NEW YORK (AP) – When a product is hot, it can look like a surefire bet for an entrepreneur tempted to jump on the trend. A savvy strategy, though, takes into account what to do when the fad goes pfffft.
Companies of all sizes try to take advantage of fads – it’s what big toy and Halloween costume makers do when a movie like “Star Wars” or “Frozen” comes out. But a craze can come to a sudden end when something else grabs the attention of fickle consumers or a better product takes its place.
Small business owners need to think not only about how to sell a hot product, but how they’ll handle the likelihood of a limited shelf life.
“Don’t assume your fad is going to have revenue beyond a pretty short time,” says Mary Gale, a lecturer in entrepreneurship at Babson College. “Plan for the demise of that business and don’t fool yourself about when it’s going to be.”
A look at the strategies of four small businesses: