May 1, 2002

Emotional Branding

 


Of course, all CEOs have personal stories, and in the case of most growth companies the tale's central role in sales and marketing almost guarantees that it will become part of the pitch. But the CEOs of the Inner City 100 fall into a special category, since all of them can claim to be urban pioneers -- and all have embraced that position, to varying degrees, for their companies. Aside from working in inner cities, many of the entrepreneurs on the list can also brand their companies by highlighting such characteristics as gender and ethnicity. Thirty-three of the 100 are members of ethnic minority groups, and 15 are women. How much they wish to brand the company around their identity is a choice they have had to make early on.

"In some areas it works against you; in some areas it works in your favor," says Olotu, referring to printing work he has gotten through the supplier-diversity initiatives of companies like Verizon and Johnson & Johnson. "For the people who think it's a plus, sometimes they feel sorry for you, so they give you an order. Which is OK. I'll take it any way I can."

Benchmark
Median sales $16,055,980
Median CEO salary $140,000
Average age of CEO 45
Average age of CEO at
time of company's founding
33

But not all Inner City 100 entrepreneurs find it that easy to ignore the source of their customers' motivation. When Rodney Evans started Skyline, in 1995, he wanted no part of the federal government's 8(a) program, which sets aside certain contracts for businesses owned by women and minorities. Far from helping his company, he feared, the 8(a) designation might actually limit what Skyline could accomplish -- making his business overly dependent on government contracts. "A lot of companies don't have the commercial base," explains Evans, "so when they have to give up the 8(a), they fail."

Evans's qualms about the "minority-owned business" label are evident in the company's marketing material even today. An article about the company posted on Skyline's Web site states: "For many fledgling minority and women entrepreneurs, securing federal contracts is the first order of business. In keeping with its commitment to be different, Skyline went the opposite route -- pursuing commercial contracts. Their first clients were the brokerage houses of Smith Barney and Morgan Stanley." Skyline's printed brochure only briefly mentions the company's certification as a minority-owned business. Neither Evans's name nor his picture appears. "In the commercial arena you can't use that," he says.


"Our goal is to be the best place to work in the Southwest, and the inner city has allowed that to happen."

--Gay Warren Gaddis, CEO of T3, in Austin
#64, 2002 Inner City 100

Slowly, Evans has learned to reap some of the benefits of the minority label. Last year he finally applied for his 8(a) certification. These days Evans frequently takes the high-speed Acela Express train down to the nation's capital, making as many as four government sales calls before boarding the return train home. The recession has taken its toll on his business, he explains. He would be foolish to not pursue 8(a) work now. "I'm going to take a piece of that pie," he says, adding, "in the federal arena, if they like the people who run the company, they can get contracts without bidding."

Veronica Rose would certainly encourage Evans to use his unique story when he's promoting his company -- whether in D.C. or other markets. "I do it 100% because I believe that my company is different from other companies, and I believe with all my heart and passion that it's a good difference," she says. At the same time, she has moved subtly away from depending on emotional marketing. "I've learned that if that's how I operate, I will have created a job for myself, but I will not have created a great company," she says. "I want to still be the spokesperson for this business, but when I give my two-minute spiel, 30 seconds will be on how I got there, and then I'll talk for the next minute and a half about all the great people who came on board."


Mike Hofman is a senior staff writer at Inc.


The Inner City 100


Please E-mail your comments to editors@inc.com.

 PREV  1 | 2 | 3 | 4