Five reasons not to cut your communications budget

As we step into H2 of 2025, many businesses are gearing up and budgeting for the next financial year. For marketing communications teams, this often means a familiar challenge: advocating for budget allocation in a landscape where resources might be shifting towards sales and expansion, particularly for businesses which have successfully fundraised and are beholden to revenue targets.

"Growth mode" is all well and good, and who doesn't love seeing those sales numbers climb? But here's the thing we often forget: communications and public relations aren't just there to cheerlead from the sidelines. They're your engines for sustainable growth, the kind that truly lasts.

Sales may be seen as the high-visibility engine of expansion, but don’t underestimate the quiet strength of Public Relations (PR). It’s not a question of sales or communications. PR is a key part of the growth equation, not a “nice-to-have”, but a strategic “especially that.”

The Indispensable Role of Communications in a New Financial Year

The beginning of a new financial year is a pivotal moment for any organisation. It's a time of renewed ambition, strategic shifts, and often, rapid scaling. This is precisely when robust communications become more, not less, vital.

First and foremost, your communications team needs to get buy-in for your brand efforts. Think of brand building as the essential first step; a good name sells products and services. It’s the air cover sales need to get leads into the funnel. Without a strong brand, conversion also struggles, as trust and motivation are missing.

Your communications team plays a crucial role in deepening relationships across the board. They're essential for investors, regulators, and the overall ecosystem, as they communicate a longer-term view. It's about showing everyone that "we're here to stay – to do good, and do well."

Ultimately, PR isn't just a supporting act; it's a powerful and cost-effective way to drive marketing qualified leads (MQLs) and win new business.

Communications: Augmenting Your Sales and Expansion Efforts

The notion that communications budgets should shrink in favour of sales after a financing round is a shortsighted one. In reality, communications actively augment and amplify the sales team's efforts, making their job more effective and efficient.

Paving the way for sales: Imagine a sales team trying to close deals for a company with little to no public profile or a muddled message. Effective PR and communications build brand awareness and establish credibility before the sales team even makes contact. This pre-sells your value proposition, making initial outreach far more receptive.

Content is king (for sales, too): Communications teams are typically responsible for developing compelling ‘Hero Content’ – case studies, thought leadership articles, white papers, testimonials – that directly support the sales funnel. This content educates potential customers, addresses their pain points, and provides valuable resources for the sales team to leverage.

Building a strong thought leadership position: Through strategic media placements and content creation, communications can position your company and its leaders as industry experts. This thought leadership builds authority, generating inbound leads and making sales conversations easier and more impactful.

Crisis management and reputation protection: Sales can plummet during a crisis. A proactive communications strategy is vital for mitigating reputational damage and swiftly addressing negative perceptions, thereby protecting the sales pipeline and ensuring business continuity.

Amplifying success stories: When sales teams close big deals or achieve significant milestones, communications ensure these successes are amplified across various channels. This not only motivates internal teams but also serves as powerful social proof for prospective clients, further aiding the sales process.

The bottom line: Communications and PR are strategic investments

As corporations head into a new financial year, particularly after a period of successful fundraising, marketing & communications teams need to articulate a clearer return on brand that communications and PR bring. It’s not about sending out press releases and getting positive news articles; it's about strategically shaping perception, building trust, attracting talent, and directly contributing to the top line by creating an environment where sales can thrive.

In a competitive market where every advantage counts, a well-funded and strategically executed communications plan is a fundamental pillar of sustainable growth and an indispensable partner to your sales and expansion initiatives. Don't just grow; grow with purpose, clarity, and a powerful voice.

Andrew Ho is a senior manager at Ellerton & Co. Public Relations.