Balancing Numbers in Business: Walking the Tightrope of Resources and Experience
The Origin Stories: Lessons from Our Fathers
In our recent podcast episode, we kicked things off by discussing a shared curiosity: the careers of our fathers and how they shaped our perspectives on business. Shirley recounted her father's varied careers, from farming and working at an iron mill during wartime to being a bus driver and maintenance man. Tom shared fond memories of his father, who transitioned from farming to bartending, and eventually owning a grocery store. Kim and I reminisced about our father's entrepreneurial spirit, managing a grocery store, a Dairy Queen, and even dabbling in ice cream parlors. These stories reminded us that the entrepreneurial journey often involves embracing multiple roles, adapting to change, and seizing new opportunities.
Navigating the Balancing Act: Resources vs. Customer Experience
One of the recurring themes in our conversation was the delicate balancing act required in business. We explored the challenges of providing outstanding service while managing limited resources. The struggle to maintain the right staffing levels, as Tom highlighted, was evident in our Dairy Queen operations during busy holiday seasons. While we saw great labor numbers due to fewer staff, it came at the cost of sales, underscoring the importance of finding the right balance.
Kim shared insights into how the Dairy Queen app's usage affected customer engagement and profitability. The increased app usage led to higher discount percentages, affecting food costs and overall profitability. Here, we faced a dilemma: how much should we invest in encouraging app usage while ensuring that it doesn't erode our bottom line?
Making Strategic Decisions: Investments for Growth
In the podcast, Tom discussed a significant gamble we took at the Metropolis Resort—investing in a system to attract more business during slower times. We opted for a slightly different approach this year, investing in technology and new personnel to bring in more clientele. The decision, as Tom shared, was driven by the need to start something new and create opportunities for growth in the slower parts of our business cycle.
Kim echoed this sentiment when talking about the app's impact on sales. We ultimately decided to shift our focus from local couponing to promoting the app more heavily, determined to reevaluate it after a few months to assess its impact.
Maintenance and Presentation: The Unseen Variables
Another vital component we explored was the investment in maintenance and presentation. Whether it's deciding how often to mow the lawn, clean parking lots, or hire extra maintenance staff, these choices directly influence customers' perceptions. As discussed, the appearance and upkeep of our facilities send a message to customers about our commitment to quality and sustainability.
During a family outing to a local bowling alley, I was struck by the immaculate presentation of the facility, underscoring the importance of a well-maintained business that leaves a lasting impression on customers.
Conscious Decision-Making for Success
In business, everything boils down to conscious decision-making. As the podcast highlighted, it's about knowing your numbers, understanding the consequences of your actions, and continuously seeking better ways to balance resources and experience. Whether it's investing in new systems, adjusting discount strategies, or ensuring the aesthetic appeal of your business, these choices shape the future.
We hope this episode has provided valuable insights into the intricate dance of managing a business and inspired you to consider the unique balancing acts within your ventures. Stay tuned for more episodes where we explore the nuanced challenges of mixing family and business.
