The #1 reason businesses fail isn't undercapitalization, that's a symptom, it's a lack of execution in the leadership role. If it was capitalization alone, then the richest people in the world would have all the success because of their access to capital. Tell that to the likes of Steve Jobs, Bill Gates, Michael Dell, Warren Buffet, et al, who all started out of their garage and see what reactions you get. Every reason that contributes to a restaurants failure stems from the no execution malady, and this alone. It's a top-down disease, not bottom-up or middle out. Standards come from the top. Culture is defined from the top. Financials are controlled from the top. Teamwork, Budgets, Goals, Quality, Systems, PEOPLE, VISION, Passion, Communication - it all comes from the abilities of the leader to execute in their role as owner/operator/leader and the erosion of proper business controls (read undercapitalization) is just symptomatic of no leadership execution. Great restaurants have to be managed to greatness, bad restaurants fail all by themselves. There exists a direct correlation between success and execution as well. Execute 50% of the time and you will get a 50% return on your success - approach the 100% level and you will achieve a compounded rate of success. There are a gazillion reports, articles, research papers, etc on the subject of why people want to work for themselves and the reasons are legion. It's what I personally believe the future holds for us all. But prepare yourself. No experience in managing an FSO on your resume DOES NOT QUALIFY YOU FOR SUCCESS IN OWNING ONE! No matter how many HR departments you ran, no matter how many loans you packaged, or how well you cook for your friends on the weekend! No other industry requires you to manage like the Hospitality Industry. Here you create the product, produce the product, market the product, sell the product, and so on down the line. Not preparing yourself is like asking someone to hit you upside the head with a skillet. But then again, that's what it takes with some people.
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Jeffrey Summers, Head CoachGameOn!
Restaurant Coaching Solutions
jeffrey@getgame.biz
About Me
- Jeffrey Summers
- I am the expert you call when you need to learn how to increase top line sales, lower your operating costs, increase your profit margin, hire and train better managers and staff, evolve your operation into more and better ways of doing business, buy or sell a restaurant, improve your service, engineer (or re-engineer!) your menu, market your business better and less expensively, keep yourself from going nuts because you have no life anymore, open more and better restaurants, don't want to have to give up your first born child to pay a consultant and have more fun! My mission is to enhance the quality of life for my clients by providing the best products and services to help them achieve their personal and professional goals. I take great pride in my clients, my company, my commitment to service and the products I sell. I am a recognized expert in the hospitality industry with over 24 years of success at planning and executing strategies for delivering dramatic results, a former "GM of the Year" for 2 major, full-service, franchises, an Award winning Multi-Unit Executive with 2 of the largest restaurant chains in the U.S., published author, husband and father of two.