In 2009, Simon Sinek introduced the Golden Circle in a Ted Talk. This concept simplified and clarified our approach to branding by emphasizing the “Why” behind our actions. We have worked hard to help our clients develop strong brand positioning that not only considers the “How” and “What” but also embraces the “Why.” We do this well and have made many happy clients and happy customers of those clients.

Since 2009, social media’s evolution and impact have brought significant changes. While the Golden Circle remains valuable, our branding and marketing efforts must reach beyond it. With the emergence of social media, digital platforms, and AI, your brand’s narrative can be influenced by various individuals, including those within and outside your target audience. The impact can be positive or negative, but unfortunately, most people have a negativity bias: Bad is stronger than Good. At the end of the day, the cumulative RESULT of all the opinions and beliefs, including what you control and what you do not control, defines you and your BRAND.

Today, starting a business is more accessible than ever due to abundant DIY online resources. However, many seemingly promising business ideas fail; the Bureau of Labor Statistics reports a 1 in 4 failure rate within the first year and a 65.3% failure rate within ten years across all industry segments. So, with all this good news, how can you improve your business’s chances of survival and help your BRAND thrive? Let’s explore using the Golden Circle and beyond by asking a few essential questions:

What?

• Why does your product or service matter?
• Do you understand your competition and how you truthfully compare to them?
• Is your target audience broad or niche? Do you comprehend their interests and opinions about your brand?

How?

• Do you have a solid business plan?
• Do you have a solid finance plan?
• Is your team fully staffed and aligned with your vision?
• Have you developed a robust go-to-market strategy?
• Do your sales channels understand and support your vision?
• Do you have effective investor communication and relationships?
• Is your marketing plan accurately targeted and delivering the right message?

Why?

• Have you defined your purpose, promise, mission, and vision?
• What do you believe about yourself?
• What do your employees believe about you?
• What does your channel/distribution network believe about you?
• What does your target audience believe about you?
• What do those who influence your target audience believe about you?
• Do you have control over your narrative, or do external influences impact what people believe about you?

All the answers (or lack of answers) to the questions above can impact your business. Most of the actions in the questions you have control over – but there are more and more influences on your Business & Brand that are out of your control. What do you do?

Be prepared!

It is important to monitor conversations about you that originate outside of your control and have a plan to react appropriately. There are times when the best action is no action, but there are times when no action or the wrong action can be devastating. Sometimes, the right action can be a springboard to amazing things. It is all about being prepared.

The case of Bud-Lite provides a well-documented example of the devastating effects of factors beyond one’s control. Firstly, it seems that Bud-Lite either didn’t fully grasp its entire customer base or failed to consider that it would attract attention from a broader audience when launching a niche promotion. However, their biggest mistake may have been their failure to address the controversy and offer support to the initial target of the promotion. By alienating all sides of the controversy, the brand went from being the number one beer to losing 25% of its business.

In another well-documented case, Stanley, a brand my dad and grandfather loved for their tough, durable thermos, developed a 40oz quencher. In 2019, three women with an online shopping blog called the “Buy Guide” fell in love with the Stanley quencher and posted about it. Stanley was getting ready to back the quencher out of the marketplace but connected with the Buy Guide and agreed to let them attempt to sell 5000 units. It was scary, but the Buy Guide believed in the product and, in just four days, sold the 5000 units. They received an additional 5000 units to sell and sold that 5000 in just a few hours. However, that’s not where the story ends. Stanley brought on a new entrepreneurial president, who had previously turned an ugly shoe into a design staple with Crocs. One of his first actions at Stanley was to reach out to the Buy Guide for collaboration and understanding. Magic happened – a line of quenchers was born, aligned with fashion trends, and favored by the social media world. A group not connected with Stanley started the action, but Stanley’s willingness to react, learn, and be flexible in a new direction took their company from $70 million in sales in 2019 to over $750 million in sales in 2023.

Where are you on the Golden Circle? Are you prepared? Do you control your narrative? Contact us if the answer to any of the questions in the What, How, and Why is a bit shaky. We would like to help you build your brand and be prepared!”