By Brianna Valleskey
My primary takeaway from “Avengers: Infinity War” had nothing to do with the Avengers.
Don’t get me wrong: The movie, itself, was great. But afterward, I was most intrigued with the Guardians of the Galaxy. One Guardian in particular--
Yep, the soft-spoken empath with antennas who joined the Guardians in the sequel.
Mantis can sense and manipulate the emotions of other people (although her character in the comics is much more robust), and those abilities play major roles in both “Guardians of the Galaxy Vol. 2” and “Infinity War.” One of the most effective uses of her powers are to make someone feel relaxed enough to soothe them into a deep sleep.
(Spoilers ahead. But seriously go see these movies.)
At the end of “Guardians of the Galaxy Vol. 2,” the team attempts to stop Ego (a “god-like” living planet and Quill’s biological father) from planting seedlings across the universe to consume planets and turn them into extension of himself. No bueno. But they need Mantis to put Ego to sleep so they can destroy the cosmic brain at the core of his planet. I mentioned that he’s a planet, right? But she does it, like a total badass.
And that’s not all. Infinity War features Mantis playing an integral role in a plan to stop Thanos from collecting all six Infinity Stones and using them to exterminate half of all life in the universe. He keeps them in a gauntlet on his left hand to harness their power. But before he’s able to find them all, some of the Avengers confront him on his home world.
Thanos is ridiculously powerful (and even more so with the Infinity Stones). So it takes a combination of Dr. Strange, Iron Man, Spiderman, Quill and Drax to distract and restrain him. The secret weapon to their strategy is—you guessed it—Mantis. She lulls him into a stupor while Iron Man and Spiderman attempt to pull the glove containing the Infinity Stones off of his hand. And they almost succeed! That is, until Quill finds out that Thanos killed Gamora, starts attacking him and basically ruins the whole plan.
Anyway, the point is that a character trait that might typically be perceived as “feminine” or even “weak” actually turns out to be incredibly powerful and useful when it comes to saving the galaxy. After seeing that movie, I developed a hypothesis that empathy might also actually be incredibly powerful and useful when it comes to running a successful business.
So I did a little research.
Why Empathy is an Underutilized Superpower in Business
In a study of 1,850 of CEOs, HR professionals and employees, Businessolver found that eight in ten agree that an empathetic workplace has a positive impact on business performance. What’s more? A whopping 87% of CEOs believe that a company’s financial performance is tied to empathy in the workplace. Nine out of ten employees, however, reported that they felt empathy remains undervalued.
So should we value empathy more at work? Let’s take a look at some its effects:
Empathy fosters an engaged workforce.
We’ve all heard that Gallup statistic that says only 32% of employees are actively engaged at work. It’s staggering, but not as much as the fact that actively disengaged employees cost the United States $450-550 billion each year. The organizational benefits of employee engagement are measurable: Businesses with the highest levels of employee engagement experience 22% more profitability, 21% more productivity and 10% better customer ratings.
Here’s where empathy comes in: When working for an empathetic employer, nine out of 10 employees are more likely to stay with an organization that empathized with their needs, and eight in 10 are willing to work longer hours. Those in demanding industries like tech, healthcare and financial services will even trade pay and work hours for an employer they perceive as empathetic. So empathetic leadership actually makes employees more motivated to work for that organization, which could offer an effective direct antidote to active disengagement.
Empathy increases job performance.
Although many theories identify empathy as an important part of leadership, the Center for Creative Leadership analyzed data about 6,731 managers from 38 countries to find out. Their findings were consistent across the sample: empathy is positively related to job performance.
Managers who show more empathy (not just have empathy, but act on it) toward direct reports are viewed as better performers in their job by their bosses. By their bosses! Not by the reports directly receiving the empathy, but by the person the manager reports to. The researchers also speculate that empathetic leaders effectively build and maintain relationships—which they cite as a vital part of high-performing businesses worldwide.
Empathy stimulates innovation.
