Higher Failure Rates For Certain Small Businesses?

Perhaps you have read our previous blog post related to small businesses.  If not you may want to check it out before continuing with this post. After going into a little more depth with the topic of small business and whatever your economical advantages may be there are still a few insights to consider in starting a small business. Probably the most important topic is what services you are offering and how in demand they are in your specific demographic/market.  Starting a business no matter the size is hard work and requires financing. Those of us that are attempting to start a business want some sort of reassurance that we can make it. Some small businesses succeed better than others no matter the amount of work or money you put into it. That being said what businesses are the hardest to get off the ground and gaining momentum?

 

Difficult Businesses To Start

  • Restaurants- It seems like a fantastic plan and the food is going to be great! Restaurants however are tough and A LOT we mean A LOT of hard work and capital. The overhead for product and employees are just a couple thing that goes into the over all aspect of opening a restaurant.  You have to bank on a certain number of ales which requires a certain number of customers to dine each day. Think about size, overhead and all encompassing aspects. A good flexible plan is required as well
  • Limo Service- Seems easy enough, car, license, gain customers.  True to some extent, however although prom, weddings, and special occasions are frequent in everyday life, does your demographic and local market support the need for a limo service? A friend of mine, Alison, owns a Limoz a limo & luxury car service in Phoenix, Arizona. Describing the start up of her business she confided the market is tough.  Either you have a ton of competition or you don’t have enough clientele. Also certain permits and licensing goes into a limo service company and those can become costly after adding them all up. Would a limo service thrive or fail here in Acton?
  • Retail Store- Although the grand scheme of things seem great a retail store is one of the hardest businesses to start.  With the cost of the space, employees and all of the merchandise the overall expense rises quickly. Will your local market support your store as much as necessary?  Is the competition extreme? Second hand stores have somewhat of a better chance and tend to succeed at a better rate.

In general this article was meant to put into perspective the risks that are involved with small business start ups.  While I hope that we all if not most of us ant to support local and small businesses, it depends on the demographic and market as whole for the said business to succeed.The economy is ever changing and should be a considered factor in your decision whether to begin your business venture.