Top 10 Reasons Why Small/Medium Size Businesses Fail SlideShare.Net Viewers 2008

Agenda Intro to e-Storm What we know about SMB Who we’ve helped How we’ve helped Top 10 Reasons why SMB fail Marketing & Phases of Development How do I start?

Intro to e-Storm

What we know about SMB

Who we’ve helped

How we’ve helped

Top 10 Reasons why SMB fail

Marketing & Phases of Development

How do I start?

e-Storm – Who are we? e-Storm is a full service interactive marketing agency Our strength is in our holistic approach to marketing strategy. We specialize in tailored solutions specific to client’s marketing needs and specific audience behavior. Market Research Market Entry Strategy Competitive Research Survey Design/Management Site Traffic Analysis Site Usability Analysis Promotion/Marketing Testing Online Advertising Strategy Media Planning Media Placement Tracking Tools/Technology Campaign Analytics Multi-channel Analysis Organic Search - SEO Site Optimization Sales/Lead Consulting Content Consulting Linking/SEO PR Strategies Word of mouth for Search Paid/Organic Integration Paid Search Keyword Development Copy Development Bid Management Daily Optimization Tracking/Client Reporting Local Search Marketing Creative Offer Development Copy Development Banner, Newsletter Design Landing Page Development Webinar Consulting Word of Mouth Marketing WOM Audit Creative Development WOM Marketing Online+Offline Strategies Buzz tracking Technical/ Back-End Lead Capture Tracking Tools Web Site Analytics Affiliate Prog. Development Database Management International Markets Europe, Asia, N. America Targeted Online Marketing Site Customization Copy Translation Lead Generation INTEGRATED ONLINE MARKETING SERVICES

e-Storm is a full service interactive marketing agency

Our strength is in our holistic approach to marketing strategy. We specialize in tailored solutions specific to client’s marketing needs and specific audience behavior.

Market Research

Market Entry Strategy

Competitive Research

Survey Design/Management

Site Traffic Analysis

Site Usability Analysis

Promotion/Marketing Testing

Online Advertising

Strategy

Media Planning

Media Placement

Tracking Tools/Technology

Campaign Analytics

Multi-channel Analysis

Organic Search - SEO

Site Optimization

Sales/Lead Consulting

Content Consulting

Linking/SEO PR Strategies

Word of mouth for Search

Paid/Organic Integration

Paid Search

Keyword Development

Copy Development

Bid Management

Daily Optimization

Tracking/Client Reporting

Local Search Marketing

Creative

Offer Development

Copy Development

Banner, Newsletter Design

Landing Page Development

Webinar Consulting

Word of Mouth Marketing

WOM Audit

Creative Development

WOM Marketing

Online+Offline Strategies

Buzz tracking

Technical/ Back-End

Lead Capture

Tracking Tools

Web Site Analytics

Affiliate Prog. Development

Database Management

International Markets

Europe, Asia, N. America

Targeted Online Marketing

Site Customization

Copy Translation

Lead Generation

Our Focus Since 1998 Experience in: B2B Hi-Tech Financial Services Healthcare Telco B2C Travel/Hospitality Financial Services Tech Toys Education Entertainment

Experience in:

B2B

Hi-Tech

Financial Services

Healthcare

Telco

B2C

Travel/Hospitality

Financial Services

Tech Toys

Education

Entertainment

A Few of Our Large and SMB Clients

SMBs we’ve helped e-Storm has worked with many SMBs in our 10 years in business conducting successful market research, online marketing and lead generation campaigns Apriso Blue Pumpkin Software – now Verint BlueStar Solutions – now ACS Ebates FON Funschool GemStone Systems Kaospilot University Muvee Neuron Data/Blaze Software – now Fair Isaac Corporation PayCycle Pleo/Ugobe Sagent – now Group 1 Software Spectrum Pacific Learning Co. Silicon Energy Corp – now Echelon Think3 Travelpod – now Trip Advisor Vayama Zamba Solutions – now TSC

e-Storm has worked with many SMBs in our 10 years in business conducting successful market research, online marketing and lead generation campaigns

Apriso

Blue Pumpkin Software – now Verint

BlueStar Solutions – now ACS

Ebates

FON

Funschool

GemStone Systems

Kaospilot University

Muvee

Neuron Data/Blaze Software – now Fair Isaac Corporation

PayCycle

Pleo/Ugobe

Sagent – now Group 1 Software

Spectrum Pacific Learning Co.

