Showing posts with label Small Business. Show all posts
[Growth Stories] Small Business Fails [Part 1]
Leading a small business is hard. Leading a successful small business is really hard. But, more often than not, it's the little things that trip us up. More than having the right products, marketing, or pricing, we fail because we miss the human element, the little things that make or break relationships; whether for customers or employees.
This series of posts will dive into examples of business owner fails (because learning from others is a lot cheaper than learning for ourselves!)
Holy Spirit Coffee (Santa Fe, NM) - My wife couldn't wait to experience the charming atmosphere of this quaint hole-in-the wall coffee shop on the edge of old town Santa Fe. It was closed the first few times we walked by and she was brimming with excitement to catch them open. Imagine her utter surprise (note the name) and disappointment when she walks in and the owner immediately begins hitting on her. When she brushes off the awkward introduction and notes that she's very married, he returned with a quip about his own marriage. Needless to say, he missed not only a sale that morning, but also the opportunity for a profitable (business) relationship.
Take-away: Personality is a wonderful gift for a small business owner; charm and charisma are wonderful traits. Perversion, much less so. The larger point, is to avoid extremes. Be warm. Be friendly. Keep the topics on the business (coffee?), the town (Santa Fe), and areas that would commonly be viewed as appropriate.
Landscaping Company (Colorado) - With my son preparing for his senior year in high school, a full-time landscaping job was a great way to get experience and save for a car. The work was hard and that was good and expected. What was less expected was how much opportunity this company missed out on because it missed the human element. They struggled to get employees to return for future summers or even to keep them throughout a summer. Why? Because they weren't treated as assets. The owner, a very good guy, struggled with the small stuff. He might promise someone they could get off at 5 but then work them until 7. Instead of giving them a legally required lunch break he would tell them to clock out and to drive to their next customer while they ate. He over-scheduled customers and under-delivered because his crews were frustrated and rushed. If it started to rain, guess who was sitting in the truck yet instructing the crews to keep working? It was simply a transaction. They were a means to his ends, a cog in his wheel. A wheel slowly starting to sink in the mud.
Take-away: It may be cliche' but our staff are our greatest asset. When we take care of them, pay them well, build trust and get in the trenches with them they will (more often than not) go above and beyond for us. They will act more like owners than hired hands.
BBQ - (Colorado) - Name withheld because at the time of writing, two of my kids still work there. To be fair, this small business is very successful and this example is a small one as the owner does many things well. I write of it, because it may surprise you. It did me. When I leave an electronic tip for take-out or coffee, I naturally assume that the tip goes to the employees. Not at this place. Only the cash tips go to the young people doing the serving. All of the electronic tips go to the owner. Let's be honest, that's shady. So, it's not a bad idea to check with the person behind the counter to ensure that they are the ones actually receiving the tip for their efforts.
