Over the years, we’ve worked with literally hundreds of different entrepreneurs. These are the people that truly make America work. Without exception, they are hard-driving dreamers with talent. They get things done.
However, there are a few weaknesses these business leaders often share as well. These weaknesses, often correctible, stunt the growth of their businesses. Interestingly enough, these same weaknesses can be seen hampering the success of those responsible for major sales and marketing initiatives in larger companies as well.
In our experience, we’ve seen five weaknesses that stunt the growth of many entrepreneur-led businesses:
It is surprising how many companies are run without an advertising and marketing budget. The number of companies that truly plan their advertising and marketing spending is surprisingly small by our count. This key element to sales success – and survival – is most often treated as an elective expenditure. The reasons for this are many. In entrepreneur-led companies, the fact that the business owner started the company themselves and likely had no talent or experience in this area (hey, you can’t do everything) eventually leads to an advertising/marketing-starved organization. In the initial going, the entrepreneur usually gets the sales the organization needs by sheer force of will. If the company succeeds and grows, the need for professional assistance in this key area is always eventually revealed. This revelation leads to stubbornness for the old “less wasteful” ways by the entrepreneur or the admission that the company has truly grown to the level where a professional image is crucial.
As surprising as the fact that most companies are run without an advertising and marketing budget is, it is almost as surprising how many companies don’t actually have a marketing plan of any kind. This leads to waste in spending because the management of the company’s sales ends up being by “knee jerk” reaction. Knee jerk reactions are, by their very nature, a study in over compensating. Marketing plans need not be voluminous. But they need to be planned. The lack of planned execution separates the companies that grow and succeed from those who do not.
There are two facets to this surprisingly destructive attitude. First, is the idea that any advertising funding should only be spent launching new products or initiatives. Under this “launch only” mentality, existing streams of solid revenue are left without support and the business will eventually suffer in most cases.
The second faulty attitude about “newness” is the persistent desire of many entrepreneurs to change horses too early in an advertising campaign. They figure that everyone is as “tired” of their ad message as they are and they demand it be changed. This flies in the face of the tried and true advertising principle of “frequency.” We once had a client who demanded we change their ad campaign because the business leader, and the company’s sales force, were tired of the old one. We successfully argued against the change. This campaign ran for more than two years unchanged. The client quadrupled in size. Was it the advertising that did it? Of course not! It was the sales force that was responsible for the success (we say this with tongue in cheek, of course).
When everyone agrees it is time to “do something” with the company’s image or advertising, etc., an interesting phenomenon occurs. Those in charge say they want “to stand out” from their competition. The agency obediently complies and produces a strategically-sound, compelling message - and scares the client to death. The client retreats into “sameness” and dulls the edge of differentiation crucial to successful advertising. It would be funny, if it didn’t happen so often.
This leads us to the final reason entrepreneurs often short change the growth of their businesses in the advertising and marketing arena.
Take-charge entrepreneurs are used to being the boss. That’s good. That’s how they got where they are.
It’s too bad the customers of take-charge entrepreneurs don’t care if the entrepreneur is in charge.
They want what they want. And they listen to what they want to hear.
Often, the entrepreneur bases their decisions on advertising and marketing on their own personal tastes and preferences. This can work – but often it doesn’t.
The most successful business leaders listen to their target audiences first and then aren’t afraid to rely on professional communicators to reach them with a persuasive message.