- Player: Grant Rushmere
- Brand: Bos Brands
- Established: 2009
- Visit: bosicetea.com
When Grant Rushmere first envisioned Bos Ice Tea, he did it through the lens of creating a global brand. This wasn’t going to be a small local brand that would grow organically, and maybe enter international markets in the distant future.
No. This was a brand engineered for stratospheric growth, which required a ballsy optimism and willingness to go big or go home.
Of course, that just means a harder and longer fall if things don’t work out, but Rushmere and his founding partner, Richard Bowsher, weren’t thinking about that. They had their eyes squarely focused on the one year mark.
“That’s how much runway we had,” says Rushmere. “We could see the date when we were going to run out of money, and we were hurtling towards it.”
Related: Bos: Grant Rushmere
But they had a plan, and they were going all-in to pull it off.
“From the beginning we jumped in with both feet. We approached retailers and secured contracts that we knew we wouldn’t be able to sustain down the line if we didn’t get funders on board, but it was a calculated risk that we were willing to take.”
The strategising went like this: Both Bowsher and Rushmere had seed capital, Bowsher from the sale in 2000 of his Silicon Valley-based streaming media company, Streaming Media Inc, and Rushmere from the sale of his business, Afro Café, to Red Bull (yes, that Red Bull) founder, Dietrich Mateschitz. But although they could get the business off the ground, they knew they’d need a lot more money to finance high-level growth and launch internationally.
Organic growth curve
Rushmere and Bowsher saw three options. One was a lower, more organic growth curve, made possible because Bowsher’s rooibos farm would supply the base product.
“Richard moved back to South Africa from San Francisco. He settled in Cape Town and then bought an incredible piece of mountain land in the Cederberg as a getaway,” says Rushmere. The land bordered a rooibos farm, and Bowsher was soon spending time with the farmer, discovering a love for rooibos and how it’s grown and fermented.
By the time Bowsher and Rushmere were introduced by a mutual friend, he had bought the rooibos farm from the farmer. Klipopmekaar Farm was the ideal supplier of the base product for Bos Ice Tea.
“I had developed the idea, brand and product, but I didn’t want to be a lone ranger,” says Rushmere. “I was looking for a partner who would co-invest in the business and bring skills to the company. Richard was ideal. He loved rooibos and actually produced it, and he is excellent with contracts and HR matters. Where I think a handshake will suffice, he puts a contract in place that protects everyone’s interests. Together we had the skills this business needed.”
Joining forces meant that they had everything they needed to launch a niche brand, including the funds for slow, contained growth.
Bootstrap or invest
Option two was to put more money in themselves, or find other seed funders. “We didn’t like this option. Equity is cheap early on, and expensive later. We wanted something of value to offer investors, not just an idea. This also wouldn’t let us scale at the rate we wanted to.”
Related: 6 Tips For Bootstrapping
Building an attractive business
Which leads us to option three: Building a business that is highly attractive to investors, already has market share and is a proven concept — but at the risk of losing everything if those investors don’t come on board.
“We knew we had real potential and market enthusiasm, and we gambled everything on it,” says Rushmere.
“We also had support from all the major retailers, including Woolworths. They liked that we were a local South African product. We were growing fast, and we had successfully differentiated ourselves from our competitors. We weren’t overlapping Lipton and Nestea. We had different messaging and a different taste.”
This all played into the ultimate plan of securing an investor. “We exuded confidence. This is what ultimately secured us the Woolworths contract. We knew the contract would be attractive to investors, but we needed an investor on board to actually be able to deliver to Woolworths. Timing was everything.”
The risk paid off. In 2010, three major investors came on board. Up to this point, Rushmere and Bowsher were the sole owners, with a 60/40 equity split. They now made the strategic decision to dilute that equity and hold a smaller percentage in a much bigger business.
“We believed that the greater potential of the right investors could impact massive growth. We’re in the FMCG market — we couldn’t do this without big growth — so we made the decision to take the potential we had created and run with it.”
