Page 5 - NBIZ Magazine April 2021

“Why” this principle is important month asking themselves, “How much process is a series of actions or steps
is probably the first question to be time did I devote to working IN the that deliver a particular result while,
answered? The answer is RESULTS. business from fighting yesterday’s a procedure is an established method
Without results/profits, one’s business fire to marketing through digital or of undertaking the process.
would no longer exist. social media?” Next, the owner(s) Recently, I read an article that chal-
The U.S. Bureau of Labor Statistics should review his/her’s time devoted lenged business leaders to evaluate
reported approximately 20% of U.S. to working ON the business. Did you their marketing efforts by applying
small businesses fail within the first observe any differences? the 20/80 rule. This author took an
year. Then after five years, the failure Yes, strategic planning is an in- unusual path and asked what would
percentage increased to 50%. Within vestment of time upfront. Yet, in over happen to one’s marketing results if
a decade, only one-third of small a year, if the planning involved even one began to reverse this principle?
businesses remained. 40 hours, what percentage would that The author suggested assessing
From my twenty plus years of be? The answer is less than 2% based current marketing actions (80%) and
working with solo entrepreneurs, on a 40-hour workweek with a 52- then redirecting those efforts to those
small business owners, and even week year. Would such strategic plan- actions that delivered better results.
larger million to multi-billion-dollar ning efforts allow one to review one’s Again, from my experience many
organizations, the inability to secure results on a quarterly or even monthly small business owners, especially solo
results is usually attributed to the lack basis so that one is not scrambling at entrepreneurs, engage in spray and
of any strategic planning. As President the end of the financial year? pray marketing. “Spray the marketing
and General Dwight Eisenhower said, By now you may realize the answer efforts all over the place and then pray
“Plans are worthless, but planning to the “Where” question is simple: something sticks.” Social media has
is everything.” Strategic planning by probably everywhere. Planning the only enhanced the “spray and pray”
its very nature clarifies most if not all answer to both the why and where marketing process. Some believe
aspects of business. This clarity often question. Processes and people are also social media or digital marketing is
reveals the Pareto Principle from what the answer to the “Where” question. the quick fix to poor results or easy
clients generate 20% of business income Marketing, sales, financials, money. Nothing could be further from
to what 80% of the efforts such as mar- customer service, innovation, and the truth.
keting only deliver 20% of the results. recruitment to growth are all pro- Sales is another very confusing
Years ago, I developed this cesses. As an aside, there sometimes word. In business, selling is consid-
amazingly simple acronym of ACE: is confusion between process and ered sales. Yet, when clients or cus-
Assess, Clarify, Execute. When procedure. To ensure clarity, a tomers make purchases, they are also
looking at results, planning begins
with assessing various elements
or factors regarding the business The U.S. Bureau of Labor
including external factors such as
economy, competition, etc. to internal Statistics reported
ones including employees, sales
process, employee reviews, etc. From approximately
this detailed and sometimes time- 20% of U.S. small
consuming activity, leaders can clarify
what is important and gain crystal businesses fail within
clarity or those “aha moments.” Then,
when leaders execute specific actions the first year.
(action steps from the now assessed
and clarified goals), improved results
happen. Just think if 20% of one’s Then after five years,
executed actions would deliver 80% of
one’s business results where would the failure percentage
one’s small business be?
In the book, The E-Myth, Michael increased to 50%. Within
Gerber emphasizes one of the reasons
small businesses fail is the owner a decade, only one-third
or owners spend most of their time
“working on the business” instead of of small businesses
“working in the business.” Owner(s) remained.
should regularly take a moment and
review the past workweek or work

NBIZ ■ April 2021 5