One of the biggest mistakes that promoters make, is falling in love with a business idea and believe that the idea will succeed no matter where it’s based.
Many a time, entrepreneurs start businesses they “think” people want, and get so hyped up about it. So much so that, if they didn’t get the right place, they start anywhere available, believing that customers will come to them. And that might not actually happen. The business fails.
Promoters spend a lot of time, sometimes even years, trying to find that one big idea that will click. A business idea is an opportunity that has potential in a market. But having a ‘Eureka’ moment is not enough to jump-start it as a business.
For a good business idea to win, it has to satisfy several criteria. In this post, the ‘Location’ is our topic.
What is the point of starting a business where there are no target customers? That is why, when it comes to location, the right market has to be selected. So what is a market? It can be a village, a city, a district, a region or a state, or even a country or several countries. But it needs to have the target customer segment in it.
Once the market is selected, comes the second step. The exact location of serving the clients. This is specifically important where customers or clients have to physically visit the premises.
The location in the market is crucial. It has to be located where it’s closest to the target customer and is easily accessible and visible to them. That is the reason why shops that are based in the right street but the wrong building fails. Or based in the right building but the wrong floor fails. Or based on the right floor but the wrong area fails. Or based in the right street but wrong visibility fails. It’s a very important matter and it’s a shame when a great business idea fails just because the location was not right.
So why do entrepreneurs make this mistake when it sounds like common sense? Several factors can play here.
One reason is the non-availability of space in the ideal location. In which case, we as Management Consultants would advise not to start now and wait for the right location to come up, or move into another market where the right space is available.
The second reason is the high rental of the properties in the right location. This is a tough reality and one has to be careful here. When faced with such a situation, the entrepreneur has to evaluate how much rent is viable for the business. This might be complicated for most entrepreneurs. In such cases, it’s ideal to engage management consultants or management consulting firms (like AASC) to do a detailed analysis on the financial viability of the location, and check if that rent is viable. Sometimes, a location that has high rent can still be a profitable option.
The third reason can be impatience to do a proper study. Promoters or entrepreneurs can fall in love with an idea, that they simply want to start ASAP. They get hold of the first property and launch the business there. And as the days pass by and they witness lower footfalls, they realize that the location or the building or the floor is not ideal for their customers. Here we as management consultants, always ask our clients to take it easy and do a proper study. In fact, a typical study at AASC takes about 2-3 months to complete. With the market study taking about 30 to 45 days. With such a detailed study, the pros and cons are evaluated before making a final verdict of not just the location but the business itself.
The fourth reason can be overconfidence. The illusioned belief that the product or service that the entrepreneur intends to provide to the customer is so much in demand, or the price is so attractive or the quality is so high that the customer will seek them, no matter where they are. In most cases, it does not work. And the business goes belly. But in some rare cases, it can work- for some time. This is when the customers really do need it and they take the pain of reaching you despite the trouble or the inconvenience. But the moment a competitor starts the same business in a more ideal location, all the customers will move to him. Why? Customers are not loyal to any shop or brand, they are loyal to those who provide them what they want, when they want, where they want it, and in the way they want it.
Conclusion:
Don’t kill a beautiful business idea by starting it in the wrong place. This is applicable not just to retail outlets, it’s applicable to any business be it manufacturing, hospitality, service, or education. Even online businesses, have to be careful of the locations they choose. And another place to watch out for is the location in Search Engines, as customers use it to search for businesses. If it’s not on the first page, it’s not in a good location online.
It’s always recommended to start a business after a proper study. Do good market research, select the right business model, design the right management plans and systems and assess its financial feasibility. And since entrepreneurs might get emotionally inclined towards their business idea, and because in most cases promoters are not trained to do these works professionally… it’s better to engage professional management consultants like AASC (aascglobal.com)
Posts are in both Malayalam and English versions. Please scroll down
The world is evolving and reshaping itself, as each day passes with the virus still at large. It will affect politics, societies, cultures, nature, environment, consumption, and economics. This blog is about post-Covid thoughts for businesses and entrepreneurs.