Bringing investors on board
First, Invenfin, the venture capital arm of the Remgro Group, came on board. The alignment was perfect. Rushmere’s plan had been to generate market traction before approaching investors. Invenfin’s priority sectors are technology and food and beverage, with a preference for businesses that have achieved meaningful market traction, are on-trend globally and are poised for rapid growth. Bos Brands ticked all their boxes.
Next, former Manchester United FC coach Sir Alex Ferguson invested in the business as an angel investor. “This was a personal connection,” says Rushmere, who is a friend of Ferguson’s son and daughter-in-law. The business model sufficiently piqued Ferguson’s interest to get him involved, and he remains a shareholder to this day.
Finally, Vovo Telo founder Dave Evans not only invested in Bos Brands, but became a member of its management team as well.
“Vovo Telo was a client. Our early strategy was to focus on delis and speciality stores, introducing the brand to the public and developing a niche consumer base. In his stores, Bos was outselling Coca-Cola. Dave was intrigued – he had an SAB background and an MBA, which gave him incredible training and insights into the consumer beverage market, and he’d sold a 51% stake in his business to Famous Brands. He was ready for a new challenge, and we were it.”
The right investors don’t only bring money to the table, but expertise as well. Dave Evans joined the business as its CEO. “I’m an ideas guy. I love products and marketing. Richard has a great talent for HR and building the structure of a business, and of course has the rooibos farm. Dave is an operations guy.
He could build this out better than any of us, and his addition to our team was invaluable in our overall growth plan.
“Alex is an internationally recognised personality. Don’t ever discount the lift a product — particularly a consumer product — can receive from being associated with a famous personality. Alex also has a wealth of connections and associations that have proved invaluable as we’ve moved into international markets.
“And of course, Invenfin came with incredible links and networks, as well as the know-how associated with building successful companies. Over the years the influence and guidance Invenfin’s team has given us over and above the capital investment has been invaluable.”
The power of marketing
Gutsy moves and calculated risks aside, the success of Bos Brands is a lesson in the power of marketing. In their first year, Rushmere and Bowsher spent as much on marketing as their turnover.
As their revenue has increased, they haven’t pulled back on marketing spend — they’ve grown it. Rushmere is a firm believer that you get what you pay for, and what he’s been aiming for since the inception of the brand is no-holds-barred growth.
“I’ve always been someone who loves creating products, building a brand and then aggressively marketing it,” says Rushmere. “My first business, Afro Café, attracted the attention of Red Bull’s head of advertising and the man who came up with the line, ‘Red Bull gives you wings’, Johann Kastner. He then introduced me to Dietrich Mateschitz, who became first a partner, and later bought the whole business, and this association gave me unfettered access to the Red Bull engine room.”
Since Red Bull is arguably one of the most successfully marketed brands in the world, this access came with lessons that Rushmere has put to good use, first in launching Bos Ice Tea, and later in growing the business, both locally and internationally.
“You have to do your research,” says Rushmere. This sounds so obvious, and yet not all start-ups spend enough time on this incredibly important first step.
“Roger Hamilton [a New Zealand entrepreneur and founder of Wealth Dynamics] has this incredible analogy. He tells a story about how he and his 11-year-old sister were drawing stick figures in summer art class. They weren’t looking anything like real people. And then the teacher taught them a trick. She told them to turn the piece of paper upside down, and draw the space around the figure. Once you turn the paper the right way up, you have a perfect figure. That’s what business is like. You need to take a step back, look around, really see your competitors and what they’re doing, and then find the gaps. This is the only way you can define your own space.
Rushmere’s next piece of advice is to never stop digging. “This was a big awakening for me. I’d present researched ideas to Dietrich and he would say, ‘nope, not there yet. Keep searching.’ I had to work at it and keep distilling my idea. I had to find a way to get to the simplest form to convey my message.
“The more complex you get, the less likely it is that people will take on your message and embrace your brand. You need to create a Trojan horse. As a consumer, if you can see the idea of the brand and it’s simple enough, you will assimilate it into your personal narrative. As a brand, once you’ve got that right, you can add depth. Adding layers to your narrative takes time. It can’t be rushed.”
