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| Business Lessons From a Bar That Shut Down Because of the Pandemic—Here’s How It Bounced Back Posted: 07 Sep 2020 01:43 PM PDT Unfortunately, right now in America many small businesses are struggling, and some of them are failing, because of the COVID-19 pandemic. It might sound strange to consider we can learn any business lessons from a business that failed, but sometimes the best way to learn and grow is through failure. A recent story in Bloomberg shared the lessons and learning experiences of Fort Defiance, a bar in Brooklyn, New York, that was forced to go out of business because of COVID-19. But this story actually has a happy ending! Struggling businesses should emulate what Fort Defiance has done, and pivot toward a new, viable business model. Once upon a time …Fort Defiance was a cocktail bar, founded in 2009 in the Red Hook neighborhood of Brooklyn. For 10 years it was not just a place to drink, but a hub of activity, a place to connect with the community. New York is an expensive city, and the bar's rent, health insurance premiums, and other costs of doing business kept going up, but Fort Defiance kept surviving—until the COVID-19 pandemic hit. New York was the early epicenter of the outbreak in America, and New York City's bars and restaurants were forced to stay closed for months. Even after the city's lockdown restrictions were lifted, St. John Frizell, the owner of Fort Defiance, realized his bar wasn't going to make enough money to stay afloat. Carryout drinks weren't paying the bills, and not enough people felt comfortable drinking in bars due to the risk of catching the virus. Wearing masks also is not conducive to a friendly neighborhood bar atmosphere. So Fort Defiance decided to pivot. Instead of operating as a bar selling drinks, it became Fort Defiance General Store, a neighborhood grocery store selling food. And Frizell says he's actually happy that his bar failed, because he is doing good work for his community, and can see a path forward for his business. Here are a few business lessons from this New York bar that went out of business: Take time to reassess during crisisFrizell wrote in his Bloomberg article about how people in the bar and restaurant business, like him, tend to be some of the hardest workers on the planet. They believe the answer to a problem is to just work a bit harder. But here's the problem: during COVID-19 so much of everyday life and economic activity became impossible. Frizell realized that the harder he worked, the more money he was losing. So he finally decided to close up shop and reassess his business. People often say to "just keep swimming" during a crisis, but sometimes you need to give yourself permission to stop. Take a fresh look at your business's books and reevaluate your opportunities. Where is new revenue coming from? How can you cut costs? What aspects of your business should be completely redesigned or thrown out? Don't keep losing money unless you have a specific plan for how those short-term losses are going to turn into long-term gains. Other Articles From AllBusiness.com:
Go back to your core value propositionWhy do people go to bars? To drink, yes. But also to experience a sense of community and connection. Frizell felt that the community he served in Brooklyn was one of the most meaningful parts of running his business. Bars and restaurants are ultimately in the business of hospitality—feeding, serving, taking care of, and nurturing people. Frizell liked creating an experience and sharing it with people. While his bar was closed, almost by accident Frizell decided to start selling food. He got fresh farm-share produce, posted about it on Facebook, and soon his bar customers were asking to buy groceries from him. He started selling milk, eggs, and rotisserie chickens. He sent weekly emails to share recipes and set up an outdoor picnic area for customers to eat outside the store. Fort Defiance Bar became Fort Defiance General Store. But, in a way, the two businesses' mission and values are the same: take care of people, create a community, provide for basic human needs. Embrace uncertaintyFrizell writes in Bloomberg that despite the uncertainties of the future, "There are times when my fear of an unknowable future feels like exhilaration." Think about it this way: Did you decide to become an entrepreneur because you wanted everything to stay the same forever? If you wanted "safety" and "stability," wouldn't you have just gotten a full-time corporate job and stayed there? Maybe in some ways, despite the disappointments and anxieties and sadness of 2020, the "uncertainty" of these times is not entirely a bad thing. What if entrepreneurs could shift their mindset and instead of being worried about the future, be excited about what might happen next, and how they can adapt and show resilience in the face of those changes? Going forwardGood luck to St. John Frizell and the team at Fort Defiance General Store. This story is a wonderful example of how business owners can adapt to massive challenges and come out on the other side with a spirit of purpose and optimism. RELATED: 5 Reasons Small Businesses Fail—And How to Avoid Those Fatal Pitfalls The post Business Lessons From a Bar That Shut Down Because of the Pandemic—Here's How It Bounced Back appeared first on AllBusiness.com. Click for more information about Gregg Schwartz. Copyright 2020 by AllBusiness.com. All rights reserved. The content and images contained in this RSS feed may only be used through an RSS reader and may not be reproduced on another website without the express written permission of the owner of AllBusiness.com.  |
