If I were to dabble in the realm of business consultancy I would make two recommendations to any small business that would listen here in Kunming.
Diversify- Please give us something unique and interesting. There are only so many teahouses and fruit stores that a community can realistically support. The complex where our coffee shop is located has 31 teahouses at last count. The rent in this complex is high because it has the potential to support many successful businesses, with its dwelling population of over 8000. But there are so many empty stalls, spaces for rent, and fledging businesses because everyone is trying to do the same thing. The complex has marketed itself as a shopping district but fails to live up to it because a potential shopper would and probably has been disappointed by the lack of things to shop for and the number of for sale or empty stores. In fact, there are now four "coffee shops" located within these premises up from one when we decided to open ours. One restaurant redesigned their store to focus more on coffee drinks giving up their very successful food menu in the process and one new coffee shop which opened this week. Which leads us to recommendation numero dos.
You gots to spend money to make money- You have to flat out spend the money before you can ever hope to make money. This new coffee shop has yet to turn on their lights. Many small business hold the philosophy of only lighting their store when a customer comes in. The flaw with this mentality is that if you don't turn on the lights and go all out then the customer is never going to venture in and give your product or service a try. The new coffee shop is saving a few cents a day because they never turn their interior lights on but losing waffles more because nobody is going to journey into the black abyss to drink coffee, 15 RMB ($2.1 USD) instant coffee of all things. We take all competition seriously and don't think lightly of any of our three nearest competitors but come on and at least step up to the plate and make us work a little.
6.10.2008
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