(1) Challenge conventional business modelsWhen starting a new venture do not assume the conventional business model is the right one for you and your business – challenge the status quo to find the right set-up for you. For many young companies, especially in the early stages of growth, an online-only direct distribution model can have a wide range of advantages. It means no percentage of sales will be lost to middlemen, greater control over your brand, and a more personal relationship with your customers. Your staff will also establish better technical knowledge, company loyalty and focus, and will be able to communicate with your customers more quickly. Celebrity endorsements and big name backing are often seen as the most effective means of building brand equity. Yet the often exorbitant costs of “brand ambassadors” vastly increases overheads. The result is that these costs are ultimately passed onto the consumer; we have learnt that in the watch industry, many brands will charge anywhere between seven to 12 times the cost of manufacture for the product. Removing these ambassadors and their associated costs will help keep the costs down making the product more attractive to the consumer. The reality is that consumers are increasingly seeing these endorsements for the marketing ploy that they are, and failing to see the value in these deals, additionally it is often that the star far overshadows the brand. Ultimately, it could be argued that if the product is good enough, it will speak for itself.
(2) Work together and harness up-and-coming talentAs a business develops it is important to make sure all team members and areas of the business are communicating and working together. A silos mentality, where certain departments or team members do not share information with one another, can damage the overall business growth and product development. Many companies will also look to poach top talent from direct rivals, creating industry headlines in the process. Apple, for example, has previously sought to poach a number of employees from industries they are moving into, such as from the likes of Hublot and Tesla. Yet growing ventures, irrespective of the sector they operate in, could alternatively turn their attention towards ambitious, upcoming talent that can be nurtured into the leading industry innovators of tomorrow. Seeking young talent as opposed to established talent will help develop a new generation of pioneers, whose creativity may otherwise be hindered at a larger organisation, all the while keeping costs down.
(3) Keep your friends closeMany brands will wrongly assume that to raise their profile and maximise sales they need to be engaging with as many audiences and consumer groups as possible. The reality is that unless your core, grassroots fan base is satisfied with your product, those less acquainted with your brand or sector are unlikely to be enthused; ultimately a positive brand reputation will originate from those customers and fans who are aficionados of your product type. It is towards this core group of fans and customers therefore that brands need to really focus their efforts. All too often this “core support” can be overlooked and alienated by scale-up brands overly focused on non-traditional audiences. These businesses would be wise to remember not to take this customer base for granted.
(4) Never forget the productBusinesses start with a product, idea or service – as ventures develop, business leaders can get too distracted with keeping up with the growth and building a brand, that they forget the product at the core. You can have a great business model, but if your product isn’t up to scratch, your business is unlikely to flourish. It is therefore vital that businesses keep their product or service at the heart of everything they do, making sure that it is the best it possible can be.
(5) Think boldlyAny major players in an established industry will be stubborn and either look to discredit the up-and-coming challenger brands, or integrate their ideas themselves. Nowhere is this more evident than in the luxury watch industry, and it is something Christopher Ward experienced when we first entered the market. Don’t be deterred – and don’t believe making noise simply for the sake of it will provide you with an industry footing. To truly create waves by being different, consider going back to square one and challenging an absolute industry basic, the heart of the status quo. Image: Shutterstock
Share this story