Archives for November 2016

Are you in a hurry?

iStock_000007991360XSmall cross businesswomanIt is easy to spot when someone else is in a hurry. We notice the window cleaner misses a bit or leaves a smear, or a cleaner misses a cobweb or so, or the vegetables in the restaurant are not cooked, or are cooked too much. That all indicates a lack of attention.

It is easy for us to judge, but we have to keep an eye on ourselves too. Have we rushed that report? Is it up to our usual standard? Have we made sure our client understood it? Have we remembered to follow up and speak to our customer to make sure they are happy?

Sometimes a dissatisfied customer will find a new window cleaner and complain to their neighbours and friends about the one who left the smears. We could be replaced as easily. Perhaps we need to slow down and think what we are doing, otherwise we will be in the same boat as the window cleaner.

Competition or attrition?

Blog pix 21 March 11 001I am in a service business. I have all the modern advantages. I can help people all around the world because we have email and the internet. I do not have to meet my clients, although it is great if I can. However, if they are in South Korea or Chile, they are a long way from the UK. If I can check exactly who they are and give them what they need, I am happy and I certainly hope they are happy.

There are people who have businesses on the High Street or in town, and their businesses look something like mine. I do not see them as competitors. I have working relationships with some of them. We can provide each other with skills the other does not have; rather symbiotic.

However, imagine having a business very near another the same where you are competing for the walk-in customer and where the footfall is limited. In the local village, there is a long-established men’s hairdresser, or barber if you prefer. There is the owner, who is the brother of a business acquaintance. He has two very competent assistants, one female and one male. I do not have so much hair these days, but I am quite happy to have such hair as I have cut by any one of the three. It was a good business, quite busy, and open Tuesday to Saturday.

And then…. A year ago another similar business opened directly opposite. That business takes quite a lot of the walk-in trade. Our village is not that big. I doubt there is enough work to go around. Both shops are now open seven days a week, desperately trying to out-do the other. It is a war of attrition as far as I can tell. One is bound to crack. I know the owner of the longer-established business feels under serious pressure, not just because of the new lengthy opening times, but because I see him looking across the road to see how many people are in the other premises.

If I formed a business relying on walk-in trade, I would not set up next to another. I would find a parade or street lacking my sort of business. We have only one greetings card shop. Why would anyone risk setting up another next door? We did have a florist come to our village to compete with a well-established one. They failed and have gone. Why would a men’s hairdresser risk a similar fight? Even if they “won” by putting my preferred place out of business, the fight must make life and cash flow very tough in the short term.

I do not have the answers, but it all seems crazy business planning.