ഓരോ ദിവസവും വൈറസിനൊപ്പം കടന്നുപോകുമ്പോൾ ലോകം മാറുകയാണ്. ഇത് രാഷ്ട്രീയം, സമൂഹങ്ങൾ, സംസ്കാരങ്ങൾ, പ്രകൃതി, പരിസ്ഥിതി, ഉപഭോഗം, സാമ്പത്തികശാസ്ത്രം എന്നിവയെ ബാധിക്കും. ഈ ബ്ലോഗ് ബിസിനസുകൾക്കും സംരംഭകർക്കുമായുള്ള പോസ്റ്റ് കോവിഡ് ചിന്തകളെക്കുറിച്ചുള്ളതാണ്.
This micro blog is the evolving thoughts, as it happens. Read on…
How Covid Affects Businesses in Various Stages or Business Life Cycle
Covid Economic Crisis can affect businesses which are in various stages, if they meet the symptoms
കോവിഡ് വിവിധ ഘട്ടങ്ങളിലുള്ള (Stages) ബിസിനസ്സുകളെ എങ്ങനെ ബാധിക്കുന്നു.
പ്രൊഫഷണൽ ബിസിനസ് സ്ട്രാറ്റജി & മാനേജ്മെന്റ് കൺസൾട്ടിംഗ് സ്ഥാപനമായ AASC യുടെ വിശകലനം.
സ്റ്റാർട്ടപ്പ് / പ്രാരംഭ ഘട്ടത്തിലെ ബിസിനസുകൾ: ലാഭമുണ്ടാക്കാൻ പാടുപെടുന്ന, പണ പ്രശ്നങ്ങൾ ഉള്ള ബിസിനസുകൾ ഈ പ്രതിസന്ധി ഘട്ടത്തിൽ അപകടത്തിലാകും, കാരണം വിപണികൾ കൂടുതൽ ദുഷ്ക്കരമായേക്കാം.
വളരുന്ന ഘട്ടത്തിലെ ബിസിനസുകൾ: ഈ ബിസിനസുകൾക്ക് കനത്ത കടങ്ങൾ, കനത്ത പലിശ അടയ്ക്കൽ, അല്ലെങ്കിൽ ബിസിനസുകൾ / ഉപഭോക്താക്കളെ സേവിക്കുക എന്നിവ ഉണ്ടെങ്കിൽ, ഈ പ്രതിസന്ധി ഏറ്റവും മോശമായി ബാധിചേക്കാം.
പൂർണ്ണവികാസം പ്രാപിച്ചിട്ടുള്ള (Matured) ബിസിനസുകൾ: പെട്ടെന്നുള്ള തീരുമാനങ്ങളെടുക്കുന്നതിൽ തടസമാവുന്ന തരത്തിലുള്ള മോശം ഓർഗനൈസേഷൻ സംസ്കാരം (Bad Organization Culture) നില നിൽക്കുന്ന mature stageൽ ഉള്ള ബിസിനസുകൾ കോവിഡ് പ്രതിസന്ധിയിൽ അടച്ചുപൂട്ടാനുള്ള ഉയർന്ന സാധ്യതയുണ്ട്.
സാവധാനത്തിൽ ക്ഷയിച്ചു കൊണ്ടിരിക്കുന്ന (Declining) ബിസിനസുകൾ: പുതുമയുടെ (Innovation-ന്റെ) അഭാവവും, മോശം ഓർഗനൈസേഷൻ സംസ്കാരവുമാണ് ബിസിനെസ്സുകളെ തകർച്ചയുടെ (Declining) ഘട്ടത്തിലെത്തിക്കുന്നത്. കാരണം ഇത്തരത്തിലുള്ള ബിസിനെസ്സുകൾക്ക് ട്രെൻഡിനൊപ്പം മാറാൻ സാധിക്കാറില്ല. അത് കൊണ്ട് കോവിഡ് വളരെ മോശമായി ബാധിച്ചേക്കാം.