According to Rushmere, there is a set process to brand creation. First, make the early interaction with your brand simple. “Think about human nature,” says Rushmere.
“If we had a full CV of every person we met, before we knew them, we’d form opinions, make assumptions and be overwhelmed. But, if you meet them, find them friendly, open and engaging, then you want to learn more — and you’ll keep learning more. Finding a brand that you like and identify with is the same.”
Once you’ve set this foundation, you follow up with your brand story. “Brands need to be humble. Think about the most successful brands in the world. Their messages are incredibly simple. Red Bull gives you wings. Coca Cola: Open happiness. Nike’s iconic, ‘just do it’. These are all simple messages that have been repeated a lot. These brands have sold a simple idea that has layers and layers of complexity behind the simplicity — but none of that was created in a day. Most importantly, all successful brands are easy to recognise, remember and relate to.”
Bos’s tagline is ‘Not just an ice tea’, highlighting how one simple sentence can have layers of complexity: Rooibos is an alchemical transformation, and the brand’s portrayal of itself has always kept this front and centre.
“Rooibos is a green plant that has no flavour,” says Rushmere. “You need to break the cell structure and ferment it in the sun to reach the flavour. We use this alchemical ‘twist’ through all of our communications. From a wagon that serves drinks topped with an umbrella that looks like a palm, to giraffes on bicycles selling ice tea, but looking like ice-cream bikes. Everything we do is about a sense of transformation — what you expect to what we actually are. Everything had to have a trick in the box. If it didn’t, we didn’t do it. This built an expectation around the brand, without us giving long discourses about who we were and what we stood for.”
So how do you get there? “It’s a process of distillation. We have a tendency to want to squeeze more and more in. You have to fight that urge. Anything that’s not necessary must go. Simple, beautiful packaging is an important first step. For us, this meant a really cool can that was bold, colourful and recognisable. The fact that the product is organic and contains less sugar than other ice teas and soft drinks comes later. In your first view we’re not telling you any of this. Our sole aim is to grab your attention with a memorable name and cool packaging.
“Part of the success of beverages in particular is that they need to be entertaining. They transport you emotionally to a happy, entertaining place. This means the brand needs to trigger the subconscious, not just through taste, but emotions and ideas.
“If you try to sell too much upfront you’ll lose that impact. Insecure brands do this and you achieve the reverse of a simple, powerful statement.”
What does this mean for Bos Ice Tea? “We knew we were tapping into a huge global market on the high end of the consumer scale, and that iced tea speaks to a health trend, but this didn’t mean we should scream health from the front of our packaging, and in our marketing messages. If you do that, you lose all sense of fun. You want your consumers to feel a little naughty; like they’re having fun. Long-term, that’s how you build brand equity. It might sound counter-intuitive, but from a brand’s perspective, an emotional hook is much easier to defend than a functional hook. By tapping into emotions — what the brand stands for and how it makes you feel — you give the brand a voice; you’re not just selling features and benefits. If you take a functional approach to marketing, you’re basing everything on the fact that you contain less sugar than other soft drinks. What happens when someone comes along with even less sugar? You’re suddenly dead in the water.”
Fun, quirky, Afrochic — Bos Ice Tea has cemented its place in the hearts of South African and European consumers. And the brand’s journey is still just beginning.
The 360˚ secret to brand building
As the Bos brand has matured, its message has become more sophisticated, and its interaction with consumers more refined, but its essence was shaped from the beginning.
“Most brands want to say as much as possible in their early stages,” says Bos Ice Tea founder Grant Rushmere. “You need to fight this urge. Let your customers consume your product without too much noise.
“My Dad used to give a speech at our 21st birthdays. He said that there are three cycles of seven to get to 21 years old. The first seven years are physical. The next seven years are emotional, and the final seven years are mental. Once all three stages have been completed, you’re an adult — but it can’t be rushed.
“Brands are the same, although thankfully it doesn’t take 21 years to grow a brand. Instead, you need to have been around for three years before you can develop a 360˚ brand. During that time you’ll have been developing a story and a narrative, and consumers will be getting to know your product, but you won’t have been delving into the complexities of your values. This has a long tail. If you try to do your whole 360˚ in six months, it won’t work. It’s too much all at once and becomes overwhelming for your target market.”
