It is all about the money.
First and foremost, thanks to Darlene McDaniel for doing a superior job at Small Business Boomers while i was away. Busy I was on a Sarbanes-Oxley consulting gig and a little vacation, the success filtered through. Here’s best wishes for your own blog at b5. I’m sure it will be a success.
Now, I offer something to build on top of Darlene’s last entry about your business and your competition.
One of my favorite coffee hangouts just closed its doors after less than a year in operation. My wife and I drank as much as we could, but we couldn’t pull him through. As wired as Igot I knew that not all of the three establishments selling boutique coffee on the same mile of road would survive. Not suprisingly, it was the stronger financial situation of the competition that did old Gary in.
He had a new store on a high traffic street and a good competitive edge: a drive up service window. His problem in the end was that he relied solely on cappuccinos and lattes for his cash flow. The competition had a broader retail base. One is a sandwich shop and bakery that sells coffee, too. The other place is strictly a coffee shop, but the owner has a beauty salon and tanning parlor right next door.
I feel bad for Gary, but he was toast almost before he steamed his first pitcher of skim milk. Financial staying power will win the competitive battle every time. No magic there. Gary just should have seen it before hand. The big question is will Starbucks take over his shop.
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POSTED IN: Finance
1 opinion for It is all about the money.
Kelly
May 17, 2007 at 10:27 am
That’s absolutely the reason that Starbucks has done so well. They realized that they could pull you in for the coffee, but also sell muffins, CDs and french presses… It’s all about diversity in a busy, competitive retail market.
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