Top Mountain Business Mistakes
I’ve been spending time talking about business mistakes and sharing tips for mountain business owners specifically because so many fail so quickly. This post focuses on why many fail before they even get going.
For some reason, people decide they are going to move into the mountains, buy a business and succeed.
Many fail.
Take for instance the numbers from Small Business Statistics and Trends–where 1/3 of all new businesses fail within the first two years.
Personally, I came to the mountains and decided that I wanted to move up and live there full time. However, the difference was that I researched the area first.
- Most people fail to research the area, the businesses already there, and the business they plan to open.
It took a year of planning and budgeting before I decided to move up part-time. Then I was ready to launch into full-time work within a year–but only after discovering that the winter proved to have unique challenges AND that things slowed down.
- Many new business owners miss identify the cycles in the community and so fail to plan for those hiccups.
There are several times a year when local mountain businesses feel a crunch. Things slow down or stop based on seasonal lulls or challenges.
For instance, during one weekend a major forest fire broke out and the roads were closed to visitor traffic. This stopped most of the local commerce dead in its tracks.
This last Memorial Day weekend was a disaster for local businesses–except hotels and some of the restaurants. Why? Because we had an unexpected snow fall which required vehicles to chain up down around Running Springs–many never made it past that little town.
Since I’ve lived in the area snow loads, mud slides, and lulls between seasonal activities prove to be difficult for some businesses because they don’t calculate those problems.
Not to mention that there are many businesses that fail to identify the community they are in and what unique challenges or perks it can have.
For instance, we had a new business open up in our sleepy little town–a town whose sidewalks usually roll up about 9pm.
Some locals are alienated now because the noise levels from the establishment are disturbing the neighborhood well into the wee hours of the morning.
Although it might not matter to them now, when things slow down and the locals boycott the place because of the inconsideration–it may be a different story.
In our area locals are loyal to a fault–but you have to earn that loyalty. Poor behavior or business practices spread like wildfire and can damage a fledgling business.
Having said that, local marketing is different from the regular model found “down-the-hill,” too.
For instance, locals told me I was too professional and polished when I got here. I toned it down and found that my business thrived because of the tip. I listened and took action.
- New businesses should ask for feedback and get to know other businesses so they can learn what works and what does not–quickly.
I still was professional but simple changes found me embraced the community. I listened to what they wanted and learned what made them comfortable.
Unlike bigger urban sprawls, the quaint mountain resort towns are not anonymous and that is an important piece of information to know.
Another oddity is that business tends to be very local centric. If you ever lived in the suburbs where you had the corner store and service shops–it is much like that in many locations here in the mountains. Efforts to attract locals out of the area work, but require strategy.
- Many residents are fiercely localized–and this can be good or bad depending on your business.
There are also some other factors needed for success such as having good capitalization, selecting good employees, and renting a good location…but you can get those in other articles.
If you want to have a successful business in the mountain resort area–take some time to plan, make sure you have the capital to stick it out, and get to know the community before you take the plunge–you’ll avoid headaches and hopefully will be around long enough to reap the benefits.
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