Patrick Schwerdtfeger is a motivational speaker who can speak about marketing and operations (and which is more important for business success) at your next business event. Contact us to check availability. The full transcript of the above video is included below.
Full Video Transcript:
Hi, and welcome to another edition of Strategic Business Insights. Today we’re going to talk about marketing versus logistics. So look, my career as a speaker, I am constantly going to different conferences and business events and giving talks, and afterwards people come up and they want to talk to me, which I love. It’s one of my favorite aspects of what it is that I do for a living.
But it also really surprises me how misguided a lot of people are when it comes to entrepreneurship. I speak about a variety of topics, but some of the topics fall into the entrepreneurial, small-business, self-employment genre. So I’m in front of small business owners and self-employed professionals and so on, or people who have an entrepreneurial mindset. And they come up afterwards, and I can always tell if they talk, if they present their idea or their business concept, as if the logistics of the business is the biggest challenge – I know they’re probably going to fail. And I hate to say that, but it’s true.
If you have a business idea and you’re hung up on the logistics of the business as being the primary obstacle to success, it’s not true and you’re on the wrong track. The primary obstacle to success is marketing. It’s marketing and/or sales. How do you get new customers? How do you get revenue? How do you sell your great idea?
People think that if they make the best product out there that the demand is just going to come on its own. It’s not true. It doesn’t happen. Look at Bose Stereo Speakers. Is Bose really the best speaker out there? No, of course not. They’re the best marketed. Are Nike shoes the best shoes out there? No, of course not. They’re the best marketed. I’m sure they have some outstanding shoes, I’m sure Bose has some outstanding speakers, but are they the best? No. What they are are the best marketed. Marketing is what matters.
Logistics – anybody can do logistics. Anybody. If you can’t do it, you can hire someone who can. Logistics is not the problem. The problem is marketing. And that’s where you need to focus your attention.
When someone comes up and they have an idea, and they talk about how they’re going to market the idea, then I know that person probably has some experience in business. They’re savvy about what the challenge really is. But if they’re just going to talk about, “Oh, I have to get this program,” or “I have to get the right technology behind this, it’s going to be better than anything,” it doesn’t matter. It doesn’t matter if it’s better than everything else. That’s problem number two. It’s going to matter eventually, but only if you get the demand first. You have to get people to buy the product first. That is priority number one.
Now, there’s another thing I want to touch on in this same video, which is that a lot of people who come up, they tell me they have this idea but they don’t want to tell me what it is. They want to keep it secret because they don’t want anyone else to steal their idea. Don’t worry about it. Don’t worry about it.
Listen, everyone’s got a great idea. Everyone has a great idea. You’ve got great ideas. I’ve got great ideas. Everyone you know has a great idea. Who’s going to actually take action? Who’s going to figure out the marketing and actually get the thing to take off? Every great idea that’s out there in the marketplace, a hundred, a thousand, 10,000 people probably had that same idea before the company that actually took it to market. The company that took it to market were the ones who could figure out the marketing.
Now, if you’ve got an idea and you don’t want to share with other people because you’re worried that someone else is going to steal their idea, number one, 98% of the people, they’re not going to do anything. Talk is cheap. They’re going to get all fired up. They’re going to tell you that they’re going to take this thing to the moon, whether their idea or someone else’s, that they can do it. They can’t. Most of these people fail.
The statistics are true, that 80% of businesses fail in the first five years and 80% of the ones that are left fail in the next five years, and that’s a tiny subset of the people who want to start businesses. Of the 100% of the people who want to start businesses, I’m willing to bet that probably only 10 or 20% ever even actually do. So say 10% do, and 80% of those, so eight of the 10, are gone after the first five years, and 80% of the two are gone after the next five years.
Don’t worry about it. Most people are not going to take action. And the people who have the motivation and the determination and the tenacity to go after their business, they’re not going to go after your idea. They’re going to go after their own idea. So don’t worry about it.
If you have some great idea, you don’t have to worry too much about keeping it secret. No one’s going to do anything with it. Everyone has a great idea. Almost no one takes action. And the people who do take action, they focus on the logistics. They focus on the logistics of the business, which hardly even matters. All that matters is marketing, getting the revenue, getting the customers. That’s priority number one, so you don’t have to worry, is my point.
Just understand that if you have a business idea, logistics – it’s fine. It’s important. I get it. But that is second priority. You have to know what it’s going to be. You have to know what’s going to be required to deliver the service you’re promising. But priority number one is, how do you get the customers? How do you get the revenue? Focus on that, and if you do, I think you’ll have a much better chance of success.
Thanks for watching this video, guys. Once again this is Patrick, reminding you to think bigger about your business, think bigger about your life.
Patrick Schwerdtfeger is a keynote speaker who has spoken at business conferences in North America, South America, Europe, Africa, the Middle East and Asia.