The three stages of a 360˚ brand
- Create a physical product.
- Tap into emotions. “In our case this meant building up the fun before talking about the health benefits of our product, but for other brands it’s about highlighting your relevance. No matter what you do, if you bear your soul a little bit and really show your consumers who you are, you’re helping them to make the decision to buy. This can polarise your market, but that’s okay. If you stand for something, those who feel the same way will be drawn to you. The secret is to be authentic and resonate with your market.”
- Go serious. Once the brand and market are mature, it’s then time for the more serious message (in Bos’ case, the fact that the product is organic, contains less sugar than other soft drinks and has health benefits.)
“The most important thing to remember is that it’s all a process,” says Rushmere.
“This can’t be rushed. As brand owners our intent doesn’t always manifest either, and that’s okay. Let your consumers decide who you are. Don’t shove your message down their throat; let them form an opinion, and then create a dialogue with them. If you align your messaging, you will create a space where your consumers can share experiences with you, and that’s more powerful than any message you can try to force on them.”
Of course, Rushmere is the first to admit that this takes confidence. “You can’t please everyone. Try and you might lose your soul. Instead, start with one simple idea: What is important to me? If you know why you are doing this, and you can find your purpose, then the rest will follow naturally.”
One final word of advice: Be consistent above all else. “Don’t be afraid to be repetitive with your message,” he says. “It’s important to not jump around, and that means sometimes you will be repetitive. Think things through carefully, and then don’t change them — it’s expensive, it confuses the market and people won’t know who you are.”
Related: The Importance Of Brand
Bos Brands’ global strategy
South Africa’s market is small compared to the US and Europe. Local ice tea consumption is 800ml per person, while the US and EU have 18 litres and 8 litres respectively. Switzerland on the other hand consumes 26 litres of ice tea per person per year.
Given South Africa’s tiny market, Rushmere and his team have used their local launch as a building block to develop the brand and its story, but ultimately they have always been focused on the international market.
Currently Bos Brands’ market is 50% international and 50% local.
“Half of our business is in Europe. We entered Holland and Belgium first. We chose the Benelux countries because this is a premium product, and so we needed to look at markets that have the potential for premium performance. China is huge, but price points are low. We were looking at premium pricing, and markets with more than 10 litres per person consumption. The Benelux market is huge; it’s sitting at €1 billion.”
In addition to a love for ice tea, the Benelux countries already know and love Rooibos tea. “Fruit flavoured Rooibos tea is extremely popular in Holland and Belgium in particular, so even though we were a very South African product, we weren’t completely unknown.
“We also understood that our ability to influence the market is good because the countries are geographically close to each other, but at the same time each market is slightly different, allowing us to learn valuable lessons before spreading ourselves out.”
Scaleup Learnings From Our Top Clients – What The Most Successful Entrepreneurs Do Right
So, how do our successful clients move through these constraints to scaling up? We see four key drivers of success, and they are: people, strategy, flawless execution and finance.
You’re out of your start-up boots, staff is increasing, your client base is growing, revenue is up and you’ve proven your case to the market. Now it’s time to scale up. The challenges of this vital growth phase are different and it’s a time that demands different mindsets and different actions. In a world littered with small business failures, it helps to be well-prepared for scaling up using a proven methodology. At Outsourced CFO, we get an inside look at the success factors of our clients who are mastering the transition.
On the one hand, scaling up is a really exciting phase; this is what moves you into real job creation and making an impactful contribution to economic growth. On the other hand, it is really hard to scale up successfully. We see three major constraints that limit companies’ transition from start-up to scale-up:
The business has to have the leadership that can take it to the next level. When you start scaling up, especially rapidly, the founders can no longer do everything themselves. The team must grow and include new leadership talent that can take charge and execute so that the founders are working on the business instead of in the business.
