2 ms·
Very flawed approach. The restaurant business is the hardest type of business to get into. It's terribly difficult to survive for more than a few months. And th
by maxklein 18y ago
Very flawed approach. The restaurant business is the hardest type of business to get into. It's terribly difficult to survive for more than a few months. And the only way to survive is if you have an extremly detailed financial breakdown, with all possible scenarios - worst case and best case.
Only if those all look rosy should you start. And if you want to start that way, you need to do surveys of other businesses in the area as well as your potential customers. This is what people learn in business school, and starting without having a business school person on your team is a great risk.
Also, funding is not your problem. This type of business you are talking about is what bank loans are designed for. The bank loan is made out to the company, so if you fold, you are not personally liable.
If I were you, I'd only do this if I were really passionate about milk and cookies. Personally, I like neither milk nor cookies, so you would not have me as a customer.
At the same time, you cannot start such a store without focusing to a large part on cofee. Coffee is addictive, and will make your customers return. Milk is not addictive, and it tastes the same everywhere, and is much cheaper. What incentive do you have towards making people return to your store when the milk is just the same as everywhere else, but overpriced?
- caudicus 18y agoOne thing to note about bank loans: usually the bank asks that at least some of the credit line is made personally liable to you/someone on your team. It's like the first time you get a credit card and you have a parent/guardian underwrite it since you have no credit history. The business is like a person, with its own Tax ID and everything (just as we have social security numbers), and when that business has no credit history you may need to use yours to get it started and establish a credit history. When you put some of your own money on the line, the bank feels a little better off since you're risking your own capital along with their capital, and not just their capital.