How strategy can help Start Ups to start right

Posted on Posted in How to Guide for Marketers

Entrepreneurs are a different breed.  They have an energy, that has them running full blast with no time to spare.  They have a determination to push as hard as they can to find funding, patents, production and customers.  They are willing to do what it takes and will work to nail down every possible detail on their own.  It’s exhaustive.  And yet, until they sell something they have no revenue to cover all their effort and costs.  All they have is optimism and hope.

I run my own business. Every day I face the same issues you face.  

Entrepreneurs face a ton of pressure. Every friend I meet up with that asks about “starting my own business”, I explain what it’s like, I pause and look them right in the eye and say “it’s not for everyone”. I don’t say that to discourage them, but rather allow them to keep thinking. I mean seriously: a real entrepreneur would just snicker at that comment.

The biggest obstacle is dealing with the pressure.

How you handle that pressure helps to sort out whether you’ll be successful or not.  You have to stay focused on the vision you have for your business. While there are “revenue temptations”, once you deviate off your path it’s harder to get back on that path. Stay focused.

It’s the Idea that counts

It seems to me that most entrepreneurs love watching the “Shark Tank” or “Dragon’s Den”. While it’s reality TV, it’s good entertainment. It provides one great lesson. The winners have an IDEA, beyond just a product. Yes, the product is essential, but if you don’t know who you are, what you can do, who you can serve and how you can serve them, then you will fail.  

When I started my business, one of my mentors said “what are you selling” and my answer was “I’m selling me”. His answer floored me when he said “well then I’m not buying, because I don’t know you and I only buy ideas”. Three weeks later, I came back with the idea of Beloved Brands, and how I would help leaders find more love for their brand, because I can clearly lay out the path from how loved a brand is to how powerful it is and from that power it can make more money. A simple equation:  Love = Power = Profit. While no one wants to buy Graham Robertson, every business leader wants a pathway to making more money.

Most successful brands in history started off as a product that solves a rational problem in the consumers’ life. It’s very likely that the entrepreneur sold the product directly to customers. Over time, they created a logo, narrowed down on a promise based on what was working, they executed better than the competition and gravitated towards creating some type of experience. After a while, the consumer took all this marketing stuff and determined the Idea of the brand. The second generation of the entrepreneur had to do market research to figure out what came naturally to the entrepreneur. And when they figured it out, they realized as the brand become more loved along the way, the brand become an idea that fulfills consumers’ emotional needs.

Slide1

To me, a beloved brand is an idea that’s worth Loving. As a brand generates more love, it gains a positional power versus market forces. It can leverage that power to drive higher rates of growth and higher profits.

But that’s the history of brands. So why not learn from history, and instead of slowly evolving towards an idea, why not just start there and own the evolution, and matching up that logo, promise, execution and experience to the idea.

Get to the idea faster. And you’ll be able to sell that idea with your product.  So, what’s your idea?

Be Strategic

Strategic Thinkers see “what if” questions before they see solutions.  They map out a range of decision trees that intersect and connect by imagining how events will play out.  They reflect and plan before they act. They are thinkers and planners who can see connections.  Slide1Non Strategic Thinkers see answers before questions. They get to answers quickly, and will get frustrated in delays. They opt for action over thinking, believing that doing something is better than doing nothing. They are impulsive and doers who see tasks. They can be frustrated by strategic thinkers.

My challenge to all entrepreneurs is while it’s tempting to push hard, you have to stay strategic. Don’t get into the situation where your feet are moving faster than your brain.

Start Up the Right Way

When you decide to go out on your own, you might be starting with some random product you came up with. But now you need a vision of where you want to go. As Yogi Berra said “if you don’t know where you’re going, you might not get there”.

Why are you doing this? Push yourself to start with what’s in you:  The most successful brands start with a purpose driven vision (why) and match the strategies (how) and the execution (what) to the vision.

What does success look like? Think of your Vision as an end in mind Achievement towards your purpose. What do you want the brand to become? Think 10 years out: if you became this one thing, you would know that you are successful. Ideally it is Qualitative (yet grounded in something) and quantitative (measurable)  It should be motivating and enticing to get people focused. It should be personal and speak to why you get up in the morning—why you got into this business.