While empathy is often regarded as a soft skill (and not particularly pertinent in the world of business), Microsoft CEO Satya Nadella believes it’s a wellspring for innovation (as well as a necessity for CEOs). Innovation, he explains, comes from “one’s ability to grasp customers’ unmet, unarticulated needs.” And that’s exactly what empathy supplies.
“Most people think empathy is just something you reserve for your life and your family and your friends, but the reality is that it’s an existential priority of a business,” Nadella said in a Bloomberg interview last year.
He asserts that CEOs should be both empathetic and confident (but also willing to learn). Given that Microsoft’s stock price has more than doubled since he took over the company in 2014, I think he might be on to something here.
So, how do we cultivate more empathy at work?
More than half of employees struggle to demonstrate empathy (however, eight in 10 of them are open to empathy skills training). Businessolver offers a template for your workplace called the “Empathy Manifesto,” but here are a few tactical tips the report also provides …
1. Acknowledge individual needs: According to the study, employees and CEOs agree that the top empathetic behaviors are understanding and/or respecting the need for time off and for flexible working hours.
2. Advocate for your employees: Employees also cited more traditional benefits (like insurance, retirement contributions and paid parental leave) as empathetic, and said that lowering costs was the most empathetic practice related to benefits.
3. Have face-to-face conversations: Nine in 10 of the study’s respondents rated face-to-face conversations and team meetings as the most empathetic way to communicate. Men cited recognition for accomplishments as empathetic, while women emphasized collaboration and one-on-one conversations.
(Notice that all of those activities focused more on supporting individuals, rather than initiating team-building activities, which tends to be a popular approach.)
One final aspect I would anecdotally add is to have empathy for your customers. Talk to them. Understand who they are, what they care about, what keeps them up at night, and how your product or service makes their lives better.
But it all starts from within. Foster empathy internally, and you’ll be better at empathizing externally with the people you're in business to serve.
By: Brianna Valleskey
There’s no question that Slack’s growth has been tremendous. The cloud-based collaboration software and message app now boasts more than nine million weekly users, six million daily users, two million paid users and 50,000 paid teams. Though the product officially launch in February of 2014, Slack generated an incredible amount of momentum throughout 2013 with clever marketing tactics like letting friends use it for free to provide feedback and inviting people to a “limited preview release.” (You can read more about it here). I learned a lot more about Slack when its CEO, Stewart Butterfield, spoke at this year’s INBOUND conference. Stewart is also the co-founder of Flickr, which sold to Yahoo in 2005 for (reportedly) around $20 million. So clearly, he knows a thing or two about scaling a business.
My favorite piece of advice had to do with coming up with Slack’s name. He cited “The 22 Immutable Laws of Branding,” which advises choosing a name that you can say aloud and not have to spell for people. Fun fact: Slack was very nearly called “Honeycomb.” But, Stewart and his team wanted a name they wouldn’t feel embarrassed to tell others, was easy to say and spell (ideally, and English word), and had some emotional resonance. He explained that “Slack,” is a technical term in project management, describes how much excess capacity a system has to take on work. The Slack platform was designed to make people more productive and successful. And when that happens, you get some slack ― more room for creativity and innovation.
Thus, the Slack brand was born. But Stewart knows there’s so much more to branding than a catchy name and stylish logo. He shared a lot of other important leadership tips that contributed to Slack’s success. Below are some of my favorites.
Stewart Butterfield’s Seven Steps for Startup Success
Step One: Create a collective knowledge base of your company.
Not surprisingly, Slack’s own software has contributed quite a bit to the company’s growth. One of the major benefits of Slack is that it maintains a record of every conversation. If you’re an employee at a new company with 10,000 people, for example, you start off with an empty inbox. Billions of messages have been shared between people before you started, but you don’t get access to any of that information. Slack automatically accrues a massive archive of what’s happening at the company over time, Stewart explained. That enables new people to easily understand social protocols, norms, who answers questions, who makes decisions, etc. just by scrolling through various channel histories. There’s also a real value to those records in terms of more accurately communicating messages to other team members who might need to coordinate with your team.
