I am always interested when companies go into administration, what makes a business fail?
This week Jamie's Italian announced its closure with 1000 jobs at risk, who would have thought this successful company would fail? Or was it successful? I have read that the food was poor and Jamie spread himself too thin along with poor management (he employed his brother-in-law to run the business)
What did they not do to survive?
Why do some businesses go from strength to strength and others fail? If you are of a certain age you will remember Woolworths, you could get everything and anything from Woolworths so what happened? It's simple really they did not keep up with consumer trends, we used to buy singles (records) from there. No-one does that anymore! They ignored their consumer trends.
The old fashion Woolworth stores with old fashioned fusty interiors no longer lured consumers in, coupled with poor stock control leading to empty shelves just did not give the customer journey that was desired. The store became a Jack of all Trade and a Master on None!
What can we learn from these failed brands?
1. Never stop asking your clients what they want. We have to remember we are a service industry and you are only in business because you are giving your clients what they want.
2. Customer service, expectations have never been higher, what are your added extras? What are the moments that create amazing customer service in your salon?
3. Stock the products that excite your team and your clients actually want. Stop buying things because they arena deal and build a retail strategy.
4. Stop trying to be all to everyone and take time to run your business.
We know that times are tough at the moment and business is not easy but if you wait to see what happens in 6 months you will be where you are now or worse. Take action and start to take control of your business today!
I run a Business Club that can help you to get on the Pathway to Success, click here to find out more