A Tale of Two Clients
Is it a tale of two clients when it’s based on a true story?
I just looked in Webster’s and the answer is yes. A tale can be fictitious or true. So, the fictitious part of this story is that I’ve changed the clients’ names.
A few years ago, I was working with two clients who owned wineries. Let’s call them Wonder Winery and Weaker Winery. Already from the names, you should know that one winery was having great success, while the other winery was not. What made the difference?
Both had financial investors who had adequately funded the startup phase to the tune of $7 million to build a wine-making facility, purchase barrels and other needed assets, and fund the winery for the first few years. Both had winemakers with the ability to make great wine.
“it was very apparent that Wonder Winery had a plan and was continually comparing itself to the plan”
By now, both wineries were in their 7th year. Wonder Winery’s annual sales had climbed past $5 million a year and continued to increase; Weaker Winery was hovering at $2 million in sales per year. While Weaker Winery was worrying about holding onto market share and having concerns their wine was maybe priced a bit high, Wonder Winery was selling more wine at a higher price. While Weaker Winery was asking their investors for additional funding, Wonder Winery was beginning to payout profits to their investors.
As I worked with each client, it was very apparent that Wonder Winery had a plan and was continually comparing itself to the plan and strategically making changes to the plan as different situations arose. In addition, Wonder Winery now had the funds (along with some bank financing) to begin purchasing its own vineyards, giving the winery more control over the quality and quantity of grapes needed from outside sources.
While Wonder Winery was likely taking some risks that Weaker Winery would not want to take, the owners of Weaker Winery were operating from a place of fear, without a written plan, and without strategic leadership. By the 8th year, Weaker Winery decided to sell and was able to dispose of its assets and walk away from the business. The investors were able to get most of their investment back, but they certainly did not make a profit.
In contrast, Wonder Winery is still in business, growing both sales and their team and expanding outside of the region.
Not every entrepreneur wants a business that grows quickly, but business owners do want a business that helps them achieve their goals. Whether the goal is a dollar amount to take home or the ability to take time away from the business, entrepreneurs achieve their goals when there’s a plan and when there’s consistent action to implement the plan.
We’re all about helping businesses grow in a smart and strategic manner.
Taking a short pause to evaluate the timing and potential hurdles to growth will increase your odds of success.
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