Does Competition Benefit Brick And Mortar Startups?

July 10, 2012

Brick and mortar startups are your traditional small business beginnings that crop up in buildings, offices and stores all the time. Some of them hit it off, some of them are just not worth it and don’t survive. Some startups are great, but they don’t gain enough publicity and customers to keep them going.

Many people say that this digital age is kinder to internet startups and e-businesses more than the conventional business method. This is not entirely true. The internet is a vast place and many marketing strategies get drowned under the cumulative noise of thousands of others who are clamoring for attention.

So, Is Competition Good Or Bad?

For a conventional brick and mortar business, it may be hard to get your voice heard and your presence felt, but the fact that you have a physical presence at all says a lot.

The short answer is yes, competition is good for a brick and mortar startup business in some ways. The long answer is, yes and no, because competition is what makes an underdog either break it, or make it; when broken, there is seldom chance for rekindling the fire!

Many entrepreneurs suggest that the best thing about competition is the advantages you can garner and the boost your business can get from being near your competitor’s business. If a startup is confident enough about their products and services, they can obtain a brick and mortar very near the competitor outlet. This way they can reap rewards from the other’s marketing strategies!

How Does That Work?

An established business or store already has a large customer base due to the various marketing techniques and strategies they have employed over time. Having an outlet nearby their store will mean that many of the customers may also gravitate towards your business that offers the same or similar products.

The ‘foot traffic’ is a big factor in this scenario. The money that your competitor has put into choosing this location and calling out to customers will become your power, too. However, this is not the final word on this; taking advantage of these plus points wouldn’t hurt though.

Competition enhances the business and overall traffic. The motivation that one gets from healthy competitor action is what brings the best out of businessmen and store owners. The constant striving to keep ahead and one’s head above water is what results in great services and customer satisfaction.

Roger Clements writes for http://www.defensivedrivingonline.net and has been a blogger for 2 years. He specializes in writing about entrepreneurs and business startups.

1 Comment | Bricks and mortar, Competition, Getting Started, Risk, Uncategorized | Tagged: , , , | Permalink
Posted by Gary Simning

How To Use Social Media When Launching Your Store

June 4, 2012

When you launch a new business or a new store – it can be difficult in the first few weeks. Getting a regular customer base takes time and it can be difficult to ensure that everyone knows about your new store and what you’re offering. A great way of giving yourself a head start though, is to use social media in the promotional process and to target locals using social media.

Using Facebook

If you set up a Facebook page for your store then why not introduce yourselves on Facebook using the already existing community pages. Most towns and villages will have a community page, so post on their wall introducing your business and perhaps giving away a promotional code they can use in store. It’s a great way of getting the word out too. Try and introduce yourselves on a few different community groups so the maximum amount of people are getting the message and being informed about your new store.

Using twitter

Twitter is another great social networking site that you can use to promote your business. Start following people that work and live around the local area. Introduce yourself with a brief tweet and don’t be afraid to have some friendly conversation with them. If you’re a coffee shop – offer them a free cup of joe if they come in and introduce themselves. You can also use hashtags to your advantage here too – making sure that you hastag your local area’s name or postcode in any updates or promotional deals. Get talking to other businesses in the local area too and network with them via twitter! The more connections you make the better!

Using Pinterest

If you are opening a clothes shop or a hair dressers or anything else with products – you could open a Pinterest account and upload photographs of your products to the sharing network. It’s a great idea for getting your shop name out and around town.

Remember over time – to continue using the social networks too. If you have a new product in store one day then why not announce it on your social networking sites? If you build up a big enough following then this will really be beneficial. You could also do small weekly promotions via your social networks too – such as a discount code or BOGOF offer code. People love feeling rewarded and by offering them online deals to collect in-store you can really encourage them to stay loyal to your store and to keep popping by.

This article was provided by Elle-Rose, a Social Media manager for Lomito and XXPress PCR. Helping people use social media for business purposes!

Leave a Comment » | Getting Started, Marketing, Timing | Tagged: , , , , | Permalink
Posted by Gary Simning

Where are the Angels for bricks and mortar businesses

February 9, 2012

I happen to believe there are Angels. It’s just that I don’t believe there are any involved in lending or investing money.

The picture of a benevolent being with wings and a halo helping us through our times of trail is a far cry from what generally exists in the business of investing and lending money.

There is a lot of money sitting out there looking for a home. Money is owned or controlled by people and businesses that are looking for other people they can invest in with confidence.

You can get the money needed to start your new retail store.

