Is Meteoric Growth a Smart Business Strategy?
Inc. 500|5000 is a prestigious list of Fastest-Growing Private Companies in America. Being chosen on the list makes a positive statement about the company and gets their name in front of tons of potential investors and buyers.
However, business has to be sustainable. Companies chosen may go out of business in the years ahead. Perhaps a too long term business focus is very risky in itself. Fast, controlled growth may be a better business strategy. Build it, grow it, and then hand it off to investors who can take it where it needs to go.
How about your agency? Is it growing in leaps and bounds? No? Why not? Oh right, controlled growth. Yes very conservative and wise. I think? Slow growth has its perils too, just as a cyclist or race car driver knows that once you relinquish the lead, youll like never get it back.
Please leave your comments below concerning your attitude toward growth. Where do you see your company’s growth coming from? What is the safest growth strategy?
M&A’s or Go Public?
Actually, these agencies can be grown powerfully and then put up for sale. In 4 years, 3Q Digital has grown 6 fold and it could be sold for a phenomenal price. What are the odds the wheels will fall off? Can anyone duplicate what 3Q is doing?
Digital marketing companies are said to be the golden child of entrepreneurship with . Spending on business services is behind only IT is above it. That’s because they can make any other business that much more successful. They’re superchargers. 3Q is a prime example of how to do entrepreneurship. They sniffed out opportunity and followed the trail.
Below is a screenshot of 3Q’s homepage. Notice how they say they’re the client’s “Growth Partner.” I like that but I don’t like how the menu is one of those “Here’s our stuff and this is what we do” type communications. That’s not inspiring and contradicts the focus on clients. The underlying message is “We’re too important and you’re lucky to get us.” Corporate arrogance is still de rigueur in marketing unfortunately.
On their homepage, their unique value proposition is not clear or weak (e.g., We’re the leading …. blah, blah, blah). My point is that if these guys can generate this much success then it bodes well for the rest of us. They’ve acquired some good clients and that’s the key to a successful business.
Silicon Valley Startups are Still Hot
3Q Digital, located in the Silicon Valley area has lifted itself from a common PPC advertising management service to one of the largest digital marketing agencies in the San Francisco region. The point for us is that Google made changes to their algorithm, squeezing out companies who were taking a free ride. They pushed companies into using Google Adwords and paying for their visibility on Google’s sites. Digital marketing companies either went with the Adwords PPC highway robbery, or moved into social media, and bolstered their SEO efforts.
The beneficiaries of Google’s powerplay were agencies who offered PPC services. They typically offer that for 15 to 20% of ad spend. Relying on online advertising spending has a limited future, so they used that as a foundation to move into other areas of digital marketing.
3Q Digital is ranked #677 on the 2014 list, having grown revenue by 671% since 2010.
David Rodnitzky, CEO says the company’s success is predicated on 3 Qs — best-in-class customer service (EQ), dynamic and evolving strategies (IQ), and repeatable, proprietary methodology (XQ).
3Q’s Rocketing Success
The company was launched 6 years ago as PPC Associates and then rebranded as 3Q Digital last year. Earlier this year, 3Q Digital acquired another Bay Area digital agency called iSearch Media, and that created combined business of $300 million in client spend annually. iSearch is focused on big data from search. Big data is fueling insights into consumer’s online behaviour which can give big agencies like this a sizable competitive advantage over smaller firms that lack that knowledge.
It demonstrates well how important search is to businesses. If you have entrepreneurial goals, you need to focus on search and social media and learn as much as possible how to leverage it.
3Q’s management has a lot of confidence, and good financing, and a good plan. they’re a prime demonstration of entrepreneurial success — about seizing opportunities before they disappear. The waves come in and create tremendous opportunities. Surf’s Up!!
Just a humourous closing comment on employee hiring. I don’t think I’ve ever seem so many good looking women working in one company before.
Hey if you’re not knock out gorgeous, you can still be fascinating, memorable and compelling. And guys, like Red Green said ” If the women don’t find you handsome, they should at least find you handy:)