I live in a fantastic city, it’s alive, it’s vibrant, shopping centers are busy, super market checkouts are long and the trolleys are full. I see more and more new cars on the road. It’s super exciting! A sign that all is doing well and prosperity is happening.
With all this success you start to see newer commercial buildings sprouting up to occupy the skyline and even old ones going through renovations. These commercial spaces need people to fill them and I imagine some people, young and old getting the old entrepreneurial juices running once they see a little spare cash in the bank account or maybe other family members have and they are the ones to take down the for-rent sign.
Yes, suddenly, these new cashed up wanna-be-successful business people get a flash in the head, fireworks start going off, a potential million-dollar idea is in process, dream of Porsches and Yachts stream through their brains as they tell the boss goodbye and start dumping that bank balance or a close family member on a deposit for one of those fresh new office lots or just renovated street front shop.
Yes, it all seemed like a good idea at the time.
I say good idea at the time for a reason. The reason is?
Well, I see all these new buildings and renovated ones having a lot of the for-lease signs being replaced with work in progress. I see a lot of new furniture, new clothing racks and people and stock arriving, but pretty soon I also see the removals’ coming, closing down sale signs falling and being replaced with “For Lease”.
You see, the problem is that 80% of those that get that overdose of entrepreneurial juice running? Fail and run out of money juice within the first 12 months of operating.
So, what are the major causes of failure?
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