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While I do agree with you, if it took tens of millions of dollars in initial capital to get there, which hasn’t been returned, it’s quite a different thing to t
by CPLX 2y ago
While I do agree with you, if it took tens of millions of dollars in initial capital to get there, which hasn’t been returned, it’s quite a different thing to the standard small businesses model.
- withinboredom 2y agoSo ... is a restaurant considered a small business? Where do you draw the line on initial investment?
- zdragnar 2y agoWhat kind of restaurant takes tens of millions to start? Most estimates I'm aware of are less than 1 or 2 million at the very most.
- withinboredom 2y agoI imagine some of the themed restaurants in Disney cost at least that much.
- soared 2y agoHaving worked at those, they are shoestring to the core. Guests see beauty, behind it is paper mache and $8/hr college students whose wages are garnished for rent and class fees.
- someone7x 2y agoAt Disneyland? Where there’s a union for food and beverage workers? > We perform everything from preparing and creating treats like turkey legs and churros to serving grant and exquisite meals at the famous and exclusive Club 33. If you are eating in the parks, our members are making that happen. https://workersunited.org/joint-boards/local-50 https://workersunited.org/joint-boards/local-50
- soared 2y agoDisney college program makes up a good portion of workers, and they are not a part of the union. Edit - looks like 5% but they can only work the unskilled food service etc
- zdragnar 2y agoA themed restaurant at Disney isn't exactly a small business...
- duskwuff 2y agoDepending on the restaurant, those may not be independent businesses at all - they may just be one of the attractions at the park.
- nprateem 2y ago10x return
- CPLX 2y agoDepends on what kind of restaurant. But the point is that a business model that is "profitable" but actually took millions in initial capital and has no provision for debt service isn't an actually profitable business model.
- withinboredom 2y agoThat’s what I’m asking. Most businesses take startup capital, but where do you draw the line? If it takes 10mil of funding to get off the ground and it would also take any competitor that to catch up… then you have a moat and can basically make money forever. Even if you wanted to get into money transfers, the licensing alone is around 1million, and you haven’t even written any software yet or gotten any infrastructure. You can also “rent” someone else’s license but then your margins go out the window. So, I’m not sure what the point is here. Some types of businesses require capital to start, even if they never scale.
- CPLX 2y agoThe point is that capital has a cost. If you’re not carrying the cost of that capital on the books you’re not “making money” at all.