A Plan to Succeed

“If you fail to plan,” Harvey MacKay is quoted as saying, “you plan to fail.”

How many banks lend money to a new venture without seeing a business plan? In most cases it is part of the application. Why then, is a sustainable marketing plan so unusual?

Here’s why – most entrepreneurs think the entire world is their marketplace. They have such firm convictions in their product or service that they feel it will market itself if they can just get the message in front of an audience…any audience. (How many times have we heard- “Get me on Oprah”) The first rule in land development is:  Don’t fall in love with it. Yet they do. And it’s the same with other products and services as well.

A Wells Fargo/NFIB study, using data from the U.S. Census Bureau, says 62.5% of small businesses will fail within a ten year period. So here is how the six step process typically goes:

• Enthusiasm – They launch the product feeling anyone and everyone will buy it if they see it. Money is spent in media, web sites, PR, etc., all based on an entrepreneurial pride.

• Surprise – When it doesn’t take off, they find it hard to believe. More money is spent but this time, in what appears to be, better tools to get the job done.

• Commitment – Some sales take place but not enough to justify the expense; however, the spurt of sales is enough to harden the commitment. The thinking is: it is just a matter of time before this catches on. Kind of like the playing craps.

• Denial – Most of the seed money is spent and now many marketing options are closed due to lack of budget. The hope is to limp through until sales generate enough to invest again.

• Fallback – Figuring there are some other partnering opportunities that can make it work. Partnering can bring more cash into the business.

• Blame – Now the very sources used to promote the product are the culprits, or there was sabotage inside the organization. It is still, essentially, a good idea.

  With inventory and marketing being the two most expensive items on the P&L, why not develop a comprehensive, yet flexible, marketing plan before spending money?

We ask our clients to allow us to script and follow a marketing plan. It is amazing the decisions and directions that come out of the planning meetings. It is equally amazing how much money, time and frustration it saves.

It’s not just for entrepreneurs. It works for every company regardless of size and complexity. A plan to succeed. How imaginative! MacKay would be proud.