Week 2: Is it really that complicated? … maybe (not)

Gianna F -

Welcome back! Last time, we went over the general layout of my week. However, I get to discuss some of my observations with you this time.

Currently, I am not actively recording any podcast episodes, but I am still learning a lot about what is fundamental when running a business. I have had a lot of conversations with the business administrators I am interning with, and something all of them hint at is:

No matter the service being provided, a business will always need to constantly worry about its profit, public appearance, and expansion.  Now, you may be thinking, “Well OBVIOUSLY Gianna. Those are the basics of a business.” While you may be right, let me explain why this was not at the forefront of my mind.

 

🚶=you

☕🚶 When we buy a $6 coffee, that can be rationalized (to an extent 🙂) because we are paying for the cost of the espresso, milk, and flavored syrup with a “slight” up-charge that the business takes for wages and profit. 

🏥🚶💲🚶 However, when we go into a medical facility or an accounting firm we are not receiving a service that is as tangible and self-explanatory. When we are done absorbing the hefty dollar amount, we cannot really break down the numerical values into “materials+up-charge” because the majority of the bill is the dollar amount the executive director has decided their labor is worth. 

Now that we have two seemingly different businesses that provide completely different forms of services and have different price determinators, let me explain why they, in theory, actually do tend to all follow a similar model.

🚗 When you’re driving down a highway and see an exit sign with a Starbucks and a Mickey’s Coffee (not real place) advertised on it, the majority of people would get their coffee from a Starbucks even if they are not a usual customer simply because everyone knows that Starbucks is a wealthy business, has good service, and is almost everywhere.  Therefore we trust its product. In all honesty, Mickey’s Coffee was probably better, but for the average consumer, we are not willing to take that risk. 

The same goes for a medical facility or an accounting firm. If you have seen two or three offices in your town and know there are other locations in other parts of your state and have heard at least one recommendation, you are definitely going to go to that facility over the random office across the street. This is super important because most clients/patients are not “a usual customer” either. While I am obviously simplifying this concept, this platform can be seen with both AZ Oncology and SC Audit & Accounting Solutions.

— Most people usually go to Phoenix for their medical services and cancer treatment is no exception. However, once AZ Oncology got more investors, more advertising, more referrals, and more offices, they started to receive more patients.

— As SC Audit & Accounting Solutions decided to purchase a Scottsdale office and continue to expand their Prescott one, more and more clients began to trust the firm’s work. And, if you did not know, there are a lot of CPAs in town. 

 

Sorry for the long-winded description, but my point is, when you walk into such places that provide beneficial services, you are never truly thinking about how much focus these places put on “the basics of businesses” because their products are such specialties (and, for some, necessities). For this project, I set out to find all the nuances between businesses, but I think I might end up hearing a lot of different perspectives regarding one fundamental model.  

 

***Also, I am aware that this blog did not touch on taxes and financial decisions, but I have interviews lined up with different CPAs that work with all the different business models I am exploring. Hopefully, with their information, I will get to add the taxation piece to our jigsaw puzzle. 

podcast cover
This is what I am hoping to use as my podcast cover 🙂

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Comments:

All viewpoints are welcome but profane, threatening, disrespectful, or harassing comments will not be tolerated and are subject to moderation up to, and including, full deletion.

    Taylor Phelan
    Hey, Gianna! I enjoyed reading your analysis of business models. I also love your podcast cover. What forum will you be doing your podcast through? Will we be able to listen to it?
    zoey_c
    Hi Gianna! I love your podcast cover and I can't wait to listen to it! Do you think that here in Prescott, the chains and name companies are as popular, or since it is smaller the more local businesses have more popularity and trust from the locals? Does the size of the city or town affect the trust in the businesses? Looks like your project is going great!
    madeline_s
    Hi Gianna! This is such an interesting observation, and you did a great job explaining! Have you noticed that businesses with lesser known names have any particular tactics of encouraging people to come to their space over the “brand name” one next door? Do you have any opinions or ideas on which tactics are more effective than others?
    gianna_f
    Hi Taylor! Yes it will be through spodify and apple podcast!
    gianna_f
    Hi Zoey! One of the reasons I love analyzing Prescott is because it is so unique, but I also wanted to analyze some general facilities that are nationally used to truly get the best understanding. Most of Prescott's shops are based on the local and tourist appeal. However, the businesses I am working with had to almost break the small town barrier for people to respect their work. This is definitley a concept I am keeping a close eye on though!

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