Podcast Summary
From farm shop to drive-through supermarket: Businesses must adapt quickly and creatively to survive crises. Pivoting to a drive-through model allowed a farm shop to stay afloat during the pandemic, emphasizing the importance of adaptability and effective communication.
The current crisis has forced businesses to adapt quickly and creatively in order to survive. In this podcast, the hosts discuss the evolution of their business idea from a farm shop to a drive-through supermarket in response to social distancing measures and changing consumer behavior. Initially, they had planned a farm shop, but with the uncertainty of the situation and growing concerns about human interaction, they pivoted to a drive-through model. This involved creating a website for online ordering and having staff pick and pack orders for contactless delivery. While this may not be the main source of revenue for the business, it allows them to stay afloat during the crisis and potentially contribute to future revenue streams. The experience of setting up a new business in isolation also highlights the importance of adaptability, effective communication, and a willingness to pivot in response to changing circumstances.
Adapting to the New Normal: Marsh Farm's Quick Transition to an Online Shop: Traditional businesses can pivot quickly to online sales during crises, using existing resources and technology to adapt and survive.
The COVID-19 pandemic forced a traditional business, Marsh Farm, to pivot quickly and adopt technology to adapt and survive. With their overheads significantly reduced due to government schemes and closed operations, the business aimed to make a profit of £30,000-£40,000 from a new online farm shop. Although this would only make a small dent in their usual £800,000 monthly expenses, it could help pay rent to landlords during closure. The business transitioned from a leisure-based, face-to-face interaction model to a food tech entrepreneurship model within a week and a half, allowing customers to order and receive produce contactlessly in their cars. While they may not fully embrace the food tech entrepreneur label, their ability to adapt and use existing resources to create an online shop demonstrates the importance of flexibility and innovation during challenging times.
Leveraging Existing Resources for Starting an Online Business: Start small, leverage platforms like Shopify, focus on clear branding, effective communication, and customer feedback to grow an online business.
Starting a business, even a small online one, doesn't require creating everything from scratch. Utilizing existing platforms and resources can save time and resources. The speaker shares their experience of using Shopify to build their online farm shop business, emphasizing the importance of a clear, identifiable brand and effective communication with customers. They also highlight the importance of market research and listening to customer feedback when deciding on product offerings. Networking with other businesses in the same sector, even if they're not in the same geography, can provide valuable insights and ideas. The speaker also mentions the importance of starting small and gradually expanding product offerings based on customer demand and feedback. Overall, the key takeaway is to leverage existing resources, focus on clear branding, effective communication, and customer feedback when starting an online business.
Collaborating with industry peers for mutual growth: Forming relationships with similar businesses can lead to valuable insights and collaboration, improving your operation and providing a competitive edge.
Building strong relationships with other businesses in similar industries can significantly benefit your own operation. This involves sharing information, learning from each other's challenges, and even swapping staff for a day to observe their methods. These relationships take time to develop but can lead to valuable insights and collaboration. Additionally, engaging with consumers through social media and marketing can provide valuable feedback and help inform decisions about what to stock or offer. While it may take time and effort, the benefits of these relationships and consumer engagement can lead to a competitive edge and a more effective business.
Emphasizing consumer feedback for informed decisions: Engaging with customers and incorporating their feedback is essential for making informed decisions and enhancing the overall customer experience.
Engaging with consumers and incorporating their feedback is crucial for making informed decisions and improving the overall customer experience. This was evident in a discussion about managing traffic and sales for a business, where the importance of consumer feedback in making decisions was emphasized. The team had been in business for a long time and had always prioritized engaging with customers to understand what they liked, what they didn't, and what could be improved. The ultimate goal was to create a seamless experience for the consumer, leading to repeat business and positive word-of-mouth marketing. During this discussion, the team worked on estimating the number of cars and their average value on the first and fifth day of operation. They used this exercise as an opportunity to consider how they might adjust their offerings based on customer preferences and feedback. The team's alignment and focus on the consumer experience were clear, with each team member sharing their estimates and collaborating to find the best possible solutions. Overall, this conversation underscores the importance of putting the consumer at the center of business decisions and continuously seeking feedback to create the best possible experience.
Leveraging resources and brand recognition for new ventures: Established businesses have an advantage in starting new projects due to their existing resources and brand recognition, making it easier to attract customers and gain success.
