Forums: Discussions for entrepreneurs and small business.

So, I think I finally figured out that I made a stupid mistake.

I went after the wrong demographic.  I wanted a hip, cool tea bar instead of an old ladies tea house.  So I went after the college kids, and now I`ve got them.  The problem is that they are pretty much broke.  They will buy tea beverages all day long, but they won`t buy a pouch of bulk tea or any tea accessories to save their life.  The problem is that it takes entirely too many $2 cups of tea to pay the rent.  And it seems that the middle aged housewives and older tea enthusiasts are intimidated by the party-like atmosphere I created to attract the college kids.

So, I realize now, after a little over a year in business, that I went after the wrong market.  The thing is that this group is really not going to be able to support the business, but neither can I afford to chase them off and start over.  So, I`m looking into some other means of establishing other streams of revenue for the business.  We are actually one of only a handful of places in the country that blends, flavors and packages our own brand of tea.  We have over 200 varieTEAs and enough margin to offer the teas at wholesale.  So, I am looking at dressing up our packaging and selling our teas to other gift shops and specialty food stores in town as well as to restaurants in filter packs for iced tea, and I have also been thinking a lot about the possibility of starting a home party plan with the teas.

I`m in that place where I am extraordinarily discouraged by my own short-sightedness and I`m not sure what I should pursue next, if anything.  I would love to hear from you guys which, if any, of my ideas sounds the most promising; any advice you have for tackling such undertakings; and any other ideas or suggestions you might have.

--Frank
Chief Executive Zoomdweebie
Zoomdweebie`s Tea Bar
http://www.zoomdweebies.com/

Hey, don`t get so down on yourself. It`s a learning experience. If we all were clairvoyant, we`d all be bazillionaires! :-)

Something to keep in mind is the "meaning of life," even if you`re not into it all that much from a deeply theological or philosophic perspective. What I mean is that whatever you do in life, it`s about learning better how to create things.

Another way of saying it is that when you die, what do you want on your tombstone? "He ran a great tea bar?" Or would you rather have something along the lines of "He was an interesting family man?"

Starting and running a business isn`t the entire point of life. Living life is larger than the business---it`s about the "living" part. Read any good novel, and you`ll find that the running of the business usually takes up mere paragraphs. The interaction of the characters, their life-and-death problems, and their inner thoughts and emotional drivers make up the bulk of the story.

So....with all that said, step back and consider yourself as an author. You`re writing a novel about your life, and the main character has decided to open up a business. It`ll be a tea bar, and the first thing the guy does is focus on volume. After a few chapters, he discovers he needs higher quality customers, not so much volume of low-paying customers. What would you, the author, come up with as a plot direction?

I`m brainstorming here, but I`d maybe have the guy get out into the social structure of the surrounding community, and see if he can start to meet the kinds of people who want "high tea," or who think of tea in relation to finer things in life. Who would they be? How does tea become important to them in their daily lives?

One thing to keep in mind is that tea isn`t only a drink, it`s also a ritual. In Japan, tea is so ritualized it`s almost an art form. In New York and London, tea time is also a ritual, stylized and made into a formal social situation. Can that be used in this context?

Think of the word "retro." What does it mean? Things can be so old they become new again, and perhaps going back over history might offer some interesting ways to change the business?

More importantly, why do we want this main character running a tea shop? How is that going to enhance and move the plot along? Is is just "something to do," a form of occupation while the character is actually an international secret agent? :-)

You`ll rarely see a novel that takes up much time with the business side of the character`s life. Non-fiction, yes: but in a novel, not much. There`s a reason for non-fiction, but there`s also a reason for fiction. Anyone who gets too involved in one or the other ends up not being well-rounded.

Why did you choose tea for your life? What interested you at the start, to create that "Ah Hah!" moment, and got you going on the store?

TRIUMPH- is just "try" with added "umph" in it-

I was reading a site request for cmypitch.com, in another topic, and looked over the site. They offer ways to buy or sell businesses, and other stuff, and on the front page was an option for a Tea Room. :-D

That got me looking, which got me thinking. Do you offer food at this tea bar?

how about having a talent night or open mike night. It may attract different client base.   Entrance fee is buying beverage and snack. Also, do you offer wifi? 

Up around Chicago, what with Illinois having gone totally non-smoking in public places, you can get an exception I think, for certain types of places. The result is so-called tea bars that offer smoking----a hookah bar. :-)

As I was reading your initial post, my reaction was "Ok, you targeted the wrong demographic, but at least they are coming and spending money."  Simply redefine why they are coming and adapt.

1)Cut your costs.
     If a particular flavor of tea isn`t selling well, don`t offer it.

2)Sell complimentary foods.
     Sell bagels, pop-tarts, and muffins.

3)Sell branded T-Shirts
     Get your customers to pay for your advertising.

4)Change your inventory.
     Don`t use fancy stuff for "high-end" tea drinkers, make it simple for those who want a hot cup of tea...and nothing else.

5)Hold (and charge) Event nights.
     Open Mic, Karioke, Costume Party

6)Hold a contest
     Get the business students to find a way to get you more revenue and reward the winner with 6 months free tea.

7)Sell tea gift baskets around the holidays

8)Get the parents of the college kids hooked during parent weekends and orientation.

I hope my 8 suggestions help.  More importantly keep this in mind, you have a customer base.  Get them to spend more and bring their friends.  Once this tea bar does well, start another tea bar for the "high-end" tea drinkers like you want.  Good luck!  It will work out just fine.



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Jonathan Fluck
Nomad Advertising LLC
www.NomadAdvertisingLLC.com