Part One: The Business Plan
Over the years I had Dolls and Friends, I saw a lot of other doll stores come and go. I can think of at least 6 other doll businesses that failed locally. By locally, I mean just in western Washington. Nationwide there are far more.
There are many, many reasons why businesses may fail or never get off the ground.
I think one of the major reasons some businesses fail is because the owners do not create a business plan. Granted, business plans are a pain in the butt to create. They take a fair amount of work and time, and more than a little brainpower. They force you to think about what you are trying to accomplish in a logical, rational way. At least, the good ones do.
For those of you unfamiliar with business plans, they generally required you to identify and analyze your competition, your market, your finances, promotional strategies, best physical locations, and inventory costs, among other things.
Our first landlord required us to do a business plan before we could sign a lease. We grudgingly did it, then put it in a drawer never to be looked at again. But looking back, I wish we had reviewed that business plan at least yearly and updated it. I think it would have helped us identify new trends and changes we should have made sooner than we usually did. In the long run, it could have helped us see our weaknesses and strengths, and market directions sooner. The doll market changed hugely over our 14 years in business and updating our business plan regularly could have helped us deal with those changes and spend our money more wisely. We would have been forced to deal with Dolls and Friends more seriously as a business and less as a hobby. In the long run, that could have led to an even better reputation and more success.
Ah, well. That is all water under the bridge now. If I ever began another business (highly unlikely at this point!), I would do things differently. It's not too late for those of you who are thinking about starting a business to learn from my mistakes. If your potential landlord-or financing source-requires a business plan, thank him or her and get it done. Even if it's not required, do one anyway. You and your business will benefit from it. If you're already in business, it might be worth doing or updating your business plan. The only cost is time, and there is much potential worth to be had.
Something's perplexed me, Kathy. Maybe you can shed a little light on it.
The BJD makers seem, in many of their practices, to be confoundingly anti-retail and anti-customer. They make it weirdly hard to acquire their products. Should you get a doll, now try getting clothes for it.
The retailers I've talked with tell me I can't begin to imagine the ordeals of getting stock from these companies. I may be permanently dunced by the Mattel Barbie marketing strategy, but... I don't get it. Exclusivity is one thing. Unavailability another.
Trying to build suppliers with this-- whatever it is-- into a business plan must be quite something.
LOL-I have no magic answers for this one! Dealing with most BJD companies IS very difficult. They often act like they are doing you a huge favor in consenting to sell their merchandise to you. If I were considering starting a BJD business I would probably contact several companies before I started writing a business plan. It would be good to have some suppliers lined up in advance.
Hope this helps!
I'm really enjoying your continuing series of insights into the doll business! I had been seriously entertaining opening, with partners, a brick and mortar shop in my area.
Without a business plan. Without a retail background. Without a website if I could help it. Part time. And in an area where hobby stores were going the way 45s and LP vinyl records.
Talk about a BAD IDEA!!! I sent your dollthoughts to one of my potential partners. And we came to our senses. For now....
Thanks Kathy!