Doing Business Differently
We know that the world economy is struggling at the moment. When finances are tight, the first thing to suffer is the spending on perceived luxury items such as jewellery and clothing. That makes it very difficult to cover your overheads and makes expansion almost impossible.
That’s what happened to the owners of a successful Philadelphia boutique. They had owned and run their business for eight years and despite the fluctuations in the economy, were at the point where they were ready to expand.
The problem was that the rental prices had gone up and it made the opening a second bricks-and-mortar business too expensive for them to cope with.
Instead of doing nothing, Abby Kessler and Katie Lubieski looked for affordable alternatives. Their solution was to take their business, Smak Parlour, on the road.
Their idea was reported in their local paper. “It makes a lot of business sense,” said Natalie Nixon, director of Philadelphia University’s Strategic Design MBA program and a professor of fashion-industry management. “It really decreases certain overhead costs. . . . Certainly, it’s going to be an option more for small/medium enterprises because the cost of doing business in this economy is becoming more and more prohibitive. And it’s a way for new entrepreneurs to launch a business.”
If your customers stop coming to you, you have a choice. You can sit and wait until things improve or you can take your business to your customers.
A good business does not always follow the traditional industry business model. In this case, it’s about following a model from a completely different industry and making it work.
Take a look at what they are doing in this video from the BBC.
What could you be doing differently that might boost your bottom line?