Solid Foundations from Here: Scaling Brands in the 2020s

For many years we have all been told how easy it is to run a business. Online training programs are everywhere telling you how to follow a blueprint to success. The reality is very different. An estimated 97% of eCommerce businesses fail. Failure rates of businesses generally have been consistent over the last 40 years, it’s just that now there are far more being set up.

Since Michael E. Gerber first published the E-Myth in 1986, highlighting why so many small businesses fail, very little has changed in the attitude of startups. The platforms may have changed, the cost of startup may have reduced but the same reasons for failure exist. Gerber highlighted simply how businesses were just set up incorrectly in a way that prohibited scale.

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In many ways, the advancement of technology that made life simpler also made it harder for businesses to establish themselves. The fact remains that it is now easy to set up a website or sell on a marketplace means that the competition has increased. An estimated 50% of Amazon sellers are now Chinese, so they have been able to get direct access to the customers that previously required a variety of middle companies.

Early adopters of platforms were able to get success, but sustainability is short-lived as competition increases. Now, you have to “pay to play” and to be seen on platforms such as Google, Amazon, Facebook & Instagram, which is dramatically altering how customers can see your content or products.


For large brands that scaled in traditional retail and distribution models, the challenges are no easier. The business relationships and systems that brought success now provide psychological barriers to change alongside the technology challenges that exist in transitioning to Direct to Consumer (DTC) models.

The recent move by Nike to reduce their 30,000 retail points down to 40 key partners will be a well-followed path as brands realize that less is more. The consumer has changed their habits and whilst the visibility of the high street is an essential channel it is now one of many where a brand must meet their customers.

Successful brand owners and management teams are laser-focused on what problem their product solves or what emotional gain they deliver to their customer. The forward-thinking brands recognize that they need to be close to building their brands and understanding their customers, but they have to drive efficiencies in businesses that are made up of many small and often sporadic tasks.

There is no exact blueprint or playbook for each business but many of the foundation processes are similar. The points that make a brand different should be exercised in the branding and marketing arena. More channels, more customers alongside retention programs to keep those customers coming back for more, more often now must be the focus. This has to be executed from solid foundations. The legal framework, the operating methods and the use of technology to streamline the business.

Activ8 is a team of experts that provide connected services to brands focused on scale. Our processes of Discovery through to Scale Execution rely on a working relationship with the key personnel within the brand. Activ8 provide cost-effective, process-driven services and training that allow brands to scale or transition until such time that they can bring those skills in house.

Within 90 days we establish a foundation to the business that sets them up for the foreseeable future but also agile enough to take advantage of new opportunities. Don’t hesitate to contact us today to find out more.