21Aug

How To Thrive As A Small Startup

Posted by Steven Teo in How-To Guides

Forbes: Big video-rental chains have been kicking small shops in the teeth for years–which makes Christine Min’s feat all the more impressive. Last month Min celebrated the first-year anniversary of her store, Get Reel Video, in Brooklyn, N.Y. Better yet, she is already in the black.
Carve out a niche. If you don’t have the muscle to go head to head in a given product line, try another. While the big chains generate roughly 85% of their revenues from new releases, Nolan Anaya, owner of Amherst, Mass.-based Captain Video, aims for more like 50%.
Customer service matters. Wu, a movie buff, says he can take a chance on stocking unusual titles because his customers value his recommendations. “I started recommending it, and it’s become our No. 1 renter of all time.
Offer complementary products. To boost sales, some small retailers have branched into pizza, phone retailing and even fake tanning. “So many people put blinders on and think of themselves as a video rental store,” says Ken Dorrance, owner of Alameda, Calif.-based Video Station, which also peddles pizza and, starting this year, cellphones.
Craft flexible payment schemes. When Blockbuster did away with late fees two years ago, Alan Milligan, owner of Memphis-based Marquee Movies, responded by letting his customers prepay for rentals and rack up points, similar to a credit card rewards program. “We had to become creative,” he says. “We’re all learning how to react to the changing market.” The free popcorn doesn’t hurt either.
The Rebirth Of The Small Video-Rental Shop [Forbes]

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