Insource, Outsource, or Both?

Insource or Outsource DecisionIn your business who is responsible for marketing?  Do you have a marketing team, a marketing person, a salesperson who is also charged with the marketing function, someone who “does marketing” among other administrative tasks, or perhaps it’s one item on your own long list of other responsibilities?  Or maybe you’ve decided to hand the marketing keys to a well-qualified, external vendor?  Many small businesses question how to handle their marketing function.  Hire a person or people to do the job, call on outside professional resources, or some combination of both?  The answer is different for each business.  And the answer will likely change over time as a business evolves.  However, if you are currently creating your own answer, here are a few thoughts for consideration.

Insourcing
Your products/services, sales & distribution model, and, probably most importantly, revenues and profit will likely make the decision of whether or not to hire a person (or persons) easier.  Don’t confuse hiring a marketer with hiring a salesperson whose impact can be quickly seen on the bottom line.  For example, while leads generated can be measured, other responsibilities, such as brand development, may be less tangible.  And even lead generation campaigns take time to show results if started from scratch.  Consider also the nuts and bolts tactics that you need to execute.  Do you need someone to drive brand awareness, lead generation, product/business development, and/or distribution partnerships?  Or do you need graphic design, web design, copy writing, etc.?  Some periodic task oriented needs may be better outsourced considering the time, money, and energy investments required in hiring staff.

Outsourcing
There are many external resources available, from freelance designers, writers, and programmers, to consultants, to full service agencies, who are ready to help with the marketing function.  And many are happy to act as your de facto head of marketing or complete marketing department.  When choosing to outsource the marketing function completely, ensure that you put your dollars where they count.  If you don’t need all the services of a full service agency, then don’t go that route.  It may be difficult to obtain a positive ROI.  Be direct, internally and with the external resources you interview, about what you need.  Make it clear to whom the external vendor reports within your organization and what the communication flow should be.  Depending on the pricing structure, costs can quickly escalate if sales reps, HR, etc. are pulling your vendor in different directions with various requests – “we need a new brochure!”, “we need a new company newsletter!”  And make sure you are receiving regular reporting on the outcomes of the marketing work your vendor is doing.  Just as you expect results from all internal resources, an outsourced function should be no different.

Both
This has potential to be tricky.  And it is a very common scenario.  Often you’ll need someone to hold the marketing reins (and the responsibility and accountability) within your organization , but hitch them to different horses depending upon the tasks at hand.  The challenge here can be twofold.  First, as with purely outsourcing, make sure it is well understood from whom the outsourced vendors take direction.  Simple if there is only one person internally charged with the responsibility…trickier if there is an internal marketing team.  Second, make sure everyone knows who is doing what.  It can be easier than you might think for internal and external team members to duplicate efforts, or (usually worse) presume the other is handling something only for it to slip through the cracks.  Another consideration here is that sometimes it may be necessary for internal personnel to “report” to an external partner for a particular project.  If this case arises, make it crystal clear to everyone involved.  You don’t want to risk damage to internal morale because of unclear communication.

Whatever you choose, don’t be mistaken – there is a right and a wrong decision.  Marketing is an important function, so this one can’t be chalked up to “there’s no right and wrong answers”.  However, the answer, and it’s suitability, is dependent upon the nature of your business.  What works for people in your professional network, partners, or competitors may not work for you.  And your answer most likely will change over time as your business evolves.  While it may be a difficult decision, investing the time and energy to create your answer will pay off now and in the future.

Let me know what you think!  I always welcome your comments and feedback.

Posted in Getting Started, Marketing, Social Media | Tagged , , , , , , | 8 Comments

Does Your Company Need a Content Evangelist?

Head of content strategy-Barry-lowenthal-02-2013Almost a year ago, a friend sent this article to me by Barry Lowenthal on AdWeek.com.  I re-discovered it by chance while looking for something else, and it resonated very strongly with me.  Businesses, both large and small, generate volumes of content – much of it relevant, share-worthy, and generally interesting – outside of the realm of the marketing “function”.  But who in your organization is charged with determining what should be shared, how to share it, through what channels to share it, etc.?  In the words of the article, who in your business “evangelizes the importance of content in driving business results and helps the company think about whether or not a piece of content is worth sharing?”  Who leads your company’s content creation, distribution, and strategy charge?

This article really got me thinking, so I wanted to share it.  Even though it is nearly a year old now, and much changes in a year, I believe it is still relevant, perhaps even more so now due to the ever-increasing rates of change and content generation.  I look forward to your comments.

Content is marketing, we all know that. But marketing is also content. So are HR manuals, social media policies, annual reports, analyst reports, research studies, customer evaluations, product reviews, employee testimonials, customer testimonials, videos from conferences, CEO blogs, tweets, updates and check-ins.

Every piece of communication that companies create is potentially an asset that can be shared. Every piece of communication can help dimensionalize a company, further define its brands and tighten bonds with customers. But very few have that kind of macro perspective on and exposure to all the content they produce. At larger companies, which are often siloed and matrixed, few people even think about the kinds of content that can be shared with customers…

Read the rest of the article

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5 Questions with Connect the Dents

Connect the Dents logo

This inaugural installment of 5 Questions With… features Dr. Tony Stefanou, dentist, entrepreneur, and founder of Connect the Dents.  Connect the Dents is a consultancy specializing in dental mergers and acquisitions.

