I drove past an old abandoned diner the other day. It is a
lonely landmark at the intersection of two state highways, the only building
that remains there. I can imagine that at one time, it was a bustling business.
However, for as long as I can remember, it has sat vacant. It makes you wonder
if someone had a bad business plan, made a wrong move somewhere along the way,
and went broke. Given its position at the crossing of two highways, I could
argue that something else may have been the fate of this restaurant. I think it
may have seen its demise due to changing times.
At one time, traveling by car on the state highway system
was the best and fastest way to get from one point to another. A lot of state
highways went through the heart of small town America. Little diners like the
one I described had people in line to be served. I grew up in such a town. My
grandmother worked in such a diner. It was always busy. However, times changed
with the interstate highway system. Beginning with the signing of the
Federal-Aid Highway Act of 1956, a network of interstate highways without stop
signs began to take over the bulk of car travels across the state and beyond.
Now you had the luxury of traveling without the slow downs of small towns.
Traffic patterns shifted. It changed the way we travel and it changed the
landscape for business along a state highway. People stopped eating at the
local diner and started eating at fast food stops along the off ramps.
What happens in your business when the environment in which
you work shifts? It happens regularly in business. Software changes.
Communication technology changes. Data that used to be saved on a floppy disk,
went to a Zip drive, then a CD, that went to a Flash drive, that is now saved
somewhere in a Cloud. We have come to expect changes in the tools with which we
work. (Even while I have been typing this article, my web site browser was
updated to the latest version.) However, I am talking about a bigger shift than
we are normally used to. I am talking about the kind of shift that diverts all
of your business traffic away from your location on the state highway and onto
the interstate. How do you handle this kind of seismic shift?
First, it is good to get a fair assessment of what is
happening around you. Identify reality. Don’t be the biggest pessimist in
business by always bemoaning the fact that the good old days are gone forever.
On the flip side, don’t be the optimist that cannot see the reality of a bad
situation for the sunshine in your eyes. Right now everyone is trying to be a
fortune teller in regards to the economy. When will the key economic indicators
look good again? When will housing starts, unemployment, consumer confidence
and the value of the US Dollar all come back to levels they were at before the
current recession? There are optimists and there are pessimists in that
discussion. What is your reality? Take a strong look at your P&L statement.
Take time to look at your sales projections. But don’t get stuck there. Take a
look at the trends for new business growth around you.
Here is an example. At the same time the Eisenhower
administration was signing the Federal-Aid Highway Act of 1956, Ray Kroc, the
innovation behind the McDonalds franchise restaurants, was putting an idea in
motion that would make McDonalds an interstate icon. He began a real estate
company that purchased land for future McDonalds restaurants. This was a
radical concept. Restaurant franchising was in its infancy in 1956. By
purchasing tracts of land, McDonalds could evaluate traffic patterns, future
growth and strategically plan the best spot to erect the golden arches. But the
real business genius behind buying land was that it became another source of
income for the McDonalds Corporation. Now they were more than a franchiser,
they were the landlord. This became the real cash cow for the McDonalds
Corporation. By 1960, they had 200 franchisees, all paying the franchise fee
and rent. By 1965, there were 700 franchise locations. By 2003, McDonalds held
over 31,000 sites in 119 nations. Ray Kroc understood the shift that was
happening in traffic patterns. He also saw an opportunity for business growth
and took hold of it.
What about your business? Are there ways you can envision
bringing income through your doors that is dictated by a shift in the way
business is going to be done? Step back, take a look at the changes that are
happening around you and think beyond the way things have always been done
before.
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History of the Interstate Highway System US
Dept of Transportation Federal Highway Administration http://www.fhwa.dot.gov/interstate/history.htm
The Ray Kroc Story http://www.mcdonalds.com/us/en/our_story/our_history/the_ray_kroc_story.html
The
Ray Kroc Story – McDonald’s Facts and History by Don Daszkowski. About.com
Photo by Andres Calle