On my ride home I used to pass a Chinese restaurant that was a free standing location on the corner of a very busy intersection. Over the past two years, I have never seen any cars in the parking lot nor patrons inside eating. I often wondered why that was and thought about going inside and asking how business was during the hours I am not passing by.

Several months ago, the Chinese restaurant closed, but it did not stay vacant long. It was soon replaced by  another company selling grilled foods. As the months have gone by since the Grand Opening, guess what? I have not seen any cars in the parking lot nor patrons inside eating.

In analyzing this situation from a purely speculative position, I have to ask, "Is it possible for a good location to be a bad choice?" 

If I were contracted by the most recent owner to perform site anaylsis, I would have examined two key factors:

• Who is the target market for this location?
• What are you doing to attract their business?

It is easy to understand why each of the owners may have thought there were plenty of potential customers given the fact there is a college directly across the street, a bus depot to the right of it and plenty of housing within walking distance, but which of those groups represented the most likely patron?

Let start with the college students - while the grilled restaurant’s menu fits well into the students’ price range, is their menu conducive of grabbing a quick bite in between classes or a meal they could eat on the way home? Are the menu selections favorable to the students palate? What type of food choices do the students have on campus?

Next we would take a look at the people who work at the bus depot. How many employes remain in the depot during the day? Do the drivers come back to the hub during lunch hour? What time do the drivers get to the depot in the morning and would it be worth adding a breakfast menu? What time do the various shifts end? Does the company ever have special occasion dinners or lunches?

Finally, we would address the residents in the surrounding area. What are the food choices within three blocks of the restaurant? Are there other places to get the same type of foods within one mile? What is the average tenure of restaurants in the area? Which fast food chains are near? What are the demographic breakdowns of the neighborhoods? Are there more apartments than houses? What percentage of customers walk up versus drive up?

Once this information has been obtained and analyzed, we can look at which targets make sense for the business and how we would maximize exposure without spending huge amounts of money.

For this example, we will conclude the greatest potential patronage would be the college and its students. Low cost, high impact marketing can include:

• Donating folders to the college with the restaurant’s menu and hours
• Purchasing advertising space in the school newspaper
• Sponsoring events for social organizations
• Host tastings of new products
• Sponsoring neighborhood sports teams
• Host home owner association meetings
• Host professors or other faculty functions 

As you can see, a good location without proper planning can be just as costly as a location that is less desirable. While traffic count and abundant potential may seem ideal on the outside, careful consideration and marketing has to be done to determine if the location is right for your business. Take the time to do a thorough market analysis and  target market analysis and you will save your company from being the next empty business I pass on the way home. 

Marketing, Management | No Comments »

As the Holiday Season continues, we are all out purchasing gifts for friends, family and ourselves, but have you considered purchasing gifts for your employees and customers? Showing appreciation for employee and customer loyalty is a sure way to have it continue.

One of the fastest growing gift sectors is gift cards. Gift  cards are available from just about every retailer and give you the flexibility of saying thank you in a tangible way, without being as impersonal as cash or purchasing something the recipient can’t use. Other gift cards such as Visa’s Giftcard, can be used anywhere Visa debit cards are accepted, which allows you the chance to give the perfect gift everytime.

Many of the gift card vendors will allow you to upload your own images to be placed on the giftcard and others offer co-branding of your logo onto their card along with a message to the recipient. As an employee gift, placing a special message and/or their name on the gift card, shows a relationship that says you know who they are and appreciate what they do.

For your customers, it is an acknowledgement of all they do for your business and an invitation to continue doing business with you. Additionally, if you use a branded card, every time your customer uses the gift card, they and the retailer see your name and logo, which is very valuable in market penetration and exposure.

There is no debating the competition for your customer’s loyalty and money. Every effort you make to establish a relationship with your customer base, the greater the chance of retention and expanion. The same is true for employees, the days of working for one company until retirement have long passed. Employees are willing to change companies until they find one that gives them the job satisfaction they feel they deserve. In a study done by Northwestern University, 55% of respondents agreed their job performance was directly affected by how they felt they were treated.

If you did not budget for gifts this year, make sure you add it to next year’s budget and come back and let me know how it was received.

Marketing, Market Trends | No Comments »

I’m sure you are all waiting for the next breath taking installment of our series on building a proper business plan. I simply do not have enough time to continue. This is one of the busiest times of the year for my company and I am having to work nearly sixty hours per week. My limited RAM does not allow for me to work at a high level for my clients and provide clear and thought provoking analysis on this blog. What can I say, I’m an under achiever .

I will definitely pick this thread up again in the New Year because we still have three sections to go and about six more weeks worth of posts. If there are questions or comments you have, please feel free to register and post them; chances are you are not the only one with that question. I will be posting between now and the New Year, just not on the business plan series.

Business Development | No Comments »