Here is an example of a classic small business mistake I saw
coming down the track.
A young girl, following her dream, ran right into a stone
wall. It is not that she was young or a girl that mattered here. It simply was that
her dream clouded her view of reality.
It is not clear to me if she had prior experience in her
chosen field. If she did it would have reflected itself in the quality she
provided, which I did not see, and I am not sure anyone had the opportunity to experience
in her new business.
She appeared to begin her business with an investment in a
one year lease and additional expenses improving the leased property. After a
month of work on the property, about two weeks prior to opening the business a
sign appeared in the window announcing the date of opening of her YOGA studio
and classes.
At no time that the business operated did she have more than
four people show up, and that happened only one time. After about three months
the business was shuttered, and the landlord was seeking another tenant.
So what did I see that she missed? First, there were four
competing operations within walking distance. Second, she could not provide
free parking for her clients. Third, her competitors were on main streets, her business
was not, Fourth there appeared to be no competitive advantage offered.
The key learning from this example is to study, study,
study. Study the competitive situation. Study the location. Keep on top of your
situation.
Steve Koenig, SCORE Counselor
Visit us at: www.scoresouthflorida.net
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