you’re taking to address it, and—crucially—what the new expectations should be.

When companies are transparent about challenges, they build trust with investors. They may not like what they hear, but they’ll appreciate that you are in control of the situation. Transparent guidance shows you’re thinking long term and managing the business strategically rather than reacting in the moment.

4. Create investor education opportunities

In industries like biotech, enterprise tech, and climate tech, the products and technologies at play are often highly complex. Investors, especially those newer to the space, may not fully grasp the nuances of your business model or technology.

That’s where educational content can make a big difference. Consider creating webinars, whitepapers, or even a series of FAQs that break down your technology, milestones, and revenue path in ways investors can easily understand. This not only reduces uncertainty but also strengthens long-term confidence in your company’s vision. An informed investor is more likely to stick around for the ride, even when the market gets tough.

5. Activate your stakeholders

Your stakeholders—investors, partners, or key customers—are some of your most credible advocates. These people already believe in your business and can lend third-party validation to your story. Finding ways to activate them can amplify your communications strategy significantly.

For instance, you can leverage investor endorsements (with their approval) in your annual reports or press releases. You can also engage them in thought leadership initiatives—having them write op-eds, participate in panels, or contribute testimonials. Their perspectives add weight to your narrative, and third-party validation can enhance your credibility in the market.

Strategic communications won’t fix fundamental business issues, but it can be critical in protecting and enhancing a company’s reputation. Thoughtful, focused, and strategic actions move the needle in challenging markets.

Tyler Perry is co-CEO of Mission North.