The Importance of Getting Along

Over the past few decades of being in the publishing industry and advertising business, I have probably worked with several thousand business owners. Most have been established business entities in the many markets in which we serve, but I would estimate about one in five was either expanding an existing business or opening up a new business.

If You Build It, They Will Not Necessarily Come By Brian Rowland, Publisher Originally published in the Dec 2010/Jan 2011 issue of 850 Business Magazine

Over the past few decades of being in the publishing industry and advertising business, I have probably worked with several thousand business owners. Most have been established business entities in the many markets in which we serve, but I would estimate about one in five was either expanding an existing business or opening up a new business.

Of that latter 20 percent, about half were new start-ups, at least in Northwest Florida. Indeed, many of them were dipping their business toes into our region for the first time. But, sadly, I watched as an inordinate number of them failed over the years. Why? I don’t believe it was because of the lack of viability of their service or product. I believe the main cause was their failure to develop a strategy for how to conduct business in the 850 region.

Let me share with you a few examples that will support my theory.

Business A: Here we have a restaurant group from out of state that stormed in. They built a new facility in the right location and they spared no expense on the property. But what I noted from my few visits is that the management team was brought in from out of state and, ultimately, had no local decision making powers.

To make matters worse, they violated Southern protocols (after all, Northwest Florida is still very much a Southern territory) by treating the locally hired staff harshly and speaking down to them, like they were servants from another class.

Add to that a lack of interaction with their guests — and when they did, there was no sincerity in it. They didn’t participate in local non profit events and wouldn’t even help out local charities when asked to provide a gift certificate for a fund raising event. And, they did no market advertising.

They tried to make the business work based on their national reputation — without taking into consideration the need to reach out to the locals. Guess what? Within 18 months they boarded up the windows and their seven-figure investment evaporated.

Business B: This was a very successful women’s boutique from the Miami-Dade-Broward County area making its first attempt to expand out of South Florida. This group also spared little expense in setting up shop in an upscale Northwest Florida shopping center.

The owners brought in a manager from South Florida who looked the look and walked the walk — and hired university-aged staff that was then trained to act aloof and “snooty.” That attitude may have worked well at their primary locations in the southern region of our state, but it backfired when they tried it here. And, again, they didn’t ingratiate themselves when they refused to partner with the local non profits, including groups like the Junior League and the local symphony who have the supporters who are spending customers when it comes to women’s fashion. They too chose not to advertise.

I stopped by a few times, but even though I rarely saw a customer, the managers never had time to chat. Hardly hospitable. Not surprising that they, too, have not done well.

Business C: A large international brand decided to invest millions in property, brick and mortar and build out a first class operation. This was their first venture into the “middle market” this brand had opened. All others were in major metropolitan areas with million-plus population bases.

They stayed on the plan that brought them success in the major markets, but they weren’t seeing the same kind of profit in the Northwest Florida market. So, a management team from the home office came in to see what was happening and, more importantly, why.

I was asked to meet with the team several times, and I suggested they be open to a different way of doing things. They listened. They made a strong commitment to hosting events for local non profits and charities to get the local market familiar with the property and its uniqueness. And they’ve made a conscious attempt to reach out to the local community, especially seeking out the customer more likely to consider their product. They have also decided to make advertising and marketing investments during their second year.

My prediction? They’ll see success and move quickly to capture a stronger share of the market because people are already talking about them.

A and B failed because they would not change or adjust their business model for a new marketplace. C will succeed because it has.

“Build it and they will come” does not necessarily work in Northwest Florida. It takes a willingness to adjust a business model that will fit into the 850’s culture and a commitment to building relationships on all levels in the community, especially with the niche markets that will help a business succeed.