X Factor
by Steve Strauss on August 7th, 2007
Q: For me, the difference between a good business and a mediocre one is the "X Factor." Great businesses have it and the other ones do not. The X factor could be anything really. It’s just that these businesses do something special that sets them apart.
Charles
A: I really think you are onto something here. If you think about it, a great business can usually point to any one of several things that may contribute to its success – good products, a great location, whatever – but I venture to say that their success often comes from one special thing that sets them apart and makes them stand out from the crowd. They all have their own unique X factor.
In fact, I am at one such business right now. I am writing today’s column from an idyllic, small little fishing village on the Pacific coast of Mexico where the locals are sweet, the beach perfect, and the vibe just right (sorry, its name will remain a secret amigos!) Specifically, I am at a great little place where I have had breakfast for the past few days.
Do I keep coming back here for the great huevos rancheros? Well, yes, that is part of it. Is it because of the wonderful waitress (who showed me a New Yorker comic this morning: The female Praying Mantis says to her mate "After I have sex with you, but before I kill you, I’m going to need some help putting up some shelves.") Yes, it’s that too, but that’s not the main reason.
The main reason is free wifi. In a small town like this one, where getting online is a bit of a challenge, free wifi (OK, and some damn good fish tacos too) keeps me coming back for more. That’s their X Factor.
Isn’t that true of your favorite businesses, the ones you frequent time and again? Don’t they offer something out of the ordinary?
- There is a bookstore in the Pacific Northwest called Powell’s World of Books. World of Books indeed. The store engulfs one full city block and is four stories high. For bibliophiles, that is quite an X factor.
- In Los Angeles, there is a fun sushi bar on Pico. I don’t recall its real name because all anyone ever calls it is "Reggae Sushi." Yep, reggae music all the time, mon.
- At the Monte Cristo store on 5th Ave in New York, you can buy just about any cigar made in the world
(save for a Cuban, ).
A few weeks back I was in Erie, Pennsylvania, giving a speech for the local Small Business Development Center (SBDC). Every year, the SBDC honors local businesses with a banquet, the culmination of which is the presentation of "Business of the Year" awards in various categories. I was fortunate enough to get to give the keynote at the banquet and meet these exceptional entrepreneurs. As I think back upon the award winners I would have to agree that every one of them had their own personal X factor.
My favorite: At a time when large drug store chains like Walgreen’s are putting local pharmacies out of business, Pioneer Pharmacy in Erie is easily the busiest pharmacy in the area, routinely filling thousands of prescriptions a week.
When I asked the owner what the secret of his success was, he told me about the usual suspects – a great staff, loyal customers, and so on. Then he mentioned what I now see was his X Factor: Free delivery. Every day he has two full-time drivers do nothing but deliver prescriptions to his customers for free. "And I only hire retired gentleman," he told me. Given many of his customers are ill or even invalid, it’s a brilliant idea.
The X factor. What’s yours?
Today’s tip: Don’t have an X factor? Don’t worry. Look at businesses you love and see if there is an idea you could copy. Loss leaders can make for a great X factor, as can smart policies, distinctive products, good prices, unique locations, or even singing waiters. Get creative.
Now where is that Corona?
