What's your business?
In 1932, at the age of 26, Charles Revson pooled his meagre savings and cofounded the multinational Revlon cosmetics Empire. He was a brave entrepreneur (and future philanthropist), because the world was in the throes of 1930’s great economic depression.
During an interview many years later, Revson said: “I’m not in the cosmetics business; I’m in the business of selling women hope.” This simple statement was profound, because it modelled one of the critical reasons behind the company’s success. Revson recognised human aspiration and created products to satisfy the need.
Revlon’s marketing and advertising were not about the product, they were about the experience and satisfaction of confidence.
Does the abundant element carbon have a market? It depends on how it is sold. Apart from certain industrial uses for the smaller stones, diamonds (a very pure form of carbon) are almost completely useless. One can even manufacture them synthetically. But De Beers, arguably the most famous South African founded company, recognised both the market for diamonds and sustainability of their business were threatened by time and technology. So instead of being in the business of mining and sorting diamonds, in 1947 De Beers coined the concept of “A Diamond is Forever”. They attached the beauty and rarity to human relationships – specifically the contract of marriage and mating rituals. A diamond ring or brooch provides a value of permanency and exclusivity. The international diamond industry is really about romance, sex and commitment, three critical requirements for the survival and evolution of our two-legged primate Homo sa- piens sub-species.
Even the legal profession can weave a magical ambiance. Brin Cahan, the incredibly successful Johannesburg divorce attorney, is an expert at the hustle. Plush offices replete with exquisite artworks aside, a visit to Cahan’s law firm transports you into an illusory world of beautiful young assistants, freshly brewed coffee and his masterful performance at selling you “the win”. Even before you have parted with your first R50 000 deposit, you are already experiencing the romanticism of the soap opera and the very human need for revenge and retribution. It can be irresistible to a scorned spouse, and Cahan knows this.
Often, the difference between a successful enterprise and one which is average or in continual survival mode is in the way they present their product. Did you know there are nearly 400 paint manufacturers in Southern Africa? Essentially, all you need is an internet connection, paint mixer, some cash to buy ingredients and presto, you have a paint company. There is not much technology involved in the manufacture or distribution of paint. Yet over 90 percent of paint companies struggle to cover costs or make a profit. But is there a paint company that comes to mind as you read this and why? Do you think of dirty paint brushes, smelly turpentine and paint splatter? Or does your mind take you to happy families playing on a bed of silk and velvet, or lighthouses which withstand threatening weather with “mica for stretch and marble for strength”? The marketing geniuses figured out how to connect protection, happiness and longevity with a coloured wall coating.
A good architect should not sell building plans; he or she should sell the dream of creating a home or sanctuary. An exclusive clothing retailer does not sell things to protect you from cold or cover up your genitals; they sell the means to make you look and feel good about yourself. A low-cost airline company sells you the advantage of saving money to spend on your dreams after you arrive at your destination.
People buy primarily for subjective reasons. They part with money or belongings because it feels right and satisfying or comforting and uplifting, not just because a supplier happens to offer a product or service.
One of the greatest orators, Martin Luther King did not say “I have a plan!”, he said – “I have a dream…”
The successful business is not about you or your identity. It is all about recognising the relationship and feelings others have towards you. Close your eyes and picture that concept for a moment. You may just understand the business you should be in.
• Not his real name
• Ron Weissenberg is a Grahamstown resident who started his first (unsuccessful) business at the age of 7. Ron sits on the boards of various companies and is a recognised orator on entrepreneurship, economics, commercial law and governance.