Step Two: Foster alignment with lateral transparency.
The more a company grows, the more difficult it becomes to maintain alignment across an organization. Transparency helps. Slack provides that transparency in the sense that it removes opacity from an organization. People have the ability to understand what’s going on in various departments, instead of feeling left out on decisions and updates. Technical operations can see what the support team is dealing with. Designers are in tune with what engineers are working on. Stewart said that most of management’s effort in any company is coordinating people so that everyone understands what’s going on throughout the company. Slack helps with that.
Step Three: Don’t immediately search for an exit.
Stewart admitted he somewhat regrets not trying to make the Flickr platform even better for users before selling it to Yahoo. He can’t definitively say that Slack will never be acquired, but it’s not in the plan right now. Slack’s current valuation is in the billions of dollars. The company now has $200 million in annual recurring revenue, and Stewart said it would be a “banonkers” (his combination of bananas and bonkers) decision to not see how far they can take it. Instead, he said Slack should be the giant company that goes around acquiring other companies.
Step Four: Encourage risky projects.
When people are at a big, fast-growing organization, they tend to gravitate toward safe projects because they don’t want to put their job performance in jeopardy. Yes, those projects could have high rewards; but they also have high risks of failure. In order to keep innovating, however, Stewart said you need people to keep going after those risky projects.
Step Five: Branding is what happens when people interact with your company.
Slack has responded to almost every single message people have tweeted at the company, thousands of which Stewart, himself, replied to from the company account. He believes that a brand is the sum of all the interactions people have with your company. That’s why Slack focuses on small details like fast-loading pages and clearly written copy. But more importantly, the company responded to every single one of the thousands of customer support tickets they’ve received over the years. He thinks of if as investment in marketing. And it works. Slack has a 98 percent customer satisfaction rating.
Step Six: Put customers first. Always.
Internally, Slack’s measure of success in the long term is the amount of value it creates for our customers. Create so much value for your customers that they’re happy to pay you, Stewart advised.
Step Seven: Exercise and meditate first thing in the morning.
Oh, that’s not Stewart’s routine. He joked that he starts most days by grabbing his smartphone and looking through all his emails and slack messages until he’s so anxious that he just has to get out of bed. He does not recommend this. “Those people that exercise and meditate in the morning ― follow what they do,” he said, laughing.
What’s ahead for Slack?
Of course, Stewart’s session had to touch on what the future holds for Slack. Part of the current roadmap is to make the software smarter, perhaps even creating a feature that acts as a “virtual chief staff.” The software would read all your messages for you and proactively suggest the most important tasks for you to complete that day. Stewart confessed that he probably has more than 50,000 unread messages at any given time (which that makes sense given his CEO status). He manages to get through 50-70 percent of the messages that are important to him. It would be great if he could get through all of them, he said, and with a sense of priority.
“Decision fatigue is a real thing,” Stewart said. “The more decisions you have to make about priority depletes your ability to make those decisions.”
I definitely see where he’s coming from here. And with the pace that artificial intelligence is advancing, this feature might be something we could see in the near future. But for now, I’m quite satisfied with the amount of connectivity and productivity I get from the current platform.
By: Brianna Valleskey
Jen Rubio is my hero. She’s the co-founder of Away, a lifestyle travel brand that makes thoughtfully designed luggage, but also a super sharp entrepreneur, marketer and commerce expert. Jen used to run social media at Warby Parker, where employees would tweet video responses to questions about the product (while wearing Warby Parker glasses, of course) ― a visual branding strategy ahead of its time.
So when I found out Jen had a spotlight session at INBOUND this year, I was ridiculously pumped. She spoke about creating a brand with emotional appeal, building a product that actually helps people and marketing to a mass customer base (while also finding ways to specialize). Check out my summary of her insights below.
The Principles of Building a Brand People Love
1. Birthing an innovative brand ≠ reinventing a business model.
Not every entrepreneur has to reinvent the wheel. Or, as Jen put it, reinvent an existing business model. Warby Parker wasn’t the first business to sell glasses online. Away isn’t the first luggage company. But Jen knows this. How you can differentiate your business, she explained, is by creating an incredible brand that consumers want to interact with.
