Seeking business advice for my business

Discussion in 'Growing and Managing a Business' started by pc0070, Jul 23, 2010.

  1. pc0070

    pc0070
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    Hi,

    Please shed some light as I am in real desperation!
    I have tried to keep my scenario as brief as possible to save you time.

    Company: Provider of general car-related services and products including car audio systems, GPS, in-car iPod (excluding specific services like repairs, car modifications)

    Small business is going bad, how do you rejuvenate a car stereo company which mainly sells and provide general services for car-related products (excluding specialized services like repairs, car modifications) such as audio systems, GPS, iPod in Hong Kong.

    Reasons for failure:
    Nowadays, new cars possess many add-ons when you buy them already
    Business has been running the same way for the past 15 years, more or less, any obvious suggestions to adapt to current environment?

    If you require additional information to provide better advices, please ask!

    Thanks!
     
  2. Fergal

    Fergal
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    Hi pc0070, welcome to our business forum and sorry to hear that your business is experiencing some difficulties. Unfortunately lots of businesses are feeling the pressure during these difficult times.

    Based on that is sounds as if you need to change your business model. Do you know what else your customers are spending their money on? Would it be possible for you to provide them with these products or services?

    Would it be possible for you to provide services such as car cleaning and valeting?

    What skills and knowledge do you and your staff (if you have any) have that you might be able to use to create another business?

    Would it be possible for you to start offering a mechanic service so that you could fix and maintain your customers' cars?

    What about selling car accessories, could that work for you?

    Please post back with a little more info and your thoughts and we will do our best to offer you some useful suggestions.
     
  3. BizDoc

    BizDoc
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    How to save your company

    Hi pc0070,

    I read your dilemma and thought I'd chime in. I'm a former management consultant and have experience in keeping companies from becoming obsolete. Fergal is absolutely correct in his approach: your goal should be to DIFFERENTIATE. When you find something your customers want (even when they don't know they want it) and can uniquely provide it, the recession won't hit you as hard.

    You can read about this more on my blog: bizmd.blogspot.com. It's free; I only ask if you like the content to share it with others.

    Cheers!
     
  4. Lucywu2012

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    In my opinion, only the high-tech can help you. You should heep it in developing, if you always take it seriously, you can catch up with the market.
     
  5. jrobconsult

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    First, the best businesses are always looking to improve even when on top. Changing your business model is an excellent ideal. I would suggest doing a short survey to get more info from your customers. This can be a huge benefit to changing your business model.
     
  6. ronalde.barron

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    Yes are right new model cars are fully equipped with all technologies need these days... the thing you can do is go customizing car, and become the authorized dealer of one the best company in automobile industry, it will improve your business.
     
  7. pc0070

    pc0070
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    Thank you all for the support.

    I will attempt to give more information and answer to everyone.

    Our company has launched a new car sun-shade service for our customers last summer which involves us applying a layer of plastic to each car windows which blocks out the sun when you are driving. This was a nice supplement as the margin is good and the demand was adequate in the summer. But it is not helping enough.

    Another main source of income comes from sales referrals from big automobile brands. These car sales refer their clients to our company for a commission. However, this source of income has diminished heavily as many car brands already have their cars installed with the latest technologies and the sales have nothing to refer their clients for. I can tell you only a single brand of car still get referred to us for upgrading their original GPS systems to all-in-one television/DVD and parking car view.
    I have been thinking on providing car customization but we are limited to our skill level as our engineers have only the skill basically for installing accessories, systems and crafting subwoofer wooden boxes. Like I said, installing neon interior lightings for our customers is no problem, but body painting or car suspensions is not viable at the moment.

    Currently, I believe what will most help would be new products (like car sun-shade mentioned above)

    More details on our company:
    History in providing audio systems and car alarms for 20 years already
    Total of employees: 5
    Customer base: customer range from new to old returning customers

    Ronalde.barron:
    Authorized dealer? You mean becoming a dealer for car accessories?

    Please give me some inspiration and idea guys.

    Last note, the rent has risen and I am really thinking whether business should continue…
     
  8. Fergal

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    pc0070 I'd suggest that you arrange a meeting with your landlord to discuss your rent. A lot of businesses are experiencing difficulties at this time and it is not a good time for them to increase your rent. They may prefer to reduce your rent than to lose you as a tenant, after all it will probably not be very easy for them to get a new tenant at this time. When you meet them, explain that the rent is too high and that if it is not reduced you might be forced to close the business and move out of the premises. Hopefully you will be able to negotiate some kind of reduced rent.

    When looking for new products or services I'd suggest that you research your competitors to see what they are offering. Research similar businesses through the Internet and have a look at their website, you could also phone them up and pretend to be interested in using their service with the aim of finding something that they are selling to their customers, that would be of interest to your customers.

    Another approach would be to talk to your customers directly, try to find out what else they are spending their money on and ask them directly, if there are any other products or services that they would like you to provide.
     

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