Top Entepreneur Hacks
Why do some Businesses Fly and some Flop?
Someone asked me: Why would anyone pursue a new business? She told me: Most of the people who start a new business don’t make any money so why did I think I could? I thanked her for the questions and went on to tell her that the difference was me! I believe that the difference lies in the Entepreneur – the individual.
I am prepared to do what was needed, I am prepared to be the difference between my store and the rest out there. I have done my homework and know what I need to do and if for some reason that didn’t work. I am prepared to change things around to make sure it does work. I am open to listening, learning and putting into place what needs to be done.
My friend is correct, approximately 75% of businesses fail in their first year. Of those that succeed a further approximately 75% fail within the first 5 years, so only a minority actually are successful. What is it that makes the difference between those that fail and those that make it? I maintain, in most cases, it is the individuals themselves.
An Entepreneurs Business Success Story
A fish and chip shop in our area was just the best, their food was unbelievable, their menu was different to all the rest of the shops as they had added foods that were trending. They had presented it differently too, using lettuce to line a box, so the food looked amazing and they cooked it beautifully obviously changing their oils more frequently or what ever they needed to do to make the food absolutely delicious.
The owner of this shop has several other shops around Melbourne and after a couple of years sold it on to new owners as an extremely profitable and desirable business. . At the same time as selling the old owner went on to establish another ship 3-4kms away, another success. This shop was packed out and once again he sold the business and the cycle continued.
New Ownership and new Attitudes
Within a year, with new owners, the first business was struggling. Within two it was closed As the new owner of the first shop changed things the quality dropped. I drove the past this shop in search of alternatives. I wanted quality food.
The new owners thought they could do things better and save themselves some money and make greater profits, but they were wrong, the people stopped going to their shops, probably the decline was gradual so maybe the new owners didn’t see what they were doing was destroying their business. They weren’t open to smaller returns, but greater turnover making the profits more sustainable because the customers were happy. The new owners of the first shop went bust and closed the shop, walking away leaving it empty for someone to take over again, the once vibrant shop sat empty for a year. The new owner was one of the 75% who couldn’t make it in business.
Top Entepreneur Hacks
I spoke to the original owner as he was refurbishing the original shop to re-open it again and asked him what happened, and he just said the new owners just didn’t listen and got greedy changing things so they could make more money which just destroyed the business.
The new owners didn’t have the attitude that the customer is always right and the customers always vote with their buying power. They didn’t understand things needed to stay the same as it was when they originally purchased the business or change back once they changed things from that original way to make the customers happy. They neglected the whole customer experience by reducing the quality of the food and reducing the presentation costs.
The Entepreneur Listens
When we don’t listen to what is needed in our market and put our own needs of making a profit in front of the customers needs for the product, the business won’t work, it will fail. By opening ourselves up to the demands and desires of our customers we then have a winning product to work on. We have to listen and be open to change as needed. We have to understand our customers, know what it is they want to buy and be able to give them what they want, when they want it and in such a fashion that they feel satisfied to buy from you. We have to validate their decision to buy from us or else they will get buyers remorse and wish they had purchased from someone else and won’t return and purchase from us again or refer us to their friends.
The Entepreneur generates Referrals
A good business that organically grows by word of mouth is what all business owners want. We want our customers to be happy and tell their friends who come and try our goods too, then tell their friends who also do the same, repeat business and referral business is the best, easiest and fastest way to grow our businesses, it’s what makes the best businesses so successful. The same can happen in reverse too and the spread of a bad experience happens so much faster than the spread of great experiences, so keeping our customers happy and giving them what they want is paramount to a good business.
The Entepreneur uses Good Timing and Staged Changes
The old owner is clever, by letting the shop sit empty for 12 months people know there is new people in it, he changed the look and re-furbished it making it a whole new experience not related to the prior owners and bought back the old menu which he had updated once again. I purchased fish and chips from the shop again, I was in heaven and it was to die for, best fish and chips I have ever had once again. I went back in a month later and everything had changed, he had obviously sold it on again and the new owners had changed things, the fish wasn’t the same quality, the sweet potato cakes were thin and there was more batter than sweet potato and here goes the cycle again. I won’t be going back there again.
Top Entepreneur Hacks
If we listened to all the negative things people said to us we wouldn’t do anything, I know my business will be successful because my attitude is different, I will do what is necessary to make my customers raving fans of what we do.