Asia is “hot,” with unicorns and many exciting startups and innovations flourishing in the scene. And yet, according to some data, 30% of startups in places such as Singapore fail within 5 years, and many startups in Asia tend to fail compared to the global stage. Costs and capital aside, what are the reasons for failure, and how can businesses in Asia thrive?
Small businesses power the world
Small businesses are the backbone of the world, contrary to the media presenting a perception that big technology businesses rule the world. Small businesses employ 70% of people around the world and contribute 70% to the global GDP. Despite this, small businesses struggle to generate profits comparable to large corporations, compete for more lucrative deals, and attract top talent. Founder CEOs of small businesses often cite survival and growth as two of the biggest worries.
What, then, are the main reasons small businesses fail?
According to this piece, funding, staffing (leadership), planning, and marketing (or lack thereof) are the 4 main reasons small businesses fail. Planning (including marketing and competitive analyses) and a competitive marketing program can make the difference between a stalled or stagnant business and an accelerating and expanding one.
Marketing more in a recession
To the less initiated, marketing to them may seem like an expendable program. For such businesses in a recession, we can see them cutting marketing programs, employees, research, and development. In the short term, the balance sheet may appear favorable, but as the competition gains momentum, these businesses may find themselves left behind or even collapse due to their aggressive and successful competitors.
The smarter businesses know that in a recession, when your competition is cutting back, you spend even more. The media owners are willing to give better discounts and privileges in a recession when fewer businesses are spending on advertising. Event venues are willing to give discounts and perks for you to hold conventions and conferences to attract leads and customers. And because your less-savvy competition spends less, they become less visible to your customers and prospects, and you can nurture and earn them much more easily if you spend more in marketing.
I have seen that firsthand. During the pandemic, I have observed two Asian health supplement businesses push aggressively on national and online media with sustained advertising campaigns. Their advertising campaigns are still running today. The mindshare and brand recall are obvious. And the fact that these two businesses continue to pump huge advertising dollars into the broadcast and online media is testimony of equitable returns. Who would spend without returns, right?
How can small businesses plan their marketing budget?
Small businesses may find it challenging to attract top marketing talents in-house, and so it is wise for founder CEOs to retain the services of professional and qualified agencies instead. For the fees of a junior manager, it is possible to engage professional external agencies to take on the spectrum of communication and marketing work, including public relations (PR), social media marketing, and event planning. If you are lucky, you may even find highly sophisticated and experienced senior teams at independent agencies with decades of experience. Think of these agencies as extended marketing teams.
While online advertising seems “easy” to start, the days of easy and profitable online campaigns are over. The reason is simple—too many competitors are all doing the same thing! So, to stand out in your location, you have to turn on 360-degree full-spectrum marketing programs, from online to offline, to broadcast to on-ground activation events. Get your PR and marketing agency to help you strategize and execute such comprehensive marketing programs.
The times ahead may be murky and difficult, with global tensions and regional wars still simmering and brewing. However, this may well be the best time to outcompete and outrank your competition with aggressive marketing and PR programs. Don’t be left behind!
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Dr Seamus Phan – Global C-suite Publicist & Strategist (Biochemist, Cybersecurity & Webdev pioneer, Author, Journalist) with 37 years of professional field experience.