കൂടുതൽ പോസ്റ്റുകൾക്കായി (സംരംഭകർ, പ്രൊമോട്ടർമാർ, നിക്ഷേപകർ), AASC സംരംഭക ചാനലിൽ ചേരുക https://chat.whatsapp.com/FrOvSQKEXre91hRqe5QSyT AASC- ന്റെ വെബ്സൈറ്റിൽ നിങ്ങൾക്ക് പൂർണ്ണ റിപ്പോർട്ട് സൗജന്യമായി വായിക്കാനോ ഡൗൺലോഡ് ചെയ്യാനോ കഴിയും.
How Covid induced economic crisis can affect businesses in various stages of their life cycle. Analysis by professional business strategy and management consulting firm, AASC.
Startup / Early Stage Businesses: Businesses that are struggling to make a profit, having cash issues will be at risk during this crisis, as markets become more difficult.
Growth Stage Businesses: These businesses can get severely affected by the covid crisis, if they have heavy debts, heavy interest payables, or are serving businesses/customers who are in the worst affected categories.
Mature Stage Businesses: Businesses that are in the plateau (or stagnant growth) will be at a high risk of closing down in a covid crisis, due to bad organization culture that prevents quick action.
Decline Stage Businesses: The reason why businesses become in the decline phase is due to lack of innovation and bad organizational culture that prevents it from changing with the trend.
Covid Patients & Covid Affected Businesses Show Strikingly Similar Symptoms
Extract from AASC report on how Covid impacts Kerala Businesses
കോവിഡ് ബാധിച്ച രോഗികളും ബിസിനസ്സുകളും എങ്ങനെയാണ് സമാന ലക്ഷണങ്ങൾ കാണിക്കുന്നത് എന്നതിനെക്കുറിച്ചുള്ള ഒരു വിശകലനം. പ്രൊഫഷണൽ ബിസിനസ് സ്ട്രാറ്റജിയുടെയും മാനേജ്മെന്റ് കൺസൾട്ടിംഗ് സ്ഥാപനമായ AASC യുടെ വിശകലനം.
A thought-inspiring analysis on how Covid patients and businesses affected by Covid show similar symptoms.
Analysis by professional business strategy and management consulting firm, AASC.
What is the “Next Normal”?
നിങ്ങൾ മൂന്ന് കാലഘട്ടങ്ങളിലേക്കാണ് നോക്കുന്നത്.
ആദ്യം, കോവിഡിന് മുമ്പുള്ള ലോകം.
രണ്ടാമതായി, വൈറസ് വ്യാപനത്തിന്റെയും lockdownണിന്റെയും ലോകം.
മൂന്നാമത്, കോവിഡിന് ശേഷമുള്ള ലോകം.
മൂന്ന് ലോകങ്ങളും വ്യത്യസ്തമാണ്. ആദ്യത്തെ കാലയളവ്, നിങ്ങൾ 2019 ഡിസംബർ വരെ ജീവിച്ചിരുന്നു. നിങ്ങളുടെ ജോലികളിലും ബിസിനസ്സുകളിലും വലിയ അപ്രതീക്ഷിത സംഭവങ്ങളൊന്നും ഇല്ലാത്ത ഒരു പരിചിതമായ ലോകം.
രണ്ടാമത്തേത്, ഇപ്പോഴത്തെ കാലഘട്ടമാണ്. ഭയം, ഉത്കണ്ഠ, അനിശ്ചിതത്വം എന്നിവയുടെ കാലഘട്ടം. ഇത് എത്രത്തോളം മുന്നോട്ട് പോകുമെന്നും ജീവിതത്തിലും സമ്പദ്വ്യവസ്ഥയിലും ഇത് എത്രമാത്രം ചെലവാകുമെന്നുമുള്ള ഉത്കണ്ഠ.
മൂന്നാമതായി, വൈറസ് പ്രതിസന്ധി അവസാനിക്കുന്നു. നാശനഷ്ടങ്ങൾ നിങ്ങൾ വിലയിരുത്തുന്നു. അപ്പോഴാണ്, പുതിയ സാധ്യതകളും പുതിയ ട്രെൻഡുകളും പുതിയ ഉപഭോക്തൃ മുൻഗണനകളും നിങ്ങൾ മനസ്സിലാക്കുന്നത്. അത് “പുതിയ സാധാരണ” അല്ലെങ്കിൽ “Next Normal” (Mckinsey അതിനെ വിളിക്കുന്നത് പോലെ) യുടെ ജനനമായിരിക്കും.
