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At one time or another, most entrepreneurs and most businesses experience poor to no cash flow and find their balance sheets running on empty. I've been there -- three times with three businesses. At the end of the day, however, most of us pay the bills and we fill the tank for another run....
Some don't, though, and that got me thinking about what makes the difference.
All I have in some insight, some personal experiences, and some knowledge of those who close shop and those who stay open. I made up these lists to represent some character traits of those who "keep on keepin' on" and those who don't. Nothing scientific, as I said, about this.
Those Who Do
1. Possess great confidence
2. Have high self-esteem
3. Produce quality products and services
4. Believe Sales and Marketing drive success
5. Look for the fair deal
6. Believe in people
7. Surround themselves with smart people
8. Worry less about money and more about customers
9. Guarantee their products and services
10. Create great experiences
11. Practice trust, respect and dignity
12. Positive thinkers
13. Eagerly face challenges
14. Love life
Those Who Don’t
1. Possess great confidence
2. Have high self-esteem
3. Produce quality products and services or maybe not
4. Believe Products and Services drive success
5. Look for the winning deal
6. Believe only in themselves
7. Believe they are the smartest people in the room
8. Worry more about money and less about customers
9. Over-promise, under-deliver
10. Never think about customers experiences
11. Think trust, respect and dignity represent business fluff
12. Negative thinkers
13. Wish challenges would go away
14. Love money and what it can buy
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Comments
Lewis - Been there, done that, too, but there was one pronounced characteristic I noticed in one place I worked that was always on the brink of disaster. We actually seemed to thrive on the "near-miss" way of life. Everyone would be galvanized into action to make sure we "made the quarter", adrenaline rush all-round, etc. But we never actually tried to sit down on the day after and figure out what we needed to do to keep this from happening every month/quarter. It actually took a long time for this place to implode. We got really good at survival, but that was about it.
Posted by: Maureen Rogers | 11.17.06
I'd argue that #4 in the "Don't" category is one of the things that can save many companies.
If a company has a great product and backs it up with great services, it can overcome lousy marketing can certainly compliment good marketing.
I worked for a company that was a leader in its niche market. The product had a cult like following with very passionate users. Loud users. The comapny had a deadly combo hit them of product glitches and low funds. It could have spelled the end, but they stuck it out and won by offering industry leading service (yes, I was the Customer Service Manager so I'm biased) and backing the product up. It cost them much more money, but in the end the investment and very lean times propped them back up and they never lost their leadership position in the market. Now they are virtually unstoppable.
I love sales and marketing (especially marketing) but they can't completely compensate for a lousy product and/ or service- service is THE experience most people will remember most.
Posted by: Tim Jackson | 11.17.06
Tim,
Few ever hear of a great product or service without sales and marketing.
My point with number four isn't that products and services don't need to be great. (See #3.) It is that customers expect products and services to be high quality; where we create brand and brand evangelists comes from great experiences.
It's like the coffee thing: Starbucks knows that loyal customers are loyal because 1) they expect good coffee, and 2) the experience usually exceeds their expectations.
So, yes, great products and services are necessary. But if a business focuses primarily on the what (products and services) instead of the who (employees and customers), the experience of purchasing the product likely fails.
Ask yourself this: I have been bicycling for 50 years, for 20 of them more than 150 miles a week. Sorry, but until I met you, I had never heard of Masi. So, without the sales and marketing touching me, how could you expect me to buy your product?
Love you, Man. Have a great weekend, and thanks for starting the conversation.
Posted by: Lewis Green | 11.17.06
Good points. My husband owns his own business and he has been riding a rollercoaster of highs and lows for about 12 years. I would say that he has all those traits in both lists. I get the guy on the second list at home (I'm the sounding board) Fortunately his customers get the guy on the first list. He owns a Spray-on Truck bed liner franchise and sells truck accessories. He gets a lot of customers that are ready for a fight because people assume they are going to get ripped off by someone in that industry. He has to work twice as hard to turn people around and get them to realize he is a good guy with a great product and he garantees he will give them the best customer service possible. 9 times out of 10 the customer is appologetic when they get their truck back. But even with referrals people won't believe it until they see it. He gets beat up (not literally) a lot but he just keeps on keepin' on. He's been a top 10 dealer in the nation and #1 one in AZ. It would be interesting to have a blog on customer perceptions and why they assume the worst.
Thanks Lewis!
Posted by: Tammy Strnatka | 11.17.06
I will agree with Tim. A great product and great service can not only save a company but can make it thrive. One should always be aware that marketing and sales alone do not make a thriving business. Take the case of Friendster. One of the mistakes that the executives at Friendster made was their belief that marketing and selling new features would make up for their lack of a stable product.
(Shamless Plug: Read the post on the front page of my blog for more on the Friendster case.)
Posted by: Michael Morton | 11.17.06
I would not classify those two disciplines as mutually exclusive. As much as I like what I do, I don't have any illusions about what I do being more important than what anyone else does. They are all necessary.
There is no marketing without the product or service (unless it's a scam, in which case the scam becomes the product). Good products are useful and attractive to real people, but companies will rarely create or sustain success without consulting with, continuously listening to, and caring about those people.
IMHO, anyway.
Posted by: Cam Beck | 11.17.06
I'm with you Lewis, you're my main man, but... the company I was with didn't even advertise at the time. It was all word of mouth and not driven by the company, in the ususal sense. The comapny went to events and enabled consumers to use the products (really a great study and one I should probably write about... hmmm...). It was this user-direct interface that drove the initial sales and then the long-term relationships were cemented with the outstanding service provided.
That said, I agree with your points. And as Cam says, the two really work in harmony- one no more important than the other if both are done well.
Posted by: Tim Jackson | 11.17.06
To all: Great points! You are all correct. I don't think of the 14 points in either list as a ranking system. Any one of those things can be the key to success or failure. But success likely comes from maximizing every point by aligning them and working them diligently.
Tim,
Yep. Personal contact is the best sales and marketing technique available. You got it.
Tammy,
I relate to your husband. How many of my clients believe we marketers are out to take their first-born? I use your husband's technique: do great work and guarantee it.
Michael,
You are correct. I tried to cover that in point 3, produce quality products and services. I purposefully made point 3 different in the two lists by adding "or maybe not" in Those Who Don't.
Cam,
Great point. We need to align what we do and do it well.
Thank you all so much. I always learn lots from each of the commentors. We have lots of smart people reading MarketingProfs.
Posted by: Lewis Green | 11.17.06
Lewis, there's one crucial characteristic missing... leadership, and it needs to come from everyone within the company, but most important from the top... otherwise there's a missing opportunity to set the standard for the quality of work, service, strategic thinking, talent development, etc., every company needs to compete and succeed. Without the right leadership only limited growth and innovation opportunity will come around.
Posted by: Katia | 11.17.06
Katia,
Good point. I was going to add it and then for some reason, which I can't remember, didn't. Thank you for adding leadership to our list.
Posted by: Lewis Green | 11.18.06