Marketing a key to success for small businesses and entrepreneurs

In the current economic climate entrepreneurs are required to keep their businesses profitable, while spending as little money as possible. As a result, entrepreneurs should adopt an integrated approach to marketing their business, as the heart of a business’s success lies in its marketing strategy.

This is according to Justin Hawes, Managing Director of Scan Display Solutions and 2012 finalist of the Sanlam / Business Partners Entrepreneur of the Year® competition, who says that marketing is essential for the growth of a small business.

“Marketing is a process by which a product or service is introduced and promoted to potential customers. Without marketing, a business may offer the best products or services in its respective industry, but potential customers would not know about it. This makes it a vital tool for any entrepreneur entering new markets,” says Hawes.

He says that within the industry there is also a perception that only larger, more established businesses need to adopt marketing strategies. “This perception is definitely incorrect. Businesses of all sizes need to be continually marketed, even in a small way, or it is unlikely that they will grow.”

Hawes says that the marketing world is consistently evolving, creating new ways to engage with consumers, as well as influence them to try new products and services. “These new channels may intimidate small business owners and young entrepreneurs from a technological perspective, but in the current economic climate communication channels such as social media platforms can be very effective, low-cost marketing tools.

Kobus Engelbrecht, Marketing Head of Sanlam Business Market and co -sponsor of the Sanlam/ Business Partners Entrepreneur of the Year ® competition says that while marketers continue to enjoy new media and technology enabled tools, the fundamental marketing model itself has not changed. “People and businesses essentially still want useful products and services.”

Engelbrecht adds that without marketing, potential customers may never be aware of a business’s offerings and business may not be given the opportunity to progress and succeed. “Using marketing to promote your product, service and company provides your business with the best possible chance of being ‘discovered’ by prospective customers.”

He says that marketing also fosters an environment in the marketplace for healthy competition. “Without competition, recognised businesses will continue to dominate the market while lesser known, or new businesses, stand less of a chance of ever becoming successful.”

Hawes says that a marketing programme which gives SMEs the best chance of success often consists of a healthy mix of different forms of marketing, ranging from traditional means to online and social media channels.

He says that traditional marketing activities such as face-to-face communication should not be overlooked. “I really believe in the power of face-to-face communication and strongly advise that SMEs include exhibitions, conferences and networking functions in their strategies. Industry-related networking functions should also not be overlooked as these are cost-effective platforms for promoting a business.

“By spending a little bit of time and effort on marketing, entrepreneurs will see the benefit of investing in this area. In today’s competitive environment, marketing is a powerful tool that will help businesses stand out from the clutter,” concludes Hawes.

Why entrepreneurial skills are important for a business

This month we chat to Justin Hawes of Scan Display, who was one of the finalists in the EOY 2012 competition about how he manages to instil entrepreneurial skills within his business.

justin-webHow do you develop entrepreneurial skills within your business?

With freedom comes responsibility. Therefore my management style is very much one of making each employee accountable for their actions. I do not meddle in how they get a job done, or what hours they work, but give them the freedom to achieve the results we need in the way they want to. This in turn encourages an entrepreneurial spirit in the company.

This is especially true for our Account Executives. They effectively run their own business within Scan Display: they manage the entire process of quoting, closing sales, project managing each job to completion and following up on payments. To facilitate this, I empower them to make their own decisions, such as which of our solutions to offer clients and choice of supplier. This impacts their earnings, so they are very responsible in how they handle it.

Of course, I need to identify the right kind of personality for this role. I need to have Account Executives who are comfortable with this responsibility. In addition, we also have systems in place that ensure we are delivering a uniformly high quality product to our clients.

Why is the development of entrepreneurial skills so important?

By ensuring Scan’s staff are responsible and empowered, and able to be creative with their solutions, our business is able to run more efficiently. I also believe our staff members enjoy this working environment as they feel stimulated and challenged. But they also always know they can come to me with questions and concerns – my advice and support is always available.

Do you think that because of your focus on these types of skills you have an advantage over competitors?

Yes, without a doubt. Our Account Executives drive our business forward, and they would not be able to drive it so quickly if they were not empowered in this way.

Why should fellow entrepreneurs look to do the same within their business?

If you empower your staff members to act as entrepreneurs, they are more committed to their work. They take ownership of their role and are hungry for success. We reward our Account Executives financially, and they make commission from the first R1 they sell out of every job they do. This keeps them fully invested in the business and its success.

Why is entrepreneurship so important for South Africa?

All the greatest countries in the world have a culture of entrepreneurship, and it stimulates economic growth and development. The United States is a prime example of this, as anyone can start a business venture, and it is easy to move in and out of different businesses. India is also an example of a country in the developing world where people are coming up with creative businesses that bring value to the market and give them an income.

When I was recently there, I had the sense that everyone had a job, from laundry people (“debwashers”) to the people who collect lunch boxes from homes to deliver to their owners at work (“tiffin-carriers”). Everyone is busy doing something, and earning something.

By encouraging entrepreneurship in South Africa we will be able to stimulate job creation. Rather than relying on the government to create jobs, people will be in a position where they can create their own jobs – and ultimately more jobs for other people too.