| Business Disrupted by the Pandemic? 4 Things to Do If Your Products or Services Are No Longer Needed Posted: 07 Sep 2020 10:39 AM PDT By Dr. Evans Baiya Major world events create disruption, and COVID-19 is no different. Many industries are experiencing disruptions—in the way they do business, in the sustainability of their systems, and in the engagement of their customers. It is estimated more than 100,000 businesses that were inactive or barely active during the pandemic will close permanently. Even some large iconic brands have announced their intention to close or have filed for bankruptcy protection due to low demand for their offerings. What happens when the demand for your offering is diminished? What should you do? Here are four actions to take. 1. Conduct customer researchUnderstand why the demand has diminished by talking to your customers. It is easy to blame COVID-19 for everything, but that is a victim approach. You are responsible for understanding why customers are no longer buying from you. Even during the pandemic, customers are still consuming, even if they are not buying from you. What do they need now? Assuming you are running a customer-centric business where you occasionally or regularly track who your customers are and why they buy from you, this is your opportunity to use that data. Start by contacting past customers and conversing with them about their needs, wants, and desires. Do not use online surveys alone—talk to real human beings. This is the only way to be certain of the data you collect. Analyze the data and answer the question "Do my client’s priorities align with my offering?" If the answer is yes, then reposition your offering or create a new delivery model and reengage the same clients with promotions, special offers, etc. If the answer is no, then you have the choice of innovating or closing your business. 2. Innovate immediatelyNow that you understand what your clients need and are willing to spend money on, focus on innovating and developing a solution for that need. You must move quickly to deliver a solution as soon as possible. This is how you stay relevant. Developing a strategy for what you are trying to achieve is paramount. Generate your strategy by answering a series of questions:
Don’t jump into a new opportunity too quickly without a strategy, otherwise you risk disappointing your customers and losing them for good. Always remember customers buy to meet their needs—not yours. Customer loyalty is need driven. Other Articles From AllBusiness.com:
3. Collaborate and co-createAt the beginning of the pandemic, the Kenyan government implemented a 14-day quarantine for residents who had been traveling internationally and were returning to the country. However, hospitals were not ready to provide secure room and board to travelers who needed to be quarantined, and conduct daily testing for the government as well. There were even cases in which people in quarantine had "escaped" from hospitals before their 14 days were up. The situation had become a big problem for the hospitals. Because of COVID restrictions, the hotel industry was also struggling. One hotel owner heard about the problems hospitals were having and converted his already empty hotel into quarantine rooms with security, food, hygiene, and extras that travelers desired. He approached the government and the hospitals, and the three parties agreed that quarantining travelers at the hotel was a perfect solution. The results were a win-win for all. A win for the hospitals, which did not have to deal with people in quarantine except for testing and unless they were indeed sick; a win for the government, which was able to enforce quarantine and provide essential services; a win for the hotel, which made significant revenue (as a matter of fact, in the month of March, it had 100% occupancy for over two weeks straight); and a win for travelers, who appreciated being quarantined in a clean, safe, and comfortable environment. During the disruption, you may not have a complete offering that someone is willing to pay for, but you may have part of an offering that someone else's customers need. This is a great time to collaborate and co-create new services with others. Consider potential partners who you can work with to develop offerings that are in demand now. 4. Develop a futuristic mindsetAs a leader, you are ultimately responsible for creating a sustainable client base. The way you do that is by looking into the future, and not just reacting to the current situation. In fact, if you focus too much on the pandemic and do not pay attention to the future, then you will not have a future post-pandemic. Even if your clients are not buying now, do you know if they will need your services after the pandemic? Do the research. What will clients need three, six, 12 months from now? It’s easy to say you don’t know or that no one knows. The future is created by thinkers. If you want to have input on what happens in your market, you should practice thinking futuristically and be willing to invest in that future. After that, start influencing your market towards that the future. If customers are not buying, you must do the work of finding what they need so you can pivot and provide what they are willing to pay for. That is only way to stay relevant. RELATED: Life After Coronavirus: Why We Should Never Go Back to Business as Usual The post Business Disrupted by the Pandemic? 4 Things to Do If Your Products or Services Are No Longer Needed appeared first on AllBusiness.com. Click for more information about Guest Post. Copyright 2020 by AllBusiness.com. All rights reserved. The content and images contained in this RSS feed may only be used through an RSS reader and may not be reproduced on another website without the express written permission of the owner of AllBusiness.com.  |
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