Entrepreneur: Be Disruptive

It has been well documented that it is easier now more than ever to start a business.  I hope you get as excited as I do when I read that sentence.  The ease of starting a business now is due to the evolution of technology, its efficiency and effectiveness, increased reach, and affordability.  Think about all the apps and websites out there that offer business management tools and creative interfaces that are user-friendly and very affordable, sometimes even FREE.  Moreover, the quality of these services and products are getting closer and closer to what a professional accountant or graphic designer would charge premium dollars to execute.  So what does that mean? Start a business NOW!? Well not exactly, as the barriers of entry fall, the more competitors enter the market, the lower the profit margins become, the more a company has to innovate and disrupt.

Disruption and innovation have always been essential for new companies entering an established market place with many competitors and industry leaders.  The only difference now is that everyone and anyone can start a business and enter a market place; no matter the location, access to capital, or industry experience.  However, just because it is easy to start a business does not mean you should, or  for that matter, if you do it will be successful, make you rich, etc.  I believe it is the opposite.  Yes it's easier, and you can start and run a global business from the comfort of your own home, but that just means there are more people doing it and most likely failing at it.

When you enter an established market place it is more important, now more than ever, to come in and make a splash, shake things up, and make a name for yourself as quickly as possible.  Disruption is, in my opinion, the most important attribute any SMB or Start-up should posses.  By definition disruption is a disturbance or problems that interrupt an event, activity, or process.  Therefore, as an entrepreneur that has an idea or wants to launch a business, the first things you should ask yourself is, how can I disturb and/or interrupt the existing market place.  How can I get my product/service out into the market place with the least amount of resources (capital, people, infrastructure, etc.)?  Without a disruptive plan starting and launching a business can be difficult, far more difficult than with a plan to disrupt the market.  Think about it, you want to start a car/ride sharing business but plan on replicating the existing taxi and limo service business models.  What do you think your chances are in capturing even a fraction of a percent of market share?  I'd say slim to none.  These services have been in existence for 50 plus years, and are entrenched in every major city with strong unions and political leverage.

So what do you do?  You disrupt the market, interrupt the normal way of doing business.  You innovate.  You change the way things are done.  You let the competition know you are for real.  You capture as much market share as you can, and quickly!  Look at what Uber and Lyft are doing.  They are now approaching the market leaders in this space, with the taxi and limo unions doing everything they can to stop them, or at least slow them down.  They leveraged technology to disrupt an inefficient, archaic business model, which is happening across many long established industries: Music, Entertainment, Razors, Higher Education, Business Management Services, Financial, Automotive, etc.  Disruption is happening everywhere and it is only going to continue.  It is essentially the new economy where entrepreneurs, SMBs, and Multi-Nationals are in a race to see who can shake up the market place, drive revenues, and become/remain market leaders.

With that said, should you start a business?  I can't say for sure as that is up to you.  However, if you do, make sure you have a disruptive plan in place from the jump.  Do not start a business thinking you'll be able to compete using traditional methods, business models, and techniques.  Go in and disrupt the market place, shake things up, challenge the norm, innovate, and be unique!

As always, I'd love to hear your comments and thoughts on this topic.

If you are in need of any business and/or marketing consultation, feel free to shoot me a brief introduction note at: modernbizstraetgy@gmail.com.

Cheers,

ModernManTellsAll

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Business: You don't know my Industry

The misconception business owners have when dealing with consultants is the fact that they believe since said consultant does not work in their industry they cannot help them fix the problems that exist.  This may have been true ten, twenty, thirty, fifty years ago, however, in today's world, where everything/everyone is connected, information is easily accessible, the industry and competition can be researched and analyzed effectively and quickly; not having worked in an industry is irrelevant.  Furthermore, business is business and competition is competition, as long as thorough research has been conducted a consultant, or a competent consultant for that matter, should be able to identify the primary issues a company is having within two or three weeks, and design and implement a strategy a few weeks thereafter.  To be honest, in my experience the major issues that the majority of SMBs/Start-ups that I meet with and consult for are very similar with minor variances according to the industry.  For the most part the issues stem from fundamental business practices and processes: Lack of organization, lack of clearly defined goals (leadership), lack of data tracking, and lack of communication.

As you can see, these common issues have absolutely nothing to do with a particular industry or business.  The problem with a SMB or start-up that is experiencing growth, which is a great thing, is their resources get drained and everyone is consumed in the day-to-day and forget about or failed to implement the fundamental foundation of any successful business; and by the time a consultant is needed, problems have compounded to a point where a company can become essentially paralyzed.  That said, a professional, well-trained business consultant could easily rectify these issues rather quickly.  As long as the company leaders are in agreement, upfront and honest with the issues, and are willing to commit to a well-defined plan/strategy, things can turn around and the proper processes can be in place.  Just don't use the excuse of you do not know the industry, as that is of no use to anyone.

In my experience companies that are able to implement basic business processes prior to launch or within the initial launch phase are the most successful and are able to accelerate growth rather quickly.  I know the fun/glamorous part of running a SMB or start-up is working on something you are passionate about and with a team of people who share that passion; however, that high will only last so long before the company hits a road block (e.g. runs out of money).  As much as we all love to be in the trenches and creating something new and of value, without capital investments the product/service will not make it to market, or if it does the lifespan will be limited.

