Is Fear of Change Killing Your Business?

changeYou’ve built a reputation as the classiest champagne and cigar bar in town and if anyone wants a hedonistic night out, your bar is the go-to spot without question. But you’re not making any money. Why? Because the instances of no limits nights out are declining, customers are watching their spending, and it’s suddenly becoming a bit socially unacceptable to be seen spending large amounts of money on lavish nights out.

So what do you do? Your cash flow is shot and you run the risk of not meeting next months lease payment, but you don’t want to give up your spot as the best champagne bar in town.

Well, it’s a no-brainer. If being the best champagne bar with a reputation for decadence and opulence isn’t making you money, then you stop it and you stop it fast. A friend of mine preaches to “Fail, and fail fast”. That way you can quickly move on to something that works.

I recently read that Starwood Hotels & Resorts Worldwide Inc., the U.S. owner of luxury brands including St. Regis and W Hotels, will let some of its properties reduce their level of service — and number of stars — until the industry begins to recover. Hilton Hotels Corp. and InterContinental Hotels Group Plc have already cut the ratings for some locations.

They have realised that stars don’t make money. Empty five star rooms make less money than full three and four star rooms. If organisations this large can restructure and make such sweeping changes in light of the current economy, you have no excuse.

Take stock of your situation, evaluate your short term viability and take the appropriate steps to ensure your survival. It won’t be easy and you might end up with a different business than you started with, but if you want to survive badly enough, you’ll embrace it and take action. Today.

Advertisements

2 thoughts on “Is Fear of Change Killing Your Business?

  1. Pingback: Catching an employee with their hands in the drawer

  2. Hi Barry,

    I love that post, so direct and straight to the point! It is true, if you don’t change anything today, tomorrow will be exactly the same.

    And if I may, I’d like to share a couple of tips which will be useful to those of you who have read this post and made the decision to move forward with your business!

    Change is fascinating as people react to it in various and different ways, – including, naturally, resisting. Once you know and accept that fact, you can ensure that you do things about it.

    I strongly believe that communication is the key ingredient to making powerful, positive and long-lasting changes.

    Do communicate with your employees, share with them your vision, explain the reasons behind the change and most importantly, highlight the “what’s in it for me ” bit!

    You want to ensure that you guide your employees through change, so that they can embrace, manage and maintain it!

    Happy transformation!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s