Having established resources and brand recognition can significantly advantage a business in starting a new venture. Aaron's example of Marsh Farm shows this through the use of a large barn and car park, which eliminates the need for expensive marquees, and the well-known brand name that attracts customers. This builds on the idea that Disney's recent success with 50 million users is not solely due to their five-month-old platform, but also their century-old brand reputation. Established businesses have an "unfair advantage" in starting new projects, making it easier to attract customers and gain success.
Maintaining communication and connection with staff during physical separation: A strong team and adaptive supply chain are essential for businesses to navigate challenges and thrive
Having a strong, engaged team with a shared vision is a significant advantage for businesses, especially during challenging times. Aaron, as the MD, emphasizes the importance of maintaining communication and connection with his staff, even when they're physically apart. This approach has helped him build a team that is eager to contribute and help move the business forward. Additionally, the company has had to adapt to new supply chain realities by working with multiple smaller suppliers instead of relying on one big one. While this has added complexity, it has also allowed them to be more agile and responsive to changing circumstances. Overall, the combination of a strong team and adaptive supply chain is positioning the business well for the future.
Supporting Local Businesses: Consumers' Impact and Institutional Role: Consumers' purchasing decisions significantly impact local SMEs, especially during economic downturns. Effective communication with financial institutions is crucial for starting a business.
Supporting local businesses is more important now than ever before. The discussion highlighted the significant impact of consumers' purchasing decisions on small and medium-sized enterprises (SMEs). During the pandemic, many individuals have prioritized buying from local businesses to help them survive. Jill, a family member, is an example of this trend, as she has stopped shopping at large supermarkets and instead opted for a local delicatessen. Moreover, the success of large corporations like Tesco and Sainsbury's, which have seen sales increase by 30-42% per week and received substantial business rate discounts, underscores the need for support for SMEs. With most businesses in the UK falling below the £45,000,000 turnover threshold, it's crucial to remember that they make up the majority of businesses and are disproportionately affected by economic downturns. For the speaker, Aaron, the upcoming launch of their local fruit and veg business is an opportunity to learn and improve, as well as contribute to the local community. Additionally, the anecdote about securing a bank overdraft for their farm shop illustrates the importance of effective communication with financial institutions when starting a business. Overall, the conversation emphasizes the significance of consumers' choices in sustaining local businesses and the role of financial institutions in supporting entrepreneurship.
Importance of communication and relationship building in business: Be transparent, clear in business dealings. Build rapport, persuade. Diverse skill set essential for success. Delegate, trust team, maintain connection.
Effective communication and the ability to build relationships are crucial in business, especially during challenging times. In the discussion, the entrepreneur shared how he was able to change his bank manager's perspective by openly communicating about his new business venture, despite initial reservations. This experience highlights the importance of being transparent and clear in business dealings, as well as having the ability to persuade and build rapport. The entrepreneur also emphasized the need for a diverse skill set in business, where technical expertise and interpersonal skills work together to create success. Additionally, the entrepreneur shared his approach to delegating tasks and trusting his team, while still maintaining a connection to the business and providing guidance when necessary. Overall, the discussion underscores the importance of effective communication, relationship building, and a well-rounded skill set in entrepreneurship.
Staying Agile in Uncertain Times: Adapt and innovate to generate cash flow, seize opportunities, and stay positive and persistent in uncertain business landscapes.
Even in uncertain times, it's important for businesses to adapt and innovate in order to generate cash flow and avoid evaporating. Aaron and JB's discussion about entering the food tech entrepreneurship space, despite potential pitfalls, highlights the importance of seizing opportunities and being open to new ventures. While the outcome is uncertain, the potential rewards could be significant. The speakers' enthusiasm and optimism underscore the importance of staying positive and persistent in the face of challenges. Overall, the message is to stay agile and keep pushing forward, no matter what the business landscape looks like.
![The Insider’s Guide to Buying Businesses with No Money Down with Jonathan Jay [The Opportunity Ep.129]](https://www.podcastworld.io/podcast-images/empire-flippers-podcast-r29sd89t.webp)
![The Insider’s Guide to Buying Businesses with No Money Down with Jonathan Jay [The Opportunity Ep.129]](https://www.podcastworld.io/podcast-images/empire-flippers-podcast-dnqk51t5.webp)