All Articles Related to Strategy

I may be stating the obvious but there are primarily two key things which will drive business forward and ensure that you deliver value, growth and profits …they are income and costs.  Some people may disagree with me and say that surely it’s cash, but income and costs dictate your cash balance and therefore these are the two to focus on.

You’re clearly working hard on the turnover line with the number of shows that you’re attending and the social marketing that you’re focusing on.  However, what are you doing about your costs?

On the assumption that you’re controlling your marketing and staff costs (are you?); production and investment in stock seem to me to be the major things to think about.  Stating the obvious again, you need to be producing stock at the lowest possible cost.

I don’t know what your turnover and cash flow forecasts look like (do you?) but if you could source a large production run at a low cost per unit and be confident that it’s not going to go out of date then it must be worthwhile?

It will ensure that you don’t have to worry about the production side of things every time you get large orders and you can focus your efforts on generating the income.

Clearly, you need to get the balance right here between over investing in stock that could go out of date but I think it is key to your longer term plans and success.

Lyn and Lynne,

Buying an existing business can of course be a quicker way to “get going” rather than going down the organic route. However, if you have already been through the process once, many of the pitfalls and hurdles along the way will be well known to you second time around and the “roll out” should arguably get easier the more times you go through it.

George,

There are a number of issues that you need to consider before you take the “giant leap”

1) How much smaller and how much more expensive is the new unit?  Can you sustain the increased costs (if sales are slow to increase in line), and can you display what you need?

2) As you have remarked, it’s not just the volume of footfall that matters, but the quality (and spending power) of that footfall.  I certainly subscribe to the argument that you will struggle to sell quality goods in a downmarket establishment (just think where the boutiques are located in relation to the Primarks of this world).  It’s where YOUR target market (ABC1s) shop that matters to you – find them and locate there!

3) For creative industries, I also strongly support the idea of the “cluster effect”.  A couple of galleries, small boutique shops, independent coffee shop and some niche retail makes much more of an experience for the shopper and is more likely to lead to impulse purchases as well as planned purchases

Without seeing the facts and figures it’s impossible to provide sound business advice.  However, reading between the lines your heart’s set on this location and you instinctively know that the investment is the right thing to do for your business – so go for it! But remember – retail’s in the doldrums at the moment so drive a hard bargain with the agents!!

How does everyone else do it and make it look so easy? Setting up a retail business often means significant regular costs that can feel like a cloud permanently overhead waiting to open up and drench you!

Lyn and Lynne ask “Is it time for a marketing company?” I’m glad they’re asking the question, and that the other fishbowlers are also giving thought to how they should build their customer bases.

But the first question that I would ask is, “What do you want a marketing company to do?” If this company is one that provides marketing services such as design, direct marketing or PR then they will need a brief from you. And to do that you need to know what you want to achieve by engaging them.  Don’t rely on them to know this. After all, it’s your business, not theirs.