Startup companies share some definite similarities with small businesses. And some sharp contrasts…
Evergreen = Built to Last
Most startups are launched on a shoestring by an individual (or individuals) driven by a dream. Not unlike a great many small businesses.
But startups, particularly in the tech space, are generally built to be sold. The typical scenario: launch, grow as much and as quickly as possible, and hope to be bought out by your biggest competitor. Startup founders then roll their proceeds into their next “big idea,” repeating the launch, grow, and sell cycle again and again.
Most small business owners, however, structure their enterprise as a lifelong venture. An investment and a job all in one.
Changes in Startup Culture
There’s a new movement afoot in the startup world. A new current that runs contrary to the launch, grow, and sell cycle. Rather than designing a business with an exit strategy as the end game, new school startup founders are developing businesses to last and pay dividends year after year, for many years to come.
A recent Inc Magazine article details this movement, which has been dubbed by practitioners and advocates as building Evergreen Companies.
These so-called Evergreen Companies are defined by seven key traits. The Seven Ps…
- Purpose. Being driven by a compelling vison and mission.
- Perseverance. The ambition and resilience to overcome obstacles and keep pursing the mission indefinitely into the future.
- People first. Engaging a work force of talented associates who excel as a team and are motivated by the mission and the culture as well as compensation, in the belief that by taking care of them, they will take care of the business, customers, suppliers and community.
- Private. Taking advantage of the ability of closely held companies to have a long-term view and more operating flexibility than public or exit-oriented businesses.
- Profit. Measuring success by the number that provides the most acute gauge of customer value delivered.
- Paced growth. Having the discipline to focus of long-term strategy and grow steadily and consistently each year.
- Pragmatic innovation. Embracing continuous-improvement process built around taking calculated risks to innovate creatively within the constraints of the business.
Sounds a Lot Like Your Business, Huh?
Think back to when you… got into the real estate game … or opened up your legal practice … or started your accounting firm … or launched whatever your business happens to be… Upon closer examination, you’ll likely notice the traits outlined above were central to your motivations:
Purpose
You launched your business for two reasons…
To make money. Not sheer greed. But because everybody likes to make money. And we’d all like to make it doing our own thing.
To be your own boss. Because nobody (especially not you) wants to be under anyone else’s thumb.
Perseverance
The perseverance driving your business is likely twofold…
First, you simply can’t afford to fail. You’ve got a lot (possibly even every dime they could scavenge and scrounge up) invested in your business. It’s do or die.
Second, bailing out on your dream of self-realized financial independence is out of the question. And being under the thumb of an overbearing boss once again is, in your mind, grotesque torture. It’s do or die here, too.
People First
Work dominates so much of your daily life. Who wants to be stuck with annoying coworkers or obnoxious clients? That why you promised yourself: “When I launch my business, I’m gonna chose who works for me and who I work for.”
Private
When you “struck out on your own” you did so to escape the pressures, confines and constraints of typical corporate environs. You want to do the best job possible for your clients. Not serve disconnected stakeholders or faceless shareholders.
Profit
Sure, you’re in business to make money. But to make money, you’ve got to do your best work possible to ensure client satisfaction. Thus a job well down and client satisfaction are you’re largest profit measures.
Paced Growth
You didn’t go into to business for yourself to get big. You did it to have your own thing. Of course you want your business to succeed. But growth beyond consistently turning a tidy profit is all CAKE.
Pragmatic Innovation
The ancient Greek philosopher Plato said it best: Necessity is the Mother of Invention. And so it goes with your business. You may not have big money backing you up. But that doesn’t mean you can’t, with clever ingenuity, run your business effectively.
What Does All This Have To Do With Marketing?
Swimming amid this sea of lovely platitudes, you’re likely asking yourself: “What’s all this got to do with building my business?”
In a word: Positioning.
Strategically positioning yourself in your marketplace is the key to effective marketing.
Yours is the people first, client satisfaction focused business that, while exercising industry leading expertise, places client care above all else.
As such, your business embodies the traits of built to last Evergreen Companies.
What About You?
Do you see yourself in this analysis? How so…? Swing by my Google+ page and share your thoughts.