Getting the money starts with having confidence and enthusiasm in your own idea. Wishing and hoping doesn’t generate very much confidence in investors. Being fully committed does.

Here are a some of basic things you can do.

  • Put together a biography that emphasizes you ability to organize and manage a business.
    • If you don’t have a history emphasize the research you have done to develop your idea.
    • Show the warts. Hiding something that is later discovered destroys confidence.
  • Put together pro forma (estimated) operating budgets for at least the first three years.
  • Have a “typical” floor plan for your store ready with an estimated build out budget.
  • Prepare a financial statement using a standard financial institution form.
    • The SBA has a good form you can printout from their website.
  • Put all the information in a binder with dividers and give it to the Landlord when you are making your lease proposal.

After 30 plus years working with hundreds of tenants and potential franchisees as a landlord, I know how rare it is to get a complete package from a prospective tenant (small business owner) and how impressed I have been when I have received one.

I recently read an article in REIT.com by Carisa Chappell where she is writing about several organizations that are looking for ways (including money) to help start ups. Retail REITs Help Entrepreneurs Get Their Start.

I hope this is helpful.

Leave a Comment » | Coaching, Finance, Getting Started | Tagged: , , , , , , , | Permalink
Posted by Gary Simning

Is it a trap or an advantage

January 18, 2012
End crop subsidies

Image by quinn.anya via Flickr

I spoke with a friend of many years yesterday who is part of a start-up that formed three years ago. The business is focused on a green energy product favored with special subsidies giving their product a distinct price advantage. Millions of dollars in startup funding came from federal grants and private investors.

Growth was very rapid with a bunch of dealers signing up to sell the product and several million invested in equipment in many locations. It seemed like a sure bet. Protected and subsidized market with special preference funding and financing.

The subsidy was taken away and without it the product is not competitive either in price or value. The  hard lesson from this is; special advantages that come from government subsidies or when market places are distorted like the current commercial real estate market are more of a trap than an advantage.

How can this information help you?

Let’s assume you want to open a new retail store selling women’s clothing and you think now is a great time to do it because rents are half of what they were 3 or 4 years ago and landlords will often contribute more tenant improvement money. The combination makes the profit margins look good and significantly reduces the amount of money you, personally, will have to invest. So far so good.

Let’s add a couple more assumptions to this example. 1) The store is going to be successful and that success is going to lead to a desire to open additional stores. (This should be a part of your planning from the start, but I’ll cover that in a future article). 2) The business will be sold at some point in the future.

When you are developing your business plan and proforma operating statements ask yourself this question.

  • Can my business function profitably in a rational market place. A rational market is one where there are no special subsidies; where rents, tenant improvements, labor, materials and all other costs are paid at market rates.

Expanding a retail business through new store growth requires an easily duplicable business model. The greater the disparity between full market rate rents and tenant improvement costs

If the answer is no. Look for another niche or a different business model.

From a practical point of view if you are opening a new retail location you hope the store will succeed spectacularly. and that you can duplicate that success in more locations. Every chain of restaurants and retail businesses started out as one location and a dream.

If your dream is to build the

Great deals and subsidies are bonuses to be enjoyed , but no relied upon.

1 Comment | Entrepreneur, General, Getting Started | Tagged: , , , , , , | Permalink
Posted by Gary Simning

Are you ready to get started?

December 19, 2011
English: It's open. First customers at Asda. 1...

Image via Wikipedia

Okay, you’ve made the decision to open your own store and you are ready to charge ahead. Since everything you do from this point on relates to your customer the first step in opening your business is defining who that customer is.

Take the next week and write down everything you can think of that describes your customer.

Ask yourself questions like:

  •  What age are they?
  •  Are they married?
  •  Do they eat oatmeal or ham and eggs?
  •  What time do they go work?
  •  Do they live in apartment or a house?
  •  Do they like to shop during the lunch hour or at night?

Spend time in your competitors stores checking out their customers.

  • How are they dressed?
  • What kind of cars to do they drive?
  • Do they browse or are they in and out as quickly as possible?

The more questions you can answer the about your customer the clearer the picture will become.

At the end of the week write out a detailed description of customer, the kind of buying experience they want and the benefit they are after from buying your product.

A clearly defined picture of your customer makes all of the subsequent steps so much easier.

Would you like to see a guide for opening a new store thats walks you step by step through the entire process. If so, shoot me a quick note.

If you have a particular problem you are wrestling with send me your question I will be happy to answer it.

Leave a Comment » | Getting Started, Planning | Tagged: , , , , , , , , , , , , | Permalink
Posted by Gary Simning

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