Expert Financial & Business Insights for South Africa
Strategic analysis from Idea Accelerator and ready-to-publish content from Financial News Daily.
A small business that specialises in a range of products made from honey had a small stand outside a large Dis-Chem pharmacy, a health and beauty discounter. There were so many products made from raw honey and beeswax, together with the other ingredients, that the stand looked confusing. No potential customers were visiting the stand. What went wrong? Continue reading “Is your product and offering compelling in this market?”
How do you know if your new business idea will be a winner or a loser?
The marketing consultants Al Reis and Jack Trout tell how product ideas don’t always test out well. The inclination is to do market research but that can be a big mistake. One example they mentioned was Univac which pioneered a big product idea called the computer only to lose its early lead to IBM. It seems Univac lost out because its own market research predicted that by the year 2000 there would be only 1,000 computers in use. So they didn’t invest in a product with such a limited potential market. IBM, on the other hand, didn’t spend money on research and didn’t know about this bad news about computers. As Reis and Trout say, “Instead they geared up for a market that proceeded to exceed every market researcher’s wildest dreams”. Continue reading “Tooth fairy, Easter Bunny, market research and other myths”
While on holiday in the southern peninsula of Cape Town I was told that the metro or municipality is no longer collecting kelp or seaweed from the beaches. For many years the practice on Cape Town beaches was to use tractors with trailers, collect the kelp that had washed up in the storms and take them off the beach. It seems like the seaweed was used in kelp processing and fertiliser operations. Now apparently the City no longer collects the seaweed because environmentalists have found that the seaweed or kelp helps to propagate a host of marine organisms and life on the edges of the coastline. Continue reading “It’s not always new ideas that are winners, old ideas can be powerful too”
At the beginning of last year, a friend, who is a successful business person, said that his theme for 2014 would be “mindfulness”. It was important, he said to live and act in the present. Mindfulness was also a source of opportunity because it enables one to discover opportunities that you may otherwise have missed. It seems that my friend got it right last year in saying that it would be the year of “mindfulness” because in about June 2014 Time magazine came out with a cover story titled “Mindfulness”. Inside the magazine was feature article discussing the concept of mindfulness, its advantages and the ground swell of proponents. Continue reading “Is this your year of action, action, action?”
Two strategy consultants Al Reis and Jack Trout tell an interesting story about how the reluctance to face change held them back for 20 years. They knew that they would be more successful if they followed a new strategic direction but they didn’t have the courage to get off their agency horse.
In the end they realised that their agency was going nowhere and that they had to overcome the fear of change. They got rid of their agency, repositioned themselves as marketing strategists and faced their fears. Continue reading “Are you paralysed by fear or do you have the courage to get up and ride a new horse?”
While on holiday at the coast, I was able to experiment with cooking food. One of the dishes I haven’t had for many years is snoek kop sop (snoek head soup) which my mother who was a food writer and author used to prepare so deliciously.
We went down to Millars Point in False Bay and bought a very large snoek (when I use the word “very” you will see what I mean shortly) from one of the langaaners (fish dealers). The head of the snoek was so big that I had to squeeze it into the largest pot I could find. Continue reading “Do you really think a cut-and-paste solution can succeed with a new business idea?”
We’ve all had that experience some time or another when a consultant comes into our business and believes that they have all the answers. Worse still, they believe that their way is the only way and the right way. Never mind that they know very little or next to nothing about your business.
Why is the consultant there in the first place? You may be struggling with a certain part of your business such as operations, distribution, marketing or even product development. The consultant may be there by invitation but not always so. They could be fobbed on to you because of your investors or shareholders and for some larger businesses they could be there as part of a business recovery plan. Continue reading “Trust me, I’m a consultant”
The other day I saw a quote from Steve Jobs that got me thinking about how it is just as important to say no to some business ideas as it is to say yes to others. The quote:
“I am just as part of the 1,000 things we didn’t do, as I am of the things we did.” – Steve Jobs
In today’s new economy flooded with freelancers, part timers and consultants, there are many more ways to make an income than in the past. Technology, especially the Internet, has paved the way or open up the way to business opportunities that weren’t available just a few years ago. In this marketplace, you have a growth of marketing Wolverines who will incessantly try to push their business ideas your way. I’m not just talking about, artists and shysters here but also the well-meaning who believe that what they are offering is in your genuine interest. You only need to think of the diet supplements and the income-making claims associated with them to recognise how forcibly these schemes are pitched and promoted. Continue reading “Are you afraid to say no to a promising business idea?”
Trends bring about change. Smart entrepreneurs who can spot trends early and get in when the timing is right are able to profit from them. Fads are short lived. They are usually found in pop culture and fashion. Again, timing is critical because a fad can come and go as fast as lightning.
A start-up or small business owner who sets themselves up to ride a trend in the early stages can do well. They may not be able to benefit directly from the main trend but by establishing a foothold in a niche part of the market, they can take advantage of the trend. Continue reading “Trend spotting can pay if you know what you are looking for”
A few weeks ago I had breakfast with an old friend and asked him about a friend of his who had for many years searched for the “perfect business”. I was curious whether this business person had found the “perfect” business. My friend said that his friend had been successful at a small manufacturing business for several years until he went to live elsewhere and left the business to be run by a manager. Trouble happened with the manager and eventually the business had to close down. His friend is now trying to restart the business. Continue reading “Is there such a thing as a perfect business?”
