MANAGER MINT MAGAZINE Issue 02 | Page 15

Why?

Because I didn’t know how to run the restaurant or market it well enough to bring customers in through the door.

Brick and Mortar:

Let’s say you come across this amazing product. You want to set up a store for it. So you go contact the distributor, buy a ton of inventory and decide it is time to set up shop. If you’re smart, you’re going to go out and find an ideal location to host this venue. After you do your diligence and pick a location, the clock starts the countdown. You have a burn rate that you have to keep up and maintain while figuring out how to get new customers in the door.

As each month goes by, you’re losing thousands of dollars in rent, electricity, product, employees, etc. Now, you have to figure out how to get the word out there about your business.

How do you advertise and how effective are the results?

Is there a need for your product?

How are you going to sway someone on the street to come in and enter your location to see what you have?

What measures have you implemented to deter theft?

How honest are you keeping your books and your budget?

Are other people even interseted in your product?

How long can you keep on going before the venue is going to shut down?

These are all questions you need to ask yourself while operating your business, because 95% of these brick and mortar locations end up dead within 5 years. So you have to figure out what differentiates you and makes your business different from the other ones in your field who were created by smarter people that have failed before you.

Fashion Line:

Let’s say you’re a dreamer. An artist to the world. You have set aside some cash to do a trial run for a clothing line you want to start. Your friends tell you it’s amazing. You’re pumped up so you get a website. You start to get a few initial sales. Then it hits you, you want to fulfill your dream. You want to be the next Vivienne Westwood.

Now, you’re no longer a one person team. You have to hire pattern makers, designers, contract with manufacturers, hire sales people, keep account of the books and understand the fact that within six months, every item you create is out of date. Imagine if you just make one mistake with ordering too much inventory for a season. What would that do to your entire line?

Technology Company:

You have what it takes to code. You’re working on the next generation platform that will disrupt your industry. However, you come to realize that you can’t do it alone. Depending on if you’re a b2b or a b2c company, you’re going to either need a killer marketing or sales team to expand your company.