www.viewpoint.net.nz - NZ Transport, Aviation, Logistics & Supply Chain Blog

Agoge at the MHL Expo

By way of a mini advert. Below is a very basic video/powerpoint of agoge's key messages at the MHL Expo.

Does advertising really work?

'Old marketing is dead
10 years ago we were able to advertise a position in a paper and know that people looking for a job would see it. Nowadays you need to advertise in many papers and on multiple websites and you are still not guaranteed a good response.

It used to be that you could build a product and market it really well and people would naturally use your service. Nowadays we are all bombarded with advertising and media and information. We as consumers often ignore these messages. When was the last time you made that call after hearing an ad? It is almost impossible to make an impression and a thousand fold more difficult to actually get them to pick-up the phone.

New marketing is everything we do
Brand is no longer about just having a great logo and good advertising. Brand is now driven by everything the company does. Every time we answer the phone or deliver a sales proposal or email a client or they use online, we build our brand. The aim of new marketing is to get talked about, in a positive way of course, because of how ingenious we are!

To have a strong brand you now have to have a service that is so ingenious, so smart and edgy and stunning that it gets talked about.  Think about Google. How many of you started using Google because you saw their ad. None, they didn't advertise. You heard about it, tried it, liked it, kept using it and if you're an early adopter like me, probably told others about it.' - quote from my eBook called 'Being INGENIOUS @ agoge'

All this means that the old way of attracting candidates or getting customers works less and less. It will get harder and harder get peoples attention. Your only chance is to focus on providing a stunning service or being an incredible employer, so that you get talked about.

Finally, fyi, we measure most of our advertsing, we change ads and try new and creative things. When you measure advertising, the results generally dont make good reading, it forces you to think outside the square. You should try it!

Winning - Leadership Development Booklet

Around 18 months ago I brought the majority of the staff in our company the book "Winning" by Jack Welch. The purpose for buying the book was to use it as a leadership development tool and to stretch their thinking, which in turn helps grow us as a business.

To assist in the learning I developed a booklet that people used to stay on track. People would read 2 -3 chapters a fortnight. We would then have a conference call with groups of 5 -7 people, discuss our obersations and learnings from the chapters.

Agoge is a small business with limited funds for training and leadership development and has staff based all over the country. I found that this process worked really well and we learned a lot as a business as a result. A key lesson for us was Candor, which has since become one of our values.

Below is a link to the PDF file. I hope you find it useful. If you would like a word copy please email Andrew Nicol (links in side bar)

Download winning_reading_plan.pdf

Agoge is the 28th Fastest Growing Company

Last Thursday agoge received a place in the Deloitte Fast 50. This is a competition to establish the 50 fastest growing companies in New Zealand. Well after I duffed the speech and we went out to dinner to celebrate, I got to reflecting on what got us there. Here are some of my less than insightful observations:

My Team - The average age of my team is 30 and I am privileged to have the people I have. We are growing and learning and trying things together. We have an incredible culture, a heap of fun and seek to live "people matter" in everything we do. As Tim Finn says in his song "We had no idea, that it couldn't be done. And we needed to find, a like minded someone" I have found those someones in my team. The lesson: People are more important than anything else!

A lucky idea? - I had (and still do) have a heap of business ideas. I choose to launch under Logistics Personnel because it was the idea that I thought offered the quickest growth and good cashflow. A heap of the other ideas would have been a disaster. I did it after taking a week off work and surveying potential customers, researching the market size, blah blah. The lesson: Choose the right idea, an idea that will actually sell.

Cashflow - I started the company with around $60k cash and we have grown the business to almost $10m in annual revenues in 3 years. We could not have done it without strong cashflow. Seth Godin had a post the other day that gave 10 secrets of the marketing process. "#1. Don't run out of money. It always takes longer and costs more than you expect to spread your idea. You can budget for it or you can fail." - He's right and I often use the saying "Profit is a concept, cash is a fact".

We have had extended periods of making losses in the past as we invested in the future. We could only do this because we have strong cashflow. We work hard on rapid debt collection (65% in 17 days) based on the principal that the money belongs to us once it is billed. It sounds a little arrogant but a heap of small business just let other companies use them as a bank. We are not a bank! The lesson: You must have strong cashflow! You will only run out of cash once.

It is genuinely a privilege to be in the Fast 50. I am not sure we will make it next year, getting 200% growth year on year gets more and more difficult as you get more and more millions in revenue. I am not too worried if we don't but I know one thing for certain, we will have a heap of fun trying.