An Honest Question

[Rover]

First I just want to say hello. I have been lurking these forums for some time and the info here is beyond superb.

On to my question or need for insight.

I have been working in the Cell phone industry for almost 10yrs now and recently got recruited by a couple to help them run a new store. They own another business and have been successful with it for 8 yrs or so(Not at all involving cell phone or technology). They had a cash surplus and wanted to try their hand at something new, I guess they decided a cell phone store was the way to go. When I started talking with them I was not entirely thrilled at the idea of starting from scratch with a local mom and pop store. I have been burned in the past with no pay, lack of interest from the owners, no input ect. They explained that when they get behind something they give it their all and want this to be a successful store. So they put my mind at ease and I start putting together ideas, inventory, software, basically all the things they need to have a functioning store.

Now here come my question I swear. After 4 months I see them rarely, They are never actually at this store, or seem to have an interest in how it is operating (Except to ask why there are not customers everywhere) or wanting to learn how to do anything involving this business. Knowing the technology, the customer base, dealers, taking care of the customers all fall on me. I understand that is my job and don't have a problem doing these things but I feel they need to be more involved. I feel that they just threw a bunch of money at an idea and expect it to just turn into something. As I have never owned a business I'm not sure if how I feel is in correct. Do you guys (The people that have employees) just expect your business to run smooth and leave it all in the hands of some one? Do you get in there and take a vested interest in how your company is doing?

I feel like I'm walking the same broken path I have walked before. Someone wants to make a quick buck but doesn't want to put in time and effort to insure success or I'm just blowing things out of proportion and this is just a frustration post.

Thanks for reading and I look forward to learning tons more from you guys.

[Harold Mansfield]

They are never actually at this store, or seem to have an interest in how it is operating (Except to ask why there are not customers everywhere) or wanting to learn how to do anything involving this business. Knowing the technology, the customer base, dealers, taking care of the customers all fall on me. I understand that is my job and don't have a problem doing these things but I feel they need to be more involved. I feel that they just threw a bunch of money at an idea and expect it to just turn into something. As I have never owned a business I'm not sure if how I feel is in correct. Do you guys (The people that have employees) just expect your business to run smooth and leave it all in the hands of some one? Do you get in there and take a vested interest in how your company is doing?

I feel like I'm walking the same broken path I have walked before. Someone wants to make a quick buck but doesn't want to put in time and effort to insure success or I'm just blowing things out of proportion and this is just a frustration post.

Thanks for reading and I look forward to learning tons more from you guys.

I've been here before. And it can suck, but it really depends on how much flexibility you have. To answer your question, most people who invest in something are involved 100% to get it to the point where they only have to stop by a few times a week. That can take months or years. But I have also run across the type that you describe that have unrealistic expectations and don't expect to have to do anything except hire people. All of those people eventually end up failing. So yes it is kind of normal when people have been successful in one area, they think the success just follows them magically and they don't have to put in the work anymore.

It is frustrating when the owner expects you to pack the store with customers but they aren't giving you the tools and support ( and budget) to do that. I've been there in the bar business more times than I want to remember.

If I were you I'd present them with what you feel the problems are, and how to solve them. Just compile your thoughts clearly, accurately, (some market research of the area an industry could help tremendously) and respectfully because you'll likely only have one shot. Make sure that you are offering suggestions to solve a problem, not just complaining. Actually, no complaints. All solutions.

And it could go either way. They'll either see that you know what you are talking about, respect it and give you want you need. Or ignore what you are saying and use you as the scapegoat for why their business isn't instantly successful.

Either way, I'd say a meeting is in order.

[Rover]

Thank you.

