The World's Unsexiest Business
adding a little sizzle to the convenience store industry
Some people say that starting a business is daunting, perhaps even downright scary — so much to the point that the fear of failure may actually be more of a deterrent than the failure itself. But that’s only because you’ve either gotten used to coasting on cruise control sailing through life with someone else behind the wheel of the luxury yacht. The one that you so want your name emblazoned on. Berthed in Cannes for the summer.
You’re merely leasing the experience while someone else owns you.
But you’re definitely not someone else’s b$&$*.
So you’ve resigned yourself to the reality of capping your potential so much that you’ll never be able to do something meaningful. Then that existential moment arrives and you’re rather poignantly faced with the a crisis of conscience. I’d be hard pressed to say that everyone doesn’t feel it. It’s that moment where you so badly want to add a ton of value to this world before you eventually leave it. In fact, I wouldn’t even consider for a moment that anyone is too old to head down this (rewarding) road.
There are many reasons why businesses fail but an observation of the downfall of entrepreneurs I’ve surrounded myself with will lead me to one conclusion — they failed themselves. They lacked heart. They lacked courage. Perhaps even conviction as to why they so aggressively pursued their first step to releasing themselves of the 9 to 5 shackles.
Then came the blinders — starting a business shouldn’t ever be considered by the sane and financially troubled.
Insanity is necessary along with seeking out a financial savvy partner (conservative money manager CFO-type but not a SPECULATOR) who can complement your operational and marketing expertise. Or maybe a crash course in cash management and conservation.
As an insurance policy maybe commit the principles to heart, mind, body, spirit, and soul outlined in Daymond John’s hustler heavy perspective book, The Power of Broke.
Otherwise, you might not ever be able to plug the gaping hole in the hull of that sinking ship with borrowed $100 bills, hopes, wishes, and dreams.
I grew up watching my dad persist at formulating a model which hinges upon identifying then transforming under-performing and distressed real estate assets and businesses. Once he had perfected that model alongside building the trust and ability to gain greater access to leverage with various financial institutions, he could then replicate that very model. All while continuously seeking to perfect it in order to grow his various existing businesses. Nothing was ever too broken to be fixed and there was always some sort of upside to be realized even with the most seemingly perfect business model. With that kind of optimism and testament to the infectious nature of entrepreneurial spirit, I began to realize it was only a matter of time before there may be no other more fulfilling path for me to follow.
But first, a very methodical approach needed to be taken before we committed our first dollar. Since we (myself, my sister, and her husband) are in the process of starting an Indian quick serve restaurant (The Bombay Frankie Company, Instagram: bombayfrankiecompany) in West Los Angeles, the analysis had to run deep and mitigate any fear of failure.
Because failure is and should never be an option.
We needed to reverse engineer every detail, every subtle nuance, and every angle for which any gain (even pseudo arbitrage) could be realized. And that wouldn’t be limited to the financial realm. Many current quick serve restaurant problems came to mind:
Altogether, it’s nothing short of a huge task coupling management consulting alongside operations and efficiency engineering — literally everything was up for grabs.
Only after that point would price considerations come into play which wouldn’t just blindly set gross margins to be dictated by the 200–250% conventional formula, it would be permissive of a more dynamic pricing scheme which would be reactive in nature to change in trends and other varied margin revenue streams (catering, timed promotions, seasonal offerings, limited plate model).
Our business model isn’t far off from Chipotle’s (minus the massive scale!) and is predicated upon providing the highest level of value for the lowest possible price point. It’s a mid-cost sustainable model for which we could theoretically replicate day-in and day-out.
The Building Blocks
Even after the most meticulous analysis and business model hacking involved with operating three other quick serve restaurants, there are really just four pillars of running a successful operation:
I have deliberately omitted location, location, location from this list because I’ve seen massive followings flock to some of the most off-the-beaten-path eateries just for something unique and inventive (or just a well executed take on a tried and trusted). And that’s largely due to the power of digital marketing and the influence of food bloggers. And by no means should the highly influential role of food bloggers be downplayed!
Point of Sale System
We’ve experimented with running many iPad based Point of Sale software solutions and found that the Square app has, by far, the easiest learning curve.
Since we already operate three existing quick serve restaurants, we’ve learned a few hard lessons about the pitfalls associated with completely disregarding our digital presence.
Stay tuned for part 2 with pre-opening momentum, opening day, and most of all the food!!!