Although middle market companies account for over half of U.S. jobs and a third of tax receipts, their issues are often underrepresented in governmental policy-making.The Small Business Administration represents the interests of small companies, at least those looking for the various kinds of SBA financing.
Large corporations of course have bands of attorneys and lobbyists monitoring proposed legislation and changing tax and regulatory policies. But middle market companies that our firm exists to serve, those that are too big to be considered small and too small to be considered big, tend to be overlooked by policy-makers. It’s an example of the fact that these firms inhabit a space we call No Man's Land.
Public Relations is for Entrepreneurs Too
There is a broad misconception that only big corporations, industry groups, and labor unions can access and influence policy-makers. Although personal contacts and traditional public relations tactics are still primary, the advent of social media has changed the landscape of public and government relations drastically.
To make certain the views of your business are heard, it is important for entrepreneurs to communicate-- whether individually or in trade association and other groups--with federal, state, and local policy-makers.The goal? To educate them on your business and its customers and the challenges you face, positioning yourself as a source of insight on business issues.
The benefits of doing this go well beyond having a voice with elected officials. Raising your profile with policy-makers will over time enhance your company’s profile in its industry. Networking with other companies that share your concerns and views is a great way to meet potential customers, suppliers, alliance partners, even merger partners.
Before meeting with a public official, prepare talking points describing the role of your business in the community. Ultimately, public officials want to hear about impact on their constituents. Remember that getting reelected is typically their main priority.
Your core messages should be consistent and complementary with your broader marketing and communication themes. But you must relate them to the policy-maker's interests. You do not always need to have a specific request or issue to address. In fact, it is best to cultivate relationships you can call on in the future, rather than meeting only when you have an agenda to advance. Once you have established rapport, use social media and email communication to keep your business and its issues front of mind.
For middle market companies, the issues of utmost concern include: tax and immigration reforms, fiscal policy, health care legislation, and industry regulation. But don't stop there. Don’t hesitate to point out that even at your level major investment decisions and exit strategies are affected by the economy and government policies. Moreover, as state and local economic development incentives shift toward mid- sized companies, be wary that government subsidies reducing tax obligations and operational costs could be awarded to your competitors instead of you. Building relationships for the future is the best way to know about and mitigate these risks.
To enhance the climate for your business, develop a public relations program to monitor and speak out on issues that affect your business and to educate public officials on the (often unintended) consequences of legislation and regulation. A well designed PR initiative can also help create market opportunities and protect your customers. It improves your chances to be seen as an innovator and thought leader in your industry and geographical area. Invest the time required to be visible, individually or in concert with your industry peers, to policy-makers and opinion influencers. You will find that the investment pays off in ways that may be hard to anticipate but can tangibly improve your bottom line.
About the Author
Holly is an executive whose experience spans strategic and operations management and advisory services. Her areas of expertise include supply chain, logistics and technology and the Healthcare and Defense industries. Over the past six years Holly has been Director of Strategic Management and Technical Delivery at Carefirst Blue Cross and Blue Shield. Contact or learn more about Holly here.
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