2010-09-05
In every business there is a Sweet Spot.
It's the spot where maximum profits are achieved with the least amount
of effort. The systems are built, the customer base is there and it's a
fine tuned money making machine. I once heard a speaker talk about the
life of a business. The theory is that if a business is not growing and
hits a plateau it wont stay there for long. It will either grow &
get bigger or head towards a smaller business model or even extinction.
Scientifically that is a correct theory since a business cant stay in
the same exact position, sales will expand and contract, cost of doing
business will do the same. However I do believe that every business
does have a sweet spot, where is doesn't make sense to grow and it
doesn't make sense to go smaller, it just makes sense to maintain. This
theory is applicable for every sized business: global, national or
local.
1
Local Business "Sweet Spot" :When we talk about a local business I am referring to the small mom and pop variety, the pizza shop, dentist, doctor, insurance agent, toy store, dry cleaner, restaurant, sub shop etc. that relies on the local people to survive. Lets use a local Pizza Shop to understand the fundamentals of the "Sweet Spot". (note these figures are estimated) In my town there are approximately 9000 people so lets say that on average each person spends $200 in a pizza shop on a yearly basis. That's a total of $1,800,000 dollars give or take. I understand that some of the population does not eat pizza, or is a child, or eats more so I think that's a fair assumption. There of course is also a "traveling factor" people outside of the town passing through, people living on town borders etc. so for this example lets be generous and double the total amount per year spent in pizza shops to $3,600,000. Now in my town there are 11 pizza shops including 2 national pizza franchises. So if the shops split the gross revenue equally it would total $328,000 per shop. So in theory the sweet spot by default is $328,000 for operating a pizza shop in my town. So if I owned a pizza shop in my town I would want to pull the maximum amount of profit from the business knowing the sweet spot was $328k. My operating costs need to be controlled , my new customer acquisition cost needs to be controlled, my client retention costs need to be minimized and my marketing budget needs to be controlled. It's the more with less approach.
So how do you do that? By using a well designed website, get involved in the community, use print and direct mail advertising, email marketing and social media.1
Local Sweet Spot News
Sep
05
Aug
31
Master classes to hit sweet spot | Warwick News | Local News in ...
2010-08-31
THERE is something about the sweet aromas of a fete cake and lolly stall.Aug
24
MediaPost Publications Sweet Spot: Small Biz Uses More Media 08/25 ...
2010-08-24
"This group of SMBs, with its digital media savvy and use of more media categories, represents the sweet spot for many companies developing and delivering local advertising solutions." This group also spends an appreciable amount of ...Sep
05
FieldNotes › Film 'Local Hero' (1983) Resonates with the Land and ...
2010-09-05
The performances in Local Hero are sweet. Burt Lancaster is terrific as an old oil man with a soft spot for the northern lights. There are subtle moments of British humour. And, the soundtrack by Mark Knoffler is fantastic. ...Sep
01
The Society shares their top 6 aesthetes in Toronto - SweetLife
2010-09-01
... musicians to technicians and film makers to bakers—Toronto is brimming with creative folk! Our mission with The Society is to create a platform for local artists to connect with other Culturites in the hope of propelling their careers to the next level. In this post, we are proud to promote some local design talent (many of whom also happen to be members of The Society). ... Close Log in to sweetspot.ca. Username, Password. Remember me next time! Forgot your password? ...Sep
05
Dog For Sale | Competing With The Big Dogs In Social Media Buying ...
2010-09-05
The engorgement of user data eliminates the hearing and blunder routine of anticipating that “sweet spot” that is all as well familiar in many media buys. This liquid of segmented data enables a more time and cost efficient purchase of media. ... No matter if you are looking to purchase media for a local bookstore, bike shop, dating service, or night club, amicable networks offer the chance for local advertisers to hurl with the large dogs and measure the big sales! ...Sep
03
Sweet little video from a local car show http://vimeo.com/14569976 Can you spot the GBC shirt? #utah #cars
2010-09-03
Sweet little video from a local car show http://vimeo.com/14569976 Can you spot the GBC shirt? #utah #carsSep
02
Having a slice of mushroom pizza from a local Savannah spot - Sweet Melissa's. Its sooo good!
2010-09-02
Having a slice of mushroom pizza from a local Savannah spot - Sweet Melissa's. Its sooo good!Sep
02
RT @UMI_OneFish: Did you know...California Spot Prawns (sweet shrimp in #sushi) are not only sustainable, but also very tasty? http://bit.ly/aYqKJu
2010-09-02
RT @UMI_OneFish: Did you know...California Spot Prawns (sweet shrimp in #sushi) are not only sustainable, but also very tasty? http://bit.ly/aYqKJuSep
01
RT @UMI_OneFish: California Spot Prawns (sweet shrimp in #sushi) are not only sustainable, but also very tasty. http://bit.ly/aYqKJu
2010-09-01
RT @UMI_OneFish: California Spot Prawns (sweet shrimp in #sushi) are not only sustainable, but also very tasty. http://bit.ly/aYqKJuSep
01
RT @UMI_OneFish: Did you know...California Spot Prawns (sweet shrimp in #sushi) are not only sustainable, but also very tasty? http://bit.ly/aYqKJu
2010-09-01
RT @UMI_OneFish: Did you know...California Spot Prawns (sweet shrimp in #sushi) are not only sustainable, but also very tasty? http://bit.ly/aYqKJuDiscovering Your Business Sweet Spot
Maximizing Profit, Passion and Product to Hit Your Business Sweet Spot Zone