I always like to say “if you woke up on January 1st, 2025 and things on your brand were going well, tell me the 3-5 things that you’d quickly point to as part of that success”. It’s a big huge goal.

Focus! Focus! Focus! Focus!

Yes, I’m empathetic to the entrepreneur who is facing zero revenues and sees that “revenue temptation” in front of them.  It’s ok to go for it, but quickly get back on track. Think of it like a quick detour or hobby. But you have to stay focused.

A good entrepreneur knows who they are selling to, what they are selling, how to sell it and what activities are the best choices. And they don’t deviate.

There are four areas you need to focus:

  • Pick a focused Target Market: While it’s tempting to sell to everyone.  Focus your resources on those most likely to buy. Realizing not everyone can like you is the first step to focus on those that can love you.
  • Pick a focused Brand Positioning: Start with the target market you just picked, and assess their need states to see where you can best match up. Beloved Brands are either better, different or cheaper. Or they are not around for much longer.
  • Pick a Focused Strategy: Brands need to understand where they sit before picking strategies. Evaluate the health of your brand using the Brand Funnel to understand where you are strong and should keep pushing or where you have a weakness (a Leak) that you need to close.
  • Focused Activities: While everyone talks ROI, I talk ROE as well. Return on Effort forces you to prioritize all your activities.

Stay aligned to your plan, and don’t be tempted away from your focus.  When you focus, five things happen.

  1. Better ROI: With all the resources against one strategy, one target, one message, you’ll be find out if the strategy you’ve chose is able to actually move consumers drive sales or other key performance indicators.
  2. Better ROE: Make the most out of your people resources.
  3. Strong Reputation: When you only do one thing, you naturally start to become associated with that one thing—externally and even internally. And, eventually you become very good at that one thing.
  4. More Competitive: As your reputation grows, you begin to own that on thing and your are able to better defend the positioning territory
  5. Bigger and Better P&L: As the focused effort drives results, it opens up the P&L with higher sales and profits. And that means more resources will be put to the effort to drive even higher growth.

At Beloved Brands, we run a one day workshop called “Start Up and Start Right”. It allows you to gain your focus, which makes it easier to articulate your brand’s idea, whether using that to selling your idea into customers or gaining investors to back your idea. Both customers and investors see thousands of ideas every year. Just like “The Shark Tank” and “Dragon’s Den”, they need to see an idea, they need to see someone who is well-organized behind a plan that will be successful. Not many will succeed if they are sloppy and all over the place. They buy the idea!  As a fellow entrepreneur, I know what you’re facing and would love to help get you started in the right direction.  

So, let’s get started!

 

To read more on How to Write a Brand Plan, read the presentation below:

Positioning 2016.081

At Beloved Brands, we love to see Brand Leaders reach their full potential.  Here are the most popular article “How to” articles.  We can offer specific training programs dedicated to each topic.  Click on any of these most read articles:

Brand = Culture: How organizational culture can help your brand win

Posted on Posted in How to Guide for Marketers

Most people think that that Brand is what the Marketers do. And Culture should be left to the Human Resources department. But in reality, everyone is responsible for both Brand and Culture. Creating a Branded Culture might be a great chance for Marketing and HR to be working together, and find ways to involve everyone from the Brand. The new Brand Leader has to understand that marketing is more than just TV ads and more than just Facebook likes. Brand is about the experience that consumers walk away with. If I am going through the drive-through at 4am or on the phone with customer service or getting an email with a Visa “special offer” from the Bank where I have my Visa, I am in constant judgment of your brand.  

5 ways that brands connect

Brands are able to generate love for their brand when the consumer does connect with the brand. I wish everyone would stop debating what makes a great brand and realize that all five connectors matter: promise, strategy, story, innovation and experience. The first connector is the Brand Promise, which connects when the brand’s main Benefit matches up to the needs of consumers.  Once knowing that promise, everything else feeds off that Promise. For Volvo the promise is Safety, for Apple it is Simplicity and FedEx it might be Reliability. It’s important to align your Strategy and Brand Story pick the best ways to communicate the promise, and then aligning your Innovation and the Experience so that you deliver to the promise. To ensure the Innovation is aligned, everyone in R&D must be working towards delivering the brand promise. You don’t create a new brand promise based on what you invent.  If someone at Volvo were to invent the fastest car on the planet, should they market it as the safe-fast car or should they just sell the technology to Ferrari. Arguably, Volvo could make more money by selling it to a brand where it fits, rather than trying to change people’s minds. As for the experience, EVERYONE in the company has to buy into and live up to the Brand Promise. As you can start to see, embedding the Brand Promise right into the culture is essential to the brand’s success.      

