Diversification - bad news for small business
One of my old Tenants (a hairdresser) now does piercing. Both fall under the beauty category but what happens when a client decides to start screaming whilst their belly button is getting pierced? It’s done in a little room with no roof that surely will put a dampner on any scalp massage in progress! One of the major things wrong with this business is that the shop front is very open. A full front of glass so you walk past and you can see everyone sitting in their chairs with hair in all states of unstyled and dripping wet to full rollers.
I don’t know about you, but when I get my hair cut I prefer not to sit in a glass box where everyone can see my messed up/washed/wet hair. I conveyed this to the Tenant when they first opened - hence why I only went there once. I offered to put up a false wall at the owners cost to provide some privacy. A year on and I think the wall may be on it’s way now.
Think about your business from your customer’s perspective. Would you like to sit exposed in a hair salon having a really bad hair day prior to being styled? To claim that no one screams when they are getting their body parts pierced is ludicrous.
Why is the Tenant going into another beauty stream? Why does any business owner diversify? Generally because they aren’t making enough in what is supposed to be their “expertise”. What does a customer think when they see their local carpet shop begin selling ceramics? “Danger Will Robertson Danger!” The customer, if they have half a mind will immediately think the business is not going so well. Will that put faith in them to want to place a carpet order with you? It may be a bigger detriment your business than the small amount in sales gained by selling a completely unrelated item.
Moral of these stories? Don’t diversify just because you’re going out the door backwards. Do what it is you’re supposed to do well. Figure out how you can provide value to your customers. How can you get them to walk in your door? I’ll be giving you a sneak preview of some of the tips and tricks from my e-book so stay tuned!.
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| Published on December 20th, 2008 | | Posted by Lisa |











