Starbucks could have had their cake and eaten it too but they took the “old school” McDonalds approach. Find an effective formula that has been perfected by a small business owner or small chain, multiply it by the thousands, and create a dominant, world-girdling empire. The problem is, people are getting tired of seeing their local businesses put out of business by massive chains and “big box” stores.

We’re seeing a serious backlash from local business, community residents and local governance and zoning boards. While a big team of lawyers might help you steamroll the local authorities, it’s not going to win you any popularity contests.

So are there still opportunities for building empires? Of course. You just have to think a little more about the communities you’re invading…

As an online marketing consultant, I often meet clients at coffee shops. There’s always one somewhere close by with plenty of room to meet. In addition, there’s usually great energy, good coffee and a casual business atmosphere.

What there isn’t is Starbucks. I have yet to meet a client at a Starbucks. Why? Because every small business owner I know prefers to support a local coffee company.

So how could Starbucks have had their cake and eaten it with a cup of joe?

“Powered by Starbucks.”

Kathy’s Corner Coffee
powered by starbucks

Kaffee Klatch
powered by starbucks

Cup O Mud
powered by starbucks

Get where I’m going with this? Instead of franchising the complete store as a Starbucks, they could have had a string of thousands of “local” coffee shops across the United States. They could have helped these small, local owners lower their cost structure while offering a good product. Starbucks could have even offered various “standard” packages such as “organic only” or “fair-trade only.”

They could have taken their expertise and packaged it as a consultancy with a franchise that only supplied the coffee and help with design, accounting and marketing but allowed the small business owner to create a unique store tailored to the local community. The consulting fees and coffee supply fees could have made them plenty of money and yet kept the firm relatively small. No, there wouldn’t have been thousands of Starbucks employees as there are now (getting laid off). but there still would have been thousands of local coffee shops with plenty of local jobs supporting communities all over the US.

In a way, I’m talking about something similar to licensing fees. There are quite a few firms that have a great brand and manage to stay small while bringing in huge amounts of cash through licensing fees. Just look at Marvel Comics. Little company, big licensing revenues…

Of course, hindsight is 20-20 and for awhile, Starbucks was on a serious roll. However, in the name of domination and unbridled growth, they really raised the ire of a lot of communities by driving a lot of small coffee shops out of business. Perhaps this is something to think about the next time your ego says, “I want to dominate the world and drive all my competitors out of business.”

Small business owners and local communities are getting pretty tired of that egotistical nonsense. Instead, ask yourself how can I create a “win-win” situation that helps small businesses, improves local communities, and lines my pockets with gold? What we’re talking about here is combining the best features of a franchise and licensing with the community appeal of a small, unique, locally-owned business. That, my friend, is real gold!

Bob McClain or WordsmithBob, has been a website copywriter in Minneapolis and St. Paul, Minnesota, since 2000. He has focused on developing new, more effective approaches to web writing, web content, web copywriting and Search Engine Optimization. Starting with a BA in Technical Communication and a minor in Creative Writing from Metro State University in St. Paul, McClain has worked diligently to end the use of "corp-speak" and "technospeak" online. His approach is to “humanize” the Web, using real information to guide people to buy rather than turning websites into advertisements that people can easily ignore. McClain is also the creator of Cheap SEO Website Marketing, a website devoted to helping people with the best solutions to DIY SEO at an affordable cost with tips and software reviews. More at Cheap SEO Website Marketing

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Originally posted 2009-09-18 10:40:11. Republished by Blog Post Promoter

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