Fisher Bar and Bistro Case Study

INTRODUCTION

We all know that not every business plan is successful; if we lived in a world like that then everybody would be a billionaire. That wouldn't be such a bad thing after all. This has been proven countless times that 80% of small businesses will fail in the first five years (50% in the first year). It is therefore safe to say that as an entrepreneur, you take many risks which can either pan out in your favor or against you.

There are many reasons why businesses fail, whether it is in the first year, the fifth year or the twentieth year. They all fail due to the same common reasons like, growing too fast, failure to maintain or track your finances, lack of reserve capita, overspending, poorly executed business venture, inadequate to no business plan, failure to change and update with times, poor marketing strategy, underestimating the competition and the worst of all which seems to be the greatest problem that people face is the location of business.

Fisher Bar and Bistro was located in the heart of Atlanta. Right now what used to be Fisher Bar and Bistro is now Buckhead Bottle Bar. Fisher Bar and Bistro was a French based bar and a bistro by day. They served one of the best clam chowders in the state of Georgia to me. But how can a business which was doing so well fail so abruptly? One of the reasons that caught my attention is the competitors. Because it was located in the heart of Atlanta, this business was surrounded by similar businesses most of which were chain business and therefore big and well accredited. Competitors include; Chops, Whiskey Blue, Buckhead Salon, Lime, KooKoo Room and many others.

The restaurant and the club business is that of a lucrative one so people usually gravitate towards that type of business venture. Their mission was to cater to the residents of Atlanta and tourist coming in for an Atlanta experience. "Our goal was to give people a sense of Paris and America mixed into one. We wanted to create an atmosphere where people will want to come and they will not want to leave. We also wanted an ambience where it can be for everybody. It was just at the right price mark where it isn't too pricey and at the same time cheap." Said Edward Fisher, Chief Executive Officer of Fisher Bar and Bistro.

Unlike new businesses, this business didn't fail with the first five years; it failed on the seventh year at the third financial quarter. This business blossomed in the summer of 2003 and declared for bankruptcy in the spring of 2007 and finally closed to the public in the fall of 2010. Although they faced the bankruptcy situation, they were able to stay afloat for another three years. According to Edward Fisher, one of the key players that led to the closing of this business was the lack of a well-structured business plan as well as a Chief Financial Officer.

According to Mark Zurono, who is a financial analyst for Whiskey Blue said that a business plan in this world today is like a bible to a Christian, like the bible, it is well written, understandable and is very direct, that is how a business plan should be. He also made reference to Christians and how they do not differ from the word of the Bible that is how any business manager or CEO should never differ from the business plan provided that it is very well written. He also touched on the topic that it is very essential for this type of business venture to have a CFO to stay on top of the funds and any monetary aspect in the business.

ANALYSIS

Like earlier stated, there are many reasons why small businesses fail or even large business, it all stems from mismanagement and displacement of funds and lack of strategic planning in reference to marketing, location, development and etc. according to an article written on Forbes.com titled "why do companies fail?" it states several reasons beyond poor planning and mismanagement of funds which I completely agree with.

According to Ken Makovsky, the reason must businesses fail is because most business founder for one simple reason which is managerial error, businesses being slow to confront the changing world, they more than likely always run out of cash, he explains that too often CEOs succumb to an undisciplined lust for growth, accumulating assets for the sake of accumulating assets; this can otherwise be seen as splurging and over expansion with no due focus and many more. These are just the common reasons why companies and small businesses fail.

After this extensive research and interview with Edward Fisher, there really isn't anything new to how the business failed. At the matter of fact one of the reasons it failed was one of the most avoidable situation ever. For the Fisher Bar and Bistro, although Mr. Fisher feels it is solely on the fact that they didn't have a Chief Financial Officer was the reason their business bellied-up, I beg to differ. That might have been a key player in the reason but I strongly disagree that was the reason