Cash cow or basket case, you choose!
The pub industry is one of many cash business that continues to go through a period of dramatic change. Interestingly there are many big operators that are suffering and selling, yet many of the “small” operators enjoy good trading. But what is the difference?
It is quite simple; it is well understood that the smoke filled drinking dens of the past have had their day and very few (if any) pubs have continued with a wet led strategy.
In order to survive pubs have had to diversify; a process of change that started with accommodation, some food, coffee that has progressed to very good food, all day food (including breakfast) high quality accommodation, a range of teas, coffees, pastries etc. In fact may pubs will now sell more coffees than beers, especially at lunchtime.
And that really this approach applies to any business. The art of running a successful business can be defined as the ability to spot and manage change. A good entrepreneur is fully in tune with the changing needs of a changing customer base, their needs and wants and tries to anticipate and be ready for every opportunity, reshaping their businesses abilities and offering just in advance of every twist and turn.
A good entrepreneur treats his or her clients as individuals and has clear lines of communication. They don’t try to be clever with their charges, for example by introducing hidden extras (Ryan Air).
And importantly they are not frightened to ask for professional support. Sometimes the objective view of your accountant can help you to see the wood for the trees, because the daily toil of running a business can be gruelling and not leave enough time to think about managing the business (as opposed to doing the business!).
It is not all doom and gloom. Success can be achieved if you get your ducks in a row.
Good luck with your plans for 2014