Guest Post
Kelly Lawrence, Founder & CEO of Lawrence Innovation
According to a recent report from the Board of Innovation, just 15% of companies are experiencing growth during the global Coronavirus pandemic. The print sector has been particularly hard hit. A July 2020 Study from the Printing United Alliance and NAPCO Research indicated that every print sector experienced more than 15% decline in revenues in March and April. By the end of June, Package Printers and Converters reported -1.4% growth whereas all other print sectors remained at more than 15% decline.
In their Low Touch Economy framework, The Board of Innovation recommends different immediate and longer-term actions based on the level of impact the pandemic had on revenues. Their advice is based on these four categories of impact:
- positive (revenue growth)
- mildly negative (0 to 15% loss in Q4 2020
- severe (15 to 50% loss in Q4 2020) or
- catastrophic (a loss of 50% in Q4 2020)
The Board of Innovation recommends a pivot for companies that experienced more than 15% declines in revenues from Q2 through Q4 2020. As it stands, the majority of the print industry is facing a need to pivot.
For sectors with mildly negative growth, such as the printed packaging industry, The Board of Innovation recommends improving competitive position and finding new growth. We all know these trying times require taking action in order for our businesses to prosper. That is often easier said than done. There are no playbooks for navigating the current crisis.
In good times, Forbes states that 8 out of every 10 businesses fail. Booz & Company reports 66% of new products fail within the first two years of launch. The product development/expansion grid known as the Ansoff matrix tells us 95% of transformative initiatives fail.
Poor success rates like these can make pivots and organic growth seem daunting and frankly overwhelming.
Our Goal is Growth
Our resources, particularly human capital, are more precious than ever. We know we need to invest to grow, but we fear spending good money after bad.
But, if we do nothing, our businesses enter the death spiral. Fear is our worst enemy. Let’s get past the fear by understanding why failure rates are so high. When we build our understanding, we are then in a position to develop practical action plans.
Let’s work backwards with the end in mind. Our goal is growth. To achieve growth, we must improve success rates. To improve success rates, we must first understand why failure rates for organic growth and businesses are so high. While a lack of funding often tops the list, the other reasons can be summarized as a lack of marketing science.
Root Causes of Failure
Is your business suffering from any of these root causes to failure?
- Not in touch with customers through deep dialogue
- Lack of unique value proposition / differentiation
- Failure to communicate value proposition
- Inability to nail a profitable business model with proven revenue streams
If your company is experiencing any of these four conditions, it’s time to implement a course correction.
We don’t want your business to fail. Call me with any questions this post may have prompted or for a personal introduction to Kelly. (561) 543-2323
Kelly Lawrence is the Founder and CEO of Lawrence Innovation and a recognized B2B growth expert. She has served the print industry her entire career – first as a specifier and buyer of commercial print, then in chemistry/ink/substrate innovation, and now as a coach, growth accelerator and connector. Kelly is also an associate consultant with Smithers.
Lawrence Innovation’s mission is to help industrial B2B companies accelerate organic growth by converting market insights into practical action plans that deliver results. Learn more at lawrenceinnovation.com