Too often, organizations that need business strategy consulting are the same ones that would never think of hiring a third party to help them. Huge corporations use consultants to assist with a wide array of programs. But far too often, it is the smaller business that needs help the most and rejects help the most.
In 2008, US statistics showed that a little more than six-hundred thousand new business were started. Over five-hundred and ninety-five thousand closed their doors and more than forty-three thousand filed for bankruptcy protection. Approximately 70% of new employing businesses survive for two years, while only 50% are able to stay afloat for the first five years of operations. These startling, statistics speak for themselves.
But Meg was never daunted. As a single mother and a trained butcher, she had a dream! She wanted to retire early and travel for the rest of her life. And she was lucky! Meg found the niches that even the likes of the Starbucks’ marketing smarties hadn’t found. She invested her money and spirit into the entire process full throttle. Her business focused on filling the caffeinated gaps at concerts, sporting events and several large area hospitals.
For more than a decade she was successful enough to gross into the high six figure range every year. She spent her draw on a million dollar house, bought into vacation clubs and took exotic vacations every year with her family. After a dozen or so years, Meg was exhausted. Her goal starting out was to build up the business and sell it for a profit. Even though she had invested wisely in real estate, she never invested in a sound branding strategy. Her operational plan was non-existent and even after fifteen years she had no clue what her business was worth or what her annual revenue at any location was without researching it. Poor Meg!
Her dream fell apart! She tried desperately to sell the business but there were no offers. Nobody wanted what she had built up even though the entire package included great equipment, prime real estate and a central commissary setup that could easily be rented out. Meg was beside herself! Had her luck run out? Why hadn’t her hard work paid off in the end? Aging into her retirement years, she was really tired and emotionally and physically depleted. In fact, she was working harder than she ever had just to keep her investment afloat and pay her family bills.
Sadly, Meg never stopped to consider building a strategy to help her reach the original goal of being able to ‘work less’ and ‘retire early’. Even when presented with ‘no cost’ consulting opportunities from her brother’s new wife who had been consulting for Fortune 100 corporations for a quarter of a decade, Meg dug in her heels. She wanted to be in charge even if it meant ultimate failure. After all she thought she had a pulse on the market and continued to improvise accordingly.
No wonder nobody wanted to buy her business. When coffee wasn’t moving fast enough, she sold popcorn and kept the name of the coffee business as the trademark for her popcorn shop. When popcorn wasn’t bringing in enough revenue she sold hot dogs. All the while keeping the company name and branding as “Java Time”. When people got tired of hot dogs she sold Smoothies. And on it went! Meg’s operational tactics were based on her lack of education, experience and branding. The business suffered as did her dream.
Meg’s new sister-in-law could identify in minutes what Meg wouldn’t see in years. Any business strategy consulting professional would have seen the same thing. Unfortunately Meg never figured out the most important part of her business was how developing a strategy and sticking to it would help her retire early. Meg’s still working. Her brother and his wife have retired wealthy.