Slide1

It starts with the Brand DNA

Everything in the company should feed off the Brand DNA. The Brand DNA (some call it the Brand Essence) is the most succinct definition of the Brand.  For Volvo, it’s “Safety”, while BMW might be “Performance” and Mercedes is “Luxury”. The Tool I use to determine a Brand’s DNA revolves around the Brand’s personality, the products and services the brand provides, the internal beacons that people internally rally around when thinking about the brand and consumer views of the Brand. What we normally do is brainstorm 3-4 words in each section and then looking collectively begin to frame the Brand’s DNA with a few words or a phrase to which the brand can stand behind.  

Slide1

The DNA helps guide the Brand’s Management

The Brand DNA should help frame 1) Brand Plan that drives the business for the upcoming year or the next 5 years 2) Brand Positioning that connects to the consumer through marketing communications 3) Customer Value Proposition that links the consumer needs to the benefits of the brand 4) Go-To-Market strategy that frames the distribution and the selling process 5) Cultural Beacons that help define the brand internally through values, inspiration and challenge and finally 6) Business Results, with each brand offering a unique way that it makes money. Each of these six needs feed off the Brand DNA, look to the definition as a guideline for how to align to the brand.

When you begin to blow this out one step further, you can start to see where the complexity comes into play with each of the six areas have their own needs that should still feed off that Brand DNA.

 

The DNA sets up the Brand Values

Great Brand Leaders should be looking at the culture as an opportunity to win in the market place. No matter how good your promise is, if your company is not set up to deliver that promise, everything comes crashing down. The brand story told within the company is even more important than what you might tell the market through your advertising.

Managing organizational culture is very challenging. The DNA should provide an internal beacon for all the People in the organization to follow and deliver the brand promise. As you move along the Brand Love Curve from Indifferent to Like It to Love It and on to Beloved status, you need to make sure the culture keeps pace with where the brand is. 

Slide1

While the DNA can provide the internal beacon, it might not be enough to capture all the behaviors.  Brand Values should come from the DNA, and act as guideposts to ensure that the behavior of everyone in the organization is set to deliver upon the Brand’s promise. How do you want your people to show up? What type of service do you want?  How much emphasis on innovation? What type of people do you want to hire? What behavior should be rewarded and what behavior is off-side.  Having the right Brand Values will help you answer these questions. The Brand Values become an extension of what the Brand Leader wants the brand to stand for.

A great example of Brand Values is the Virgin Group of Companies defines what  each value is, but also what it shouldn’t be. I love that Fun means enjoyment but not incompetent and Value means simple but not cheap.

Slide1

The Right People leadership matters

Having values is one thing, but the other component of Culture is the right  people leadership.  Use the values to help people deliver upon the right behaviors, skills and experiences. Leaders must embody the Brand’s DNA and live by the values. Employees will be watching the Leaders to ensure they are living up to the words on the wall. Leaders need to believe that by investing in their people, the business results will come.  Better people produce better work and that drives better results. Talent management means hiring the right people and providing the right training. Too many companies are skimping on training and development, which is equivalent to cutting back on your R&D.   

Every communication to employees, whether in a speech or memo, should touch upon the Brand Values, by highlighting great examples of when employees have delivered upon a Brand Value. Leverage values, with inspirational touch points and processes to inspire and challenge them on achieving greatness. The culture will only change when everyone makes the decision to make the change.  

Brand Leaders should look to culture as an asset to make your Brand Experience more powerful.  

 

To download a copy of this article and share with your team, you can find a pdf version at (good for airplane reading): 

Do you want to be an amazing Brand Leader?  We can help you.  

Read more on how to utilize our Brand Leadership Learning Center where you will receive training in all aspects of marketing whether that’s strategic thinking, brand plans, creative briefs, brand positioning, analytical skills or how to judge advertising. We can customize a program that is right for you or your team.  We can work in person, over the phone or through Skype. Ask us how we can help you. 

 

Positioning 2016.112