The bottom line – does it become the lens for viewing every decision or one of many ways to view managing your growth? Consistently we see small to medium-sized companies allow penny-pinching thinking to drive their brand and their growth strategies. Being frugal is a discipline to be embraced. At the same time it must be a discipline and not a devotion that skews what is best for the development and execution of a good strategy.

We waste money by allowing the immediate need and the immediate budget to dictate long-term business development decisions. This is not a commercial for opening wide one’s wallet. This is about stopping to invest in a strategy first then implement the keys to that strategy based on what the budget will allow.

Here are some real-life examples…

A Catalog

Company A decides to quickly create a new catalog for their customer base. Company A hires an outside firm to produce all aspects of the catalog. The catalog is nicely produced but the strategy behind the catalog is on an island unto itself. The catalog is based on a tight budget with no specific plans or strategy for improvements in other key marketing tools. In order to truly impact their marketplace Company A needs the catalog to be supported by other critical marketing tools. In the end the catalog captures new energy within Company A’s marketplace. The problem is that the catalog becomes a flash in the pan because all other marketing tools for Company A have no direction or actual connection to this newly conceived and well-received strategy. The new catalog sits alone in Company A’s marketplace as all other Company A marketing materials are mismatched sending confusion and mixed messages. Customers that have been asking for better communication tools from Company A now doubt the ability for Company A to truly follow through with a higher level of products and services. Was that smart money spent?

A Website

Company Z decides to plan the building of a new website. The site will be put out for bid with all art direction, content, and imagery managed by the website builder. The website builder is competent but they are not connected directly to a greater plan from Company Z. There is no detailed strategy that drives the development and strategy behind the site. The site is the priority and not part of a larger marketing strategy. The site is built with the right whistles and bells but in the end it lacks the true messages to the audience. The site is over-built with a confusing maze of imagery and messages. Was the audience defined in detail? Were the end-user’s needs versus Company Z’s excitement truly balanced before production began? The site looks great but it does not match other marketing tools. Was that smart money spent?