There is no doubt that those businesses which are deemed successful and are small have not been created by accident. There are many types of business ranging from retail to printing and wholesale but all of them have a common link if they are successful: they have behind them someone driving and pushing and betting on them. So what are the elements that lead to success?
First of all the business needs to have a concept that is sustainable. There is nothing new under the sun, but if a business is to succeed it need to be differentiated from its competitors or have a lot of money to support it. The idea can almost be anything but it needs to be different and exclusive to the business.
It can be a specific way of providing service, or a specific range of products or unique cost base. Whatever it is, it’s got to be exclusive and it can’t be replicated easily, but above all the owner needs to be aware of it and make it better.
The person or people who run it need to be passionate about it. This emotion and feeling cannot be transient and superficial. It needs to be wholehearted. Sometimes things will not go according to plan (sod’s law) no matter what one does to influence the outcome. It is in those occasions that the passion will come through and carry the whole thing forward. Passion is a funny thing but, in the context of a business, it is the overwhelming feeling that whatever is thrown at the business it will go forward and will be successful.
As someone who has made the transition from corporate life to small business, it is an overwhelming truth that hard work is involved. The business does not ask for your hard work, not does anybody ask for your hard work. But it is a surreptitious thing that the long hours creep in.
One can deceive oneself that because “you are your own boss” you will be able to keep your own time: well you won’t. Your time is the business, and that is where a way of life comes in. You have got to be passionate to invest so much of your time into it.
I have written on this subject before and do so again now as it has become even more important. The issue on hand is retailer versus product brands. Time and again I get so disillusioned by the careless way that retailers deal with their brand name.
People who have been in situ building a reputation for decades and it’s as if they do not appreciate the value of their brands for the local population. They would rather advertise the brands from certain products than their own brand, in the mistaken belief that they are more powerful. It’s as if Tesco would mainly advertise the product range they stock rather than their own brand…..never!
How do you build a local brand? There is a load of material written on this subject and, for sure, it is not by just sitting behind the counter waiting for customers to come in. It does involve spending money and doing activities which attract the local population and which are relevant to your business.
In the mean time we should say that Marjo is just for those retailers that prefer to use their own carefully nurtured brand and keep the jewellery products they sell under their umbrella. We will not ask you to merchandise in certain way or use our displays or packaging only to turn around and compete with you tomorrow……
As we run our shops day to day, the issue of stock is ever important. Even though as a wholesale silver jewellery supplier our products run into the thousands, we can hardly expect our customers to have all the models in stock. The question of what is the right level of stock becomes key. Also, silver jewellery by definition tarnishes and that is another factor why the right level of stock should be considered.
As a rule of thumb we advise our customers that stock should be proportional to the size of business and should take into consideration how often they order. If they contact us every two months and their annual turnover is say £1000, there is no reason why stock should be bigger than £166. Of course the seasonal variation should be taken into account and at a high seasonal period it should be perhaps twice as high but not much more.
The right level of stock will let you see what products are selling and have sufficient variety to keep the collection always fresh. The problem comes when this time you buy from this supplier and next time from another and then another. Continuity suffers and by default stock levels do too.
How often have we been in a situation where we are facing a customer whose business is performing less than acceptably and, because there has to be some blood on the carpet, he “blames” you - the supplier. There are a number of variables on which the business performs - or not - and often the easy route is to blame the supplier. The problem could lie in the creation of footfall or it could be that the display of the products is unacceptable or simply that the choices of product that he has made is not right.
The only thing that one can do in those circumstances is to let the storm ride and smile in the process. As frustrating as it is no argument will suffice and there is nothing one can do to revert the trend in the business and more specifically one’s products. So the best thing is to walk away.
What some customers do is to recognise this and not place the onus solely on the supplier. Instead the person recognises that it is only one of the variables and analyses each of them instead. It is only when this is done that an objective analysis is carried out and one gets nearer the truth………..
If you read certain parts of the media it will tell you that retail sales are up, that inflation targets are being met and that overall growth in the economy is coming back. So, you might be excused for thinking that we are out of the woods and in the clear? Yet, I hear you say that it doesn’t feel like it and we still have to endure some more…….
As we turn and tussle debating what we are doing wrong and what we are doing right we need to realise that a number of elements are at play. The first is that we are all fish in a pond of economic turmoil and that we are particularly vulnerable to our markets – whatever they are. The second is that within our sectors, we might be more or less exposed to the web which is having a major impact. The third is that our personal performance might influence our performance.
So before you blame your suppliers or yourself you must realise that you are only a cog in the wheel………