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Depends 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 provis
by CPLX 2y ago
Depends 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.