Financial communication and marketing for SMBs
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This document discusses financial marketing and communication. It defines financial communication as the disclosure of financial documents like income statements, balance sheets, and cash flow statements. Financial communication becomes marketing when the recipient or "customer" is an outside stakeholder like shareholders, investors, or banks. The goal of financial marketing is to provide confidence in the company's health and future success. It recommends tailoring financial communications to different stakeholders and sending them with an appropriate frequency like yearly, quarterly, or monthly. The document also provides tips for effective financial presentation and includes a business case study of Dreamface Interactive.
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Financial communication and marketing for SMBs
- 1. FINANCIAL MARKETING Morgane Rollando, SYNERFIA Noel Thevenet, PETITE PLANET MARKETING Susan Haimet, DREAMFACE INTERACTIVE 29 janvier 2014
- 2. FINANCIAL MARKETING / COMMUNICATION 2 Financial Marketing by Synerfia & Petite Planet Marketing
- 3. FINANCIAL MARKETING / COMMUNICATION Balance Sheet KPIs Business Plan Cash Flow Budget Extra-Financial Information Income Statement Due Diligence Shareholders Dash Board PARTNERS Cash Projection Banker Ratios Reporting Operational Cash Flow Investors Stakeholders Company Valuation 3 Financial Marketing by Synerfia & Petite Planet Marketing
- 4. FINANCIAL MARKETING / COMMUNICATION DEFINITION: FINANCIAL COMMUNICATION Disclosure of all documents that relate to a company’s financial documents 1.Legal financial statements Income statement / Balance sheets / Cash-Flow statement 1.Projection statements Budget / Business Plan 1.Internal statements Reporting / Annual Report 4 Financial Marketing by Synerfia & Petite Planet Marketing
- 5. FINANCIAL MARKETING / COMMUNICATION WHEN DOES FINANCIAL COMMUNICATION BECOME MARKETING? Mar keting is the process of communicating the value of a product or service to customers, for the purpose of selling that product or service (Wikipedia) It all depends upon who your “customer” is - receiver, end-user, stakeholder – or simply, the person your are addressing. 5 Financial Marketing by Synerfia & Petite Planet Marketing
- 6. FINANCIAL MARKETING / COMMUNICATION Example: Archiduchesse www.archiduchesse.fr
- 7. FINANCIAL MARKETING / COMMUNICATION WHO IS YOUR CUSTOMER? 1.Yourself, company owner / General Manager 2.Shareholders / Business Partners 3.Bank and money lenders 4.Tax-Office 5.Investors 6.Public organisations (Subsidies /Professional branches) 7.Other stakeholders 7 Financial Marketing by Synerfia & Petite Planet Marketing
- 8. FINANCIAL MARKETING / COMMUNICATION
- 9. FINANCIAL MARKETING / COMMUNICATION WHAT IS THE GOAL OF THE MESSAGE? 1.Comfort outsiders & insiders that your company is: • Healthy • Will be even more successful in the Future Give trust and confidence 2.Drive your company • Support tool for decision-making • Prevent a cash crisis • Compare actuals with projections, provide explanations • Analyse trends from the past Keep consistency with KPIs, presentation, etc. 9 Financial Marketing by Synerfia & Petite Planet Marketing
- 10. FINANCIAL MARKETING / COMMUNICATION WHAT IS THE BEST FREQUENCY? The more critical the period, the more important the frequency. Be pro-active and consistent in financial communication. Do not wait until: You need them (too late) You are asked for them (very late) Key partners: Yearly Close, strategic partners: Quarterly Internal management: Monthly A written explanation is good, a visit in person is better. 10 Financial Marketing by Synerfia & Petite Planet Marketing
- 11. FINANCIAL MARKETING / COMMUNICATION PRESENTATION TIPS Difference between accounting and financial information Discuss the matter with your accountant Build your own reports Keep in mind your long-term vision Spend time defining the KPIs relevant to your activity 11 Financial Marketing by Synerfia & Petite Planet Marketing
- 12. FINANCIAL MARKETING / COMMUNICATION EXTRA FINANCIAL INFORMATION Financials reflect the company’s operations and activity. Consider all key elements that will contribute to tomorrow’s success Include it into your communication, your report 12 Financial Marketing by Synerfia & Petite Planet Marketing
- 13. FINANCIAL MARKETING / COMMUNICATION BUSINESS CASE: DREAMFACE INTERACTIVE Financials reflect the company’s operations and activity. DreamFace activity ( 5 yrs R&D) Go To Market February 2014 Angel Investors &1 Corporate investor Financial Communications 2 big meetings a year Susan Haimet Revelation Better Communication = Better Treatment from Financial Partners 13 Financial Marketing by Synerfia & Petite Planet Marketing
- 14. FINANCIAL MARKETING / COMMUNICATION BUSINESS CASE: DREAMFACE INTERACTIVE Financials reflect the company’s operations and activity. Which financial documents do we need in the future? Bank (Monthly) • • • Cash flow Sales projections In-person meeting once per quarter Shareholders (Quarterly) • • Newsletter In-person meeting once per quarter Future Investors (To keep up to date) Official company documents Executive Summary Clients List of investors Statuts International Offices Valuation of the company Capitalization table Sales forecast Balance sheet Business projections Business plan Business Model Canvas Target markets Reference doc for valuation Don’t forget NDA when sharing
- 15. FINANCIAL MARKETING / COMMUNICATION Additional information Online course in Finance « Introduction to Finance » Prof. Gautam Kaul, University of Michigan https://www.coursera.org/course/introfinance Reading Crossing the Chasm: Marketing and selling technology product Author: Geoffroy Moore http://www.amazon.com/Crossing-Chasm-Marketing-High-TechMainstream/dp/0066620023 15 Financial Marketing by Synerfia & Petite Planet Marketing
- 16. FINANCIAL MARKETING / COMMUNICATION Morgane ROLLANDO Tel +33 6 14 31 97 17 morgane.rollando@synerfia.com www.synerfia.com 16 Financial Marketing by Synerfia & Petite Planet Marketing Noel THEVENET Tel +33 6 20 12 77 91 noel@petiteplanetmarketing.com www.petiteplanetmarketing.com
Editor's Notes
- DESIGNER COMMENTS : Title + subtitle has to be aligned horizontally with the center of the parenthesis: once the whole text is set up, move the text up or down to ajust position. Keep the text styling Main title must remain in white uppercase (Arial Black 18pt – White – Space between letters: Extended 2pt Subtitle in pink lower-case (Arial – 13pt – Pink – Space between letters: Extended 2pt) Please keep the same spacing between title and subtitle.