It’s three time periods we are looking at.
First, the world before Covid. Second, the world during lockdowns and the virus spread. Third, the world when Covid spread is over.
All three worlds are different. The first period, which we lived till December 2019. A familiar predictable world, where we had our jobs and business established and settled.
The second is the period now. Period of fear, concern, and uncertainty. Anxiety about how far this will go and how much it will cost in life and the economy.
Third, the virus crisis dust begins to settle and we are able to assess the damages. That is when, we realize new possibilities, new trends, and new customer preferences. It will be the birth of the “new normal” or as Mckinsey calls it “next to normal”.
Best Time To Plan New Ventures
Customer preferences are shifting. Existing market conditions are changing. People’s lifestyles are changing.
It’s that time of human history when major economic shifts happen.
A time when old monopolies will falter, competitors become weak, new customers segments are born.
This is the opportunity to start something new. For the new market that holds new customers.
Businesses Should Be Empathetic Listeners
സ്റ്റീഫൻ കോവി തന്റെ “7 Habits of Highly Effective People” എന്ന പുസ്തകത്തിൽ ഫലപ്രാപ്തിയുടെ അഞ്ചാമത്തെ സുവർണ്ണ ശീലത്തെക്കുറിച്ച് “ആദ്യം മനസിലാക്കാൻ ശ്രമിക്കുക, തുടർന്ന് മനസ്സിലാക്കുക” എന്ന് പരാമർശിക്കുന്നു.
നിങ്ങൾ കൈകാര്യം ചെയ്യുന്ന ആളുകളുടെ യഥാർത്ഥ വികാരം, യഥാർത്ഥ ഡ്രൈവ്, യഥാർത്ഥ വേദന, യഥാർത്ഥ സന്തോഷം എന്നിവ നിങ്ങൾ മനസിലാക്കേണ്ടതുണ്ടെന്നാണ് ഇതിനർത്ഥം. അതിനുശേഷം മാത്രമേ നിങ്ങൾക്ക് അവ യഥാർഥത്തിൽ മനസ്സിലാക്കാൻ കഴിയൂ.
നിങ്ങൾ അവരെ ശരിക്കും മനസ്സിലാക്കുന്നുവെന്ന് അവർക്ക് തോന്നുമ്പോൾ മാത്രമേ അവർ നിങ്ങളെ മനസിലാക്കാൻ ശ്രമിക്കൂ. “Empathetic Listening (സമാനുഭാവം കേൾക്കൽ)” എന്നതിൽ നിന്നാണ് ഇത് ആരംഭിക്കുന്നത്.
അതുപോലെ, ബിസിനസ്സുകളും ആദ്യം അതിന്റെ ഉപഭോക്താക്കളെ മനസിലാക്കാൻ ശ്രമിക്കണം (അവർ ഇപ്പോൾ വ്യത്യസ്തവും ബുദ്ധിമുട്ടുള്ളതുമായ അവസ്ഥയിലാണ്). അവർക്ക് പുതിയ വേദനയുണ്ട്, അവിടെ അവർക്ക് ആശ്വാസം ആവശ്യമാണ്. അവർക്ക് നേടാൻ പുതിയ മുൻഗണനകളുണ്ട്. ബിസിനസുകൾ യഥാർത്ഥത്തിൽ അവരെ മനസിലാക്കാൻ തുടങ്ങുമ്പോൾ, അവർ ഈ ബിസിനസ്സുകളെ കൂടുതൽ വിലമതിക്കും. ബ്രാൻഡ് ലോയൽറ്റിയുടെ അടിസ്ഥാനം ഇതാണ്.
ബിസിനസ്സ് സഹാനുഭൂതിയുള്ള ശ്രോതാക്കളായിരിക്കുക.
