We are going to do something a little different with our posts for you. Across the next three days, we want to show you a longer story with a lot to learn from. This is the story of “Dante,” a client of ours who ran a restaurant. Nearly 700,000 restaurants exist in the U.S., but the number of privately-owned ones by small business owners dropped off in the past few years. There are a multitude of reasons, but at the top of the list a lack of understanding of some critical business fundamentals and access to financing. Trying to stay in business isn’t easy, but we wanted to help Dante as best as we can.
Feeling like your business isn’t going the right way? ProStrategix knows how to help. Read some of our other articles below, or feel free to connect with us and get a complimentary thirty-minute consulting session.
Dante's Struggle to Stay in Business
A Great Start
When we met Dante, he owned a struggling small upscale dining establishment in Manhattan. During his first few years, Dante has had great success with his restaurant. He had a good location. He had solid reviews. His cuisine was new, and the design of his restaurant was appropriate for his target. But then…
Then People Stopped Coming
When we came in, that initial picture had changed. During his second year of operation, he noticed that he had more tables open than usual. He thought he would change up the menu, spend some money on advertising, and push for more Yelp! And Google reviews.
After 6 months of this, he started to become increasingly concerned. People had simply stopped coming as often. He didn’t know why. The lack of customers was putting a financial strain on the business. He was late paying some suppliers so his business credit has taken a hit. There were unfortunate problems beneath the surface of the company that Dante couldn’t identify. A friend recommended that he talk to us to help stay in business.
In our initial interview, Dante said:
I started my business to follow my dream. The business started out fine, but lately, we haven’t been doing that well. Sales are falling and bills are getting harder to pay. I’m spending so much time thinking about the business that it’s not as fun as it used to be. I’m beginning to wonder if I made the right choice.
Dante was worried about how he was going to stay in business. He had all the normal concerns. He was worried that the risks they took were the wrong ones. Dante blamed himself for how the business was going. He was anxious about what people would think if it didn’t work out. He was worried about living paycheck to paycheck in order to keep himself afloat.
How to Help Dante
With companies in trouble, the first step we take is to analyze their business model. In other words, we looked at how he made or lost money, and what the biggest mistakes were behind the scenes.
Next time, learn how Dante stayed in business and learn about what you can do to prevent yourself from the same problems he faced.