Michael Dunn:  Tell us about Connect the Dents.  What service(s) do you offer?

Dr. Tony Stefanou:  Simply put, Connect the Dents is a unique consulting company mainly focused on M & A (Merger & Acquisition) activity within the dental industry.   We work almost as “matchmakers” to help any type of dental based company (manufacturers, dealers, group practices, organizations, consulting companies, publishing companies) looking to buy another company or be acquired themselves find the right fit in an efficient manner. ​ In most cases, we work as “intermediaries” to assist both sides in creating a deal that is mutually beneficial.  We also provide “target research reports” in cases where a buyer or seller is thinking of acquisition activity but isn’t quite sure yet “what might be out there for them”.  Additionally, some sellers like to know what their company might be worth.  So we can provide a form of appraisal based on current industry conditions (i.e., what similar type companies are selling at) so they can see what a grounded fair market value would be (and/or starting point with a qualified buyer) and determine if it’s a good time to go “on the market”.  Lastly, we also can help start-ups find investors/funding, as well as help develop their business plan, form sales and marketing strategies, and introduce them to potential strategic alliances/partners in the dental industry.

MD:  How did you start Connect the Dents?  What was your “a-ha” moment?

TS:  I have been for quite some time now providing sales & marketing training for dozens of dental companies through the Dental Sales Academy and “How to Sell to Dentists” workshops. This has allowed me the ability to create very strong business relationships with senior level executives all over the world.  I also provide recruiting/placement services.  Along the way, many companies started to ask me to let them know if I “heard anything” in regards to companies looking to sell.  Also, since the economy was strengthening a bit, it looked as if consolidation would be increasing in dental. So, it became apparent that it made sense to start a “formal’ M & A focused division.  The last piece was that I brought in a few veteran industry people as consultants who had contacts in companies that I didn’t and so we now have a team that has 300+ senior level company connections worldwide.

MD:  What makes Connect the Dents unique compared to similar services?

TS:  Several things.  First, as I mentioned, we are focused on dental only.  There are M & A consultants who work within healthcare, but only “dabble” in dental and really don’t know the industry well.  There are also plenty of “buy-side” consultants who are hired literally to hit the phones and cold call companies all day to see if they are available.  Most of the time, that’s not the best approach in getting something done.  I mentioned that we have hundreds of senior level company contacts, which is very appealing to buyers and sellers, as the most time-consuming part of the exploration process in M & A is getting to the “right person”. One of the ways we do this (also unusual for M & A consultants) is that we are visibly at all the major (and many specialized) conferences so that we are always meeting face to face with people and companies.   The most important thing, however, that I believe separates us from others, is that we are not “brokers” per se. We are not representing one side as consultants, hard selling only our “client’s” best interests. Rather, our approach is (in some cases up to the actual final contract phase which the legal advisors take care of naturally) to assist both sides in getting a balanced, fair deal and keeping the process moving along in an efficient manner.  It can be common in “normal” circumstances for a deal to take a year or more to get done with lots of back and forth “negotiating” (or fighting!), and what we do is to reduce greatly this time frame/cycle.   Finally, as a dentist myself with decades of experience in the industry, I can assist many companies (particularly buyers) in helping to determine the “best” type of product lines/companies they should be expanding into and acquiring.  Many M & A consultants don’t have the clinical background to determine what the best “fit” might be.

MD:  What trends do you think will have the biggest impact on the dental industry in the next 5 – 10 years?

TS:  ​Certain sectors within dental will see a great deal of consolidation.  The most obvious example would be implant companies, but we are also going to see a good deal of the well established, solid smaller to mid-sized restorative, esthetic, and hygiene (many are family owed for a few generations) companies needing an exit strategy and selling.  One glaring trend is that a number of private equity companies have shown great interest in dental and are buying mid-sized dental companies with the idea that they will help them grow organically but also more importantly provide the financial resources (sometimes tens of millions of dollars worth) to grow through aggressively acquiring several other companies for their investment within a 12 to 24 month period.  Within the practice side of things, with the DSO (group practice) market growing at a 15-20% annual rate, not only are these groups buying up individual practices, but growing larger groups will be buying smaller groups up at a rapid pace as well.  Lastly, I believe that within a few years you will see one or two “super companies” emerge that, because of acquisitions, will be able to offer dental practices (directly) just about any and every type of product line to fulfill all their needs.

MD:  What’s next for you and Connect the Dents?  What can we look forward to next?

​TS:  Connect the Dents will continue to focus on providing the services mentioned previously, but will also look to add more well-connected industry consultants to the team, and also look to work more with international companies as they look to establish themselves in the U.S./North American market.  We are also working on a number of events and projects to assist entrepreneurial and influential people in the industry “find each other” in an easier and more convenient manner. ​

Thank you, Dr. Stefanou, for participating in this first installment of 5 Questions With…  To learn more about Connect the Dents or to ask them some questions of your own, please contact them.  I’m sure they’d love to hear from you!

And, as always, I would love to hear from you too.  Please comment below or contact me.  I welcome your feedback.

Posted in 5 Questions With..., Dental, Products | Tagged , , , , , | 3 Comments