Stephen Covey in his book “7 Habits of Highly Effective People” mentions the 5th golden habit for effectiveness as “Seek First To Understand, Then To Be Understood”.
This means we need to understand the real feeling, real drives, real pain, and real happiness of the people we deal with. It’s only then we can truly understand them.
Only when they feel that we truly understand them, they will take an effort to understand us. This begins with “Empathetic Listening”.
Likewise, Businesses too should first seek to understand their customers (who are now in a different and difficult situation). They have new pains that need relief. They have new priorities to achieve.
When businesses truly begin to understand them, they will appreciate these businesses more. This is the foundation of brand loyalty.
Businesses be empathetic listeners.
Resolve To Plan & Act
Winning during Covid is all about determination and strong resolve
സംരംഭകർക്ക് ചെയ്യാൻ കഴിയുന്ന ഏറ്റവും വലിയ തെറ്റ് “ആസൂത്രണം ചെയ്യരുത്”, “പദ്ധതികളിൽ പ്രവർത്തിക്കരുത്” എന്നതാണ്. കോവിഡ് പ്രതിസന്ധി പക്ഷാഘാതത്തിനുള്ള സമയമല്ല.
സജീവമായ ആസൂത്രണത്തിനും സജീവമായ പ്രവർത്തനത്തിനുമുള്ള സമയമാണിത്. പുതിയ കാര്യങ്ങൾ പഠിക്കാനുള്ള സമയമാണിത്. പുതിയ ശീലങ്ങൾ സ്വീകരിക്കുന്നതിനുള്ള സമയം. കംഫർട്ട് സോണുകളിൽ നിന്ന് മാറാനുള്ള സമയം.
Mckinsey പറയുന്നതുപോലെ, Convid19 കോംപാക്റ്റ് ചെയ്യുന്നതിനുള്ള ആദ്യപടി “Resolve” എന്നതാണ്.
The biggest mistake entrepreneurs can make is “not to plan” and “not to act on plans”. Covid crisis is not the time for paralysis.
It is the time for proactive planning and proactive action. It is the time for learning new things. Time for adopting new habits. Time to move out of comfort zones.
As McKinsey says, the first step to compact Convid19 is “Resolve”.
Risk Is Real. The Opportunities Are Real
Social Distancing Brings Unique Opportunities
Don’t fall for unfounded positive motivations that say everything will be fine. It won’t be until we take the right steps.
There are great opportunities out there, for every industry, for every market. That has always been so. But we need to discover it and be brave to act on it.
It needs the right evaluation, right decisions, and right action. Not blind guesses and hyper-motivations.
About AASC
AASC office at Hilite Business Park at Calicut
AASC or Ameen Ahsan Strategy Consulting is founded by Ameen Ahsan. Ameen Ahsan did his master’s from Exeter University (UK), and was trained in the art and science of management consulting by American & European consultants during his professional consulting career at Abu Dhabi.
Today, AASC is one of the leading business strategy and management consulting firms in Kerala. Providing services to projects, engagements, and business across South India and Gulf countries.
AASC helps new projects and ventures by providing services such as,
Business Plans (Feasibility, Strategy & Management Plan) from AASC
Market Feasibility Study
Vision & Milestone Planning
Business Model Development
Operation Management Plans
Branding & Marketing Plan
Human Resource (HR) Plan
Operation Plan
Industry-Specific Plans
Investor Management Plans
Risk Analysis
Financial Feasibility Study
Investor Presentation Services & Tools Development
Turnkey Implementation Support
Post Implementation Business Performance Monitoring
To know more, please call +91-7558-900-800, email info@aascglobal.com or visit https://aascglobal.com/consulting-for-new-ventures-and-startups/
AASC helps existing businesses by providing management consulting services such as,
AASC provides professionalisation, growth, expansion, franchise consultation to businesses
Consulting for Professionalising Operation
Consulting for Growth & Expansion
Consulting for Growth by Franchising
Kerala’s Professional Management Consulting Firm
Business consultants in Calicut, providing services to businesses across Kerala
AASC serves the entire Kerala and GCC markets from its office in HiLite Business Park, Calicut.
