Innovation and Marketing Essential For Fast Growth In Slow Times

The dark clouds hanging over the economies of Europe and the US don’t look like clearing any time soon. It looks like we are facing an extended period of slow growth.

However, that doesn’t mean that your business can’t grow and thrive even through all the gloom and doom. Lots of companies have done it: GE, Disney, HP and Microsoft started up during recessionary times.

The late Steve Jobs – may he rest in peace – took Apple from the brink of bankruptcy in 1997 to explosive growth, a growth rate that didn’t even stumble through the Global Financial Crisis (GFC). Apple now vies with Exxon as the largest company in the world (by capitalisation).

Two key elements of successful growth even in bad times are Innovation and Marketing. The irony is that these 2 budgets are the first to be axed in the face of any downturn.

Innovation

Innovation isn’t just about a whole new whizz bang invention. Apple didn’t invent the computer, mobile phone or tablet. However, it did what is termed “adjacent innovation” where it took a product in one industry – for example, the computer – and created an entirely new and distinct category within that industry. Today, Macs and PCs are the two primary categories of the computer industry. There is a whole raft of brands within the PC industry but has any one of them come to define the PC category? Likewise, there’s the iPad and there are the other tablets.

“Thinking along the EDGES of the box” – a phrase I came across recently – describes the concept of adjacent innovation perfectly. There’s much lower risk involved as the underlying technology or product or service is already proven. The innovation is about re-design (in functionality, not just form) or re-positioning so that you create a ‘new’ sub-niche or sub-category in your industry. A sub-niche or category that YOU dominate.

It doesn’t have to be a mega “change the world” or “create a whole new category” innovation a la Apple. However, it could make the difference between dying a slow death doing the “same old, same old” (particularly if you are in a highly cyclical industry such as construction) whilst waiting for the economy to recover or growing and thriving whilst your competitors fall by the wayside.

Technology today, in particular Web 2.0, opens up endless possibilities for innovation in products and services.

• How can you incorporate one or more technologies in your business to do things that differentiates you positively from your competitors?
• What part of the product or service in your industry that frustrates all customers? Is there a way of rejigging a product design or a service model that would win you the hearts and minds of your customer over your competition?
• If you are in a highly cyclical industry such as construction, are there alternativecounter-cyclical markets or industries that you could enter using the skills in your business in a different way?
• Can you harness global connectivity to improve your supply chain or expand your markets? Think beyond simple off-shoring which can be fraught with all sorts of difficulties.

Unless you are the extraordinary visionary that the late Steve Jobs was, consider brain-storming with others to “think along the edges of the box”:

• Have you got an independent advisor or independent advisory board to bounce ideas off? As a small or medium business owner wearing many hats, you can end up so close to the business that it’s hard to get sufficient altitude to take a fresh perspective. You know the business and the industry inside out but sometimes, the “light bulb” in you only comes on in the process of sounding ideas or issues with someone who is independent of the business.
• Consider using social platforms to facilitate co-creation initiatives with your customers: they are the ones who can best tell you what they really want from your product or service.
• Talk with your employees and encourage them to proposed ideas: the ones who are at the coal face with customers or on the production line are the ones who are perfectly placed to generate ideas for doing things better or identifying new opportunities.

Marketing

It seems counter-intuitive but the worst thing you could do in a downturn is to cut your marketing. How will you attract drive sales growth if no one knows you are around?

The good part is that if you all your competitors are cutting their marketing budgets, you get to stand out even more.

Social media is one of the most cost-effective and potentially powerful marketing channels. Your customers and prospective customers are online. Are you part of their conversation?

Bricks-and-mortar and local businesses can benefit tremendously from social media marketing, particularly mobile marketing. Have you considered incorporating a mobile marketing and mobile commerce strategy?

Cash: The “Must-Have” Ingredient

Cash flow – and cash reserves – should be tightly managed even in the best of times but there is little room for error when times are tough. Make sure you have the systems in place to effectively manage your finances so that you can spend more of your time on the value-creating activities of innovation and marketing.

Recessionary times often present fantastic opportunities for growth. Businesses which are financially strong are the ones who can exploit these opportunities for growth.

It doesn’t mean you should keep a huge pile of cash sitting around (there is a fine balance between a strong balance sheet and a lazy one!). Maintain strong relationships with your financiers so that you have access to funding when opportunities arise.

Would you like a free no-obligation consultation about the key issues facing your business? Contact me. No sales-y push. No ulterior motives other than to listen and be an independent sounding board. Promise.