Several 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 several
covers for a national magazine and business looked great.
And yet within a few years they closed their doors. Why?
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 to re-assess her plans and find a
new business model.
Over the years of experience of hundreds of business owners and
leaders, I’ve been surprised at how many fail to ask the
basic question: Will enough people buy my products at a
price that lets me make a profit and grow my business?
Obviously marketing, service and pricing play a huge role
in the success of any business. Talent and passion are
vital. Efficient systems are a must, but before any of
that, there is the fundamental question, Will enough
customers buy what I’m selling at a price that covers my
costs?
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 several
covers for a national magazine and business looked great.
And yet within a few years they closed their doors. Why?
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 to re-assess her plans and find a
new business model.
Over the years of experience of hundreds of business owners and
leaders, I’ve been surprised at how many fail to ask the
basic question: Will enough people buy my products at a
price that lets me make a profit and grow my business?
Obviously marketing, service and pricing play a huge role
in the success of any business. Talent and passion are
vital. Efficient systems are a must, but before any of
that, there is the fundamental question, Will enough
customers buy what I’m selling at a price that covers my
costs?
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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