You don't have to go far in eastern Connecticut to find empty storefronts, and that didn't just start with this recession. After nine straight years now (and a few years in the eighties and nineties) of prospecting small businesses about direct mail advertising, I feel like I can often predict whether or not a venture will make it. That is not based on any psychic powers or superior knowledge of most businesses' products and services, and I'm sure there are others who would be able to foresee a store's survival or demise. And believe me, I'm nowhere close to being a guru on financial success. To this humble observer, preventing or minimizing failure boils down to three basic things. First, and foremost according to more expert sources, is lack of capital. Money doesn't usually start flowing in the day you open; enough said on that. The second: distraction away from the customer. I'm constantly amazed how many businesses ignore their clientele's needs. They complain at length about their own problems. Their store has, shall I say, a less than "welcome" look. They're never open consistently. They don't supply what the customer looks for. Finally, it's nice to do what you like, but many simply don't do their homework. As I learned in radio, it's not about what you think will "sound good." It's about gathering information and going with what objectively makes sense. In advertising, I see it all the time when someone spends all their money on media that have a very inefficient reach way beyond their actual market while failing to start with the local basics. We all make mistakes, but if you ignore these three warning signs you depend too much on pure luck to make it through the long haul or even short sprint.
No comments:
Post a Comment