Overestimating
revenue while underestimating costs is a common reason. Or to put it another
way, simply not having enough cash to sustain the initial operating costs while
building the brand.
Panic may
well set in and the clear image and direction initially planned is changed in
the hope of generating quick, or increased revenue.
It is tough.
The dream, the passion, the endless hours preparing for opening day are
replaced by even more hours once the business opens. And every decision, large
and small is made alone.
Most new
businesses are born from a passion and an idea. The driver will be to do
something already being done, but to do it differently. The difference may be
an ambience, atmosphere, trend, lifestyle, product or service.
Ideally, the
new business will have a clear differentiator in order to allow a consumer to make
a decision to support the new enterprise in preference to an established entity.
And finally,
they need to get the message out there; “We are open for business”.
Or do they?
On Saturday
afternoon, I met and had a conversation with the owner of a Café/Bar in
Jindabyne.
He broke all
the rules.
He explained
how they opened with a total of $70 cash left after set up costs. “Not enough
for the float”.
The promotional
activity was zero, and was planned to be such. “I wanted to be discovered by
word of mouth. I wanted to be special, somewhere you could come and have a
conversation and a great coffee, glass of wine or special single malt”.
He went on
to explain that despite the significant tourist trade during the snow season,
first and foremost, he wanted to cater to the locals and be somewhere they
could drop in and enjoy.
He explained
that during the high season, we ensure the door is closed and the curtains
drawn so no one can see inside. You also cannot hear any noise. “if you find us
it is because you are looking for us and usually because someone else has told
you about us”.
He
referenced having over 80 single malt whiskeys in the cellar however only 6 on
the drinks list. “If you want something from out the back, you will know to ask
for it”.
“We want to
be special, we want to be unique and we want to be somewhere people come back
to because they know us and like being here. If you know and like us, you will
know others who will like us too and will pass on the message.”
He also
explained that they don’t “do lifestyle milks”. They certainly do health
related milk such as Soy and Almond but if you want skim or light, we cant
help. And if you want syrup in your coffee, there is a great Gloria Jean’s
franchise down the road.
I asked what
brought him to Jindabyne and he explained his journey from growing up on the
Gold Coast and then living and working in Melbourne.
“I was
taking a break and visiting a friend who was living here. I first saw this venue
while in a very hungover state one Sunday morning and immediately thought it had
potential. Six weeks later we opened.”
Five years
and a few months on, the business is thriving and the atmosphere, service, food,
coffee and drinks quality plus a discernible point of difference suggests a successful and sustainable business has been born.
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