Business Consultants in Cochin
AASC provides business strategy and management consulting services to businesses across Kerala, including the Cochin area. To know more please call +91-7558-900-800 or email info@aascglobal.com
Covid Economic Impact on Kerala Entrepreneurs Decisions
Introduction
Background:
The world economy changed so fast within the last few months, with the advent of the Covid virus in Wuhan, China. What started as a virus crisis in the Hubei province of China, quickly became a global problem. Thousands died and millions got infected. And the virus is still at large.
The affected countries are in lockdown, shops and factories are closed, people are prevented from hitting the streets, the medical facilities are overloaded, the governments are on alert, and people are staying back at home with fear. And this has created a severe dent in the way our economy was functioning.
Coming to Kerala, the situation is no different. But the state is faring much better than the rest of India, due to timely intervention by the Government and the support of the people.
But what happens to the businesses in Kerala, once the lockdowns are withdrawn. Will the businesses operate the same way they did? How much loss will businesses incur and how many will close down? Will it create severe job losses- which again will have a spiral effect on our economy? Or will some businesses seize the opportunity, reinvent themselves and win over others?
Apart from these questions, every entrepreneur is haunted by the unknown fate- where will his business be post-covid? Among losers or winners.
As the entrepreneurs of Kerala (most of whom are MSME owners, and the major provider of employment in the state), stay at their homes and contemplate on the next move post covid lockdown, what they think about the lockdown duration, its impact on their customers and business will be decisive.
If their understanding of the crisis is consistent with the reality to come, they can take steps that will help them survive the crisis or perhaps even grow extraordinarily. But if on the contrary, if their expectation is not consistent with what is going to happen, then they might take steps post void, that will prove to be fatal.
It’s a walk on the ice.
To read the report, please visit https://aascglobal.com/covid-economic-impact-on-kerala-businesses/
About the Study
It is this issue that AASC intends to address with a study backed by a professional survey and analysis.
As lockdowns were announced, the social media was flooded with experts and non-experts opinions about the crisis and how to handle it. It came in the form of webinars, articles and posts. At AASC, we decided to take a different track from the rest.
AASC has good expertise in conducting surveys and analyzing the data to derive quality insights for our clients. AASC also has a good ecosystem of entrepreneurs who are available to provide quality insights about “what they actually think about the lockdown, its impact”. This ecosystem consists of its clients, prospects, well-wishers, social media followers, and groups in which it is active.
At AASC, we decided to conduct a survey on 100 entrepreneurs from various industries, from various districts of Kerala; and identify with “numbers” and get the general assumptions “quantified”. So that our findings are backed by “numbers”.
The survey was a success, and instead of 100, we surveyed 155 entrepreneurs! We thank all those who participated in the survey.
About the Survey
155 entrepreneurs participated in the survey
18 number of industries were represented, from across Kerala
Details of the survey samples is represented below
About AASC
AASC is Kerala’s professional business strategy advisory and management consulting firm, handling clients and engagements across South India and Gulf Countries.
COVID 19 has made an enormous impact on the lives, health and economic affairs of the people across the globe.
To compact the fast spreading virus, Govts across the world has resorted to several strong measures, including “Lock Downs”, where people are not allowed to leave their houses and shops are asked to closed down. While this is essential to control the spread, it has a very strong impact on the economy and the businesses.
Ameen Ahsan Strategy Consulting (AASC), as part of its research to study the impact, that this will have on, Kerala based businesses is doing a survey, and wish the Entrepreneurs to participate in it.
The survey aims at understanding “how the business community” predicts the future of their business “after the lock downs are withdrawn”. The study aims at understanding, if the expectations of the entrepreneurs are rational or not. If they match or not. And to educate the entrepreneurs if their expectations of the future, needs a change or rethinking.
This is important, as it is these expectations from the entrepreneurs side, that will get converted to action. And these actions will mean financial and survival consequences for these business.
IF YOU OWN A BUSINESS IN KERALA, PLEASE FILL THE FORM BELOW AND SUPPORT US IN OUR SURVEY. THANK YOU.