Every brand has an origin story (a founding myth), and Away’s story starts with a piece of broken luggage. Frequent travelers have likely noticed that the same few luggage brands always show up in airports. You assume it’s because those brands make quality luggage. Why else would people buy it, right?
Then Jen’s luggage broke. She went online and asked her travel-savvy friends what kind of luggage to get. The answers that came back surprised her: “I don’t know, but don’t get what I have.” Most people had inherited their luggage, received it as some sort of parting gift from a former job, or simply didn’t like it.
“There was just no overwhelming sense of brand affinity for luggage,” Jen said. “Travel is something that everyone does. It’s something that excites people. But why wasn’t there a travel brand that people were excited about?”
So she set off to make an awesome luggage brand that resonates with people, and for a reasonable price: All of their bags sell for under $300. Similar bags would cost anywhere from $600-900 in retail stores. But part of Away’s mission was to create quality-to-price value.
2. Design intention must equal customer perception.
Before creating the first prototype, Away did research. A lot of research. They started by sending out surveys where people were asked to check off the boxes of each feature they wanted in their luggage. All of the boxes would be checked off. When asked which features people wanted to pay for, none of the boxes were checked. So the Away team switched to field research.
“I cannot tell you how many hours we spent watching people pack,” She laughed. “We’d visit our friends and extended networks with coffee and bagels simply to watch them pack.”
Those hours were worth it. The team uncovered insights that helped them understand what to design for: People don’t like their shoes to touch their clothes. People snatch plastic bags from hotels to store wet clothes and dirty laundry.
“People are so used to having a crappy experience packing their luggage. They didn’t know how to describe what they needed,” Jen explained. “We had to witness them doing the act.”
Away iterated on their product hundreds of times to create its minimalist design. The more people use it, however, the more they realize why certain features are in place. Take the two zippers on each bag ― they create a distinct set of clicks when you clip them into the (TSA-approved) lock. You get both the satisfaction of a packing job well done, as well as the assurance that the bag is firmly shut.
Another part of good design is just making sure that what your design intention is equals the customer’s perception. Away’s luggage is made from polycarbonate (the same material used to make fighter jets), but they wanted the suitcase to have a little give in case it was ever dropped on the ground. So a flexible prototype was made and tested with a focus group. The result? The focus group assumed that the material was cheap and flimsy.
“We’re lucky that we had that group,” Jen said. “If we had gone out to the market with that, we couldn’t have been there to explain to every customer the thinking, intention and design behind what they perceive as cheap material.”
Those are the tiny details that make people obsessed with the product, Jen said. Customers frequently write in to thank Away for making them better packers.
3. The delta between good design and brand is emotion.
Jen loves to travel. She’s been to ~60 countries and all seven continents on the planet. The core of Away, as a company, is to create a beautiful, thoughtfully designed suitcase. But, she explained, you can have things that are beautiful and well-designed, and you still don’t feel a sense of connection with that product or that company. What makes something a brand is the emotional connection you feel with it.
“If we can inspire our community of people to look at a map and feel like all of it is in reach, then we’ll have done our job,” Jen said. “I know that seems like a lofty statement for someone who makes a suitcase, but the small things count.”
If that’s not creating an emotional connection to a brand, then I don’t know what is. Away’s secret sauce is to mix that emotion with phenomenal design. The brand identity for their luggage is very minimal: clean and simple, but not austere. It’s meant to attract a large market (i.e. people who travel). The company appeals heavily to specific market segments, however, by frequently collaborating with different brands. Away has worked with companies like West Elm and celebs like Rashida Jones to reach new audiences and go all out on various designs. Each collaboration has its own soul and spirit. (As I’m writing this, Away is featuring a gorgeous piece of luggage made in collaboration with Amastan Paris on its website).
“It’s easy to say your product targets people between the ages of 16 and 60 who travel, but you probably aren’t going to make anything exciting,” Jen said.
