An entrepreneur has a dream—an idea for a new product, or business that has been bouncing around inside his or her head for a long time. Some way, somehow, the funds are obtained and that dream starts its journey to becoming reality.
As a marketing person I pay more attention than most to new businesses opening. And closing. I've opened and closed a couple of my own, so I understand the hard work that it takes and the disappointment when things don't go as expected.
Because an entrepreneur has thought long and hard about all of the details, it's not easy for him to consider other ideas. But it's not likely that he would try to do all of the electrical contracting, or put in the plumbing, or install the computer system without professional help.
So it is especially confusing when that same new business owner decides to manage a marketing plan without guidance.
I could tell you many stories about ideas that had great potential, but eventually failed because the money ran out before they got traction. When I worked in Hollywood I saw this scenario play out more often than a Seinfeld rerun.
What Went Wrong?
It is never just a single thing that leads to failure. More often than not, it's just a matter of having misjudged the market potential. But it often has to do with the belief that the idea is so good that it can't go wrong.
I see this constantly in the restaurant business. Oddly, perhaps no other business has as much potential for failure, yet it is the most likely to attract the entrepreneur with a dream of success based on not much more than the simple concept: "If you cook it, they will come."
The restaurant business requires that you do almost everything right to succeed. Right location, well-balanced menu in terms of selection and pricing structure, excellent service, etc. You just can't make too many mistakes, especially in the beginning. Open too soon before the food and service is perfected and word-of-mouth will kill you. Can you think of any examples in your own city?
Yet, the new restaurant owner is convinced that their passion and Mama's recipes are so powerful that even the physics of business will be proven wrong this time.
Long on Faith. Short on Capital.
If you have enough money you may be able to overcome market dynamics. Let's say the food is every bit as great as you think, but you misread the market potential or put yourself into a cursed location. Even a previously fabulous location can go bad with shifts in population or commerce centers.
You have the best Blue Plate Special in the state. Now what? You think that is enough to make a living? I wish it were so.
With enough time and enough money you might be able to last long enough to gain some traction and to develop a loyal customer base that will spread the word and actually overcome all obstacles. It could happen, just rarely.
How much easier would it have been if you had understood the market potential, properly assessed the customer base, and launched the business with a plan that made sense?
Passion and a great recipe isn't enough. It's required that those elements be present, but they alone will not assure your success.
Get Professional Help
Acree Creative works with new business owners to help them understand their target markets, how to reach them and how to capitalize on the assets that are available: a good product, exceptional service and the passion to succeed.
We also work with established businesses who want to go to the next level. We can work with you to realize your potential and to give you the direction you need to make the right choices about how your marketing and advertising dollars will be spent.
Our goal is the success of every client. We are invested in keeping your business healthy and growing so that we can grow along with you. Our record of success and reputation is solid and we invite you to contact any of our present or past clients and hear for yourself why we are relied upon for advice that works.