In the good old days, you had a clear idea of the work you wanted to do, and you worked hard to build your business from the ground up with your own hands.
Buying and selling new widgets. Repairing them from your garage gradually evolved into a store, and you put signage in the huge window. You rented or bought a cash register and bought a truckload of widgets on consignment, including repair parts.
You never dreamed of becoming a conglomerate and owning hundreds of stores and/or factories. You wanted to “make a living” for your family. Many times, several of your family members worked with you, and life was good!
You never had to borrow money; you invested your savings right back into your business.
Then the Internet burst onto the horizon, and it became cost-effective enough that many households owned one or more computers. It became necessary for your company to upgrade to computers. Then credit cards entered the horizon, making it easier and faster for consumers to purchase. Soon, it became normal business practice to purchase everything from soups to nuts. Advertising on the Internet brought more customers to your store, and life was good!
But suddenly, buyers started purchasing online. Some online purchases were shipped directly to the consumer. Then, the world turned upside down! A brilliant entrepreneur realized that you could bring customers into your store via the Internet. You could sell widgets to them online and ship products without ever having to see or meet them in person.
Customers liked the convenience of having their packages delivered right to their front door. But they also wanted to purchase from people they knew and trusted! They remembered meeting store clerks and sometimes the owner face-to-face, and liked getting to know them. So now you had to invest in computer programs that convey to your customers pictures and videos of you and your business.
At least once during this time, you probably said, “Hell, I don’t need to know my customers; I just want to sell to them!” However, the Internet was designed to connect you with your customers.
Your customers could see pictures of you, your employees, and your business. You started selling many other things in addition to your usual Widgets because your website had hundreds and sometimes thousands of items. New start-up companies started competing for your business. Entrepreneurs created sites where mom-and-pop shops could sell used goods online, along with those who just wanted to get rid of unwanted items. And it was good!
Eventually, the “Big Auction Companies” realized that they didn’t need Mom and Pop’s resale items; they could sell directly from the factory to a purchaser, making bigger profits, so Mom and Pop were cut out of the deal! Big-box stores were happy to have their products online. Fulfillment centers were created to expedite the delivery of packages from A to B. Everyone with a computer jumped on the bandwagon and created an online storefront. Most failed because putting up a storefront didn’t cut it; you had to bring the customer to your site.
The Big Box Stores saw that their stores were more often empty, while “discount” stores were thriving. Many investors had invested early and heavily in the Internet and sophisticated computer systems, discovering where to ship bulk inventory by learning how often someone bought a particular item at a specific store. This took a lot of money! Everyone hated the discount store except the consumers!
We now have big discounts and luxury stores in the same growing metropolis, built via Credit but still profitable. Mom-and-pop stores started becoming nearly extinct. I know it is sad, but the customer demanded, and corporations listened! Some think they listened too well. That’s for you to decide, but they are here to stay. Sorry, folks, but you can’t put the Genie back in the bottle.
I loved the old way, too, but you must adapt to survive. I only hope to survive long enough to see what the next big thing is!
Do you have any idea what it will be?