September 24, 2024 • 1hr 7min

Lulu Meservey - Transforming Company Narrative - [Invest Like the Best, EP.389]

Invest Like the Best with Patrick O'Shaughnessy

In this episode of Invest Like the Best, Patrick O'Shaughnessy interviews Lulu Meservey, founder and CEO of Rostra, a company that partners with founders to improve their communications around strategic initiatives. Lulu shares insights on effective storytelling, crisis management, product launches, and the importance of founders taking ownership of their company's narrative.

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Key Takeaways

Go direct communication: Founders should take personal accountability for telling their company's story and communicate directly with their audience, rather than relying on layers of middlemen.
Authenticity is key: The most successful founders in fundraising and communication are unapologetically themselves, rather than trying to fit a specific persona.
Crisis management: Don't apologize if you didn't do anything wrong. Fight crises before they happen by addressing potential issues proactively.
Launching products: Having a clear, simple story that blends the novel with the familiar is crucial for successful launches. Choose the right partners and allies to amplify your message.
Manifesto writing: Founders should be able to articulate why their company has a right to exist, why only they can solve the problem, and what principles they stand for.

Introduction

In this episode of Invest Like the Best, Patrick O'Shaughnessy interviews Lulu Meservey, founder and CEO of Rostra, a company that partners with founders to improve their communications around strategic initiatives. Lulu shares insights on effective storytelling, crisis management, product launches, and the importance of founders taking ownership of their company's narrative.

Topics Discussed

The Evolution of Media and Communication (6:41)

Lulu discusses how the media landscape has evolved and why traditional approaches to corporate communications are often ineffective:

There has historically been a near-monopoly by traditional media, making it difficult for companies to get their message out without begging for coverage.
The industry is transitioning from social media to AI-driven, hyper-personalized content where it's hard to distinguish human-made from AI-made information.
"We're between two worlds today. I'm not even talking about traditional media versus social media. That's the old, old world...Where we are today is social media transitioning to AI driven, hyper personalized, very prolific, where you can't tell human made from AI made."

The Importance of Direct Communication for Founders (11:25)

Lulu emphasizes the need for founders to take personal responsibility for their company's narrative:

Go direct philosophy: Founders should communicate directly with their audience rather than relying on layers of middlemen.
Authenticity: The founder's unique vision and passion should come through in communications.
"The founder has to be accountable for the story. The founder holds this secret knowledge and this vision that other people don't. If that's not true, you have no business starting a company."

Choosing the Right Partners and Clients (20:20)

Lulu shares Rostra's criteria for selecting clients:

Vibes and chemistry: Assessing if there's a good fit based on personal interactions.
Impact potential: Evaluating how much the company needs Rostra's help to succeed.
Founder involvement: Ensuring the founder is willing to be directly involved in communications efforts.

The Art of Launching a Product (25:20)

Lulu discusses strategies for successful product launches:

Clear storytelling: Describing the product in the single best way out of countless possibilities.
Blending familiar and novel: Finding a way to describe the product that is simple, crisp, and familiar, but also novel.
Preparing allies: Briefing and prepping supporters in advance to amplify the launch message.
"Launches are more important now than they used to be...If you don't quickly establish what you're about, you don't have the luxury of quietly building for a long time and then just gradually shaping the perception. Somebody else will just do it for you."

Fundraising Tips for Entrepreneurs and Investors (34:01)

Lulu shares advice on effective fundraising communication:

Be authentic: Don't try to fit into a specific persona that isn't natural for you.
Contextualize within a macro narrative: Frame your company within a larger worldview or trend.
"The people who do it best are unapologetically who they are. They don't fit into one specific persona."

The Pitfalls of Inauthentic Fundraising (35:32)

Lulu warns against trying to be something you're not during fundraising:

Attempting to change your persona for fundraising often backfires.
"The worst mistake is a founder is one thing, and then for the purpose of fundraising, they try to make themselves another thing, and they can't pull off the other thing."

Crafting a Compelling Macro Narrative (36:05)

Lulu explains the importance of framing your company within a larger context:

Connect your company to broader trends or worldviews (e.g. AI development, US-China competition).
This approach helps investors understand why your company matters and how it fits into the bigger picture.

Crisis Management Strategies for Founders (37:54)

Lulu shares her philosophy on handling crises:

Don't apologize if you didn't do anything wrong: Insincere apologies often backfire.
Fight crises proactively: Address potential issues before they become full-blown crises.
Have a crisis plan: Conduct tabletop exercises to prepare for various scenarios.
"Don't listen to your lawyers and never apologize if you didn't do something wrong and if you don't mean it because you'll regret it later."

Lessons from Counterinsurgency (42:41)

Lulu draws parallels between counterinsurgency tactics and business communication:

Win over local leaders: Focus on influencing key opinion leaders who can propagate your message.
Leadership is paramount: The personality and trustworthiness of the leader is crucial for gaining support.

The Rugby Analogy for Founders (44:24)

Lulu uses a rugby analogy to illustrate how founders should approach challenges:

Embrace the tackle: Don't avoid difficult situations; confront them head-on.
Continuous play: Understand that business, like rugby, doesn't stop after each challenge.
"Running a company, especially through crisis, but in any situation, is more like rugby, because the plays don't stop. You're just going, going, going, going, going. Ideally, it never stops."

The Power of K-Pop Marketing (49:34)

Lulu discusses lessons from K-pop marketing strategies:

Focus on personalities: Highlight individual members' personas to create more engagement.
Build communities: Foster strong fan communities to increase loyalty and engagement.
Create urgency: Emphasize the fleeting nature of opportunities to drive action.

Vision and Future of Rostra (56:30)

Lulu shares her goals for Rostra:

Change founder communication: Shift the culture towards founders taking more accountability for their messaging.
Grow with admired founders: Build long-term relationships with promising founders and help them succeed.
Maintain freedom and flexibility: Prioritize the ability to choose projects over maximizing revenue.

The Importance of Direct Communication (1:01:17)

Lulu reiterates why founders should take ownership of their company's narrative:

Unique knowledge: Founders possess insights that can't be effectively communicated through layers of middlemen.
Authenticity: Direct communication allows the founder's passion and vision to shine through.
Adaptability: Founders can quickly adjust messaging as needed without relying on others.

The Kindest Thing Anyone Has Done For Lulu (1:10:36)

Lulu shares a touching personal story about kindness:

As a child immigrant in Norway, an older man gave her a coin and kind words after she held a door for him.
This small act of kindness made a lasting impression and helped her feel less like a stranger in a new country.

Conclusion

This episode provides valuable insights for founders and business leaders on effective communication strategies. Lulu Meservey emphasizes the importance of authenticity, direct communication, and taking personal accountability for a company's narrative. Her advice on crisis management, product launches, and fundraising offers practical guidance for navigating the challenges of building and growing a business. By encouraging founders to craft clear manifestos and choose the right mediums for their message, Lulu provides a framework for more impactful and genuine communication in the business world.