Here's the cafe profit model as practised in WA:
- Borrow a lot of money.
- Lease premises at whatever ridiculously high rate is asked
- Hire a manager
- Pass all management responsibility to the manager
- Tell the manager to hire foreign tourists. They are unqualified but very very cheap
- Advertise on social media
- Watch the market grow as the government spends a heap of public money bringing tourists to the state
- Brag about the huge profits that you are making
Then the tourists stop arriving.
Your profits drop.
You know nothing about the cafe business, you can no longer afford to pay a manager. There are no foreign tourists to employ
So what can you do?
- Well, it's no use getting off your backside and actually working in your cafe. I mean, you know nothing about working in a cafe. And it would interrupt your leisure time
So what do you do?
- You refuse to pay rent. After all, the rent is far too high... for current market conditions
- You demand that the government brings back the tourists. What's a little coronaRisk when you are losing money?
- You demand that the government adopts an isolation policy which puts more people at risk of covid -- but will put more money into your own pocket.
- You put out your hand for more government subsidies
- You have your demands published in the daily paper. "Government urged to do more to help out business", The West 1 May
Is it time to change your business model? To a model which suits the actual market? As it actually is?
Oh no, that's far too hard.
Go for business as usual. Demand government support. Cling on to the old model as long as you can
Till you fail.
When you fail you will, most likely, bring down other people as well.
No worries.
Now go out and borrow some more money. Invest it all in another business where you know nothing. After all... it looks sort of good right now.
Dr Nick Lethbridge / Consulting Dexitroboper
... Agamedes Consulting / Problems ? Solved
==="No matter how much you push the envelope, it will still be stationery"
Dying for you to read my blog, at https://notdotdeaddotyet.blogspot.com/ :-)
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