My advice to anyone in this position is to take the time to design and implement fundamental business processes prior to launch -- even before hiring.  At least have an outline of what processes are ideal for your company, and then hire someone to design and implement them.  Don't make the mistake of having the mindset of we'll fix it later, as it may be too late or you won't have the capital to allocate towards professional consultation.  There are many ways a consultant can benefit your SMB or start-up no matter what phase your company is in, all you have to do is find the right one and trust that they have the background and skill-set to get the job done!

As always, I'd love to hear your comments and thoughts on this topic.

If you are in need of any business and/or marketing consultation, feel free to shoot me a brief introduction note at: modernbizstraetgy@gmail.com.

Cheers,

ModernManTellsAll

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Business/Entrepreneur: Do NOT cut corners

One of the most valuable lessons I've learned in my life is: Do not cut corners in anything you do that is of value to you, whether it is in business, relationships, or personal.  I can remember going through college (undergrad) and just coasting along -- essentially "cutting corners" -- not giving it 100% and thinking once I graduate things will just fall into place.  Yeah, well that is not how life works nor should it.  The same goes for business.  Let's say you want to start your own business or work for a company that is: A) just starting out or B) has been around for a while but is struggling to maintain a profit.  What do they all have in common (typically),  limited access to money, resources, and human capital, right?  So what is the typical answer to this issue?  Free work!  Free software! Free whatever!

In the modern, digital world we have these expectations that things should be free -- everything from information to education, tech-platforms, and applications.  In some instances this is true and many free pieces of information, technology and applications can be beneficial and useful when operating a business, and should be leveraged.  Some products/services that come to mind are: Wix.com, Google Docs/Drive, Skype, Zenefits, Social Media Channels (Hootsuite, Facebook, LinkedIn, Twitter, Pinterest, etc.),  Blogs, Dropbox -- there are many more either free or affordable platforms and software one can use to enhance their business operation and market penetration.  Someone can even take FREE classes online at MIT, Stanford, and Yale if they were feeling ambitious -- doesn't mean you'll get a degree from said school or even finish the class.  These are all good, positive and productive ways to cut costs and improve efficiency at the same time; however, there are areas where "cutting corners" in business can be a detriment, completely destroy what you sought out to build, and make all the hard work and time you've invested up to that point a waste.  Many of these examples of cutting corners have been commonplace over the last 30 or 40 years, but are no longer viable for various reasons.

The first of which is free employment or un-paid internships.  Don't get me wrong, I am all for the internship position and believe there can be value created for both the intern and the company as long as it is the right fit.  The right fit would be an intern that is passionate about the industry, wants to learn, grow, and contribute; work hard with the intention to further their career, build a valuable skill-set that cannot be learned in a classroom; and understands the outcome prior to starting (e.g. college credits, 3 month trial period, possible employment when internship is fulfilled, pay or no pay, etc.).  The company must be honest from the jump of their intentions, the duties expected to be performed, challenge critical thinking skills of the intern -- not just have them get coffee or take out the trash; communicate clearly its intentions, the duration, and the possible outcomes.  Nothing is worse than a company that offers an internship to a high-performing individual that is expecting to work for 3 months and then either be brought on full/part time (paid) or after the 3 months move on with a great learning experience and professional references.  I have a theory I like to promote to businesses that act unethically and manipulate free work to benefit themselves, and that is: If you cannot afford to pay someone what they are worth, or close to it, to perform their duties at a high-level (after discussed duration of internship is up) then you'll have to find someone else whom may or may not be as efficient and productive as the last, thus potentially wasting more time and money.  Or you'll have to perform the duties yourself, chances are you won't have the time nor the technological knowledge.  Or you can try to automate some of the tasks (costs more upfront).  If none of the above are feasible, it may be time to reevaluate your business model and ask yourself, why your company is failing to move forward and increase revenues and market share.  As the old saying goes, "It takes money to make money."

The second example of cutting corners in business that will most certainly end up costing you more in the long-run would be to not invest in your product/service offered.  In today's global market place, consumers are extremely informed, transparency is on the up-swing, competition is fierce, and everyone has a voice (social media).  What does this mean for businesses? Well, it means an inadequate products/services will not last nor will it be profitable, particularly when starting/launching a new product/service.  We all know about the endless recalls from major car manufactures from Toyota to GM, which can be viewed as cutting corners in the manufacturing costs; however, while it is still damaging to their brands, they have the longevity, capital, and loyalty to overcome something as catastrophic as recalling millions of cars.  This is not something a new start-up or SMB can sustain, as a matter of fact, the product/service should be your primary focus when building your business model, as it is the major factor that will separate you from your competitors and enable sustainable growth.   We've all seen, owned, or worked at a company where their mentality is to invest as little as possible into their product in order to maximize the salaries at the top.  Well, that may work in the short-term, however, in the long-term they are setting their businesses up to fail, and they most likely do within a few years, without an attempt to correct the quality of their product/service.  Bottom line, invest in quality, you will not be disappointed.

