Launching, growing, and running a business is a daily investment of both time and money. Sometimes, despite our best efforts, things can get off course for a number of reasons. Are you a business owner and feel as though your business is in need of a strategy pivot? Possibly you are a leader on your team and spot some red flags that require serious attention for the long-term health of the company. If you’ve recently invested (or are helping to fund a private equity (PE) project), but you’re a bit shaky on that company’s financials, what can you do to help it succeed? Today, Strategy Driven Marketing shares a bit of common sense insight that can be applied to a wide variety of business applications.
Setting up the Proper Foundation
There are many different types of business structures that you might adopt. But if you’re not already an LLC, now might be a great time to register as such, especially if you are operating as a sole proprietor. The benefits of forming an LLC include personal liability protection, simplified taxes and compliance, increased credibility, and more flexibility in management and ownership, among other advantages. Do you have all the related paperwork in order? The right legal team can help guide you to ensure you are protecting yourself and your business.
Beyond this, does your company have a formalized and communicated business plan? Have you established a budget? What does your marketing strategy look like and are you regularly looking at the performance of your efforts? Do you have an established and communicated sales process and individual targets that are measured? It is critical to establish this structure and clearly communicate it to all stakeholders. It is much harder to move forward in the same direction toward a goal if that goal and plan of attack are not clear. This being said, having a plan is only half the battle. Sometimes the plan we start out with needs adjustment. Regularly evaluate, edit, and keep moving forward.
Perform a Marketing Audit
There are many reasons why businesses go up for sale or go under, and having a bad reputation is one of them. If this is the case, it might be time for a rebrand. Flippa explains that the first step is to talk to your customers and employees or pay attention to what they are already telling you. You also want to plan a thoughtful communication strategy for all upcoming changes to the remaining customer base. Decide what you want to change and if there are any aspects of your existing brand you’d like to keep. Remember, branding is more than just having a logo, and it’s important to consider the personality and message you are portraying from all customer touchpoints.
Is there an untapped market you are not considering? Is there enough awareness of your brand’s existence within your target audience? If so, are your ratings and online reviews painting a favorable picture to entice purchase?
It is important to look at the channels, cadence, and effectiveness of your communication and adjust accordingly. While there are universal marketing tactics that can be adapted for all businesses, it is important to consider nuances of your specific industry and offering and cater your marketing strategy accordingly. Many companies operate with very small marketing teams or even no internal dedicated marketing support. This is important to consider and to prioritize appropriately or re-allocate money accordingly.
Look for opportunities to expand.
You are no doubt familiar with the idea of complementary products. If not, The Intact One blog explains that these are simply products that work well with one another. Ketchup and mustard, peanut butter and jelly, and milk and cream are examples you might see in your local grocery store. When it comes to your business, look for opportunities to provide complementary products and services which are much easier to launch and manage than completely new or individual products.
We often find ourselves talking about the 80/20 rule. Generally, when analyzing data and performance, 80% of your revenue will come from 20% or less of your products or services. Taking this into account, are there other items that can be strategically added knowing current top performers? Are there ways to upsell or encourage additional purchases utilizing the areas you are already highlighting those top performers? Consistently keeping an eye on what is and isn’t working and adjusting accordingly will help you make smart decisions that will grow your business and maximize your spend.
Uncover meaningful insights from customers through incentives.
Utilizing your customers for market research can provide valuable insights into consumer needs, wants, and behaviors, which can help inform strategic business decisions and improve overall customer satisfaction. To easily reward respondents, use an API to give participating customers gift cards or make donations to their favorite charity.
Gaining customer buy-in and making your decisions off of what matters most to them is important to maintaining customer loyalty and encouraging repeat business.
Consider a staffing overhaul.
If the business you own or have recently purchased has a great customer base, then, by all means, keep everyone that adds value. However, if you notice that you have key employees that don’t show up, won’t speak up, or simply don’t do their jobs, it’s time to insert people who take an interest in their careers within your organization. This might be a smart time to work with a consultant or an M&A specialist to help you identify strengths and weaknesses within your staff. First, ensure that there is clear communication and they have the tools for success, but if it becomes clear it is time to make a change you must make that difficult decision so that everyone is a strong ambassador for your brand and helping drive towards success.
Do you find you are consistently having trouble finding and retaining the right talent? Maybe it is time to inject some fresh ideas or clearly define who you are and your expectations. A good place to start is your company’s mission and values, something that Asana believes is crucial in helping to build a healthy culture and retain customers and employees.
Upgrade and adapt.
Sometimes, businesses go under simply because they have not kept up with modern technology and attitudes, not because they provide an inferior product or service. Spend the time to evaluate your business and look for ways to adapt to a modern audience. Take a look at your current tech stack. Are there systems or automations that can be put in place so that time wasted on repetitive or time-consuming tasks can be shifted to other critical areas of the business?
Buying, starting, or growing any type of business is a huge undertaking that requires a keen eye and a business mind. From incentivizing customers to gain essential insights, to knowing which staff to say sayonara to, today’s tips can help you walk into a failing business and help it find success starting from day one. We love everything about the process of launching, growing, and positioning businesses for purchase. Looking for some assistance? Let’s connect!
Meet the Author
Clarence Wilkins has wanted to be an entrepreneur since he was a kid. He started his first business -- a neighborhood lawn mowing venture -- at 13 and hasn’t looked back since. He created Bizz Pop to offer advice and business growth and development resources to other entrepreneurs.
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