The processes, procedures, networks, systems and workflows of the business all need to be scalable. This is imperative when it comes to your infrastructure for the financial management of your business. You’re only ready for growth when your infrastructure can seamlessly keep pace.
Scaling up demands more innovative marketing and storytelling so that you can more easily connect and engage with the new employees, clients, network partners, investors and mentors that need to come along with you on your scale-up journey.
Businesses that build a market conversation and a compelling brand narrative during their start-up phase are better positioned to have this kind of market access when they need to scale up.
It is critical to have the right people on your team. Our successful entrepreneurs have what it takes to attract, inspire and retain top talent. A strong team of smart, ambitious and purpose-driven people who love the company and want to see it succeed contribute greatly to a world class company culture. They are adept at communicating a compelling vision and establishing core values that people can take on. These entrepreneurs are tuned into the aspirations of their people and focus on developing leaders in their teams who can in turn develop more leaders.
It is planning that ensures that the right things are happening at the right times. At successful scale-ups strategies and action plans are devised to ensure that the most important thing always remains the most important thing.
Strategy includes input from all team members and setting of good priorities for the short, medium and long term. Goals are clear and everyone always knows what they are working towards. The needle is continuously moved because 90-day action plans are implemented each quarter to achieve targets and goals that are over and above people doing their daily jobs.
Top entrepreneurs are not just focused on what operations need to achieve, but how the business operates. They have the right procedures, processes and tools in place so that everyone can deliver along the line on the company’s brand promise. Frequent, quick successive meetings ensure the rapid flow of effective communication. Problems are solved without drama. There is no chaos in the office environment. Everyone is empowered to execute flawlessly to an array of consistently happy clients.
Everyone knows that growth burns cash. A rapidly scaling business faces the challenge of needing a scalable financial infrastructure to keep the company healthy. Our successful entrepreneurs pay close attention to finance as the heartbeat of the business, ensuring that everything else functions. They look at the tech they are using for financial management and for the ways that their financial systems can be automated so that they can be brought rapidly to scale. The capital to grow is another vital finance issue.
The best way to finance a business is through paying clients on the shortest possible cash flow cycle. However, when you are scaling up and making heavier investments in the resources you need for growth, it is likely that you will need a workable plan for raising capital. Our scale-up clients know the value of accessing innovative financial management that provides high level services to drive their business growth.
Navigating the scale-up journey of a growing private company is one of the hardest but most rewarding of careers to pursue. Having people in your corner who have been through this journey before helps take a lot of pain out of the process. No growth journey looks the same, but there are tried and tested methods that will – if applied diligently – lead to definite success. Happy scaling!
That Time Jeff Bezos Was The Stupidest Person In The Room
Everyone can benefit from simple advice, no matter who they are.
When you think of Jeff Bezos, a lot of things probably come to your mind.
You likely think of Amazon.com, a company he founded more than twenty years ago, that’s completely disrupted retail and online commerce as we know it. You probably also think of his entrepreneurial genius. Or the immense wealth that he’s built for himself and others. You may also think of drones, Alexa and same-day delivery. Bezos is a visionary, an entrepreneur, a cutthroat competitor and a game changer. He’s unquestionably a very, very smart man. But sometimes, he can be…well…stupid, too.
Like that time back in 1995.
That was when Amazon was just a startup operating from a 2,000 square foot basement in Seattle. During that period, Bezos and most of the handful of employees working for him had other day jobs. They gathered in the office after hours to print and pack up the orders that their fast-growing bookselling site was receiving each day from around the world. It was tough, grueling work.
The company at the time, according to a speech Bezos gave, had no real organisation or distribution. Worse yet, the process of filling orders was physically demanding.
“We were packing on our hands and knees on a hard concrete floor,” Bezos recalled. “I said to the person next to me ‘this packing is killing me! My back hurts, it’s killing my knees’ and the person said ‘yeah, I know what you mean.'”
Bezos, our hero, the entrepreneurial genius, the CEO of a now 600,000-employee company that’s worth around a trillion dollars and one of the richest men in the world today then came up with what he thought was a brilliant idea. “You know what we need,” he said to the employee as they packed boxes together. “What we need is…kneepads!”
