Hey, this is Charles Kirkland and welcome to episode two of Inside the Mind of an Entrepreneur. And I know you’re busy so we’re going to skip the intro and go right into the meat the potatoes of the show. Now one of the questions I hear asked a lot is can you turn around a failing business.
We see it on TV all the time. They come in. The guru will fix the business. And all of a sudden, things are magically better – within an hour timeframe, by the way. And does that happen in real life? And can that happen to you?
Well it depends. Typically, we have businesses who are failing for one of two reasons – you’re fundamentally flawed. A.)You’re selling the wrong product to the wrong market at the wrong price. I don’t care what you do on that. You probably can’t make that happen from a survival- I mean, I'm just going to be honest with you. It probably isn’t going to survive. And it’s probably a good thing it doesn’t survive.
So before you go, “Charles, you’re saying I need to go out of business?” No. I'm just saying fundamentally, you don’t need to be paddling upstream. That’s what a lot of people do. You know, the right market to the right product – you’ve got a good combination. Right product, wrong market – I don’t care how hard you try. It’s just not going to work.
If you came to me and said, “Charles, guess what? I've got a truckload of Prada pink purses. I'm going to give you a discount. They are only going to be $10 apiece. I don’t want them in any way, shape, or form. Just don’t want a Prada pink purse. Don’t really don’t think it would be me. you know, I don’t think it would look good on me.
Now if I was a female I would be like oh my, gosh, greatest day ever. Yes. Back that in the garage right now. Here’s your check. Let’s go. Right product. Right market. You can make those sales. So, yes, you can. If the business is failing because maybe you’re not charging enough; maybe you don’t have the right marketing aspect; maybe there’s something fundamentally flawed with the product itself – those things can be easily fixed.
You can always adjust prices. You can adjust the product itself. Those things are easily tweaked and easily fixed. Fundamentally flawed products – you just need to let them die and start paddling with the flow of the water here. So, keep that in mind.
I can give you a good example of this, and this is probably a horrible example to use. But you know an Omaha steak distribution restaurant, or whatever you want to call it, in the middle of a town that’s inhabited by nothing but vegans. Maybe one vegan out of 1,000 may decide you know what? I need a little protein. I want a little steak. Probably, most likely, not going to happen.
Right product – would work great in central Texas. Austin Texas – steaks, you’re ready to go. In veganville, probably not going to happen. But now you’re saying, “Charles, that’s an exaggeration. That’s not really how things happen in real life.” That’s exactly how things happen in real life.
So, before you, you know, do anything look at your business. Is it fundamentally flawed because of the product – issue that doesn’t work, or is it flawed or are you not really successful because of pricing, marketing, things like that? That’s how you can turn around a business. But the other business- you may as well let it die and keep on going.
Anyway, this is Charles. Hope you enjoyed it. Give me some feedback on iTunes. You like it? You hate it? Best podcast ever? Worst podcast ever? Anyway, this is Charles. Talk to you later.