It would be almost impossible for someone to not know about the trend toward locally sourced foods.  We see independent and chain grocery stores, restaurants, and hotels all making major efforts to support local farming. Public school districts are on board too, working hard to source more meats and produce from local vendors and farms.  In big cities, community gardens and food co-op’s are springing up, and people are finding space in their own back yards to plant at least a small garden.  I personally participate too by planting a garden each year in my own backyard.  I even expanded my garden last year by adding a new growing bed. But, with all that said, I’d like to suggest that we all take this trend one step further.

Why not try to do everything locally?

I use a local company to print my stationary and business cards. I use a local, independent CPA firm to do my taxes.  I participate in my local Chamber of Commerce, and in the events sponsored by other local chambers, and I try to patronize local member businesses. When I meet someone for coffee or lunch I always try to go to a locally owned and operated business instead of a chain with headquarters out of the State.  So, why do I do this? Because, I want those businesses to use me!

Using local businesses performs two functions.  First, it keeps money in the local area and strengthens the local economy in general.  Second, it builds relationships between me, my business and the businesses that I use.  And any business owner will tell you that relationships are what make a company successful.  People and businesses buy from others with whom they have a favorable relationship.  It’s not always about cost.  In fact, many times local businesses can provide products or services that the non-local businesses can’t. And, most important of all, local and independent businesses are more likely to appreciate your business!

So the next time you need to buy something, print something, or contract out a professional service, remember to keep it local. You’ll be happy you did!

In my travels with Hoosier Hospitality Consulting I get to meet a lot of people with a very wide variety of backgrounds.  I've met young people who have a dream of starting their own hospitality business, but have no experience in hospitality industry.  Then there are those who are great cooks whose friends tell them, "You should open up your own restaurant". And of course there are  those with years of experience as a server, or a bartender, or a cook and a desire to strike out and do their own thing and not what some owner, manager, or chef tells them to do.  All of these combined contacts have made me realize some common reasons that restaurants, and businesses in general, fail.  These are my top five.

#5 - Underestimating the difficulty of establishing a new business. Regardless of the type of business you want to create (a bakery, a restaurant, a mobile truck, a catering operation, a motel, etc.) it is a business.  You have to know what you know, and what you don't know.  You have to ultimately know a fair amount about accounting, taxes, licenses, building codes, food safety, marketing, promotion, service, human resources, training staff, managing costs, and much more that has absolutely nothing to do with how good your food tastes. And when you don't know, you need to know someone who does.

#4 -No practical experience. There are those who are book smart, and those who are street smart.  Running a business has a lot to do with being street smart. There are a lot of things that you can read online, or learn in school that ultimately don't filter down to the day to day realities of running a business.  I fly on airplanes, but I wouldn't try to fly one.  Just because someone is an awesome cook at home doesn't mean that they know how to be a restauranteur. Before using your money to open a new business, why not let someone else use their money to hire you.  You'll surely learn about what to do and what not to do...on their dime.

#3 - The business doesn't have"that thing" that makes it special.  Think about what restaurants you like to go to, or what hotels you use, or what stores you shop at. Why do you patronize them?  What is important to you?  Those are the questions that you have to learn about your prospective guests and customers.  You are going to have to have something that makes you different and special; something that makes your customers try your place and then continue to choose you over others that offer the same type of product.  Lots of folks go to a new restaurant once. What is "that thing" that makes them come back?

#2 - They don't understand how to market their business. Do you give out coupons?  Run a newspaper or magazine ad?  Do you have a frequent customer program?  Do people really care about what you Tweet?  What about SEO? Which of your marketing tools are effective, and how effective are they? There are so many different ways to market your business that WON'T work, it's scary. You have to do your research and be skeptical of every Account Representative that claims to have the magic bullet that will make your business profits soar. (See #5)

#1 - They don't have the money. Let's face it, money makes the world go around.  However much money you have available, or have planned to spend, it always seems to take more.  Think about it, how many times do you hear "The project came in under budget and ahead of schedule".  Anytime someone starts a business the odds are very good that it will take longer to get the doors open than was planned...and that means MORE MONEY.  To be safe a new business will need 2-3 years of operating funds available in some form or fashion before opening.  There are so many variables to starting a business that it's impossible to plan ahead for every little circumstance.  A lot of new businesses fail not because they didn't do things right in #2 through #5 above, but because they just ran out of money a little too early and had to quit before success was realized.