The employee (Nicholas Lovejoy, who worked at Amazon for three years before founding his own philanthropic organisation financed by the millions he made from the company’s stock) looked at Bezos like he was — in Bezos’ words — the “stupidest guy in the room.”
“What we need, Jeff,” Lovejoy said, “are a few packing tables.” Duh.
So the next day Bezos – after acknowledging Lovejoy’s brilliance – bought a few inexpensive packing tables. The result? An almost immediate doubling in productivity. In his speech, Bezos said that the story is just one of many examples how Amazon built its customer-centered service culture from the company’s very early days. Perhaps that’s true. Then again, it could mean something else.
It could mean that sometimes, just sometimes, those successful, smart, wealthy and powerful people may not be as brilliant as you may think. Nor do they always have the right answers. Sometimes, just sometimes, they may actually be the stupidest guy in the room. So keep that in mind the next time you’re doing business with an intimidating customer, supplier or partner who appears to know it all. You might be the one with the brilliant idea.
This article was originally posted here on Entrepreneur.com.
How Sureswipe Built Its Identity By Building A Strong Company Culture
Culture is unique to a business, it’s the reason why companies win or lose.
A company’s culture is its identity and personality. Since this is closely linked to its brand and how it wants to be viewed by its employees, customers, competitors and the outside world, culture is critical. The challenge is understanding that culture contains unwritten rules and that certain behaviours that align to the culture the company is nurturing should be valued and cherished more than others.
At Sureswipe, the core of our culture is that we value people and what they are capable of. We particularly value people who are engaged, get on with the job, take initiative, are happy to get stuck in beyond their formal job descriptions, and who sometimes have to suck up a bit of pain to get through a challenge.
We include culture in everything we do, so it’s a fundamental element in our recruitment process. In addition to a skills and experience interview, each candidate undergoes a culture fit in the form of a values interview. We look for top performers who echo our core values (collaboration, courage, taking initiative, fairness and personal responsibility) and have real conviction about making a difference in the lives of independent retailers. If we don’t believe a candidate will be a culture fit, we won’t hire them.
If we make a mistake in the recruitment process, we won’t retain culture killers, even if they are top performers. This is such a tough lesson to learn, but it liberates a company and often improves overall company performance.
Culture should be cultivated, constantly communicated and used when making decisions. At Sureswipe, we often talk about what it takes to win and have simplified winning into three key elements: A simple, yet inspirational vision; the right culture; and a clear and focused strategy. The first and third elements can be copied from organisation to organisation. Culture on the other hand is unique to every business and can be a great influencer in its success.
Catch phrases on the wall are not the definition of culture
A strong culture is purposeful and evolving. It’s what makes a company great, but also exposes its weakness. No company is perfect and it’s important to acknowledge the good and the bad. Without it, we cannot ensure that we are protecting and building on the good and reducing or eradicating the bad.
Mistakes happen. That’s okay. But we are very purposeful about how mistakes are handled. Culturally we’re allergic to things being covered up or deflected and have had great learning moments as individuals and as an organisation when bad news travels fast. It’s liberating to ‘tell it like it is’ and almost always, with a few more minds on the problem at hand, things can be rectified with minimal impact.
Culture should be built on values that resonate with you and that you want to excel at. In our case, some are lived daily and others are aspirational in that we’re still striving for them. In each case we genuinely believe in them and encourage each other to keep living them. This increases the level of trust within the team, as there is consistency in how people are treated and how we get things done.
We are always inspired when, after sitting in our reception area, nine out of ten visitors will comment on the friendliness of staff. We hear their remarks about how friendly the Sureswipe team is or a potential candidate will talk about the high level of energy and positivity they experience throughout the interview process.
These are indicators that our culture is alive and well. It’s these components of our culture — friendliness, helpfulness and positivity — that cascade into how we do business and how we treat our customers and people in general. Being able to describe your culture and support it with real life examples is a great way to communicate and promote the type of behaviour that is important and recognised within the organisation.
