Getting lost in the forest of ideas is a common problem faced by entrepreneurs. It’s a problem because you don’t know you are lost in the forest until you can’t see that the results you are looking for in your business because they seem hidden and hard to find. You may have customers. You may have revenue. You may have activity and cash in the bank. But is your business profitable? It can be a tricky question to answer if you feel busy but can’t tell if the busyness is actually generate profit. Which products or services are generating real profits and which ones are being subsidized?
After experiencing a couple of quarters of bumpy sales and over 60 new menu options, Tim Hortons has made the decision to return to its roots of being a coffee and donut shop. The burgers will disappear as will the crispy chicken sandwiches. Realizing that they cannot be all things to all people, Tim’s will look to simplify its offering to customers by making improvements in its core categories: coffee, baked goods and breakfast. These changes should increase sales and turnaround times (including drive-through times) as well as make it easier to train staff.
Go get a coffee and take a moment to think over your the current state of your business. What was the original value proposition to your customers that enabled you to generate revenue, hire a team and hopefully put some cash in the bank? Does your business still deliver that value proposition or has it become involved in delivering many different value propositions? What are your core categories? Getting back to the basics of your business may help you get a better bottom line.