Databases
June 21st, 2006
You probably heard of the concept of how important your “database” is to your online business. Indeed, I cannot think of anything more important on ALL of the online businesses I own.
Remember, the whole reason for starting a business is to someday SELL it. Most people are so caught up in working their business that they forget this entirely.
A perfect example of this is a local clothing store in Chicago named “Davis for Men”. This store had incredible clothing straight from Italy that was truly unique (and expensive, but what the hell…).
Nevertheless, they had a good business and a lot of repeat clients. I was one of them- it seemed everytime I showed up there they at least extracted $500 from me ($1000 + if I was with my fiance 
).
However, I always thought it was strange when they used the “knucklebuster” credit card payment processing method…talk about a throwback to the 80’s…ugghhhh!!!
Davis for Men NEVER asked me for my personal information, ever.
Never asked for a mailing address.
Never asked for my email address.
Never asked for my phone number.
NOTHING.
How stupid is that??? Are you doing the same thing in your business? If you are asking for the above information, more importantly, what are you doing with it???
Moving on…. one day, much to my shagrin, I drove by their store and I noticed they were having a “going out of business sale”…
I couldn’t believe it!
This was a good store and they seemed to have decent business. However, they operated in a strip mall and their lease was up.
As I came to understand, the owner of the building tripled their lease payment and forced Davis for Men out of business.
Just like that- ballgame over!
And because Davis for Men didn’t have a database, they were out of business and a completely UNSELLABLE business to any potential investors.
I see a lot of this happening online today. Remember, once again, the whole point of starting a business online is to FRIGGIN SELL IT!!!!
If you want to silently go out of business and passively piss away all of the good you have done (as Davis For Men did with me) then don’t even worry about your database.
Never connect with them- dont ask for their info, and you can “own” your job until the day comes where someone raises the stakes and takes you out of the game.
Obviously, once you do acquire a name, email address, and contact information of prospects and clients, this is where the game BEGIN’s and doesn’t end.
I can’t tell you how many countless times I have seen someone go through great measures just to capture the contact information of their prospects and then they don’t even followup with them.
Or, they simply send ads to their list and effectively make them “immune” to ANY real, legitimate offer they put on the table.
This is for another blog post, but it’s important to mention nevertheless.
In the end, if you have a database of clients and prospects, you have the beginnings of being able to accomplish your first and foremost goal when you start your business….to SELL it!
All for now,
Matt
