One in five small businesses started will end up closing their doors in the first five years. As a small business owner turned consultant, I have witnessed this countless times, which is one of the reasons I am focusing on small business education. It’s not enough just to have a HUGE dream, HUGE vision, seemingly boundless passion and the willingness to do what it takes to succeed. Without a strategy to tackle these areas of risk, your for-profit business or nonprofit will not survive. So, what are these areas?
In my blog, I addressed this as small business myth #1. You need help. Even if you are a business who can produce a product or service all by yourself, you will not grow with this mindset and your boundless energy will morph into burnout in say… the first five years.
The first part in this series of three “If You Build It…” addresses the second small business myth. Just because you exist does not mean your customers or donors know anything about you. Just because you have a passion, doesn’t mean that everyone will share that passion, or even if they do, how will they find you? Last week I shared some practical ways to market in my blog “Growth Happens” and later in this blog we will talk about your story.
Mismanagement of cash flow or even worse, no management of cash flow is a business assassin. I know because I’ve spent the last five years helping small businesses in crisis. If you don’t know what cash flow is, watch this “What is Cash Flow” and you will hopefully have a better understanding.
When the time comes for a business to hire its first vendor, then independent contractor and then employee, it is usually at a moment of crisis. Having a well thought out plan how to duplicate your customer service, your core values, your passion and who you want to be on your team is important for sustainability.
You can possess talent, skills and amazing natural leadership ability, but true leadership does not come without lessons. You can learn these lessons by experience only (a long path with the corpses of a few small businesses along the way) or you can learn from others who have paved the way. Good or bad leadership does not happen in a vacuum, it is learned.
So, let’s talk about telling your story. There are many experts at marketing. You can find a system that fits you and your business anywhere. But storytelling is coming to the forefront of all marketing. If you are trying to build a business or nonprofit organization, you need customers or donors. In “This is Marketing” by Seth Godin, he explains this type of marketing in a way that this blog could never cover. He says that all marketing should effect change. In other words, your product or service should be about changing someone’s life for the better. If you can’t figure out how your story will change your customers’ or donors’ lives for the better, you are never going to get them to buy your product or service or donate to your organization. “Tell the story that matches the built-in dreams of your customers and then show up regularly, consistently and generously to organize, lead and build confidence in the change you want to make.” He sums up marketing using storytelling as “Engaging a tribe as you make change happen.” Everyone has an innate desire to be part of something bigger than themselves. So, while consumers show up temporarily, a loyal customer or donor shows up to participate in a story bigger than themselves — that they could not create on their own. They show up for the opportunity they would not have if your organization was not there. “Persistent, consistent and frequent stories earn attention, trust and action.” Action in the form of purchases and/or donations is what your organization needs for sustainability.
My story is simply this – I am passionate about small businesses staying in business. Period. Because of this, I am offering a service that will educate small business owners on how to do just that, one step at a time.
To learn more about storytelling in marketing, I recommend reading Seth Godin’s book or following Donald Miller at Buildingastorybrand.com. These are not the only experts in the world of marketing that can help you. The important takeaway is that you must market to grow your business. How you navigate this is as varied and complex or as simple as you want it to be.