About ten years ago, a friend of mine built one of the best
photography studios in our area. They had a magnificent
facility, the best equipment and back office I have ever
seen, along with talented photographers. They did at least
one cover for a national magazine and business looked
great. And yet within a few years they closed their doors.
Why?
Two words: Digital photography. As my friend said, "We had
the best typewriter factory in town." They were doing
amazing work, and yet the market left them in the dust.
Given their investment and their business model, they
couldn't adjust so they folded their tent and quit.
This week I talked with a talented and passionate medical
professional who’s working harder than ever, and making
less and less. Changes in the economic realities of
medicine are forcing her out of business.
Over the years of interacting with business owners and
leaders, I've been startled at how many fail to ask the
question: Will the market buy what I'm selling?
Obviously marketing, service and pricing play a huge role
in the success of any business. Talent and passion are
vital. Efficient systems and top quality are a must, but
before any of that, there is the fundamental question, Who
will buy what I'm selling?
Are there enough potential customers out there? Can you
reach them? Can they afford to buy? Will they pay enough to
cover your costs of doing business and generate a profit?
Many business leaders focus on what I call, "arranging the
deck chairs on the Titanic." They focus on the internal
workings of their business, while ignoring the macro-
economic forces around them. Will the market buy what
you're selling? That’s an essential question and it must be
faced realistically.
Successful entrepreneurs monitor both the internal
operations of their business, and the external environment
around them.
photography studios in our area. They had a magnificent
facility, the best equipment and back office I have ever
seen, along with talented photographers. They did at least
one cover for a national magazine and business looked
great. And yet within a few years they closed their doors.
Why?
Two words: Digital photography. As my friend said, "We had
the best typewriter factory in town." They were doing
amazing work, and yet the market left them in the dust.
Given their investment and their business model, they
couldn't adjust so they folded their tent and quit.
This week I talked with a talented and passionate medical
professional who’s working harder than ever, and making
less and less. Changes in the economic realities of
medicine are forcing her out of business.
Over the years of interacting with business owners and
leaders, I've been startled at how many fail to ask the
question: Will the market buy what I'm selling?
Obviously marketing, service and pricing play a huge role
in the success of any business. Talent and passion are
vital. Efficient systems and top quality are a must, but
before any of that, there is the fundamental question, Who
will buy what I'm selling?
Are there enough potential customers out there? Can you
reach them? Can they afford to buy? Will they pay enough to
cover your costs of doing business and generate a profit?
Many business leaders focus on what I call, "arranging the
deck chairs on the Titanic." They focus on the internal
workings of their business, while ignoring the macro-
economic forces around them. Will the market buy what
you're selling? That’s an essential question and it must be
faced realistically.
Successful entrepreneurs monitor both the internal
operations of their business, and the external environment
around them.
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