There’s no getting around it – it’s tough out there for UK businesses right now. The Bank of England has announced the first cut to interest rates for the first time in four and a half years, offering slight respite for businesses and borrowers. But we’re not in the clear just yet.
In June, the Insolvency Service calculated that company insolvencies in England and Wales was 16% higher than the month prior and 17% than the same month previous year, both much higher than the volumes seen during the COVID-19 pandemic.
Of course, for insolvency practitioners, business advisors and company restructuring firms, this means their pipeline is looking booked and busy for the foreseeable.
With a glimmer of relief on the horizon for businesses, the economic recovery piece is a narrative every firm wants to champion. Now, IPs and restructuring specialists may have a fresh opportunity to shake up the usual doom and gloom headlines.
Let’s look at the potential risks and rewards worth considering when changing tack.
Commenting when high visibility brands go bust
When a big-name organisation or beloved brand faces administration, bankruptcy or liquidation, the chances are high that it will cause a stir in national media. Various industries have been hard hit, with examples from this year alone across The Guardian, Evening Standard, BBC and The Sun. It’s a prime opportunity for IPs to air their views on what went wrong
A good PR team should be able to cut through the crowd vying for journalists’ attention and help offer one of your expert spokespeople up for comment. A great PR team will go further, connecting the news to owned storytelling, crafting the messages that are connected to a broader strategy while also counselling spokespeople to be the impartial voice of reason and expert insight.
No doubt newsjacking can come with the reward of high visibility for your organisation, however these instances must be assessed carefully. The last thing your firm needs is a reputation as an ambulance chaser.
Announcing IP and restructuring appointments
Another, more proactive strand of communications activity worth revisiting is appointment announcements. These are often the foundation of press office activity as they are low risk and support a regular flow of new information to industry press.
However, appointment press releases don’t have to be a tactical tick box exercise. Not only can these announcements keep the media updated about an organisation’s growth trajectory and expertise, but it also presents a forum to share insights on broader market factors that are impacting insolvency trends.
After all, uncovering trends – particularly those that media may not have seen before or posits a new take on a situation – can be the seed of an idea to guide journalists’ more in-depth investigation which your experts can give background on. Collaborate closely with your PR team to use every piece of comms and marketing content as an opportunity.
Managing client testimonials with sensitivity
Sharing customer success stories is gold dust for highlighting expertise, particularly in the insolvency and restructuring industry. Some clients may hesitate to open up, regardless of the outcome, so it’s critical to tread carefully with the subject matter to maintain client relationships.
This is one area where the strength of your media relationships, often built hand in glove with your PR team, will be essential. Shape the story sensitively and identify a targeted selection of national, regional and industry journalists that cover beats relevant to your client’s story, rather than yours. Take for example, updates on The Body Shop’s plans to emerge from insolvency shared with Business of Fashion. This is where your clients’ experience can take centre stage and, all being well, there will be a halo effect for your firm as a key supporting partner on their road to recovery.
Sharing economic insights
Business confidence is a tried and tested indicator of economic health. For IPs looking to enhance their corporate communications strategy, moving from company administrator to economic media commentator doesn’t have to be a huge leap.
Success with quickfire commentary tactics depends on various factors. This includes spotting a news story or data release when they break, established processes with your PR team to refine media worthy reactive comments, the speed of data gathering and response, and the strength of your team’s media relationships.
A core component to positive rapport between the media and brands is whether a firm and their PR partners can supply what journalists need, with enough time for them to file their stories. Investing in the time and effort to build healthy media relationships in this way could open doors to journalists turning to your firm over competitors to contribute to future stories.
Offering educational advisory
Acknowledging the tricky economic landscape can be a springboard to educate businesses on how to prepare and protect against future risks and enhance a more direct line to key sector communities. The Labour government’s upcoming announcements around encouraging ‘pro-growth, pro-business’ Budget, for example, is a great upcoming opportunity for future analysis.
A strong avenue to untangle business challenges and guide the path forward is through longer-form thought leadership content. For this line of work, it’s important to make sure experts are sharing real nuggets of intel and practical takeaways for audiences. Without it, you risk having a long-winded fluff piece that won’t shift the dial.
I’ve previously written a blog about multi-channel approaches to thought leadership, which can be found here.
Positive outlook
While the nature of insolvency and business advisory work can be challenging work with high stakes, it is possible to counteract the negative slant of macro trends by positioning your company as a champion for business recovery.
Headlines about business hardship won’t change overnight and not without concerted effort. Early indicators of a changing landscape for business, legal and financial advisors could mean an evolution of external communications strategies is needed.
Our corporate communications team at The PHA Group is ready to help you build the narrative in your favour. Get in touch today.