[huggytree]

your the manager

isnt running the store and making them money your job?

id make sure if your as in charge as you say you are that you get some sales bonus's

sounds like if you left the store would fall apart....very foolish for them...but good for YOU....if your not happy you can threaten to leave if they dont give you a raise....what choice would they have?

your in a powerful position...



it is my DREAM to get my business to the point where i can just sit back and let it run itself....then i can retire or start a 2nd business....this may be the way they look at it

[Rover]

your the manager

isnt running the store and making them money your job?

id make sure if your as in charge as you say you are that you get some sales bonus's

sounds like if you left the store would fall apart....very foolish for them...but good for YOU....if your not happy you can threaten to leave if they dont give you a raise....what choice would they have?

your in a powerful position...



it is my DREAM to get my business to the point where i can just sit back and let it run itself....then i can retire or start a 2nd business....this may be the way they look at it

I agree that it is my job to run the business. Like you said though, if I left this place would close up, to me that is not a good situation. Sure I have great leverage but I would prefer that someone besides me knew what this business needed and took to run. Basically if I wanted to run this store like I owned it why would I waste my time getting payed by an owner, I would just open my own place. I have the resources just lack some of the experience such as book keeping, payroll, labor management and some of the technical aspects which I'm not learning. There has to be a line between an owner and a manager, especially in the beginning, sure a year down the line a simple call once a month to check up is acceptable but 2 months in? Would you not make sure your manager was set up for success? Make sure he was educated in the mistakes you have made in the past? I'm just looking at it from my perspective, if I opened up a store I would be there almost everyday. Training for the employee's, customer service, getting a feel for my community.

You wouldn't open a hair salon, hire someone that has been doing hair for a decade and then just expect it to all workout, would you? "Here is $20k, make this work!" You have no background in hair styling, product knowledge is probably less than adequate, most likely no idea of the target market ect ect.

If I'm going to go balls to the wall and make this place great and the owners don't even want to take an hour to feign interest in how this industry runs, forget about it. I'm more than willing to share my information and get payed very little in exchange for the knowledge that i obviously lack, that's fair. I just think it's irresponsible to go about this business in the manner it is being done.

I do realize I'm young and maybe just acting like a child but I feel my observations are spot on.

[Harold Mansfield]

I have the resources just lack some of the experience such as book keeping, payroll, labor management and some of the technical aspects which I'm not learning.

That's pretty honest, and those are pretty important aspects of running a business. Maybe you should be that honest and ask them to hire a part time bookkeeper. I worked at plenty of bars where someone came in once or twice a week and did the books and I just worried about running the staff, keeping the place clean and up to date, code, and promotions.

The flip side to that is that they may tie your hands so much that you won't be able to spend any money on marketing and other improvements. I've also been in that situation where the place sucked, and the attitude was "Increase sales and we'll spend money on marketing". Well that's hard to do if you aren't competing with the competition and the place is falling apart.

[Rover]

They do all the book keeping, payroll ect, I was suppose to be learning these things. That's why I make around 250 a week for 50 hours, I know its not much but if you factor in the important knowledge I will be learning it's fair in my view. The store is not in shambles or falling apart, they have deep pockets, just a lack of customers which I get hassled/complaints about. Getting them to market is tough, the last place I worked was strictly word of mouth and this is how they feel it should be for this store. I warned them in july that word of mouth takes a ton of time to develop with a cell store. The last store went almost 3 months with no business and another 4-6 months with trickle in business and just as the last owner was gonna close up (Due to lack of business) we started getting a lot of new faces from our outstanding customer service referrals.

I'll give it some time and keep pointing out the other stores in our area that advertise, maybe they will see some light. In any case I'm at least learning what not to do. Oh and if business does actually pick up and I'm still not getting the info I want, Operation Huggytree's idea will be taking effect.

[Harold Mansfield]

Here's my opinion about what you are up against. Notwithstanding your other issues, I personally haven't been to a cell store, even my own provider, in at least 3 years.
I have all of the cords, accessories, cases, stands, docks and Bluetooth headsets that you can imagine and I ordered them all online for cheap.
I recently upgraded my phone, online. I got a tablet, online. Change my plan, online. Pay my bill, online.

