Hope and Faith: A Cautionary Tale of Business Dreams and Reality

Hope and Faith

The Beginning

This is a story about two besties who decided to open a business in Las Vegas. One was named Hope the other Faith (OK I know what some of you might be thinking but let’s not go there). Now Hope and Faith have been best friends for many years. As they formulated the business plan for their new joint venture they were excited about the prospect of opening an outdoor store together. Should any business problems develop they had a unique and almost utopic solution. After all Hope had Faith and Faith had Hope. Oh absolutely what could be better? I can almost see the eye rolls from the retail veterans as I write this.

Definitions

Hope is defined as “wishing for something with expectation of its fulfillment” and having confidence and trust. Faith is defined as “belief that does not rest on logical proof or material evidence.”

The Reality

The Hope and Faith concept sounds nice enough in theory but unfortunately it is hopelessly naïve. Here is their recipe for dealing with business issues:

• Hope had faith that she would buy the right amount of merchandise. Faith had hope for the vendors especially that they would ship complete and on time.
• Hope had faith that employees would want to work for them because they were such nice people. Faith had hope for the employees they hired. She was expecting that they would be extremely loyal and productive.
• Hope had faith that the rent was reasonable. Faith had hope for sales to be sufficient to cover all the expenses.
• Hope had faith that the social media marketing campaigns would be so novel that business couldn’t help but be successful. Faith had hope for all positive responses to marketing efforts.
• Hope trusted the vendors when they said they would never sell to a competitor. Faith had hope that the vendors would not compete with them online.

And so on and so forth.

Hope and Faith in Business

Hope and faith are wonderful attributes to have but way too esoteric when not matched up with sound time-tested business practices. Here’s an example of what I am talking about. I have hope that my house won’t burn down and I have faith that it won’t. I also have taken preventative steps to make certain everything is in good working order and I have an insurance policy in case of a worst-case scenario. Hope and faith are fine qualities to have if they are accompanied by reasonable and responsible actions.

Responsible Actions to Combine with Hope and Faith

• Inventory – Have a solid merchandise plan and open-to-buy based on classification sales desired markups correct turnover and ideal timing of deliveries.
• Personnel – Make sure that your pay scale is competitive including benefits and that employees feel valued and enriched.
• Expenses – Review expenses periodically to make certain they are in line with industry standards. Adjust as needed for local variances.
• Marketing – Make sure your message is being clearly conveyed. Pay attention to … message pricing.
• Competition – Frequently shop other stores in your area and always review distribution policies with a vendor prior to purchasing. You must also keep a continuous eye on vendor websites for pricing.

If you combine positive actions along with the vision or outlook you have (AKA: hope and faith) you have a fighting chance. If you don’t chances are things are not going to end well.
Unfortunately Hope and Faith’s business venture did not work out as they had planned leaving their dreams shattered and their bank account drained.
If you are ever in Las Vegas and your paths were to cross with these women please let me know how they are doing. I hope they are doing well and have faith that they are.

Ritchie Sayner

Ritchie Sayner

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