Below the line (BTL) is one of the most cost effective ways used by start-ups to generate sales. Some of the ways through which BTL is implemented is through in-store promoters, sampling, mechanizing, trails in events and so on. One of the key reasons due to which BTL method is adopted is because it gives immediate sales.
Having worked with startups for over 10 decades now, Vijay Sokhi, the Founder Director of Sharp Consulting and Implementing Company (SCICO), understand the importance of BTL. Most companies have an inclination of to invest more and more into BTL activities. The more the BTL the more the sales. But is this a fact?
Building sales is very different from building a business. In the craze of increasing sales, business normally takes a back seat. This is because building a business is more about having a strategy in place. It lays down a path that the company has to follow to achieve its goal. Building business takes time and does not necessarily give immediate result. Therefore, building the business is never an initial priority for any start-ups. And since the entire focus is on building sales, they become so dependent on BTL that the moment they withdraw this support the entire sales shrinks. This is a trend in most of the start-ups. They get chained.
Sokhi says, “What is the point of building up a business on such a support that the moment you pull the plug, it dips. Something is missing. That missing element is retention. Most of the startups fear loss of volume so much that they never allow the business to stand up”.
What is the point of building up a business that is always in the clutches of BTL? I firmly believe – ‘A start-up cannot afford to remain a start-up forever.’ At some point, the business has to run on its own. Any business that cannot run without support is handicapped and will remain a question mark or a Star (BCG Matrix). If it is a question mark, it has to be phased out. If it is a Star, it has to become a cash cow. If it does not, it is only going to eat up the cash.
SCICO has perfectly crafted Map-Tap-Adapt and Sharp’s Pentagon Model that can be very beneficial to any company that is looking to venture into a new business or is stuck in a mess that has made the business cumbersome.
Feeling frustrated or in need of help? Get in touch with us via www.scico.in. Submit details today to win a complimentary consulting session from us.