An independent flame-grilled chicken restaurant started up at a corner site in a suburb where a large chain closed down its outlet selling similar product. The owner of the business ran it well, gave good service and served a delicious product but closed within six months.
The problem was that the small business owner did not accurately estimate market demand in the suburb. Perhaps he should have been more cautious knowing that the large flame-grilled chicken group was exiting the retail space where he wanted to open an outlet. It seems that the small business owner pinned his hopes on attracting enough customers to his business to make it viable. Hope is not a strategy. The larger chain group new something about customer demand in the area that the ever-hopeful small business owner did not know. Continue reading “How do you estimate customer demand for your start-up business?”