Another tried and true example of cutting corners in business that will most certainly end in demise at some point is to under pay your employees and/or not offer perks to supplement lack of salary.  As I have written in the past, the most valuable asset to a company, particularly a start-up or SMB is its team.   In a highly competitive work environment, competition for top-level talent is fierce and the ability of a company to attract and retain such talent is mandatory in order to remain competitive and innovative across all industries.  The age of technology has changed the way business gets done: increasing productivity and efficiency.  Let's face it; a highly efficient and competent individual can essentially perform the duties of 5 or more people from 10 or 20 years ago.  So how does a business owner retain and attract a high-level individual -- through either a high salary, perks, flexibility, equity, or a combination of.   When business owners fail to address/offer any of the aforementioned, they will experience a high turnover rate, inefficiencies in the the day-to-day operations, lack of motivated employees, the inability to attract and retain top performers, and the list goes on and on; all of which end up costing the company heavily in the long-term.  A truly sustainable and viable business should have no problem attracting and retaining the best talent possible, which is relevant to each company's specific needs.  Just to give a quick example: Let's say you have a new tech start-up and you are looking for a top programmer for your new app, the question you should be asking yourself is what can I offer to lure him/her away from Apple or Google?  I know I can't offer a salary anywhere close to Google or Apple, but maybe I can offer equity and flexibility?  Money is not the be all end all when it comes to job satisfaction, at least not to the extreme as in the '80s -- thinking "Wall Street".

Cutting corners may sound like a good idea in the short-term; however, the long-term outcomes are typically not positive and prove to be quite costly.  As a start-up entrepreneur or small to mid-sized business owner, it is important to understand your business, your competition, the macro/micro environment, and your long-term growth strategy.  The goal of your business should not be to make money, but to create value in the market place, provide superb customer service, and build the best team possible -- making money will come as a result.  It can even be wise to ask yourself, instead of where can I cut costs; what areas can I improve to make the business run more efficiently?  The old school way is to find areas to cut, the new school way is how to maximize efficiency and productivity.  Thanks technology!

As always, I'd love to hear your comments and thoughts on this topic.

If you are in need of any business and/or marketing consultation, feel free to shoot me a brief introduction note at: modernbizstraetgy@gmail.com.

Cheers,

ModernManTellsAll

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Marketing: Google AdWords and increasing your ROI

Most companies, marketers, and consumers for that matter, are aware of Google (67.6% market share) and use it daily to perform searches, look up content, find informative articles and blogs, and to buy and sell products/services.  For this blog post I will be focusing specifically on the seller side, and how companies and marketers are utilizing Google AdWords ineffectively and are wasting/losing a significant amount of capital.

The scramble is on, and has been for the last 10 years or so, for companies to create and build an online presence.  In today's world it is absolutely essential to have at least a company/business website where potential consumers can find you and get an idea of what your brand is all about and what you are offering as far as products/services.  With millions of websites now online, how does one standout and get noticed?  One way is to type your exact web address into the url search, which only works if consumers are aware of your company and have, more than likely, purchased from your business in the past.  The other way, and most common, is through the Google search, where consumers type in keywords, usually two to four words, into the search bar.   Once the keywords have been typed the Google search page is populated with data - listing ads from a variety of companies that fit the search criteria.  If your company is not listed on the 1st page, where 75% of people do not go past, you are essentially throwing your money into a black-hole.  If this is the case I would recommend pausing your campaigns and read the following 3 steps prior to reactivating them.

1) Conduct a thorough keyword analysis:

In my experience this is the most common mistake companies and marketing managers are making and the easiest to fix.  That said, it is probably the most important as well.  When conducting your initial keyword analysis it is important to know your industry and target consumers.  Once you have done the preliminary research you can access Google AdWords keyword planner function.  From here you can type in industry related keywords and AdWords will perform a search and populate 100s sometimes 1000s of potential keywords with key metrics such as competition, avg. monthly searches, suggested bid, impressions, etc.  Granted many are far too broad to use in a campaign (not recommended), however, there will be many options to choose from and further target your search.  When keywords are too broad your ad(s) will show in searches, which may not be your target market.  Therefore causing people to click on your ad with no intent to buy, meanwhile you will be charged on your CPC (cost per click) campaign -- lowering your ROI.  There are many advanced features in the keyword planner as well that can increase keyword efficiency: Search competitor websites, landing pages, trends, etc.  However, the basics are the most important to get right -- then worry about advanced features.  Once you have selected your top 20 or so keywords you'll want to utilize AdWords match function: Broad, Phrase, and Exact are the basics.  If you are very confident a selection of keywords match what the majority of your consumers will be searching for, then you'll want to use either phrase or exact match, thus targeting your prototypical consumer, whom are more likely to convert on your site.

