Are you ready for a new business venture in Key West?
Many businesses have closed due to the world wide pandemic. Governmental agencies have issued regulations that have caused this current shutdown. This period of closing may have created just the opportunity for that new business idea.
As restrictions are being eased, Key West (KW) will return to a thriving tourist town, once again.
Prior to this COVID-19 VIRUS, business failures were caused by several different reasons. KW is very competitive, for a small town there are plenty of food and beverage choices. Finding a hamburger and beer is a common meal. Developing any new business the understanding of where your idea will fit is important, even before starting to write a Pro-Forma and business plan. A big part of success is just being different than everyone else.
Start out by talking with many long time restaurant, bar or business owners in KW. Most KW business owners will share their thoughts, as they want you to succeed.
Define what will make you stand out! It is not advisable to be like all the other food establishments. A few thoughts; the Location, a creative menu, friendly service and a passion for your business. I have tried to convey this to new tenants with not much success. Opening the doors is a lot of work, but just the beginning.
Some of the primary reason’s for these early closings are below:
Not enough working capital to carry through the startup and first year. Adjusting to the marketplace will take some time.
Underestimating shortages of qualified help.
Hiring managers with high salaries, you need to be a working owner
Housing difficulties and expenses
Adapting to changing seasonal market. These changes bring customers with different spending budgets. The winter guests (3-5 Months) usually have more disposable income, summers include more families. You need to know your customers.
No marketing plan, social media or consistent promotions.
Inexperience
Neglecting the numbers
Once you see the pitfalls of a business, it is more likely one can avoid these situations. It is easy to get caught up and lead by a dream. Many have traveled down the road in a limo and left with a ticket on a greyhound bus. Do the due diligence, plan, be prepared to work hard. Only then will Key West deliver the reward.