Silicon Energy Corp – now Echelon

Think3

Travelpod – now Trip Advisor

Vayama

Zamba Solutions – now TSC

How we’ve helped Market and Marketing Research Audience definition Competitive analysis Marketing testing Community-based market research Sales consulting Lead & demand generation Online advertising SEO PPC Social media marketing Offline/online marketing integration Analytics

Market and Marketing Research

Audience definition

Competitive analysis

Marketing testing

Community-based market research

Sales consulting

Lead & demand generation

Online advertising

SEO

PPC

Social media marketing

Offline/online marketing integration

Analytics

Top 10 reasons why SMBs fail SMB – less than $100Million in revenues

Top ten reasons why SMBs fail Top 10 reasons why SMBs fail: Choosing a small, obscure niche Inflexibility Forgetting the user Lack of market research Spending too much money Not focusing on features No promotion Not developing the pitch Developing technology, not products Slowness/quickness to launch

Top 10 reasons why SMBs fail:

Choosing a small, obscure niche

Inflexibility

Forgetting the user

Lack of market research

Spending too much money

Not focusing on features

No promotion

Not developing the pitch

Developing technology, not products

Slowness/quickness to launch

Choosing a small/obscure niche: Competition – Why it’s necessary You can compete in a saturated market by specializing in a niche market Your niche should be large enough to support your business, and customers are not too expensive to find and serve You need to know how fast your niche is growing and how much market share you will need to capture Choosing a small, obscure niche in the hope of avoiding competition will only lead to your failure - don’t be a market of one Technology alone will not carry your company when it comes to dynamic, competitive markets Some of the most successful technology companies owe their leadership positions to outstanding business and marketing strategies

You can compete in a saturated market by specializing in a niche market

Your niche should be large enough to support your business, and customers are not too expensive to find and serve

You need to know how fast your niche is growing and how much market share you will need to capture

Choosing a small, obscure niche in the hope of avoiding competition will only lead to your failure - don’t be a market of one

Technology alone will not carry your company when it comes to dynamic, competitive markets

Some of the most successful technology companies owe their leadership positions to outstanding business and marketing strategies

Flexibility is the key - Your business plan Your business plan should be fluid Markets are dynamic: they call for processes, analysis, occasional changes in strategy No long term plan – If you don’t have a plan for the long term, say goodbye to your funding Your business plan should have: a detailed description of how you will market your product a description of your competition how you intend to not only survive, but also actually thrive Marketing budget should allocated during the first quarter….

Your business plan should be fluid

Markets are dynamic: they call for processes, analysis, occasional changes in strategy

No long term plan – If you don’t have a plan for the long term, say goodbye to your funding

Your business plan should have:

a detailed description of how you will market your product

a description of your competition

how you intend to not only survive, but also actually thrive

Marketing budget should allocated during the first quarter….

Forgetting the user - Your Internet/Interactive Presence Forgetting the user – websites designed by the management team, not for users will net poor results Business today depends on making your presence on the internet Your website should be user friendly, live and optimized before your product is ready for prime time Don’t ignore all the other internet presence possibilities: B2B and B2C communities B2B and B2C social networks Online advertising Search

Forgetting the user – websites designed by the management team, not for users will net poor results

Business today depends on making your presence on the internet

Your website should be user friendly, live and optimized before your product is ready for prime time

Don’t ignore all the other internet presence possibilities:

B2B and B2C communities

B2B and B2C social networks

Online advertising

Search

Lack of market research – Product/service has no specific user in mind Products can be destroyed before they even begin if you don’t do the research; It’s imperative to research and validate the market before you launch/grow your business Constantly talk to prospective customers and find out what they really need, you will end up with more compelling offering When designing products for other people you can no longer guess; you have to find users and respond to their needs Most founders assume that someone will want what they’re building Someone might, but will enough someone's want it for your business to be successful? Have you answered these questions? What is happening in the market? What are the trends? Who are the competitors? How do consumers talk about the products in the market? Which needs are important? Are the needs being met by current products?

Products can be destroyed before they even begin if you don’t do the research; It’s imperative to research and validate the market before you launch/grow your business

Constantly talk to prospective customers and find out what they really need, you will end up with more compelling offering

When designing products for other people you can no longer guess; you have to find users and respond to their needs

Most founders assume that someone will want what they’re building

Someone might, but will enough someone's want it for your business to be successful?

Have you answered these questions?

What is happening in the market? What are the trends? Who are the competitors?

How do consumers talk about the products in the market?

Which needs are important? Are the needs being met by current products?