Helpful hint: You can use a combination of the three in your Ad Groups

2) Organize Ad Groups:

Organizing your Ad Groups is highly recommended.  I have seen this far too often where a client has created multiple ad groups with a variety of ads that are not cohesive, thus lowering their quality score and ad rank and increasing their CPC.  All of which will negatively affect your ROI.  When organizing your ad groups you want to create groups for each individual product/service, and then create ads accordingly -- utilizing the proper keywords from your analysis. For example, if your company is a bakery and you sell fresh bread/rolls, cookies, brownies, and cakes, you would want to create ad groups for each individual item and then allocate the respective keywords accordingly.  Organization is key, so if you can get it right from the start you'll be far better off than going back and analyzing all the ad groups, ads, keywords, etc., as it is a lot of work!  Furthermore, it will cost you more money and time to backtrack.

3) Coordinate landing page copy:

Landing page copy and functionality is EXTREMELY important.  For one, this is where your directing your ad traffic and if it does not portray what your ad is trying to sell, your conversion rates will be low, as well as your ROI.  We want to increase ROI not bring it down.  The most important thing with landing pages is to keep the messaging clear and concise, utilize SEO keywords when possible, have a strong Call to Action, educate the consumer on the product/service, and track and procure as much of the user-data as possible.  There are a lot of cool and affordable 3rd party sites that make creating professional landing pages easy.  My favorite, and perhaps the most popular, is Unbounce.com.

Keep in mind the above are some basic steps and tips on how to manage and increase your ROI when using Google AdWords.  There are many more advanced options and techniques to consider; however, although these are basic steps/tips they are still very common mistakes many companies and marketers are making on a day-to-day basis.  One last thing I would say is to track and analyze as much as you can as often as you can, and make adjustments accordingly.

As always, I'd love to hear your comments on this topic, so please leave comments if you desire.

PS - If you are in need of any Business and Marketing consultation for your small to mid-sized business/start-up feel free to shoot me an email at: modernbizstrategy@gmail.com.

Cheers,

ModernManTellsAll

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Marketing Strategy: How to standout amongst the clutter

How to standout amongst the clutter...a question every Marketing Manager and company is, or should be asking themselves.

To start let's first explain what I mean by "clutter".  Clutter is the saturation of content, posts, pictures,  video, TV commercials, billboard ads, etc., crowding our social media pages, train stations, streets and sidewalks, etc.  Just think about all of the posts and ads on your personal Facebook page, Twitter account, LinkedIn page, etc., which may only have a couple hundred people or a couple of thousand (if you're a social butterfly and/or great networker), either way those numbers are unsubstantial when you look at the grand scheme of things.  But even still, there is no way to possibly read and click on all the posts.  For one, everyone is extremely busy managing their own lives, and for two some of the posts/content is not worth looking into any further, let alone engaging in meaningful conversation.

So what can you do as a Marketing Manager or a company that is dealing with hundreds of thousands or even millions of potential clients/consumers.

Choose your social media platforms wisely.  With so many options out there to engage in and communicate your brand, a company/marketing manager must define which platforms will provide the highest ROI and maximize available resources, no matter how limited.  A great way to do this would be to access and analyze the direct competitors (particularly the leaders) - see which platforms they are using, chances are the same will work for you, or some combination of.  Secondly, the company/marketing manager should determine which platforms they and their team are most comfortable and familiar with using.  The last thing you want to do is work with a platform where no one has experience, or where your target market has limited use.  If you do some research on major brands and industries you will see, for the most part, they will use the exact same platforms, give or take one or two.  For example, the car industry will use Twitter, Facebook, and YouTube.

Know your audience.  Everyone is enamored with numbers.  I have 10,000 followers or 100,000 Facebook likes.  That's great, who are these people?  How did you get them?  Are they turning into customers?  Are they sharing and commenting on your posts/content?  The point is, you can have all the followers in the world, but if they are not in line with your brand, your message, and/or product/service, you mind as well have zero.

Content is King.  Yea, we've all heard this countless times, of course uploading and posting content is a must for your brand to gain awareness, penetrate markets, and in the end bring in revenues.  But the question is, what kind of content is going to engage your audience to the point where they want to click on your posts, share, like, engage, and ultimately buy into what your brand is about. This is where it is important to post visually stimulating content (e.g. pictures, videos, etc.), these can be original content (if you can this would be ideal), or even stock photos, free google pictures, a trending YouTube Video, etc., as long as you are clear of copyright infringement any and all of the above will work just fine.  Just make sure the content is in-line with the brand, and portrays what the culture is like, what the company appreciates and values,  educational, has something to do with the industry and product line, etc.

Engage your audience as much as possible.  Some of you have heard of the 80/20 rule in marketing, where 20% of your marketing messages produce 80% of your campaign results, which may very well be true.  But I'm here to tell you this rule also applies to the amount of time a Marketing Manager, and their team, should be allocated towards engagement.  The more we engage the audience the higher the probability that the campaign will build loyal followers/customers, and ultimately become successful.  Now these percentages are by no means set in stone, as a Marketing Manager should constantly be tracking and analyzing results, and should adjust accordingly - maybe try a 70/30 rule, whatever works for you.  The point is, social media has made marketing personal, it's almost as if we have gone back in time (so to speak), to a time pre-television, pre-intertnet era, where human interaction was essential for a brand to sell a product/service.  Social media has a very human element to it, granted there are some robots trolling Twitter and Facebook; however, for the most part, there is a real human being on the other end.  Always try and remember that.

