It was years ago now, and before I met her, but Suzzie M told me a great story about how she helped a friend put on a dinner party, then another, and then it snowballed. Soon she was in hot demand and employing staff to help her cope. I’ve always remembered that conversation when I think about people starting businesses.
We’ve all heard the frightening statistics about small business failures but there are some factors that drastically change the odds.
Firstly, many studies have shown that the best type of business to start is something you have had previous expertise in. If you’ve been a marketing executive for years you have better odds of starting a successful marketing agency. The evidence is clear that you are better off doing that than opening a cafe. It makes perfect sense when you think about it.
There is an old saying that you should never make a job out of your hobby. So, if you have a passion for food, and have not worked for years in hospitality, perhaps find another way. Or go get a couple of different jobs in the field for a while.
Secondly, avoid “build it and they will come” whenever you can. I remember one startup incubator that would allow each new fledgling business a logo, from the in-house graphic designer, and not one dollar of extra costs until they issued their first invoice.
Tough but food for thought.
Ps, Suzzie was also a sweetheart.