Management
Business Case Study; Oil Change Business and Coffee Shop Combo Business Model
Does oil and coffee mix? Well it certainly does for one small business in Needles, CA. They have a successful business now in a rather run-down and in economic decline town. Needles although in California is not doing to well these days, worse off in summer it can reach 117 degrees out their in the middle of no-where desert.
Additionally there is not a lot of business to be had besides the I-40 traffic getting off the freeway for a quick bite to eat or traveling thru their town to go to the Casinos in Laughlin or near by Bull Head City, which has recreation areas and good economic growth.
How can some businesses do so well in such run-down areas? Well this discussion came up recently and one gentleman in the area did not even know of the business, yet it still does well. He stated that;
?I ran a wholesale jobber route through the territory you mentioned for 3+ years distributing to c-stores and such. Went ok not really enough mom and pops anymore which were my bread and butter. I never noticed the needles location you mentioned, sounds like a neat idea that might work but needles is such a depressed area.?
Boy you can say that again. Really depressed. They need a complete over haul there. I think part of the problem is the drug issues there, but who would want to live in CA with all the taxes and excess regulations, when you can live in NV or AZ all nearby in that tri-state areas? All the smart people left is my thought?
The oil change place is on the corner across from the Coin-Op, semi full service car wash on the weekends on the road, which goes from Needles to Bull Head City. Can't miss it, looks somewhat new 3-4 years I guess?
Why do some business succeed like a desert flower in such challenging economic regions? Well it appears to be due to the fact that this business is a family run business; the wife runs the coffee shop area and the husband the oil change bays. There are always people in line.
How do they do it? Word of mouth, customer service and perseverance and now they have built a strong business. You can too, no matter what the circumstances you can over come the odds, beat the heat and make hay. Please consider all this in 2006.
Lance Winslow
Lance Winslow
Tags: Business Case Study, Oil Change Business, Coffee Shop Combo, Business ModelSimilar articles
Building A Practice On Purpose Series Part #6 - Forge A Practice On Purpose Operating System
We're all familiar with the importance of our computers having a dependable operating system, if for no other reason than we may have experienced the contrast of NOT having one. Read more →Business & Family Safety and Health Rating
For good reason, practically every endeavor in life is rated. I've seen ratings on who or what's #1 in business, industry, NFL, NBA, MLB, person of the century, athlete of the century, technology, restaurants, university, neighborhoods, travel destination, best looking, best movie, best book, etc. Read more →Business Development
The essential stage of any businessBusiness development is an essential stage of any business. Either it is in the beginning of the road or it is in the middle of the road. Read more →Business Innovation - Tacit Knowledge
Creativity can be defined as problem identification and idea generation whilst innovation can be defined as idea selection, development and commercialisation. Read more →Aphorism
By periodically investing in an index fund, for example, the know-nothing investor can actually out-perform most investment professionals. Paradoxically, when "dumb" money acknowledges its limitations, it ceases to be dumb.
Warren Buffett