As a brand, Away is definitely exciting. But it’s also down to earth. Jen mentioned that Away isn’t meant to be like that person you follow in Instagram who takes all these amazing trips you’ll never be able to afford. Instead, Away is the person who you see travel somewhere and think to yourself, “I’m adding that destination to my list.”
4. Telling people about your product < Demonstrating what it enables them to do.
The experience of traveling is the essence Away’s brand. A key part of traveling, your luggage can really make or break a trip. Jen believes that packing and unpacking doesn’t have to be the worst part of it. That’s why Away exists as a travel lifestyle brand that monetizes by selling suitcases.
“A lot of luggage brands use their product pages to talk about the tech specs, materials and dimensions,” she said. “We do that, but a large majority of our product page is showing the bag in action: being packed, being stored under your bed, etc.”
Away’s store in NoHo (NYC) doesn’t sell luggage. It sells the experience of travel. One corner of the store is dedicated to the suitcase, where shoppers can move it around. Pack it. Play with it. But another corner is a cafe filled with travel books, magazines and city guides. It has shelves filled with things that you bring with you on a trip (like a sleep mask and headphones).
“If you’re not telling the story of what your product can enable something to do, then you’re just a company that sells things,” Jen said. “You’re not a brand.”
What I loved most about Jen’s approach is how she integrates seamlessly product design with brand storytelling. I’m looking forward to see what Jen and her luggage company do next. You can follower her on Instagram and Twitter at @jennifer.
P.S. I hope Jen writes a book someday. In the meantime. here are some great books on branding ...
By: Brianna Valleskey
Dug Song has been hacking since he was eight. The 42-year-old started three Internet security companies, survived the dotcom bubble and absolutely loves skateboarding. Those two sentences, alone, are pretty awesome. But he’s also the co-founder and CEO of DUO Security, one of the fastest-growing SaaS providers in the world.
I was fortunate enough to catch Dug at a fireside chat via Startup Grind Detroit this week. The event was hosted at the Bamboo Detroit coworking space, so naturally the conversation geared toward entrepreneurship, startups and growing businesses. Dug’s insights were candid and refreshing. No buzzwords. No growth hacks. Just honest and concise advice based on the lessons he’s learned from building multiple businesses. Below are three imperative elements of successful business growth he talked about during the event.
3 Critical Elements of Healthy Business Growth
Purpose: Thoroughly understand what you’re trying to do.
Security is one of the biggest global issues of our time. And because security can be painful and difficult to use, Dug explained, many companies (big and small) lay below the security poverty line. Most companies have the financial resources to acquire security software. What they lack are the human resources to manage it.
“We have a mission of democratizing security,” Dug said. “We think security can’t be effective unless it’s easy.”
That’s why DUO built a world-class security platform that people actually enjoy using. Dug used to be an open source developer, even though he had a full-time job. But he created open source code in his free time because he believed that everyone should have access to encryption. It’s his purpose. And DUO is built around other people who share that purpose.
DUO further democratizes security by sharing educational content for free. Anyone can easily access the eBooks, videos, infographics, events and more on the website. That’s part of the DUO sales methodology: Help, help, sell. Team members go out of our way to be helpful with people before they even try to tell them about what DUO offers.
As a company, DUO understands why it exists. The team members are eager to work together toward their mission of making security easier to use and more accessible. As Robert Baratheon puts it in the first season of Game of Thrones: “One army, a real army, united behind one leader with one purpose.” That is the foundation of a strong business.
Community: Bring people together. Help them grow.
Fast-growing businesses must think hard about the composition of the team. No football team would recruit only running backs. That’s why Dug and his team put a lot of consideration into assembling employees with diverse backgrounds and skill sets. He said they work hard to ensure every hire is additive in some unique way.
More importantly, the leadership focuses heavily on how they can help employees reach their professional goals. How does DUO fit into the story arc of their careers? Managers have weekly one-on-ones with employees to discuss how things are going with them, how the company is doing and how DUO is helping their career.
