I have a friend that was working as a security guard and was tired of it. He decided that he was going to take the leap and become a business owner. He contacted one of the largest burger chains in Israel to open one of their branches. And proceeded to loan 500,000 NIS. He was sure that opening a known burger joint will give him an advantage, and he was right. But all his other decisions were wrong.
He took a failed branch that buried the previous owner in debt. No need to explain that if you’re buying a business from someone who is bailing on a working model, ask a lot of questions. The first being why should I even consider this place. And make sure to look at the books.
He had no experience what so ever with working in a restaurant. So he didn’t understand how to calculate food cost, didn’t know how much inventory to order and worst of all didn’t know how to sell his products. The location he chose was so bad that he wasn’t breaking even for six months and he closed shop.
He put his girlfriend as kitchen manager (she didn’t have any experience in the kitchen either). But the power tip of being the owner’s booty call gave her way too much freedom. Freedom she used to treat her employees like shit. I keep saying this over and over, your employees are the ones who inject life into your business, you can’t do it all alone. So you need to show them some respect, or they will just leave.
Now my friend is working as a security guard again, only difference is that now he owes half a million shekels.