Spending too much money - Where did it all go? Hiring too many people too fast Contrary to popular belief, you don’t need that jet Underestimating the amount of time and capital necessary to reach cash flow breakeven Unless you are turning a profit, most of your money should go to development and marketing

Hiring too many people too fast

Contrary to popular belief, you don’t need that jet

Underestimating the amount of time and capital necessary to reach cash flow breakeven

Unless you are turning a profit, most of your money should go to development and marketing

Features – don’t forget about features People care about features Make sure your most important features are impossible to miss Don’t try to be everything to everyone – persona development is key Too many features generally leads to: bloated code a confusing interface a large number of poorly implemented features instead of a few complete ones more bugs or security flaws

People care about features

Make sure your most important features are impossible to miss

Don’t try to be everything to everyone – persona development is key

Too many features generally leads to:

bloated code

a confusing interface

a large number of poorly implemented features instead of a few complete ones

more bugs or security flaws

Marketing - You mean the product won’t sell itself? Why marketing is important from day one Companies that market in parallel with development are more successful than companies that don’t spend on marketing Marketing should be the heart of all activities – for most, internet is very effective use of budgets Marketing actually can earn you more customers. More customers = more revenue Marketing drives more traffic to your website If your site isn’t coming up on a simple Google search with keywords describing your core product, you aren’t reaching your target market The real truth of business – no one cares! Make them see how important your product/service is to their lives Market, market, market

Why marketing is important from day one

Companies that market in parallel with development are more successful than companies that don’t spend on marketing

Marketing should be the heart of all activities – for most, internet is very effective use of budgets

Marketing actually can earn you more customers. More customers = more revenue

Marketing drives more traffic to your website

If your site isn’t coming up on a simple Google search with keywords describing your core product, you aren’t reaching your target market

The real truth of business – no one cares!

Make them see how important your product/service is to their lives

Market, market, market

Pitch – Your great idea You can’t get anywhere in building a product/service or a company without a phenomenal pitch The failure of pitch is a structural failure that affects your entire company Everything in your company depends on the vision that you’ve presented - screwing that up can be fatal Pitch is the idea, in a sentence, that gives you credibility

You can’t get anywhere in building a product/service or a company without a phenomenal pitch

The failure of pitch is a structural failure that affects your entire company

Everything in your company depends on the vision that you’ve presented - screwing that up can be fatal

Pitch is the idea, in a sentence, that gives you credibility

Developing technology, not products You don’t have a company until you have a product/service Deliver a product that meets a critical market need better than the competition Product is not the pitch!!! Your customers need to see what you’ve been building Your employees need to know that there is something that they have achieved Make sure your product is useful; serves a need

You don’t have a company until you have a product/service

Deliver a product that meets a critical market need better than the competition

Product is not the pitch!!!

Your customers need to see what you’ve been building

Your employees need to know that there is something that they have achieved

Make sure your product is useful; serves a need

Slowness/quickness to launch Slowness to launch Software is always 85% done You need to launch, it’s the only way to test in the real world and understand users’ needs Some typical delays to launch Working too slowly Not truly understanding the problem Fear of having to deal with users or being judged Working on too many different things Excessive perfectionism Quickness to launch It is possible to launch too fast? Ruin your reputation If the product is no good, users won’t come back Is the product useful on its own? Can it be integrated and expanded into their whole project(s)?

Slowness to launch

Software is always 85% done

You need to launch, it’s the only way to test in the real world and understand users’ needs

Some typical delays to launch

Working too slowly

Not truly understanding the problem

Fear of having to deal with users or being judged

Working on too many different things

Excessive perfectionism

Quickness to launch

It is possible to launch too fast?

Ruin your reputation

If the product is no good, users won’t come back

Is the product useful on its own? Can it be integrated and expanded into their whole project(s)?

Marketing & Phases of Development

Marketing’s Place in Development Idea Growth Maturity Value Stages of Development Seed Venture Capital Mezzanine IPO Startup Launch ‘ Valley of Death’ Creating buzz, generate leads Product Validation We work these types of companies: Pre-revenue firms looking for customer validation of their product prototypes 2. Launch stage firms looking to create buzz and interest in their product or service Established firms, in “growth mode” looking to acquire customers and/or partners Acquiring customers & partners

We work these types of companies:

Pre-revenue firms looking for customer validation of their product prototypes

2. Launch stage firms looking to create buzz and interest in their product or service

Established firms, in “growth mode” looking to acquire customers and/or partners

Marketing’s Place in Development Strategic Review Preparation for financing and/or product roadmap Market Assessment Marquee Customer Pain Points Competitive Positioning Quantitative Data Primary Prospect list Lead Gen Campaigns Hook Creation Lead Gen Program Testing and Optimization Large Scale Lead Generation Revenue Generation Lead Qualification Sales Consulting Scale Up Lead Generation Social Media Marketing Generating Awareness Buzz creation SEO/SEM Online and Offline Advertising