Commit.  Ah, the dreaded word for some of us, but yes, you MUST commit to a well-defined integrated marketing strategy.  Gaining brand awareness and market penetration is something that takes a lot of time, particularly if you are a new startup or small and growing business.  As stated above, the internet and social media is cluttered with content - everywhere we look we are inundated with adverts, business associates, family and friends, heck everyone on LinkedIn has the ability to blog now with a direct, built-in audience.  In the web 2.0 world we now live in, everything grows exponentially - meaning once you get a 100 followers, the next 100 will not be as hard, and once you hit a 1000, the next 1000 happens that much quicker, as long as you commit to the marketing plan and strategy.  That said the opposite is true as well.  If you only commit to the integrated marketing plan/strategy for a short amount of time it is going to be that much harder to build that audience back up - attention spans are extremely short and once you lose or start to lose an audience action must be taken immediately or you risk being forgotten (e.g. JC Penny).

As always, I'd love to hear your comments on this topic, so please leave comments if you desire.

PS - If you are in need of any Business and Marketing consultation for your small to mid-sized business/start-up feel free to shoot me an email at: modernbizstrategy@gmail.com.

Cheers,

ModernManTellsAll

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Business Strategy: Innovate

Innovation.  What do you think of when you hear the word innovation or innovate?  By definition innovation means a new device, idea, or method.  However, I, like many others, would say: Innovation, in business terms, is something that is tied to creating a new product, which is different from anything else on the market.  The iPhone, for example, would be an innovative product.  It changed the way we (humans) communicate with one another and interact with technology.  Everyone now has instant access to any information they desire, hundreds of thousands of applications that can perform any task and/or can "socialize" with a person(s) of their choice whenever and wherever they like.  This would be considered a radical innovation.

Innovation is most commonly tied to tech-based companies such as Apple, Google, Microsoft, Twitter, Samsung, Netflix, Amazon, etc.  Top 40 most innovative companies in 2014.  Companies that are driving how the consumer engages in their day-to-day lives.  Think of all the innovative products these companies have brought to the market in just the last 5 or 10 years.  Everything from iPhone, iPads, Google Glass, Samsung Smart Watch, Smart TV's, Nest, etc., and who knows what the next product will be.  The truth is technology, the way we know it today, is just in its infancy and will only become more advanced and integrated into our lives as time goes bye.

The above are all undoubtedly innovative companies and products, but does innovation only apply to these major companies or just in technology?  I'd argue most definitely not.  There are many other ways to innovate across all business units, and it does not apply only to a product or service.  Innovation can occur or be applied to anything from customer service, marketing techniques, business models, company culture, or overall strategy.

Customer Service is something all companies offering a service or a product engage in, no matter what the industry.  A company dealing in B2B or B2C must offer some form of customer service otherwise they would be unable to retain customers or garner new ones.  Take for example Time Warner's new customer service model - the one-hour service windows.  We all know the hassle of the four-hour service window and how inconvenient they can be.  In the past if you had a service inquiry you would get a time between 9am and 12pm or 1pm and 4 pm, and many times the technician would show up late or worse not at all.  This has caused a dramatic decline in their customer retention.  Well, to rectify this Time Warner has launched the one-hour campaign.  While this is only an incremental innovation it still is considered innovative.  Another example would be the banking industry.  I recently went out to inquire and compare small business bank accounts and found that the big three (Chase, Bank of America, and Wells Fargo) offer vastly different options, most of which are differentiated by monetary and customer service (incremental innovations).

Marketing techniques can also be innovative, and most of the successful brands have utilized this to capture market share and disrupt industries.  Think about all the advertisements we see on a day-to-basis.  Some studies have that number at anywhere from 250 to 3000 per day, depending on age group and where one lives.  This is astounding.  It makes one think how can a human brain digest and retain this mass inundation of advertisements?  Well, I'd argue it can't.   So how can a brand create a campaign that actually sticks in our minds and eventually persuades us to make a purchase - through innovative marketing techniques!  A brand that comes to mind (that is not considered a major global brand) is the Dollar Shave Club with their innovative and memorable ad campaign and video.  Although they did not recreate the wheel so to speak, they did use an innovative approach with a serious yet tounge-and-cheek style video, which intern caused the video to go viral and gain brand recognition.

Business Models, or how the firm plans on making money, is yet another way a company can innovate to gain a competitive advantage.  This to me is the most effective way to compete in a highly competitive globalized market place.  Not everyone has an idea nor the funds to create and implement a radically innovative product, however, if one can develop and implement an innovative business model they would have a fighting chance - even if they are offering the exact same product or service as the competition.  An example of this, again outside of the obvious major corporations, would be in my previous industry.  I worked in the music industry for over 6 years, and as we all know, the music industry is one of the most competitive and most effected by the advent of the internet, therefore competition is fierce with saturation on all fronts.  So how does one enter the market place and cause other, more established competitors, to notice?  By having an innovative business model.  There are a few that come to mind: one being Jingle Punks and the other Music Dealers.  Both of these companies entered the industry in 2008 and are now two of the most recognized in the industry.  What was their innovative business model you ask?  Well, they implemented a 50/50 business model where the artist splits the gross revenues 50/50 with the company.  Granted this is not a sustainable business model for any business in any industry; however, it enabled them to build their catalogs with above average content quickly - thus enabling their competitive advantage when marketing to and courting clients.

