[quote=saiine][quote=flu][quote=Diego Mamani][quote=flu]Take a look at the frozen yogurt place in UTC (…) Average customer spends $5.50 on frozen yogurt. The cost of their material probably around $0.50 cents. You do the math….[/quote]
…And the store’s rent probably comes to $2.50 per yogurt unit sold. And all the equipment and decoration? The bank loan payment probably adds another $2.25 per unit… YOU do the math! LOL.[/quote]
..Well, I use to lol at this, because I was approached by a friend who wanted to seek a partnership to start said frozen yogurt places a few years ago. (Needed seed money)…I passed… He now has 4 locations spread around So Cal. His worst location NETS him on average $30k per month per location after rent+extortion(split profits)/payroll/insurance, etc……..Not bad, considering he rarely, if at all shows up for “work”….
That yogurt place must be making a killing, otherwise westfield would have kicked them out of of that location long time ago, since it’s almost a killer retail location….
You can also laugh all you want at those people that sell hot dogs and kettle corn at the county fairs…But I’m pretty sure if you follow those guys around the country for 3-6 months per year, they can probably bring in probably more than most white collar geeks (unfortunately, I don’t know of any folks in that category)[/quote]
Brick and mortar businesses pose a much higher risk than say, developing an app or website.
I would argue food service specifically is one of the riskiest and most difficult models to get off the ground.
I know several individuals who have started food service businesses, including a NY’er who specialized in hot dogs (which were amazing), and 99% of those businesses failed.
You’re friend is fortunate, but in my opinion there is more potential to test the waters and keep startup costs to a minimum with tech, especially if you’re a developer.[/quote]
I think a lot of times, people have the opposite problem. If the cost is too low, people don’t give a crap and take it seriously enough.
What I see quite often is that if it “only costs a few bucks” to start do “xyz”, then quite often when it gets rough, people often just bail…That’s not necessarily a bad thing……But at the same time, I view it as how serious/committed someone is to his/her ideas, which often makes the world of difference if something is going to succeed or not…
