Marketing for Growth: Whatever you do, Don’t Listen to Bernard Arnault
A famous quote by Bernard Arnault, Chairman and CEO of LVMH Moët Hennesey – Louis Vuitton SE says this:
“What made Louis Vuitton famous was the quality. We don’t do marketing; we just create products which are exceptional in their design and craftsmanship.”
The implication of course is that if you focus on creating a great product or service then you don’t need to do marketing. Now, far be it from me to argue with the richest person in fashion, but that’s just wrong.
Firstly, let’s look at why I think that statement is so far wrong. You may not see too many Louis Vuitton adverts on prime-time TV or billboards outside the station, but that’s advertising and only a small percentage of what marketing encompasses. Louis Vuitton has a brand that they defend robustly, their products are worn by many high-profile individuals who act as brand ambassadors and the company looks after in their own way. There is a website with a very nicely shot video of trendy and elegant models showing off their product, and they attend all the right shows and events like London Fashion Week. I’m sorry Bernard, but those things are most undeniably marketing!
The other side to the quote is the apparent separation between product/service design and marketing. This, I’m afraid, is a distinction that simply doesn’t exist. There is no point in designing something exceptional, if nobody wants it – you only need to do a quick trawl through Kickstarter to realise that!
So marketing is integral to developing any successful business (whether you did it intentionally or otherwise) and should permeate all aspects of it to ensure the customer gets what they want. But there are two ways to do marketing, broadly speaking… you can be passive, or you can be proactive.
Avoiding feast and famine…
One of the side-effects of a passive or unintentional approach to marketing is experiencing significant peaks and troughs in your sales figures. This happens for many reasons, but the most common among SMEs is that they have their loyal client base which forms perhaps 90% or more of their business. Your performance in this scenario is entirely dependent on those clients and their cycles of demand.
A more sustainable ratio for your business is that as little as 60% of your business comes from a loyal core of clients, with the remainder made up from new business and occasional business. But, in order to bring more of these types of client into the business, you need to be proactive in your approach to marketing.
The best time to do it is when you don’t have time!
It’s one of the hardest realities of proactive marketing, but one of the things all business owners struggle with is finding time. As a consequence, it is often left until business starts to dip and it becomes urgent. The problem with this is that this usually coincides with increased pressure on budgets and proactive marketing with no guarantee of results becomes harder to do.
A friend of mine is working in a small business that is facing this exact issue. They are one of the fortunate ones who found a way, not just to survive, but to thrive in the last year. As a consequence, they are busier than they have ever been, but they know that this is exactly the time when they should be proactively marketing the business. The problem is time.
One thing we would suggest is that while you have resource, but not time, the best thing you can do is get help. It can be difficult to find the right person, but there are many freelance marketing professionals out there who will take some of the pressure off your shoulders. From copy writing to managing social media, from managing websites and SEO to developing campaigns.
Of course, if you want to talk to us about how we can help advise you in sustaining and capitalising on your growth, we’d be delighted to have a confidential chat.
Similar Insights
FAQs – Selling Your Company
How do I sell my business in the UK?
Selling a business in the UK typically involves preparing financial information, obtaining a valuation, identifying suitable buyers and negotiating the terms of a sale. Most owners work with an M&A adviser to manage the process confidentially, approach qualified buyers and maximise the value achieved.
At Entrepreneurs Hub, we talk about five key areas that make the difference between success and failure when selling your business. Read more…
What is my business worth?
A business is typically valued by applying a multiple to its sustainable profit, often EBITDA or adjusted net profit. The appropriate multiple depends on factors including growth, recurring revenue, customer concentration, management strength, owner dependency, market conditions and buyer demand.
Determining what your business is worth involves more than applying a simple formula. Use our Business Valuation Calculator to obtain an initial valuation range, or read our simple business valuation guide to understand the factors buyers consider.
How long does it take to sell a business?
Selling a business in the UK typically takes around 12 to 18 months from initial preparation to completion, although some transactions may be quicker or take longer. The timeline depends on business readiness, buyer demand, deal complexity, due diligence and how quickly the legal terms can be agreed.
Preparing accurate financial information and organising key documents in advance can help reduce avoidable delays. Read our complete business sale timeline to understand what happens at each stage.
When is the best time to sell a business?
The best time to sell a business is usually when it is performing strongly, its future growth is clear and you are not under pressure to complete a sale. Buyers are generally more attracted to businesses with rising or stable profits, reliable financial information and credible opportunities for further growth.
Business owners are often in a stronger position when:
- Revenue and profits are growing or consistently strong
- Financial records are accurate and up to date
- Future growth opportunities can be clearly demonstrated
- The business is not overly dependent on the owner
- There is a capable management team in place
- The owner has started preparing well in advance
Market conditions can also affect buyer appetite and valuation. Factors such as sector growth, access to finance and competition between buyers may support stronger deal activity, but preparation and business performance are usually more important than trying to identify a perfect month to sell.
Ultimately, the best time to sell is when both you and the business are ready, and the company can demonstrate sustainable performance and future value to potential buyers.
Use our Exit Readiness Tool to assess how prepared your business is, or read our guide on when to sell your business for further guidance.
Do I need an adviser to sell my business?
You are not legally required to use an adviser to sell your business, but many owners appoint an experienced M&A adviser to help manage the process. An adviser can prepare the business for sale, identify and approach suitable buyers confidentially, coordinate negotiations and support the transaction through due diligence.
The right adviser can also help create competitive tension, protect your time and reduce the risk of avoidable mistakes. Read our guide to choosing the right business sale adviser to understand the different types of support available.
How do I prepare my business for sale?
Preparing a business for sale involves strengthening its financial performance, reducing risk and making sure it can operate successfully without heavy reliance on the owner. Buyers will also expect accurate financial records, clear contracts, organised documentation and evidence of future growth.
Preparation should ideally begin well before approaching the market, giving you time to address weaknesses that could affect value or delay the transaction. Use our Exit Readiness Tool to assess how prepared your business currently is.
How is confidentiality protected during a sale?
Confidentiality is protected through controlled information sharing, anonymised buyer approaches and non-disclosure agreements. Potential buyers usually receive limited information at the start of the process and must sign an NDA before commercially sensitive details are released.
Prospective buyers should be assessed before receiving further information, with documents shared gradually according to their level of interest and credibility. A well-managed process also allows the business owner to retain oversight of who is approached and what information is disclosed.
What documents do I need to sell my business?
The documents needed to sell a business commonly include financial accounts, management information, forecasts, customer and supplier contracts, employment records, tax information and evidence of intellectual property ownership.
Buyers may also request details of property, insurance, legal disputes, regulatory matters and company ownership. Organising this information before due diligence begins can reduce delays and help maintain buyer confidence. Our Business Sale Due Diligence Checklist explains the main information buyers are likely to request.
What’s the quickest way to sell a company?
Selling a business quickly is possible, but speed shouldn’t come at the expense of value or deal security Read more…
What’s the best way to sell a business online?
Yes, you absolutely can sell a business online. Many platforms specialise in connecting business sellers with buyers. Read more…
How can I increase the value of my business before selling?
You may be able to increase the value of your business by improving sustainable profits, developing recurring revenue and reducing reliance on individual customers or the owner. Buyers also value capable management teams, reliable financial reporting, scalable operations and clear opportunities for future growth.
The earlier you identify the factors affecting value, the more time you have to make meaningful improvements. Use our Business Valuation Calculator for an initial indication of value and our Exit Readiness Tool to identify areas that may need attention.