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Story 2: Marketing Separates The Old Ways From The New

11/25/2019

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Excerpt from 'Just Tell Me More - Marketing Tips in 10 Minute Chunks'

​Tom and Joe are brothers who grew up working in the family business. Tom is conservative and, in his own words, not very creative. He chose to stay with the older, established company and continue in his parents’ footsteps, running the business as his father did for the past forty years.

He had no desire to change anything and felt that if he continued to run the company the way his parents did, he would have a nice lifestyle and hopefully be able to pass the business on to his children. Tom was not a marketing-oriented businessman. 

Every year, he followed the same marketing program, conducted seasonal sales, developed the same brochure (substituting a few new products), and worked with the same sales reps his father had employed for many years. Tom felt that if you built a good product, the customers would find you.

Joe, on the other hand, knew that there was more they could do with the business. He wasn’t sure what needed to be done, but he realized that marketing would play a large part in the future success of their business. Joe spent a lot of time out on the road, talking to customers, finding out what competitors were up to, and looking for new opportunities.

Joe often returned from sales trips and trade shows brimming with ideas. He told Tom that they needed to expand their marketing efforts to include new media and a social media program. But Tom insisted that they were doing enough marketing and had no reason to change. Sometimes when a business has been successful, the thought of new activities seems to be an unnecessary expense.

Unfortunately a business owner can wait too long, until the market requirements and competitors catch up to them and it’s then too late.

As time passed, the conflict with Tom became unbearable for Joe. He recognized the opportunities for the family business but knew that his brother would not change. Joe decided to start his own business. He knew that marketing was more than a brochure and the occasional sale. Over the years, he had learned that there are two key components to marketing:

1. Creating and using the various tools available.

2. Managing the marketing program from original strategy and design to the finished marketing materials.

Joe planned to stay in the same kind of business as his family. His first major commitment was to ensure that his business would be marketing oriented. 

He researched opportunities, became familiar with new marketing techniques, and established a long-term relationship with a marketing professional, who helped guide him and establish a team of suppliers to cover traditional, new media and social media marketing. Joe's strategy included using the best of the established methods and continually testing new marketing methods. 

Eventually, Tom’s business stagnated, sales barely kept up with expenses, and profits became a thing of the past. While Tom was suffering, Joe became more successful than even he had dreamed he could be.

Joe hired a marketing consultant. Together, they developed a solid sales and marketing strategy, embraced new technology by establishing a strong database, and conducted ongoing focused communication with staff, suppliers, customers, and prospects. They developed and updated sales tools on an ongoing basis to keep their sales force and customer service staff equipped with the latest in marketing weapons.

In time, Joe absorbed the family business into his own. Tom stayed on but acquired a new appreciation for marketing. Joe continued to manage the marketing efforts and his company grew large enough to create their own internal marketing team. Joe creates the company vision and the entire company carries out that vision.

These cases demonstrate how marketing plays a key role in the success of any small business. Ignoring the advantages that a structured, well thought-out marketing program offers could put your business in jeopardy. Make use of experts, try to benefit from their years of experience and keep up with the newest techniques.

​“Success or failure doesn’t randomly happen to you. You have a large say in when and how much.” EG


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Intimate Roundtable with Eric Gilboord 'Growing and Selling Your Business'​

11/4/2019

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In Person
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Online
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Exclusively for Owners only, to explore their transition options in a confidential safe space. This is not a networking event. Attendees will be vetted.
​
If you have questions about growing and or transitioning from your company and would like to get answers in a safe and confidential environment. Take a first step now with WarrenBDC and join us.

Attend a private by invitation only, limited seating event. Get on the list for our upcoming dates now. Our events are typically co-hosted with local trusted Advisors like Wealth Management, Financial Planners, Accountants, Insurance, Lawyers, Family Offices etc.

To learn more about hosting or attending email eric@warrenbdc.com.

COMMENTS ON ROUNDTABLE
​

Thank you Eric. Your warm and candid stories obviously come from your genuine desire to connect with your clients and your years of taking the time to care for their businesses and their families. You discussed complex issues with ease by making them relatable from the point of view of someone who may be unsure of how to go about transitioning their business either to family or to a third party. Thank you for taking the time to educate us in a warm and humorous way. You made a potentially anxiety-ridden experience an actual pleasure.

Regards, Anthony (Financial Planner Co-Host)

This is just a note to follow-up on yesterday’s lunch and dinner events. You engaged the audience so well with personal allegories that resonated with each of them. And thank you for showing such nice solidarity with Maricel, Anthony and me. Much appreciated.

I thought the “Safe Room” setting for our guests was particularly effective: we’ll set up another one soon.

Regards, Jody (Financial Planners Co-Hosts)

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When is 30% More Than 70%?

11/4/2019

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Not ready to leave your company just yet? There is an alternative. A way to take some chips off the table, stay involved and make a really nice bonus contribution to your retirement fund. Ease your way out while assisting the new Owners to drive the company to greater success.

A business model being used more often these days is for the Buyer to purchase 70%. The Seller retains 30% and stays on in whatever capacity they are most comfortable. Where required they provide a smooth transition to industry and customer relationships, while sharing their vision and insights for the potential of the business.

As the company increases in value the Seller will enjoy the benefits the new Owner brings to the table. At a predetermined time the remaining 30% is then sold to the new Owners or both parties together sell to another Buyer. Ideally at a much improved value. It's a win win.

There are many ways to transition a business. This is just one. It is in your best interest as the Seller to explore multiple sales opportunities available to you.

As usual, we are a phone call or email away and ready to help. Good luck.

Eric Gilboord eric@warrenbdc.com or 416-270-2466
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