That's going to be true about any local retailer. What do you have that makes me want to spend the time and money to come into your store?
Do you fix phones? Honor warranties? Or is it all about new sign ups and buying devices? So then what do you offer in that regards that I can't get by going to Verizon, Sprint, ATT, Boost, Cricket, or any other service provider online?

How do you combat that?

[Rover]

Great question! The store is primarily prepaid cell phone plans, we offer repairs, unlocking and software modifications (Rooting, Jailbreaking, Custom OS). The target market is Lower-middle to lower class and is mainly cash based so we don't focus on competing with internet based business. We have a site and I got us on google, bing, yelp, dex knows, yahoo and any other local business directory I could find. Created a facebook page but i don't think that will be relevant, been reading up on how to try and use it so I have ideas in the works for promotions to talk about with customers.

The draw to a brick n mortar is face to face communication, being able to test multiple devices in your hands, having someone to show you how the phones work and make sure all the settings are correct. We do a lot of bring your own phone plan activations so making sure your phone is set up correctly is a big thing with my customers. Granted I don't currently have "customers" but this is my experience from previous shops.

On an up note I took huggytree's advice but instead of pay I used advertising, "Either pay me more or I'll leave" I said "Spend some money on adverting or I will go work at a corporate store." Got a green light to use $1500 for advertising!! Going to put together some quotes on radio and the local college newspaper. Things may start to look up!! Now I just got to get them to teach me about the business end and I'll be happy as a clam!

[seolman]

Glad to hear you got some advertising money. As I was reading all the posts the main issue that came to my mind was: what are you doing to get more clients? $1500 sounds like a pittance for a new business but spent wisely can probably bring you some floor traffic. Most new businesses fail not because the idea is not good, it's because nobody knows they exist or what advantages their product/service offer over competitors.

Once customers start coming through the door you will make more money and the investors will feel more confident about spending more on the business. The most important lesson you are learning is: don't start a business without significant chunk of money for marketing. Once your business is well known, word of mouth will help it grow.

I wish you much success and I admire your courage in starting a new business.

[Harold Mansfield]

Great question! The store is primarily prepaid cell phone plans, we offer repairs, unlocking and software modifications (Rooting, Jailbreaking, Custom OS). The target market is Lower-middle to lower class and is mainly cash based so we don't focus on competing with internet based business. !
Well, that is actually a decent niche. People with bad credit or can't go the traditional route are plentiful and EVERYBODY needs or wants to have a phone. And some people just prefer prepaid. For many it's their only phone.

I assume to do phone, and long distance cards and all of those other things too?

Glad to hear you had the talk and that it went well. I agree that $1500 is not much of a commitment, but at least it's something. Spend wisely.
How's the walk in traffic? Maybe spruce up the frontage and windows with deals and specials.

[Rover]

Well, that is actually a decent niche. People with bad credit or can't go the traditional route are plentiful and EVERYBODY needs or wants to have a phone. And some people just prefer prepaid. For many it's their only phone.

I assume to do phone, and long distance cards and all of those other things too?

Glad to hear you had the talk and that it went well. I agree that $1500 is not much of a commitment, but at least it's something. Spend wisely.
How's the walk in traffic? Maybe spruce up the frontage and windows with deals and specials.

I have had 10 walk-in and 5 or so people from craigslist. The front is a bit of a problem the building doesn't allow anything outside except the store sign. In the past we have used big posters to tie to yard post and exterior signage to let people see what is inside. I have a poster in the window promoting the main carrier and a couple window clings for the other carriers, trying to stay away from the windows looking like spam.

Yes we do the long distance cards and refills a couple of the carriers have unlimited international for flat rates which I'm hoping will be a decent draw. We can pay a bill for any company through our payment processor. I have seen these type of shops become wildly successful even worked at a few. The successful ones seem to have owners with their finger on the pulse, they know what is popular and where the market is heading. I'll try to keep this updated as time goes on, thanks for the insight you guys are awesome!!