Starbucks went back to basics in 2024, so can we for 2026
We started our businesses to do what we love and create a better life for us and our families. The business grew, revenue increased, but now results are lagging and the reason is unclear. Starbucks, a company that has been in business since 1971, faced a similar quandary. The new CEO recognized that the business’s downturn was an opportunity to reevaluate their strategies (Starbucks in Carrying Out a Major Revamp. There are Signs It’s Working., October, 2025.) In 2024, they decided to return to basics. What originally brought customers to their locations, and what established loyalty?
If a company as popular as Starbucks had to ask that question, then you and I shouldn’t be surprised if, and when, we have to. (Spoiler alert, it already happened to me less than a year into my business. More on that in a second.) So what do we do? Same thing. We go back to the basics. What are the basic pillars of our business? What were the non-negotiables? Is that a specific suite of services that are the hallmark to your business but you expanded beyond that and now your core services are suffering? Or was there a product that customers regularly purchased that you discontinued to offer something else you believed to be a better revenue generator? This happens with nail polishes and eyeshadows all the time. Super frustrating!! What about an additional service that didn’t fit into the personality and proposition for your business? That’s what happened to me.
I started StudioM to be a financial coach and educator. Over time, my target market has been refined, which I think is normal. Where I got into trouble was adding a bookkeeping service. I took all the QuickBooks Online courses to obtain my bookkeeping certification and become a QBO ProAdvisor. I spent 3 months accomplishing that, but I didn’t have a clear plan for how bookkeeping actually fit into my business plan as a financial coach and educator. In my mind it was another opportunity to generate revenue, but was it my best offering and the best usage of my skills? If I squinted hard, I could say that it was an avenue to coach business owners about their financial statements? That could be accurate, but I can still coach my business clients without doing the bookkeeping service.
I recognized that I was beginning to mission creep and was able to head it off quickly. I returned to my original intent – financial coaching and education for small business owners. Can I talk to my clients about the health of their personal and business finances? Yep! I can use what I learned through the bookkeeping course to aid my clients, but I don’t have to enter the transactions and reconcile the bank accounts.
What say you? As we close out 2025 and map out our path for 2026, are there opportunities for you to assess your strategies? Action steps:
Action Item #1: Review the menu of your offerings
Is there a clear link connecting the options? If not, figure out the disconnect? Was it the timing of release? Did your target audience miss the release, so it put you behind in generating revenue and developing that product/service? Or was the target audience not clearly defined? It was intended for 32 – 48 year old men, but further research says it is actually perfect for 55 – 72 year old men, which isn’t your audience for any other product that you provide.
Do they complement each other? There are natural relationships among the offerings, such that customers/clients feel like their needs are being met in a comprehensive manner? Or are some of the offerings out on an island by themselves with no discernable fit?
Assess the strategy connected to that offering. Attempt to get out of a revenue hole, address client feedback, or natural expansion on core products? Did that strategy have a probationary period for testing? Where are you in that timeline? Are changes necessary?
Determine if products should be revived. Any customer favorites or staples that can be returned? Execute an end of year customer feedback loop. Reconnect with your clients via surveys, email communication, social media polls. Reengage them and give them space to be heard. Does their feedback confirm the change in purchase practices?
Was enhancement confused for expansion? Meaning was the acquired certification or knowledge expanded into a full blown service or product, versus being a way to enhance your current offerings. This one describes me perfectly. Perhaps you are a fitness instructor or esthetician. There are a wide variety of certifications and techniques that can make you a well rounded instructor and service provider. How can those be used to support and increase the trust between you and your clients without delivering multiple services that don’t align? I’m always eager to bend the ear of my esthetician because she is so knowledgeable about a variety of skincare products, regimens and techniques that are helpful and specific to me without needing to offer 15 different services. She is an amazing wealth of knowledge and specializes in her particular discipline.
Action Item #2: Review the numbers
Analyze the profit and loss statement. Highlight the annual revenue generated from the original items, and revenue generated from the new/special items. If your business is more than 3 years old, do some sleuthing. You can drill down further to the monthly revenue, but for right now, start with the yearly total. For the new offerings, review the associated cost of goods sold, dedicated marketing costs, and personnel hours dedicated to that product or service. Compare the revenue against the costs. What do the numbers tell you? Did it actually cost you more than it made you? It takes a lot to launch something new.
Examine the purchasing trends. Was that revenue peak connected to a holiday, local event or social trend that lost steam and now repurposing could be in order? Did you benefit from short-term interest in the market? Perhaps this item is a non-consumable? Meaning, it has limited and infrequent repurchase opportunities from the same client. A lot of effort goes into securing one client for this item. Think a special $6 latte at the corner coffee shop (perhaps a Starbucks), versus a $1,200 Saros 10-R vacuum/mop? Far more customers will return daily or weekly for a well-crafted latte than a top of the market cleaning apparatus.
Review the pricing structure. If you continue this item, should the price be adjusted? If you are producing this product yourself, have the price of parts in the supply chain adjusted such that the retail price doesn’t cover the cost at the same profit margins? If you offer an hourly service, does it take you much longer to execute this service such that you are truly making less. It can happen.
Analyze the volume of options. Are you providing your customers and clients options, but can’t guide them to the appropriate option for them? In your client’s eyes, you are the expert. If a new client is attempting to decide from among your 10 offerings, could you give a clear and direct explanation for which will fit their needs the best? If you are confused, providing clarity to the client about your offerings will be close to impossible.
I think I’m going to stop there! I wrote the blog, and I know that was a lot of information. Action item #3 - Take it a piece at a time. Use what is helpful, and set aside the rest. I want to provide you with tools to build your business well. 2026 is gonna be amazing!! You can schedule a 30-minute consultation at https://www.studiomfinancial.net/schedule. Until we meet, keep working on the change!