Following on from the previous post regarding more new businesses are started during a Recession, I got to wondering about new businesses starting up in Lanzarote, in general.
Let's assume that most new businesses in Lanzarote will be either eating or drinking establishments. This immediately begs the question: is there currently a shortage of such outlets in Lanzarote? For the most part, the answer is obviously no. So, why do people continue to open up new bar/restaurant businesses?
If you see a gap in the market for a particular type of food, or a certain type of pub, then great - go for it. Niche markets/locations aside (and generally, there aren't too many niche markets or locations for eating/drinking in Lanzarote) , most people should - but don't - ask themselves what they can do differently or better than the bars/restaurants already in situ, before they even speak to an estate agent/landlord?
You can sell food/drink cheaper maybe, but this becomes a downward spiral. Cheap tends to have a whiff of desperation about it too, and punters like the smell of desperation as much as they like the strong stench that they get when they walk into poorly plumbed toilets.
So, what then? Are you more charming and attractive than those behind other bars/restaurants? Sometimes, this can be enough. Sex sells after all. But what if you're competing in this regard with the endless supply of handsome/pretty young things who staff the establishments already in place?
Location? Most of the good locations for bars/restaurants are already long since taken. Chances are if there's a vacant lot/locale not far from what seems like a busy spot, then someone else has already tried (and failed) to do something there.
To end on a less depressing note however, potential start-up business owners should look at the established bars/restaurants in Lanzarote and realise that they too were once fledglings. Not all slotted in the niche market/perfect location category. (1) Some were just lucky. (2) Most worked hard, (still work hard). (3) They could afford to have lean periods. (4) There was family/friends to support them.
If new businesses can tick those boxes, then they're on square 1 of the ladder to surviving and making a living in Lanzarote.
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