How Come Extremely Savvy Entrepreneurs Can See Opportunity Where Others Just See Challenges?Part Two
As you previously discovered in part one of this ongoing series, about “how” extremely savvy entrepreneurs (such as yourself), can consistently see potential untapped opportunity, where as most of their major competitors, often only see the immediate obstacles.Or extremely limited possibilities.
For sure, this type of long range visionary thinking does in fact take some time and practice, in order to fully develop.
However, once you do (entrepreneur) it can and definitely will serve you extremely well an entire lifetime.
And the best part is, as you become more and more marketing aware, of those potential marketing opportunities that abound, you’ll start systematically seeing what’s truly possible, practically any and every time you initially encounter some type of (previously) perceived, temporary obstacle and or adverse situation!
So How Can Extremely Savvy Entrepreneurs Learn To Spot Potential Hidden Opportunity When All Their Major Competitors See Is Temporary Obstacles?
So how many times (lately), have you (either) picked up your local newspaper or read online or saw a segment on your local news, where some major company is (A.) Announcing some much anticipated staff downsizing and therefore are expected to layoff X amount of full and part time employees!
Or (B.) They’re announcing there is an indefinite hiring freeze, until X, Y or Z happens!
This type of doom & gloom (Armageddon) financial news stories seems to rule the airwaves these days, do they not? For sure, there are always more voluntarily eyeballs on a horrific car crash than there are for a “feel good” news story about a local boy scout that rescued a frightened kitten from a tree! 😎
Now imagine this particular situation for just a second.You’re seriously considering investing some of your discretionary nest egg, (translated), money you can afford to lose if things don’t work out!
And you’ve decided on this local distribution company, and they’ve got these two extremely huge, local warehouses that house the various products they offer.
And each storage facility is as big as an NFL styled stadium! So the day you and other potential investors are scheduled to take a physical tour, just so you can see up close, their operation and the amount of actual on hand inventory they have.
And upon entering the very first facility, you immediately get a really uneasy (and totally unsettling) feeling, because to your (and the other potential investors), complete shock, the warehouse is easily half empty!
Say what? That’s correct!Actually, upon closer examination, you realize it may be only a quarter full!Yet their prospectus touted the fact, this particular segment of the business, was growing about a respectable 14% per year!
Yet, they’ve barely got enough on hand inventory, to even justify having a warehouse a third of this size!
Entrepreneur, (please be brutally honest here) ,would the sight of a warehouse the size of an NFL football stadium, that was less than 35% full, cause you to seriously doubt the viability of this particular investment opportunity? 😎
Especially when the promo video they originally showed you, featured a brisk warehouse (practically) filled to full capacity and over 75 full and part time employees hard at work!
Now, from the looks of things, (just 17 months later), there might be a grand total of just thirty people, (both full and part time) working in this same warehouse!
Funny How Real Opportunity Can Often Be Disguised As Extreme Misfortune!
First of all, unbeknownst to any of the potential investors, (including you), this extremely savvy and bottom line conscious entrepreneur. They’ve recently sold off part of their business, that no longer fits their overall business model, which (also) meant they’d no longer need that particular inventory as well.
So the inventory that remained, was now being consolidated into about a third of the previous space, so that explains “why” there was so much available (unused) space.
But even though they had consolidated, they were still on the hook for the tremendous monthly leasing cost for the entire warehouse, right?
That’s why they were allowing (get this), four separate local -non competing- companies to, (not only) sublease a certain amount of unused warehouse space from them, plus pay to have the partitions built to separate each vendor.
And also because they were carefully selected non competing entities, the savvy distribution owners were aggressively negotiating with these vendors to do some type of joint venture, where they could either (A.) Do some type of piggyback insert in their outgoing mail and revenue share 25-35% of the initial front end sales.
Or (B.) Sell one of their best market tested products or services, on the back end of these vendors front end products or services and again revenue share 25-35% of those initial back end sales.
Savvy Entrepreneurs Often Miss Potential Opportunity At Least Halfway! (Don’t You Agree?)
Either way, these four new vendors, save anywhere from 20-50% of the normal -out of pocket up font- cost to lease the typical commercial warehouse space they would need!
Plus, with the added addition of some type joint venture revenue sharing arrangement, they’re systematically adding nicely to their bottom line.All the while, substantially decreasing their upfront out of pocket cost!Right?
So even though on the surface, that half empty looking warehouse might seem like a potential red flag to the all too typical potential investor! In reality, it’s proof positive, this particular distributor, knows “how to” strategically leverage opportunity when it presents itself!
Don’t you agree?Now as is customary during this part of our show.
Please share your extremely valuable comments (in the comments section below) that you can apply to your business, product or service in the next 30 days or less!
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