2. Focus on Product Uniqueness and Product Quality Successful entrepreneurs understand the importance of product uniqueness and product quality. The café we mentioned missed out on a unique opportunity to provide a unique, high- quality service. When they opened, the nearest café offering a similar café experience was 70 km’s away. People were genuinely excited when they opened their doors. But instead of focusing on that unique café experi- ence, they tried to be all things to all people (the goal seemed to be to make use of every square foot of the building). The quality of the coffee was good, but the quality of the food and the café experience was not very good. If you’re going to invest precious resources (time and money) in a product or service, focus on the things you do exceptionally well. If you’re selling anything that is not your best, then get rid of it. 3. Don’ t be afraid to say no! Most entrepreneurs are people pleasers. When a customer (or potential customer) asks if we can help them solve a problem, our instinct is to say yes. This is especially true during the business startup phase, but even mature busi- nesses can fall victim to the people pleaser syndrome. Just because you can do something, doesn’t mean you should. You need to focus your finite resources on products or services that: • Play to your strengths • Have the greatest potential for growth • Provide you with above industry average profit margins Businesses fail every day because they don’t understand the importance of a strong consistent brand built around the things the business does really well. These three rules will help you get your product mix right!
By Denise Alison D o you have a strong consistent brand? Or do you have too many products or services?It’s a common problem and it can have a big impact on the long- term success of your business When it comes to product mix there are three golden rules. 1. Avoid Brand Confusion If someone asks what you sell, you better be able to answer that question in one or two sentences. And once you set that expectation for your customer, you better deliver. Here’s a real life example. A few months ago we stopped in at a café whose brand was built around high-quality specialty drinks (using a well-respected Fair Trade Coffee) and quality baked goods and sandwiches. Or so we had been told. When we walked into the place we saw a confusing array of retail goods including signed sports jerseys, jewelry, and other knick-knacks. The place was cavernous and cold. The coffee was good but the sitting area was less than appealing. The food selection was minimal and not very tasty. This week we learned that the business was closing, and it’s not surpris- ing. I guess this business was trying to diversify revenues, but they forgot to focus on their ideal customer and in the process, they created a café that no one wanted to go to.
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NOVEMBER 2017 • SPOTLIGHT ON BUSINESS MAGAZINE
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