Ralph Waldo Emerson once said, "Speech is power: speech is to persuade, to convert, to compel. It is to bring another out of his bad sense into your good sense."
For quite some time I have suggested a plan (see below) of communication to clients and BAN participants. It's not anything ground breaking, but it is a programmatic way for a company to facilitate orderly communication. Nonetheless, it is amazing how few of them really follow it (or any other) systematic plan of communication and I think it ends up hurting them...potentially a lot.
Effective internal communication among stakeholders (Management, Employees, Board, Shareholders, JV partners, etc.) is critical to coordinating efforts and maximizing the opportunities for success, but it doesn't just apply to startups...most companies would do well to try and systematize some regular forms of communication.
Suggested Plan:
1. Quarterly (maybe monthly early on) board/advisors meeting
-- Progress
-- Plan
-- Challenges
2. Weekly recap email of progress and "to do" items
3. Monthly Financial Statements *(email updated statements even if no revenue)
-- Income Statement (aka P&L)
-- Balance Sheet
4. Annual letter (recap and vision)
If you are looking to make a change for the better in your business, give it a try or work out your own plan and let us know how it goes. I bet you will be surprised at the energy and progress it will create.
