In the 1940s, Abraham Maslow was trying to explain why people behave certain ways.
As it turns out, our behaviors and motivations change based on different needs being met. Meaning, as soon as we satisfy one need, we may behave completely different.
Physiological: air, water, food, true survival.
Security: Safety from danger, health, a roof over your head.
Belonging: Love, intimacy, family, friendship.
Esteem: Appreciation, status, respect, freedom.
Self-Actualization: Fulfillment, morality, spirituality.
Yes it's obvious now, but 1) this was huge groundbreaking stuff back then, 2) it's only obvious when you read them in bullet points like this and 3) we quickly forget this stuff when we are designing businesses and products.
The Hierarchy of Needs in Marketing
What if you use this hierarchy when you're designing or figuring out how to "position" your products?
Quick example:
Let's think about a couple who's going out for a "date night" at a new fancy restaurant downtown: Yes, they have to eat. Yes, safety obviously, they don't want to be chased back to their car after dinner. But also, they also haven't been out on a date for a while, so they need some time together, belonging. Plus, it's a cool hip new restaurant and they want to be seen out where the cool kids go (status). Not to mention, it's organic, sustainable, farm-to-table, so it's good for the environment!
A Small Business's Hierarchy of Needs
A new startup business has similar needs. The order of these might be a little subjective, but I guess we've all met people who would put "Esteem" before "Belonging". (And maybe even before "Security" for that matter!)
Stay Alive Today: have cash and resources.
Stay Alive Tomorrow: get sales.
Nurture: stop the bleeding, manage expenses, determine a baseline, build a process.
Develop: reach profitability, build repeat customers, build your brand.
Expand: scale up, add new products, explore new markets.
Most of this happens intuitively, but a lot of times, we get our priorities mixed up and it can have disastrous consequences. For instance, if you raised money from investors, usually "Expansion" jumps ahead of both "Nurture" and "Develop". In fact, in the startup world, the old saying in Silicon Valley used to be "Grow at all costs!" They won't say it "out loud" anymore, but it's still kind of implied.
In most cases though, especially if you're bootstrapped, don't get ahead of yourself. If you try scaling up while you're still losing money, yes you may increase your sales, but you're also going to scale your losses. In other words, speeding up and increasing your losses at an exponential rate.
In conclusion.
Again, these needs look obvious when they're in bullet points, but they're harder to remember when you're in the day-to-day grind.
Try to remember where you are in your business (in terms of the hierarchy) and let that have some effect on your priorities. Of course, shoot for the stars and don't take any prisoners, but also... don't paint yourself into a corner!
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