Crumbs Bake Shop closed down in August this year, although it is a chain of best knows cupcake shop in Washington, D.C. and New York City, losses, small revenues and falling equity forced them to close down. Even though, it has caught enormous attention because of the cupcake trend that started in Sex and the City, but, the trend don't lasts forever. What are the things that we should learn from Crumbs Bake Shop?
Passion is the key to business, stop believing in it, it's a myth.
Most businessmen and management gurus, will say that if you engage into business follow your passion. The theory is suitable if you have passion that you are willing to commit to succeed, and you will search your way with diligence and success, insight driven by your passion, plus hard work and perseverance. Excellence is one key needed in order to succeed. Customers don't care about your passion, they care about their needs. Passion is a negative; it will just cause you to invest too much in it.
2 - Trends are important
For a time, cupcakes were a hot product, that was great, but it wasn't difficult to think that the trend would change, and cupcakes would be dislodged by something else. Whatever gains you might have when the trend is hot, those gains quickly evaporates, when trend changes and all rivals are everywhere getting some of your market shares that at the same time declining. It wasn't difficult to recognize that some diversification on the products is needed. The company should have overcome its passion for cupcakes and taken a much bigger look at their customers' needs to search for alternative products.
That would have been better if the company had put a track trends system, Admitting and observing that their main market was stalled to competitors and they needed to add new products and category.
