why is my business failing?
I opened a children's store a little over 7 months ago. It is a baby and children's resale store, where we buy gently used children's clothing and merchandise and resell it. For the first 2 months we were doing alright making over $100 on most days of the month. Business has really gone down over the last 2 months, we average about $7-$10 a day now. There is another store similar to ours up the street but they have been open for over 15 years and there name is already well established. I pass by at least once a day just to see how the business is doing and they always have a lot of people in. Oddly enough the our landlord to the building that we lease is friends with the other owner, him and his wife play bridge every week with. He says he doesn't know why we are doing so poorly when the other business makes around $15,000 a month on average. I have not done any advertising, but I looked into it and it's SO expensive.5 years ago - 3 answers
The very fact that you are asking a question like this here and the information given indicates that you lack some business skills. It is likely that you are failing due to a variety of reasons which are primarily a result of a lack of business knowledge and planning. You should probably take some classes or enroll in a business program at a university to learn more about what it takes to succeed in business. Sorry if I sound harsh5 years ago
There could be MANY reasons the business isn't doing well. To pawn it off on the poor economy right now wouldn't make sense. For second-hand and closeout stores business is actually growing. I consult for a lodging company (which doesn't seem similar to your business, however retail is retail.) I'd be happy to give you any advice I can, but need some other info. Feel free to e-mail me and we can go further.
Source(s)by Matt L - 5 years ago
Here is a little secret. You are not in the clothing business.
You are in the "Making and Keeping Customers" business.
Most business owners operate under the perpsective that they are in "the bagel and coffee" business...or the "Restaurant" business, or whatever it may be.
You will open up a whole new way of thinking...as well as other opportunities if you approach everything you do with this new perspective.
"Marketing" is the art and science of "Making and Keeping Customers"...and "Marketing" is happening at every point anything from your company touches a customer.
That means....you...your employees ( in otherwords...see customer service as a marketing role rather than a service role)...It also includes your policies...your daily procedures....your product....oh yes...and also...advertising. Marketing is so much more than just advertising...but advertising is also an essential element.
Direct Mail....postcards specifically....are a superior form of advertising. It allows you to put yourself directly in front of your customers with your great offer.
Team up with a pizza joint and tie in a coupon into the offer, when they make pa purchase.
Keep track of your customers an dhwat they buy.....direct mail will work better for you than TV or radio.
Business cards with a promo onthe back are another great inexpensive way to cycle customers back through your doors.
Never ...NEVER buy space in the yellow pages, it is far and away the worst advertising vehicle. A collossal waste of money. You need to be listed in there with your address and phone number only. Yellowpage salemen are highly trained and most of what comes out of their mouth is twisted facts and outright bullpucky.
Some other useful tips on my personal site. www.doranpeck.com
Source(s)by Doran P - 5 years ago