- Objective: review all vocabulary that is linked to financial communication and financial statement Ineractivity: what do they do themselves, what do they do with professionals, what they think is important… The main role of financials is to reflect the company’s activity (past-present-future), and that is all, just a picture of the operations. It is not an end, nor a product by itself
- Take the reader’s position. Objective: define the elements we want them to focus on, what do we need to highlight Noel: petit topo sur le role du marketing pour mettre en valeur le message que nous voulons passer. Message a faire passer au public: ne pas se contenter de l’activite passive (chiffres de l’expert-comptable), mais commencer a avoir une attitude pro-active en adressant la forme et le fond de ses differents etats financiers Ex. Connaissance du marché ; prix ; interet investeurs(?) ; brevet ; reconnaissance (par syndic, assos, etc) ; leverage media opportunities
- Passer en revue tous les potentiels « clients » de ses états financiers: Aide à définir notre objectif en leur passant ces états financiers, ce sur quoi leur attention doit porter Comment from DreamFace re: Bank meeting – Putting in place Newsletter Need to put self in context Ex. Archiduchesse
- Of course, the message you need to carry will be customized to each stakeholder, you will highlight different items from your company’s financials. The main point is that your statement will remain the same for all (or nearly). We will review the main objectives that your financial communication need to carry Insist on the item => you never know when you need them, the investment needs, the cash crisis can happen at any time. Example: delay from investors (elections, change from CDC to BPI in France..), bankruptcy of your main client, with a big overdue, inventory shortage at your main supplier
- You definitely never know when you will need them. The best is « to be ready at any time, providing the respect that it does not become a full-time job for the MD, who needs as well to drive the business. Keep the right balance with the use of your time. Example: if you keep your head into the business, just letting the accountant close your books, you might miss: Presentation of R&D expenses into expenses rather than fixed assets (brand, R&D….) => reduces your equity as it impacts the net income from previous years Link the cost to the related revenue in time (marketing, advertising, costs of the pilot…) Do not forget to show all the revenue, even incurred for the related period
- Example: if you keep your head into the business, just letting the accountant close your books, you might miss: Presentation of R&D expenses into expenses rather than fixed assets (brand, R&D….) => reduces your equity as it impacts the net income from previous years Link the cost to the related revenue in time (marketing, advertising, costs of the pilot…) Do not forget to show all the revenue, even incurred for the related period
- Your comments, explanations, illustration are as important as the figures themselves. You need to be very specific as to what drives the financials: Potential of a trade-show, considered as Link the future and business plan to actuals => what expenses today are helping you building the future What milestones have you achieved so far that will drive business in the futures Use visuals to make sure your client understands quickly what you need to focus on, and capture their attention Example Phitech and his pilot board needed to focus on milestones at the same time as cash shortage
- First describe: 1- what has been DFA’s activity so far 2- what is planned into the future 3- what did you do in the past for your financials (financing + presentation) 4- how often did you visit your stakeholders 5- What will be yoru needs in the future, in terms of financing 6 – define your stakeholders / clients for financial communication 7 – What will they need to know
- 5- What will be yoru needs in the future, in terms of financing 6 – define your stakeholders / clients for financial communication 7 – What will they need to know Kbis Actionnaires Bilans Clients a date Business projection 2014-2015 Présentation des offres dreamface Marchés cibles Liens capitalistiques avec d autres sociétés Lien avec les us ou il y a implantation des bureaux Référence de valeur pour estimer les parts
- Your comments, explanations, illustration are as important as the figures themselves. You need to be very specific as to what drives the financials: Potential of a trade-show, considered as Link the future and business plan to actuals => what expenses today are helping you building the future What milestones have you achieved so far that will drive business in the futures Use visuals to make sure your client understands quickly what you need to focus on, and capture their attention Example Phitech and his pilot board needed to focus on milestones at the same time as cash shortage