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Why are so many small Businesses still struggling?
This article is not intended to minimize the current economic climate and how it has impacted small businesses. However, small business owners have little control over the economy. Someone once said, “Life is not about waiting for storms to pass… it’s about learning to dance in the rain.” And what I am writing about today is learning to dance in the rain. That means taking charge of the things which are under the control of small business owners.
Actually, large and small businesses alike are suffering. As I consult with these businesses, I find that their strategy is to go “back to basics” and multiply their sales efforts. But there are two major problems with this strategy. First, the prospect is bombarded with cold calls. So, they quit answering the phone and taking appointments so they can insulate themselves from sales people. The only people they are willing to speak to are those with whom they have a previous relationship. Second, going “back to basics” is not the right strategy because marketing has changed over the past few years. The old methods are longer as effective as they were in the past. Allow me to explain.
Many things have changed over the past few years. The economy is just one example. Marketing, in particular, has changed dramatically. It is rapidly moving, or has already moved, away from a traditional mechanical model to an emerging organic model. For centuries we have been using a mechanical model of best practices in marketing and until recently it has served us well. However, many innovative changes in technology have rendered this model virtually obsolete. Those who have not adapted to these changes are struggling more than necessary in this economy. Those who have adapted are securing new accounts and taking business away from those who have not.
So let’s take a close look at the differences between the traditional mechanical marketing model and the new emerging organic marketing model.
Traditional Mechanical Marketing Model
Emerging Organic Marketing Model
The main objective of this article is to raise awareness about the change from a mechanical to an organic marketing model and to encourage small business owners and entrepreneurs to change their practices to match this transformation if they wish to succeed.
Why is it important to change?
The most important reason is that the mechanical method is becoming less effective with every day that passes and the organic method is becoming more effective every day. There are 55 million people on LinkedIn (with almost 500,000 groups), 350 million on Facebook and over 100 million on Twitter. If you want to catch fish, you have to go where they like to swim. When is the best time to change?
A couple of old adages come to mind… “The time to dig a well is before you are thirsty.” And “The best time to plant a tree is twenty years ago. The second best time is now.” I think both of these adages are apropos when it comes to small business marketing today. It takes time to build networks and communities. Actually, it takes a lot of time. And even when you have built sizable networks and communities, it takes time to build trusting relationships and convert these into revenue. The one thing small business owners don’t have is time. So what is an entrepreneur or small business owner to do?
It is a dilemma, to be sure, but considering the mechanical marketing model is losing its effectiveness with each day that passes, I don’t see any other option than to move to an organic marketing model. So here are a few suggestions.
Making the Transition from a Mechanical to an Organic Marketing Model
Often times I have found that employees are more in tune with organic marketing than their employers. After all, they are probably among the millions that have joined social networks. If I were expanding my sales force at this point in time, a part of my evaluation would be the size and quality of their social networks and communities that they could bring with them when they join the company.
As a small business owner, the power of organic marketing will be multiplied by the size of the networks and communities of your current and future employees. So, why not look them up on LinkedIn, Facebook, Twitter, etc. during your interviewing and selection process to see what they can bring to the table.
Yes, our current economy does make it difficult for small business owners. Yet, those who transition to organic marketing will be miles ahead of those who don’t, and will be far better positioned when the economy recovers.
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