“We just have a bunch of systems to try and keep track of someone’s career at DUO,” Dug said. “But if someone decides they want to do something else, it’s no sweat. We cheer them on.”
It was at this point during the fireside chat that I decided working at DUO would be awesome (Note to self: Check out DUO job openings online). DUO also borrows organizational learning activities from agile development. Specifically, retrospectives. Teams get together on a regular basis and discuss what’s working, what’s not, what should they try next, etc. It’s also an opportunity for them to give shoutouts to other team members for doing great work. They open and close each meeting with a few minutes of peer recognition.
The final piece of community building Dug mentioned was a board report he puts together with his team. Every six weeks, each of the functional team leaders write down all their plans, successes and problems they’ve experienced over that timeframe. This process allows them to document every major decision, every success, every failure, every learning. And he doesn’t just share it with the board; the entire company has access to the document. Their community shares collective knowledge.
“If you don’t know where we’ve been, you don’t know where you’re headed,” Dug said.
Culture: Focus on passion, not payouts.
Starting a company is hard ― any entrepreneur can tell you that. Every day is either the best or worst of your life. When DUO started, Dug explained that it was just him, his co-founder Jon Oberheide and a stuffed tiger (Note to self: Ask Dug about stuffed tiger). He related building a company to skateboarding: 80 percent is falling on your face and then getting back up to try again.
“Any kind of exponential growth comes with the long, flat part of the hockey stick where you’re just grinding and hope you don’t die,” he said.
But DUO grew and made it past its first few years, which (statistically speaking), means a company will likely survive. Dug credits the company’s purpose, community and culture for making it through those years. Note that when Dug says “culture,” he’s not talking about ping pong tables and beer Fridays. Real company culture is how people treat one another; how they work together to achieve a goal. Although Silicon Valley tends to fetishize failure, Dug added that there’s a certain degree of ambient failure that DUO wants to see at the company.
“If people try things and nothing ever goes wrong,” he said, “we aren’t trying hard enough.”
A couple people asked Dug if there was in IPO in the future for DUO, but he seemed more interested in continuing to grow the company than looking to exit. This isn’t his first rodeo. Building a great company is hard when you haven’t practiced building crappy ones. Dug answered the IPO question by saying that entrepreneurs should get some experience building companies that get increasingly bigger and broader in scope and scale. This hinted that DUO is aiming for more than just profit. The company’s passion for genuine company culture and healthy business growth proves it.
I’ve been to a lot of startup events where entrepreneurs share their wisdom, but I’ve never been quite as impressed as I was at this event. I look forward to watching DUO continue to grow.
P.S. Here are some of my recommendations for books on being an entrepreneur and leader...
By: Brianna Valleskey
I work with a lot of small- and medium-sized businesses that all want the same thing: growth. And that’s great! Growing your business means serving more customers, creating new jobs, generating innovation and, of course, increasing the bottom line. But, this is also where I see a lot of companies start to fail.
We know that failure is common among small businesses. According to the Small Business Association, about two-thirds of businesses with employees (not sole proprietorships or “solopreneurs”) survive at least two years, and almost half survive at least five years. Often-cited articles from outlets like The New York Times, Forbes and Inc. document the numerous reasons many business fail: dysfunctional management, slow or stagnant cash flow, financial illiteracy, poor value proposition, lack of cash cushion, operational flaws, low demand for the product or service … the list goes on.
There are a few areas, however, that I feel like haven’t been discussed at length. These observations come directly from companies I’ve either worked with or worked at, some of which are absolutely killing it. Others, not so much. Here’s what I’ve learned from being on the front lines of multiple SMB companies.
3 Things that will Absolutely Run Your Small Business into the Ground
1. Try to do too many things at once.
Successful business growth involves a lot of moving parts, including a well-oiled lead generation funnel, a fluid sales process, strong customer retention and (of course) a strong value proposition for your product or service. The trick is that you can’t perfect all of those things at once. I know of a software company that was constantly struggling to communicate their value prop, while also trying moving upmarket, expand their product and reduce customer churn. The result? They couldn’t do any one of those things well because the company lacked focus. In addition, they lost almost half of their employees ― some were voluntary departures after being overworked; others were laid off due to the company’s poor performance.
