Thought Leadership and why it Matters to your Small Business Venture.
22 Jan 2018
Thought leaders are companies or individuals that are regarded by clients, peers and other stakeholders as foremost authorities in a certain field of expertise. They are known to give back to the community but they make a significant profit just from their status.
Thought leadership acts as a way to create and provide unique services that are hard to come by. In the right client and project combination, thought leaders have a competitive advantage over about 80 percent of other businesses or firms in similar industries. Being among the few, it opens up your business to opportunities that facilitate expansion and attract most valuable clients in the market.
Marketing professional services can be very demanding as this is basically selling the invisible. When you develop and maintain a thought leadership position in your space domain is the springboard for marketing. Being a thought leader leads to the unique selling proposition that stands out. The end result has both internal and external consequences. The clients associate the company’s brand with a visionary thinking and leading-edge knowledge while the employees see their company as a professionally demanding but also rewarding environment.
Thought leaders not only land higher- quality work than their less prominent competitors but they also get invites to competitions and receive limited requests for proposals. The companies that have large service portfolios receive benefit6s from cross-selling. Experts get to promote and sell work of other disciplines or departments in their companies.
Profitability is one of the measures of a company’s success. To achieve this, the company must consider all the elements that affect profitability such as sales and marketing, fees, types of projects, change of management success, partnerships, technology, productivity and the value of expertise. Thought leadership contributes to an increase in profitability in two ways which are: fostering internal efficiency and quality of work and creating higher than average margins.
Many companies lose money as a result of their processes being inefficient and being prone to errors that turn out to be quite expensive to fix. Companies also undervalue their expertise unnecessarily and this makes thought leadership the keystone to make businesses become more confident in value-based pricing. Since getting new clients can be time-consuming and also an expensive affair, thought leadership helps to facilitate deep and lasting customer relationships. This helps to shorten the sale cycle and strengthens the company’s position as the most trusted partner.
Individual thought leaders work harder than average. The traditional monetary rewards are not their key motivators as they are driven by their passion to become the best and give the world the best in return. Giving professionals the freedom to develop themselves and providing opportunities to create something completely new thus leads to great job satisfaction and unsurpassed productivity. Responsibility thus comes naturally without the need for patronage.
In the long run, thought leadership is as valuable as the services and the products that a brand offers. A thought leader hence is a good investment for owners and investors of a business. Large, listed companies have monitored the effect of thought leadership at a campaign level and reports show that the result is a double-digit growth in the brand and stock value.
Thought leadership at a company level hence is a strategic choice that requires consistency and diligent efforts. As much as it is not the choice of all companies. Well implemented it can bring about tremendous results.