Steps you must take to ensure success Adapt to the changing landscape of your target market Follow the ‘buzz’ Adapt your business plan – be fluid Know your customers and what they need Promotion and pitch – conveying the right message Two critical components to success Create your pitch to reflect your idea, promote your idea from day one Apply your pitch to your marketing – your message and creative should reflect your vision first Launch timing – coordination of launch and promotion Your launch and the promotion around it are critical to the success of your product or service Your promotion needs to match what you are launching – don’t promise too much or not enough Finding the customer Paid search, SEO, online advertising, social media marketing – most companies don’t have the staff to handle all aspects of the breadth that is needed to succeed You’ve established a need, built a product/service offering…is your company being found?

Adapt to the changing landscape of your target market

Follow the ‘buzz’

Adapt your business plan – be fluid

Know your customers and what they need

Promotion and pitch – conveying the right message

Two critical components to success

Create your pitch to reflect your idea, promote your idea from day one

Apply your pitch to your marketing – your message and creative should reflect your vision first

Launch timing – coordination of launch and promotion

Your launch and the promotion around it are critical to the success of your product or service

Your promotion needs to match what you are launching – don’t promise too much or not enough

Finding the customer

Paid search, SEO, online advertising, social media marketing – most companies don’t have the staff to handle all aspects of the breadth that is needed to succeed

You’ve established a need, built a product/service offering…is your company being found?

How do I start?

Customers use all channels – so should you

SEO, Paid Search Local marketing Targeted Campaigns Portals – Awareness & Leads Leads Lead Generation Companies Social Media Advertising Customers use all channels – so should you

How to get started Schedule a free 2 hour business review with e-Storm Review of your current online marketing strategy e-Storm will review: Your current marketing plan Your current online strategy and campaign effectiveness Your sales lead cycle and CRM usage Your use of analytics and reporting of your web traffic The ‘buzz’ you’re creating Follow-up with a suggested ‘Kick-Start’ strategy

Schedule a free 2 hour business review with e-Storm

Review of your current online marketing strategy

e-Storm will review:

Your current marketing plan

Your current online strategy and campaign effectiveness

Your sales lead cycle and CRM usage

Your use of analytics and reporting of your web traffic

The ‘buzz’ you’re creating

Follow-up with a suggested ‘Kick-Start’ strategy

“ I was very impressed with the relevant insight and professional market intelligence we received from e-Storm. Their senior advisors and research team were able to connect with multiple Tier 1 prospects in our target market to validate TenXc’s value proposition and identify key buying criteria. IN a short time we obtained valuable customer knowledge for our product roadmap. Leveraging e-Storm’s expertise and resources has accelerated a broader view of the TenXc customer market opportunity.” Ross Ernst VP of Marketing TenXc Wireless "e-Storm was instrumental in focusing our online marketing efforts to the right audience for our product. They worked with us as a partner, understanding every aspect of our business, so that our testing efforts yielded measurable results that were analyzed to develop future campaigns addressing target audiences and offers." Michele Zenor Senior Marketing Communications Manager Wells Fargo Bank "We needed to integrate, track and understand the impact of offline and online marketing activities – e-Storm helped us through the process, and we now have a reliable platform to not only understand the impact of marketing activities but we also have one to manage relationships with our different audiences.“ Tony Thompson Vice president - Consumer Real Estate Division Bank of America What are customers are saying

“ I was very impressed with the relevant insight and professional market intelligence we received from e-Storm. Their senior advisors and research team were able to connect with multiple Tier 1 prospects in our target market to validate TenXc’s value proposition and identify key buying criteria. IN a short time we obtained valuable customer knowledge for our product roadmap. Leveraging e-Storm’s expertise and resources has accelerated a broader view of the TenXc customer market opportunity.”

Ross Ernst

VP of Marketing

TenXc Wireless

"e-Storm was instrumental in focusing our online marketing efforts to the right audience for our product. They worked with us as a partner, understanding every aspect of our business, so that our testing efforts yielded measurable results that were analyzed to develop future campaigns addressing target audiences and offers."

Michele Zenor

Senior Marketing Communications Manager

Wells Fargo Bank

"We needed to integrate, track and understand the impact of offline and online marketing activities – e-Storm helped us through the process, and we now have a reliable platform to not only understand the impact of marketing activities but we also have one to manage relationships with our different audiences.“

Tony Thompson

Vice president - Consumer Real Estate Division

Bank of America

William Gaultier tel.: 415-352-1214 [email_address] Lisa McGuire tel.: 415-352-1262 [email_address] Thank You!