Culture doesn’t just happen
We are fortunate that culture has always been important to us, even if it wasn’t clearly defined in our early days. As we grew it became important to be more purposeful in the evolution of our culture. About four years ago, the senior leadership team and nominated cultural or values icons were mandated to relook all things cultural.
A facilitator said to us, “You really love it when people take the initiative, and get very frustrated when they don’t.” That accurate insight became core to our values. We love to see people proactively solve problems, take responsibility for their own growth, initiate spontaneous events, change their tactics or implement new ideas. It energises us and aligns to the way we do business.
We celebrate growth and love to see our staff getting promoted due to their hard work and perseverance. We recently had one of our earliest technicians get promoted to the Regional Manager of Limpopo. It was one of the best moments of 2018.
Be purposeful with culture, describe it, communicate it and use it in all aspects of business. Culture should change. Don’t allow phrases like ‘this is not how we do things,’ or, ‘the culture here is changing,’ to stifle the growth and development of your culture. When done correctly change is a good thing. Culture is driven from the top but at the end of the day it’s a company-wide initiative. Design it together with team members from different parts of the organisation to get the most from it. And then make sure everyone lives and breathes it.
The best ROI is achieved when you stop wasting money.
Peter Drucker once said that businesses have two main functions — marketing and innovation — that produce results. “All the rest are costs.”
If you agree, that means that the average business has a lot of fat to trim. Obviously you can go overboard trying to cut costs too. My philosophy has been to look at some of the general areas where you can add some efficiency but not at the expense of impairing your most valuable resource — your focus.
The following cost-cutting measures will do that. Think of these as adding value to your company, whether it’s time, creativity or a closer connection to your consumers.
Uncover inefficiencies in your process
This is where I begin. In fact, it was analysing the inefficiencies of legal communication and knowledge sharing that led me to create Foxwordy, the digital collaboration platform for lawyers. I noticed that attorneys in our clients’ legal departments were drafting new documents from scratch when they could pool their knowledge and save time by using language that a trusted colleague had employed in a similar document. Business is all about process. When you create a new process, or enhance an existing process, you will drive cost efficiency.
Refine your process, then automate
If existing processes are lacking, it is time to create process. If you have processes, but they are not driving efficiency, it’s time to redefine your process. Either way, a key second step is refining processes that are needed in your business. Only then can you go to automation, since automating without a process will result in chaos — and won’t save time or money. Similarly, automating a poor process is not going to give you the cost-saving results you are looking for.
Thanks to the Cloud, there are very accessible means of automating manual processes. For instance, you can automate bookkeeping functions with FreshBooks and use chatbots to interface with clients — for very basic information. If you’re a retailer, a chatbot on your site can explain your return policy or address other frequently asked questions. Automating such processes allows you to spend more time focusing on clients and customers. Technology alone isn’t a panacea for all business functions, but if you find something you’re doing manually that can be automated, take a look and consider how much time and process definition automation would save you.
Rethink your outreach
Marketing and outreach are usually big and important challenges for an organisation. In my experience, there are two main components to successful marketing — knowing your customers and using the most effective media to spread your message. For the first part, I recommend polling. There are various online survey services that offer an instant read on what your customers are thinking. You may think business is humming along, but a survey could reveal that while consumers like your product, a few tweaks would make it even better.
For the second part — marketing messaging — once you have a firm idea of your marketing messaging, Facebook is a great vehicle for outreach. The ability to granularly target customers and create Lookalike audiences (from around 1 000 consumers) can help grow your business.
Scrutinise your spend history
There are tools that can help you assess spend history and find cost-cutting opportunities. For example, you might be able to take advantage of rewards or loyalty programmes to reduce common business expenses, like travel, or consolidate vendors for a similar function. If you have a long-standing relationship with a vendor, negotiate better pricing.
The most important elements to keep in mind are resources that make your company special. Your company may be built on one person’s reputation and expertise. Guard against tarnishing that reputation with inappropriate messaging in advertising or social media. If your company’s special sauce is intellectual property, protect that too. But everything else — ranging from physical property to salary and benefits — are costs and should be considered negotiable. — Monica Zent