7 Important Stories You Must Be Able to Communicate About Your Company

By Deepak Chauhan

In the world of business, effective communication — at all levels — is what's critical to the success (or failure) of most startups and even established enterprises. If a CEO lacks the ability to successfully pitch investors why a company needs additional funds, or upper managers are unable to properly articulate to employees the value and importance of ensuring customers' needs are met, communication breakdowns occur.

Here are seven key concepts or "story lines" that you should be able to communicate about your business:

1. Your company's mission: what's the vision and purpose?

Apple didn't get its start making MP3 players and cell phones; it started with the purpose of trying to bring an affordable personal computer to the average consumer. Google's mission is "to organize the world's information and make it universally accessible and useful;" the company produces or is affiliated with Android smartphones, YouTube, Gmail, social media (Google+), and a variety of other things — all which stem from that mission statement.

Author Robert Kiyosaki explains in his book Rich Dad's Guide to Investing that long before many successful companies develop a product to bring to market, they first build on the foundation of a purpose or mission statement. With a mission comes a purpose, and with that purpose, an entrepreneur can gain tremendous momentum and support.

2. What is the story your numbers tell?

The root definition of "account" is to tell a story with numbers. Therefore, having a clear and strong grasp of your company's financial position -- its story in the past, present, and foreseeable future  -- is imperative for making strategic decisions regarding the future direction of the company. How much is overhead (the price of doing business)? How much liquidity and free available cash flow does the company generate? What do the profit margins look like; are you tied to various short or long term debt? A thorough understanding of your financial story will prepare you to make tough decisions during critical moments. After all, numbers never lie.

3. Why should consumers care about your company?

Before any prospective buyers become customers, they must first be shown (or convinced) that your product or service will genuinely provide them with value. The ability to effectively and quickly explain to consumers why your product or service is relevant and needed in their lives will help you build a continuous base of customers.

4. Your personal narrative

In most relationships and business deals, the best way to maximize efficiency is through building rapport; this helps create trust. Having a personal story (e.g., the events and circumstances that brought about the creation of the company) that explains your motivations, drives, needs, and desires will make you more relatable to potential investors, peers, and subordinates. Many companies successfully market themselves through the personal narratives of their CEOs or presidents in order to help gain and maximize exposure.

5. What is your 5 to 10 year plan?

Statistically speaking, 90 to 95 percent of companies will fail within their first five years. If your company makes it through the adversity and challenges of its first five years, do you have a vision and direction for the next five ensuing years? Having an articulate strategy for expansion provides investors and employees with the necessary direction to guide the company into the future.

6. The culture of your company: your employees

Knowing your team, your peers, subordinates, and supervisors, will help bring value to the commonalities and diversities among them. Having peers share their personal stories about life at work also can drastically improve the synergy between employees and management.

7. Why will you be successful?

This story might be the most obvious, but it's presented last because it builds on and is a culmination of the previous six concepts. The effectiveness of telling people the story of your company, and why it's successful, and why it will continue to generate success, truly depends on your ability to grasp the areas that make your business successful; consequently, this affects whether you can continue to grow your business and be successful in an ever-changing market.