Showing posts with the label entrepreneurship

Embracing second order effects to unlock business growth

The challenge with building a marketing engine inside an entrepreneurial company is that it requires the business to start managing second and third order effects, and most aren't geared for it.   Up to a point, a company can afford to grow only through what I call first-order effects. It makes stuff, then sells it, with people doing things directly related to the making and selling. It's a straight line. But at a point, to break through a growth ceiling, you need to start introducing complexity to leverage exponential effects. One way to do this is to manage a brand that proactively shapes reputation and run promotions to influence market behaviour. In short - build a marketing  function .  When a business starts taking marketing seriously, it pulls on the strings that influence the actions leading up to the sale.  Marketing, specifically the  communications part,  is one removed from sales. Herein lies the challenge! Managing first-order effects can only grow a business so mu