Wednesday, February 27, 2013

Hamburgers and resin

The leaders of successful companies have two traits in common (among others). First, they focus on what they do best, avoiding products and services that might distract them from their core business. Second, they know their limits.

I thought about these characteristics earlier this week after reading about Lynsi Torres, the young CEO of the In-N-Out Burger restaurant chain. In this article she talks about not allowing their menu to go beyond burgers (no fish, chicken, or breakfast) and her decision not to expand beyond a geography they can comfortably support. That latter item is key, because it shows that she knows her limits and chooses to prioritize product over profit.

Yesterday Mike Reeves of Two Mikes Resin Accessories announced that he'll sell his products only through distributors rather than directly to consumers. If you want his fiddly bits you'll have to go to Sprue Brothers or Hannants.

Kudos to Mike for making a smart decision for his business!

Like Torres, he recognizes his limits and places product over profit. I suspect it would be more profitable for him to distribute his products via his web site, but he realizes that the time he spends tracking orders, packing order, shipping packages, etc. is better spent developing and producing products. I’ve been selling a few items on eBay these last two weeks, only eight at a time, and I’m surprised at how much time it takes to manage just those few items. I can’t imagine the time required to ship five or ten times that quantity!

Mike has produced some great items over the last five years, and I'm looking forward to what this new-found focus will give us over the next five!

1 comment:

  1. A good lesson. Too many people try to be everything to everybody and they quickly fail. I'm sure some will decry him/his business but with this he can concentrate on making bit rather then packing, shipping and tracking. Having only a few big customers to manage *can* be easier then dealing with the masses, though those big customers can be a PITA.