It was easy to forget about the difficulties of building my business… In this Desire Kings article on Business Failure.. I’m going to show you just three major lessons I wish I had known before my first business in life collapse….. Just read to the end…
1. Swallow your pride.
I had too much pride to share ownership of Brooklyn Taco with an outside investor. Brooklyn Taco had an offer in the beginning for around $400,000 for 80 percent. At the time, it seemed like I was selling off everything that my partner and I had built. Today, Brooklyn Taco is a dormant brand. If you asked me if I would rather have 10 percent ownership in a prosperous company or half ownership in a failed company, I would take the former. Of course, giving up equity comes with its own risks, but take the time to think about it — just don’t assume that it’s best to keep your company entirely in your own hands.
2. Starting too small can be a curse.
Starting small seemed like the healthy approach. We created the concept with $30,000, including rent, equipment and branding. The plan was to slowly grow and use the earnings to fund a larger operation, but in reality, a space that is too small to generate substantial profits is like treading water until you are too tired to stay afloat and you go under. This is the exact situation that occurred with Brooklyn Taco. A small space with low rent seemed perfect until we realized we lacked sufficient cooking capacity and seating to generate enough profits for expansion. We had a consistent business, but with no opportunity to increase production capacity, we were doomed from the beginning.
3. Choose your location carefully.
Initially, New York City seemed like the perfect place to start a new food concept. It offered a high volume of people, access to big press outlets, tourist traffic, millions of food-centric locals and plenty of vacant real estate available to open new locations. Yet, rents in NYC are so volatile that it is hard to create a business plan that will sustain growth. Starbucks has felt the pressure too, changing its business model for NYC locations to focus on smaller more efficient spaces.
Rent was only one of the hurdles that stunted our growth. Staffing in NYC became the biggest struggle for Brooklyn Taco. How could I expect my business to attract and retain valuable employees when I couldn’t afford to pay them enough to meet their basic living needs?
Opening Brooklyn Taco in my hometown in Connecticut was not as exciting as opening in New York, but it was an idea that I should have seriously considered. It is hard to accept, but the cost of operating a business in a major metropolitan area can be so prohibitive that you can make more money opening in a small town.
Thanks for reading…. Hope you got good lesson…read more from our Business trend page.