Company Culture is something that has been misunderstood and underestimated in the past, however, has made a rapid resurgence - becoming one of the most important factors for a business to succeed, garner market share, and attract top-level talent.  By definition company culture is the values and behaviors that contribute to the unique social and psychological environment of an organization. Many companies use minor incremental (sometimes radical) innovations in their company culture as a competitive advantage and to court and retain talent. A company that comes to mind is Zappos. They are known for their innovative cultural design which empowers all employees, encourages change and personal growth, creates a fun, light and positive environment, has an open horizontal structure, and has a list of core values that all employees adhere to. Their CEO Tony Hsieh has even written a book based on the importance of company culture called Delivering Happiness. Checkout their core values here.

Overall Strategy is something that all company's must consider, preferably prior to launching into the market, and should be monitored constantly and adapted as necessary.  By definition strategy is the quest to gain and sustain a competitive advantage.  Sounds simple enough, right?  Well, you'd be surprised how many companies (small and large) are lacking an overall strategy and are just "winging it" day by day.  A strategy is not just "let's make money".  It is the managers theories about how to gain and sustain a competitive advantage; How a company differentiates itself; What to and not to do, etc.  Furthermore, strategy is a combination of all of the aforementioned topics, and an innovative strategy is what separates a company from the competition.  A good and obvious real world example of this would be Google.  Google is by far the most dominate search engine with over 68% of the overall market share.  This is despite competition from Yahoo!, Microsoft Bing, and the Chinese search engine Baidu.  How can Google maintain such a dominant position in an industry where billions of people use the service on a day-to-day basis?  Innovative overall strategy!

As mentioned above, we are now operating in a highly competitive global economy and innovation is considered the most critical aspect of business moving forward.  It is no longer just a buzz-word, it is essential across all business units and industries.  If you're standing still, you're falling behind exponentially.


As always, I'd love to hear your comments on this topic, so please leave comments if you desire.

PS - If you are in need of any Business and Marketing consultation for your small to mid-sized business/start-up feel free to shoot me an email at: modernbizstrategy@gmail.com.

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Business Strategy: True Company Identity

Follow @modernmantells

I see this far too often when consulting and communicating with friends and clients who own/run startups and small to mid-sized businesses - NO true company identity.  The lack of company identity is at the top of the list when it comes to failing small businesses and/or start-ups, and should be addressed from the initial launch if possible, as the longer this goes on, the harder it is to fix.  There is far too much competition in today's global economy to not have a company identity. What I mean by true company identity is: What type of product/service do you offer?  How much does it cost?  Who are your target demographics?  Is your product/service of poor, good, or great quality (hopefully good to great)?  What type of culture does your company have?  Does the branding of the company portray what you do?  etc.  The point is, potential and current clients must be able to identify with your product/service quickly, so when they are searching for it they can immediately identify what it is you do and what your company is about.

Now, I understand the fact that running a small business or start-up is extremely difficult (I've been there) and it truly is survival of the fittest.  In order to make bills and bring in cash many owners become frantic and will except any and all work, service a diverse set of clients, etc., as long as they are comfortable doing the job, selling the product/service, etc. However, this is only a short-term strategy and usually ends up costing the firm in the long-run.  For instance, let's say you have a small business with 5 or less employees, including you.  This is not a lot of people and one would assume your access to resources such as capital are minimal to nonexistent; therefore, everything you do needs to be calculated in such a way that nothing is going to waste (time, money, people, etc.).  Granted this is a lot easier said than done, when the reality and fear kicks in and you need to make X amount to make rent this month, things begin to scatter and unravel.  I'm sure many of you have been there, as I've seen it one too many times.  This is the reaction of a small business owner who has failed to create, implement, and communicate a true company identity prior to all the panic and fear setting in, I call this " survival mode", doing anything at all costs.

The problem with lacking an overall company identity, as stated above, is the issue of panic and fear will be reoccurring.  Yes, you may have a good month or two and think to yourself (or thank higher power) your problems have been solved.  Well, chances are this will happen again and again, and you will have a bad month or two in a row, then what?  The reality is, yes, you took in any and all jobs that you and your employees skill-sets can handle, however, your company is still lost and new and potential clients will not find you if your brand and company is all over the place.  So make sure  when it comes to true company identity you have one.