I also know of a company that has a 98 percent retention rate with high-profile customers like Uber and Paypal. I kid you not. This CEO waited for years to perfect his company’s product and implementation process so he could ensure customer success. If you don’t believe this method works, just look at Slack. The company started building their product in December of 2012, launched a beta version (they called it a “preview release) in May of 2013, and then finally launched to the public in February of 2014. Slack spent 14 months perfecting its product. As a result, its become one of the fastest-growing companies in the market.
2. Undervalue your employees.
You can have the best product in the whole world; but if you don’t have good employees to market the product, close deals with the right prospects, serve your valued customers or iterate on the product, you do not have a business. And you will not make money. I won’t even go into the fact that a service business is based entirely on the performance of its employees. Another company I’m familiar with brought in a majority investor that completely changed the company culture. They rid the company of anything that didn’t have to do with business operations, especially anything that resembled “startup culture” (or an immature culture, as I imagine they viewed it). No more autonomy. No more monthly company roundtables. No more team-building events. No more beer Fridays. No more ping pong during office hours. Oh, and office hours were strictly defined as 8-5 or 9-6. The company culture soon became dry and lifeless. People starting leaving. Multiple employees voices their concerns to management, but soon most of the management was leaving, too. The concerns then fell on deaf ears. To my knowledge, they still are. And the business is not doing well.
You don’t have to take my word for it. Look at Uber: After blatantly ignoring employee complaints of its employees, the company suffered a public relations disaster of epic proportions when those employees went public with their stories (examples here and here). Some of the companies I work with, on the other hand, understand the deep value of investing in your employees. They treat the company as a horizontal organization and value each individual’s point of view. Those organization are growing like crazy. Seriously. One of them is even on Inc.’s list of fasting-growing companies in the country. And it’s all because they treat their employees like the most loyal customers. In return, the employees are happy to come to work, be productive and take part in such an enthusiastic atmosphere. Sir Richard Branson was right: “Take care of your employees, and they’ll take care of your business.”
3. Underinvest in proper marketing.
I know this part seems totally biased because I’m a marketing geek. But hear me out. In the age of endless information, marketing is the number one way to get your product noticed. It involves understanding your buyer, the problems your company solves, the problems it doesn’t solve, and its unique value proposition. I once spoke to a business with an innovative product. But the company had never invested in marketing. They thought that once they built the product, they’d build brand awareness and people would start buying. You know who else built brand awareness? TiVo. You know who’s stock has decreased 85 percent since reaching its peak over a decade ago? TiVo. The company spent so much time building a brand that they forgot to create their category. People understood what TiVo did, but they didn’t understand why they needed it.
I can’t think of a single person I know who uses (or even owns) a TiVo. You know almost everyone I know has? Netflix. TiVo let you watch what you want, when you want. Netflix lets you watch what you want, when you want. But consumers didn’t know they wanted that until Netflix embarked on a rather brilliant marketing scheme of creating exclusive content. Now, we can’t live without it. More people are cutting the cord on cable and relying exclusively on streaming services like Netflix. People used to say they were going to “TiVo” something. People now say they’re going to “Netflix” and chill. Another note I need to make in this section is that I see a lot of companies leave marketing in the hands of people who are not competent. It’s as if marketing is viewed more as a side function, rather than an imperative driver of brand awareness, lead generation and customer acquisition. Hire marketers who can craft strategic campaigns and measure their results ― especially ones who can write well. When your messaging is clear, your sales go up.
These are just my thoughts based on experiences I’ve had working with SMB companies. I’d love to hear your insights, too. Feel free to leave a comment below, or check out some of my favorite books on business and marketing.
Fearless Thoughts are my insights on marketing, entrepreneurship, startups, business growth, creativity and whatever else comes to mind on any given day. Writing is how I make sense of the world.