Are you struggling to keep your business afloat? Or know your business can do better?
It's a common theme for small business. Lack of resources, lack of time and lack of direction. Every small business believes the source of their problems is cashflow. And whilst that is an important factor, we at SNA Advisory like to think that there is one major factor being overlooked.
The director of any business is one of the most important factors in determining it's strength and viability. An injection of capital can sure up a business' short term survival. But without proper direction the business will end up in the same position, when it required the injection.
So what do we mean by direction. Well, if we are looking at a business that is already failing, we have a direction that isn't working. We look at why we are in this position. What decisions have been made in the past that has put the business on the path to jeopardy, and can we learn from them?
Then we utilise one of the most basic and most underated tools at our disposal. Brainstorming. Some ideas seem quite silly. But sometimes you have to go through the silly ones to get to the nugget. The one that lights the path to correcting the business. Whether its operational, financial or changing the entire culture of the business. Once the path is lightened, the direction is formed, its time to strategise and implement a plan to place the business on the road to recovery.
A small retail fashion shop. Carrying alot of stock that is not moving. The business cannot afford to get new lines in, more fashionable lines. As the business' current suppliers were not forth coming with additional new stock. So we looked for new suppliers with more trendier lines of stock. We found one and negotiated a small order on credit to show the shop's loyal customer base.
A quick rearrangement of the shop and business was set for an invitation only launch of the new line. The line was marketed as custom order and proper fittings and adjustments were offered and provided upon delivery.
The old stock was sold on at a heavily discounted price via various internet based marketplaces.
The business now runs monthly runway shows in two locations, providing newer fashionable stock lines every month from two to three newly acquired suppliers. Sourcing local seamstresses enabled the business to further support local business, which made it easier to attract bigger attendances to the runway shows. Sourcing models from local schools (students, teachers and P&C members) ensures word of the runways get around, and provides a continued supply of clientele. Not to mention the fundraising support of the P&C of the school.
In all, a silly idea to get in models like they do in Milan sparked a brainstorming session dedicated to the idea of how to run small runway shows that would deliver a product to it's clientele. With plans to expand to menswear and expand to other areas, it seems as though the business has turned the corner.