A new start-up or small business does not have the time nor the resources to continue down this path, so make sure your next venture, or this one, has been branded as such that it can be easily identifiable  to everyone - exactly what you do, your product/service, etc.  And once its identity has been determined commit any and all resources towards securing a favorable market share in that space.  Once a desirable market share has been obtained, then, and only then should you attempt to extend your product/service line, target markets, etc.   This is not to say, a company should not be thinking ahead and working towards a viable and sustainable vision for the company at all times; or taking on jobs that are not in line with the identity; if you have the time and resources by all means take on the work as long as it's not obstructive to your day-to-day operations.  And if you have dedicated yourself and your company towards this identification and things have not gone as planned, then adjustments need to be made accordingly.  However, I firmly believe that if a company has done its research and its leaders have properly created a true company identity, all resources are dedicated and focused on obtaining market share in that space, the company has positioned itself for success and a chance for survival, at least throughout the growth phase.

As always, I'd love to hear your comments on this topic, True Company Identity, so please leave comments if you desire.

PS - If you are in need of any Business and Marketing consultation for your small to mid-sized business/start-up feel free to shoot me an email at: modernbizstrategy@gmail.com.

Ciao,

ModernManTellsAll
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Marketing Strategy: To social media or not

Follow @modernmantells

To use social media or not?  This is a question virtually all firms (small & large, public & private) in all industries should be asking themselves, and if they are not, they better start.

Flashback 10 years (web 1.0) ago and this question would not even had been an after thought, as many of the top social media applications did not even exist, or were barely in their infancy.  That said, some people/firms did see the advantages and effectiveness of what social media channels, namely Facebook, YouTube, and more recently Twitter, have to offer, enabling the competitive advantage of a having a head start.  The numbers alone on Facebook, Twitter, and Youtube were/are hard to ignore, even 5 or so years ago.

Now, in 2014, or web 2.0 as they say, the numbers are impossible to ignore, where YouTube now gets over 1 billion unique visits a month and 100 hours of video uploaded per minute! Facebook has well over 168 million unique visitors per month.  Twitter has over 48 million unique visitors per month.  LinkedIn (my favorite) is now at over 38 million unique visitors per month.  Pinterest now has over 38 million unique visitors per month as well.  Tumblr is now at over 24 million unique visitors per month.  Instagram has well over 200 million unique visitors per month.  Google+ now has over 105 million unique visitors per month.  There are countless other social media platforms out there, with new ones popping up everyday, however, many do not last, nor are worth spending valuable time and money on.  That said, the above are all well established social media sites, I did leave out Vine, which can be considered as a viable option as well, but not one for the majority of people/companies reading this post.

OK, so we know there are billions of people across the globe scouring the aforementioned social media sites, so which one(s) do you use?  Yes, it can be overwhelming when sifting through the various options social media has to offer, and they all have their own unique functionalities, audiences, communication techniques, etc.  For instance, not everyone that has a Facebook account will have a Twitter account; or someone that's on YouTube and Instagram may not use Pinterest, etc.  Therefore, a company must decide which social media platforms are the best options for their company and industry.

Choosing the right social media platform(s):

First of all, a business owner/marketing manager must ask the important/critical questions: Which social media platform(s) will garner the highest ROI?  What social media applications are my target audience(s) using at this moment?  What is the best way for the firm to go about courting new potential consumers?  What type of product(s)/service(s) does your company sell/offer?  What are the most effective communication techniques to apply on each individual platform? How much time/resources do we have to allocate towards social media? Etc.

Once the target social media platform(s) has been identified, then, and only then, should a strategy be developed.  But first, the business owner/marketing manager must become accustomed to the functionalities and nuances of the platform(s), and if they are not they should (must) find and hire someone that is well versed in social/digital marketing.  Some companies can get away with hiring social media interns as this is was common place a few years back; however, I would not recommend this as many times these interns will lack the awareness and knowledge of your industry and by the time they learn and understand it they will be long-gone; or they only make it a week or two and then you have to find another.  This process alone can prove to be quite costly, not to mention wasting your valuable time.  Nowadays, many colleges and universities are providing majors in social media/digital marketing, or at the very least, are incorporating social media/digital marketing classes into their Marketing programs.  I know when I was pursuing my MBA (as a Marketing major) at Northeastern University, we were required to take a digital marketing class, which proved to be extremely valuable.  As I stated above, all the social media platforms have their own ways of connecting and communicating, and not understanding this will result in a huge waist of time and more than likely - capital.

Moving forward, now you (or someone that does) have a firm understanding of which social media platforms work best for your company and the industry you are competing in.  Furthermore, you have analyzed and done some research on how they function and the nuances of how to communicate.  It is a great idea to checkout your direct competitors to see what they are doing (as far as content) and how they are gaining followers (potential customers), and which social media platforms they are using.  Usually this is a good indication of which ones work best, particularly if you pay attention to industry leaders that have a large number of followers and likes/shares.  Now it is time to develop an Integrated Marketing Campaign/Strategy, which is an entire different topic, and should be done by a trained professional or under the consultation thereof.

