After working in the branding world for over 15 years we have seen our fair share of car crash companies and businesses simply wishing to grow. From huge multi nationals and global leaders to start ups with at one time or another worked with them all. What we have found during that time is that there seems to be a common theme that we call the five most popular business diseases.
Their symptoms may change somewhat but all in all most companies we have come across (including ourselves) have suffered from one or more of them at one time or another. The following are brief overviews of each disease, the early signs and some ways we have found to help get rid of the issue.
The WE-CAN-WORK-WITH-ANYONE DISORDER
Symptoms:
Over time the business has changed their core make-up by adding more and more services or products to their existing offering and now aren’t clear about who they really are anymore. There is mixed, if any, sales messaging other than ‘we sell everything and want to attract anyone and everyone’ and they often have a huge pipeline, drive very few sales and do a lot of free work or win new business by discounting prices, sheer luck or because someone likes them.
Early Signs:
Everyone is very busy and yet there never seems to be a huge profit. They may have a set price list but it’s never enforced as everyone discounts and charges what they can to get the business.
Underlying cause: Complete loss of vision and focus
If left untreated: Slow & painful death
Treatment:
A complete refocus of the business’ core products and/or services is required. You must identify the type of projects or clients that are most profitable to the business and focus on the services/products those particular clients require. Put processes in place to ensure employees follow the new directive.
THE ANY-BUSINESS-IS-GOOD-BUSINESS DISEASE
Also known as (business scarcity issue)
Symptoms:
They can’t spot a potentially good client from a bad one, they go for any project regardless of how small it may be and discount prices to get the work. They’re often found doing extra work for free on the premise of potential future work or for fear of losing a client. Always extremely busy but never running a decent profit and often haven’t a grip on finance.
Early Signs:
• Clients not paying on time and being rude, difficult or demanding.
• Projects often running late and profit margins slipping because clients are allowed to change their minds resulting in costly mistakes and under-performing staff.
Underlying cause:
Desperation, fear and denial
If left untreated:
Loss of profit, employee churn, exhaustion and heart attack
Treatment:
Learn to say no and be firm with new clients from the start when it comes to costs. Be clear on your profit margins and make sure your sales team works to a very clear price structure. Make it good practice not to offer discounts or extras. Remember, not all business is good business and it’s your choice who you wish to work with. Ensure that the core management and sales teams are made aware of the financial impact that ‘bad’ clients or projects are having on the business.
THE-MARKET-DICTATES VIRUS
Symptoms:
Won’t do anything someone else isn’t doing as ‘being different simply isn’t done in their industry’. They do the best they can with the resources available, but tend to lose big opportunities to bigger competitors and small opportunities to smaller competitors. Often found giving away free advice to potential clients, suffer from long protracted sales processes which creates low morale and bad moods, which in turn affects the way they sell or interact with new client prospects
Early Signs:
You’ll often hear people saying; They want us to sharpen our pencil. They can get it cheaper down the road. Pitching/tendering is just part of the process in our industry. A 1 in 5 win is good. They tend to do the same as they have always done but keep on getting worse and worse results, although the odd win means they think the process is still working.
Underlying cause:
No leadership
Treatment:
A complete refocus of sales structures and key messaging. The company requires a total change in mind-set and serious leadership is required right from the top. You must understand that the market doesn’t dictate how your business operates or what it charges, you do. You just need to tell the market more clearly why they should be paying them. Remember, you are the limited resource and therefore you dictate to the market, not the other way around.
If left untreated:
Stagnation
MAYBE-WHEN-I’M-NOT-SO-BUSYITIS
Symptoms (Typical for directors or business owners):
They’re always keeping very busy doing things that aren’t vital and maintain total control of every minor aspect of the business rather than delegate. They constantly work IN the business as an employee, rather than ON it as a manager/director and can often be found working late or on weekends. They’re constantly on the phone or checking emails, even on holiday
Early Signs:
• Owner/MD prefers to be doing work or dealing with clients rather than deal with managerial tasks
• The business is stable but it has never moved forward
• If they invest in the business, they always go for the cheapest supplier but then complain about mediocre service or results
Underlying causes:
Procrastination, lack of drive and no clear vision for the business as a whole
If left untreated:
No real change, just more of the same
Treatment:
A new company vision is required urgently to stimulate growth, (unless the business is simply a lifestyle business). They need to identify their comfort zones and summon the strength to challenge and overcome them. Understand that business is not about getting their emotional needs met, but going to the bank. This may call for outside help, at least at the beginning, to help them see where the main issues lie and what can be done to fix them.
YES-BUT-WE-REALLY-ARE DIFFERENT DISEASE
Symptoms:
Often try the same marketing techniques over and over again and get spasmodic results. Have no clear message or product differentiators and have lots of management meetings discussing how to change things but then never do. Produce lots of lengthy presentations and blame the competition if they lose the business.
Early Signs:
You’ll often hear people saying: We’re really friendly, no seriously, we really are. We win all our clients through referral. Our clients love us. Etc.
Most new business comes through referrals or via existing clients and not through pitches or other marketing initiatives
Underlying cause:
Madness
If left untreated:
Overdraft, debt or bankruptcy. A very slow, chaotic-growth or lifestyle business is the best scenario.
Treatment:
Inhale, exhale and repeat: “We are delusional and need help!” The business desperately needs to create a brand and a clear message to market, a clear differentiator to attract new clients. It’s vital to be honest about the business. You aren’t different from any other competitor out there unless you can create a structure, process or offering that IS different. Get professional help!
Just as with human beings, companies can start suffering from these ailments simply because of age, growth or poor behavioural patterns. They aren’t necessarily any one person’s fault, they just seem to happen and can get worse over time if left untreated. Sometimes companies will even suffer from multiple diseases at the same time as different behaviour patterns and symptoms can lead to a range of different issues.
The good news is that for every business disease there is a cure, although as with most problems the sooner they are diagnosed and dealt with the easier they become to fix.
Here again we have spotted some common denominators that can greatly help with a speedy recovery:
• The willingness to listen and learn
• The ability to be honest about situations and a willingness to accept change
• Making decisions to act quickly
Without these characteristics unfortunately there is little anyone can do to help so make sure you can get the right people in the right mind-set.