You have a great idea. I mean a really great idea for a small business in your ideal location. Not only do you have a great idea, you have means, time and opportunity and you are ready to open your dream small business.
But first, let me tell you the story about Buppo's Costume Shop, (true story, but the name is changed to protect the not-so-innocent) Buppo's Costume Shop opened it's doors back in 2005 in a small resort town in a quaint northern U.S. state visited for it's skiing and winter wonderland fun. The owners, people I did not personally ever meet, obviously had put their heart and souls into this shop. It was high class. The costumes were not your everyday Trick or Treat fare. These costumes were the attire of Hollywood quality. Adorning the window display, were amazing renditions of King Henry the VIII, a true 1920's gangster complete with a Tommy gun, and yes, a giant, red M&M. Whatever your heart desired, you could spend hundreds of dollars and purchase the regalia of your dreams. What? Three hundred dollars too pricey? Well, for seventy-five, you could rent. The store opened shortly after Halloween, just before Thanksgiving.
Now, anyone interested in reading this article already knows what happens next. Complete and utter failure. Not only did the store miss out on any Halloween revenue, no one in a town where the median income of its primary residents is under $30,000 a year are EVER going to spend or even rent a costume such as presented at Buppo's. What in the world were these small business people thinking?
My guess is that they had always dreamt of opening a costume shop. I think they liked wearing them. My other notion is that they felt their target market was the vast number of wealthy skiers that visited the area and spent millions of dollars every year. Of course local people will not buy our costumes, they thought. Rich ski people will want to dress up and have lavish parties and we will be here to supply them with all their high-end costume needs. Disastrous. The shop closed in less than three months and I was unable to realize my dream of saving up enough money to actually become a giant M&M.
The lesson was harsh for the owners and as small business entrepreneurs we need to learn from it. Our dreams may not fit the market in which we build. That restaurant fare, product, or clothing may just not sell in the chosen location. Before you open that shop, have your done your research? Is the product or service what you wish to sell for you or is it something that the chosen market is actually requesting? Because unless you have years of cash to pay yourself to sell nothing, you will fail. You must hear the voice of your customer BEFORE you open your doors.
What was needed instead of Buppo's Costume Shop? If anyone had asked the locals, they would have told you that the high-end skiers often requested directions to a specialty wine shop with fancy cheese and gluten-free crackers. That store opened right where Buppo's Costume Shop existed, and is still a job-providing profit-maker today.
Although I still pine for the cool costumes, I actually stop in to the wine shop every now and then. I spend my hard-earned cash on extravagant bars of chocolate and whatever fancy cheese is on sale. I have been heard!
Next time: Three ways to actually become a "Customer Whisperer"