To Social Media or Not:

So the question is, to social media or not? Considering the alternative, I'd say it is not only wise to begin (if you have not yet) implementing a social media campaign (even if it's just an individual platform), but also is necessary if you plan on growing your business, increasing brand awareness and market penetration now and well into the future.  Not to mention the fact that social media is a great and affordable way to be creative and brand your company to your liking.  That said, if you are clueless as to how to utilize social media, or do not believe it is effective, I would recommend speaking with a marketing professional(s), researching online blogs, articles, competitors, etc., prior to allocating time during your work day to figure it out or "play around" as it can be extremely time consuming - hours could go bye before you even realize how to post a proper "Tweet".  In closing, I believe social media, when utilized properly, with an effective Marketing Strategy, is the most efficient and effective marketing tool to be implemented to date.  And as time goes bye this "web 2.0" is only going to grow exponentially, so to answer the question - YES, you should start using social media and get connected to your customers ASAP.

I'd love to hear your thoughts on this, so please do not hesitate to leave comments - I'll read them all!

PS - If you would like consultation on the implementation of social media and Marketing Strategies, feel free to email me at: modernbizstrategy@gmail.com.

Cheers,

ModernManTellsAll

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Business Strategy: Know your competition

There are many articles online (LinkedIn, independent blogs, etc.) and in informative magazines and publications (Entrepreneur, WSJ, Harvard Business Review, Fast Company, Text Books, etc.), which will tell you how to run a business, manage a start-up, what to do, what not to do, etc.; however, I'm going to tell you, it is just as important to know and understand your competitors.  It amazes me that in this day and age, where the global economy is fully entrenched in all industries, information is readily available and accessible to all - many companies still choose to operate as if they were the only firm in that industry.  You can have the best business plan in the world, but, if you are unaware of the competitive landscape (who your competitors are and what they are doing), that amazing business plan may be all for not.  You may even risk the possibility of a savvy (established, innovative) competitor, who is aware of you and your business model, to copy and implement it before your business even has a chance to get off the ground.  

I would like to introduce and explain some realizations that have come to my attention along my professional career and as I was perusing my MBA from Northeastern University.  

Global Economy:

The first of which is obvious but should not be ignored or discredited, the fact that we are now in a global economy, every industry is experiencing increased competition, and as the years go bye it is increasing exponentially due to third world countries, namely the BRICS nations; all of which are experiencing emerging economies as their access to resources and technology grows.  Many of these countries operate under their own proprietary laws and, maybe more importantly, have access to cheap labor – enabling companies to make products which are similar for much cheaper than in established 1^st world countries. 

Access to Technology & Lower Barriers of Entry:

Access to technology and lower barriers of entry go hand-in-hand as the former enables the latter.  The access to technology has essentially leveled the playing field when it comes to competition.  A small independent start-up now has the potential and access to the same technology as a major firm, which was not the case 10 or 20 years ago.  For one, technology (computers, internet, marketing channels, etc.) came at a much higher cost in the past.  Now the majority of people/businesses are able to purchase a computer and the internet, build a website, and market their product all with minimal capital investment.  A first-hand example of this would be the music industry.  The music industry was really the first to feel the effects of this in the early 2000s with Napster and other file sharing platforms, which essentially destroyed the major record labels.  I’m not saying whether this is or is not a good or bad thing, as the record labels failed to adapt and innovate quickly to the changing landscape; therefore it was of their own doing.  Fast-forward to today, where now every artist, composer, band and record label (large and small) has access to the same technology and clients for that matter, making for a highly competitive market place.  Furthermore, lower barriers of entry (affordable hardware and software) have been a major factor as well in regards to increased competition. Although the music industry was the first to be hit by this phenomena, it is a reality for all industries, and business owners must take notice.

Access to Information:

Access to information coincides with the above as it is technology based, however, it deserves its own explanation due to the fact that it is still fairly new and very important when analyzing and understanding your industry's competitive landscape.  In the past companies would have to rely on “insider” data or having to wait for a particular competitor’s TV/Print Ad to air, well that is no longer the case.  Now everyone has instant access to all the vital information they need – including websites, financial data, marketing techniques/strategies, operational methods, personnel, territories, etc.  Everything can now be accessed via the internet by searching company names, industry related keywords, social media, etc., so there’s no excuse not to “do your homework” (you may actually come up with an innovative idea along the way) and research as much as you can about what the competition is doing – smart companies are doing it everyday so don’t wait!  

Conclusion:

All of the above factors have led to increased competition and, in many cases, market saturation.  This trend will only continue as more and more countries and small innovative start-ups enter the global economy.  This does not mean that starting and/or running a business is not a good idea – quite the contrary, as it is a great idea (for certain people)!  The costs to start and run a global business is at all time lows, at least for those that know and understand how to leverage the above factors to their benefit.  Those that do not, and are stuck operating in an outdated business model will not survive in today’s world where you are either in the lead or falling behind.  And when you fall behind it can drain capital quick as you try and catch up - and when you do catch up, the competition may have already moved on to some other innovative business model or product/service.  Everything moves fast, including your competitors, so don't assume you are the only one out there, or implementing these techniques.  Remember, always try and stay in the lead or at least a close second.

PS - If you are in need of any Business and Marketing consultation for your small to mid-sized business/start-up feel free to shoot me an email at: modernbizstrategy@gmail.com.

Enjoy the ride!

ModernManTellsAll

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