COMMON MISTAKES, THE PIT OF DESPAIR + HOW TO AVOID THEM
THE THINGS I GOT WRONG THE LESSONS I LEARNED FROM MY OWN FOUNDER F&$K-UPS + WHY THEY MIGHT BE RELEVANT TO YOUR HOSPITALITY VENTURE, TOO.
Do we tend to the upside in pursuit of our ideas? Do we overlook reality, because of the excitement and opportunity that drives us?
Versions of this graphic regularly do the rounds. And I can certainly relate.
MY OWN ENTREPRENEURIAL BIAS
When my co-founder and I launched Thumbprint, everything was possible and we were going to change the world.
Then, reality hit.
Making clothes in low-income communities, on the other side of the world, was harder than we thought. Who would have guessed? Everyone except us, probably.
Did we listen? No.
Marketing had to all but stop. Sales, too. Because we had a production problem that we needed to fix first. We subconsciously skirted over reality to our detriment.
It set us back months.
Thankfully, we’re now in a much better place. Coming out of the ‘pit of despair’ and looking forward to the future again. But I’m not going to pretend it was easy.
To labour the point. It’s telling that whilst I can identify blind spots for clients, I fell into the same traps when I was in the driving seat.
Like everyone, I’m also biased to my own points of view. So I run all my writing past trusted friends. And sometimes, my mum.
In this case, my pal Alex correctly pointed out that even Novak Djokovic has a coach. Acting as an ally, a mirror, and an objective advisor. And he’s the best male tennis player in the world.
So I think we can agree it’s a good idea not to assume we’ve got everything covered.
ACKNOWLEDGING BLIND SPOTS
I love the passion and energy that drive first-time hospitality entrepreneurs. It’s been exciting to discuss some big ideas with people who have recently taken the leap, or who are considering doing so.
The starting point is a bold vision and a personal dream. The desired result is game-changing.
But the road from A to B is paved with challenges. A million small decisions that will set a course to success or failure. The first step is acknowledging there are blind spots. The second is bringing them in to view.
MINIMAL TIME IN THE PIT OF DESPAIR
Before committing some cash building any successful business, it’s of course a good idea to have a plan.
One that’s holistic, grounded in reality and the specifics of the sector, and the result of an objective interrogation of ideas.
With my own recent learnings and and conversations in mind, here are 5 key themes that anyone launching a hospitality venture should think about.
I hope you find these useful.
1. What advice would you give a friend entering your sector?
Your expert knowledge might meet their enthusiasm with caution. After all, you know the reality of how your world operates and the challenges you’ve had to overcome to achieve success.
You might advise that the market is highly competitive, offer insights into the reality of operations, and recount stories of when things went wrong.
You’d celebrate their vision and passion, but temper this with a healthy dose of reality.
Transferable skills not withstanding, you know and value the specific expertise your sector requires. Hospitality, is no different.
2. To experience does not mean to understand
Everyone has experience of hospitality. But this isn’t a substitute for experience in it.
Eating in restaurants, drinking in bars, socialising in clubs and staying in hotels is likely to be a part of everyday life for those in a position to launch their own venture.
As in any sector, for every success story that rises to the top, there are many failed dreams, empty savings accounts and disgruntled investors.
So getting some industry-specific experience - or seeking it out before committing to your project - is crucial.
It will save you a fortune in the long run.
3. You might not be the audience
In a world where everything’s been done, the absence of something in a particular market does not make a meaningful case for its viability.
You see something flying in one place - let’s use fried chicken for arguments sake - and a distinct absence of the same product in another. Opportunity, you think. And you love fried chicken, right?
So you open a fried chicken shop. Then discover that people in that location don’t care enough about fried chicken, and the business fails.
It’s essential to understand the market before you commit any real cash. Why do people need what you plan to offer? Where they are? Are there enough of them?
Objective research by someone who has the necessary market insights will answer the questions you may not be able to yourself.
This must validate and shape the core idea and the fundamentals of your brand. Not simply be an after thought when you’re ready to launch.
4. Shop around to explore your options
As a strategist and consultant, I would much rather be handed work on a plate than enter into a competitive pitch.
But as an entrepreneur, I would always use a tender process as a way to really understand what I’m about to buy.
Exploring options, cutting through the BS, getting value for money and testing different approaches.
Avoid ‘easy win’ decision making at all costs.
There’s a lot of bad advice out there, and without experience of a specific industry it’s easy to be convinced by the first person who you believe offers you the solutions you think you need.
That manager you’ve been introduced to with the stellar CV?
They might be incredible, but do they actually know how to set up a hospitality business, or have they simply worked within the structure of an existing one?
There is an enormous difference between the two.
Working with someone who has the contacts and the network to draw from will of course support you in building the right team. Both for the project, and the business itself.
5. Don’t start by hiring a designer
With notable exceptions, designers (buildings, interiors and brands) don’t do strategy. In the same way strategists don’t do interiors, logos or websites.
Are we intrinsically linked in our professions and process? Absolutely.
Do we make a cracking team? You bet.
But fundamentally, it’s the strategist’s role to break down bias; challenge bright-side tendencies; look objectively at the conditions that influence an idea, brand or business; qualify assumptions with research and data; and generally create an environment for creative, financial, and reputational success.
THE FINE LINE BETWEEN SUCCESS AND FAILURE
A boat setting sale from London for New York will end up in Newfoundland if it’s one degree off course.
This analogy runs true with the development of any business and brand.
To an extent, business is business. But the fundamental nuances of a sector - and the very human bias that comes with launching something that’s yours - must not be overlooked.
I learned this the hard way with my own passion project, and we’re still paying the price today.
HOW CAN I HELP?
Whether you’re new to hospitality, an independent operator, a global brand or a developer, I collaborate with people just like you to create brands and concepts that move our industry forward.
Working with a network of talented collaborators, we specialise in projects that seek to achieve a meaningful impact in destination locations.
If you’d like to discuss how we can bring your bold vision to life, or give your existing business a completely new point of view, please book a call with me here.
Ed
