Independents: The Unsung Heroes of the American Economy
Dealers can't be afraid to act independently to realize vision
November 29, 2009 By Elly ValasIn his new book, "The Mom & Pop Store: How the Unsung Heroes of the American Economy are Surviving and Thriving," Robert Spector identified some key characteristics of independent retailers and highlighted some of those stores he thinks are uniquely successful.
On his Web site, Spector writes, "Mom & pop stores have always brought people together, fostering a sense of neighborhood identity and camaraderie, and are the glue that connects people in big cities and small towns alike... I am fascinated by the direct connection people feel as merchants and customers when they do business in neighborhood shops." With the backdrop of the growing "buy local" movement and his own experiences in his parents' butcher shop, Spector traveled the country in search of that secret sauce that enables locally owned businesses to thrive in the face of growing competition from large chain stores.
Let's see how Spector's key characteristics manifest themselves in our industry.
* Owner/founder needs to think like an independent. Sure, all businesses need processes and procedures, but without having to report to Wall Street or to a board of directors, you can unleash your creative energies. You can change your merchandising mix, add categories and put your own team in place. Use your independence to test new ideas and challenge your own status quo.
* Have a singular entrepreneurial vision that is hard to replicate. Vision is the most important driver in building a successful business. Whether you see yourself as providing unparalleled service or as being a one-stop shop for designers and architects, the more clearly defined your direction, the easier it will be to execute. Unlike big box stores who try to be everything to everyone, carefully craft your merchandising, service level and message to a select group of buyers.
* Must be passionate about the business. Many in our business came in as enthusiasts. Audiophiles turned their love of music into an audio store that morphed into an AV specialty business. Others moved from repairing home appliances to selling them. Passion is contagious; it spreads from owners to staff members to customers.
* Must be persistent. When my clients start feeling overwhelmed about a bigger competitor moving into their area, I often urge them to make a list of the big guys who have come and gone in their markets. Last year, Circuit City and Tweeter folded, but through the years, we've seen the demise of Highland, Fretter, Crazy Eddie, Tops, and many more. They may have outgunned you, but in the end, your persistence, your sheer grit, left you standing.
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