Saturday, January 12, 2013

How to succeed in opening a business.

Good morning everyone. You may have noticed that the blog was not updated in the last four days. This is because we were facing some technical problems with the website which are now hopefully resolved.

Yesterday I was walking by a sports bar in a not so busy street in my home town. I noticed that right across the bar, there was a store that was selling shirts with team emblems. When taken out of context, such a business would most likely fail as on an average day, potential customers would not visit the store because it was off the main road. However, the owner was crafty enough to think about complementing the operation of the successful bar. Herein lies the success of the shirt store.

Most of the times potential business owners think about competition, overlooking complementary operations. It is possible to base a business on the operations of an established company without really considering the competition. Consider for a moment the shirt store. On that same street there are two more clothing stores but none are competing with that particular business because they do not offer specialised team apparel. The shirt store is dependent on the customers of the successful sports bar and is admittedly doing quite well!

So when opening a business scout the surrounding area. Competition may be irrelevant if the business specialises in offering a complementary good or service to the operations of a successful established enterprise.

Can you think an example in your part of the woods where this applies?

Have a nice weekend!

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