Knock Knock.
Who's There?
The Market.
The Market Who?
Exactly!
Today's message is: DO NOT be tone deaf to the market's warnings.
One of the biggest mistakes I see when consulting with small businesses is this:
They Insist on Imposing Their Personal Will on Their Business,
While Ignoring What the Market Is Screaming at Them
It's all too common.
Listen to the market... listen to your customers... listen to your sales... monitor your competition... and you'll know exactly which direction to take your business.
I remember watching one of those restaurant "rehab" tv shows where the expert restaurateur (I think it was Gordon Ramsey) goes in to try to fix the restaurant.
The restaurant's worst selling dish was a twist on Chicken Cordon Bleu. It was Chicken Cordon Bleu Stuffed with Broccoli Rabe. When Gordon asked him why he insisted on stuffing it with broccoli rabe, the owner/chef said that's how his mother used to make
it.
"Do your customers like it like that?" Ramsey asked. "Probably not," he replied. "But that's how I like
it."
I believe the restaurant ended up closing down shortly thereafter.
That's an example of someone who refuses to listen to the market, despite the clear warnings. And he paid the price.
Another example:
The photo you see above is of a coffee and sweets shop that recently closed down.
The thing is...
This location has had 5 -- count them FIVE! -- different variations of coffee/sweets/ice cream shops in the last 12 years.
All different owners... they all open for about a year or two... then close down.
Don't you think the market is SCREAMING that either this is an awful location... or it's a horrible idea to keep opening up the same type of store over and over?
The last store that lasted for any amount of time in this location was Dairy Queen -- and even that shut down after 5 years.
You figure if Dairy Queen can't survive there, not much else will.
We sometimes think we know better... but the market smacks us down and teaches us an expensive lesson.
So my advice is to keep your ear in tune with the market so you can not only avoid costly mistakes, but hopefully build a prosperous business.
Until next time...
K.I.C. (Keep It Coptic!)
