There are times emotion and dreams take over from
common sense.
Let’s say you hope for a pot of gold at the end of a double rainbow by opening a nice-cream store, offer some great desserts, a selection of magazines and newspapers, and a place to eat the food and sample the news.
Everything’s coasting along magnificently. So great, in fact, if 1 store can
do this well, what can we do with 2, or 3, or 4, or 5, or 6, or 7, or 8?
You see successful restaurants in neighboring towns, and
move in to compete – but you don't!
And, as you expand, you get away from the core
business. No longer is the draw the
desserts, ice cream, and newspapers. Now
the appeal is a cup of coffee and a menu of foodstuffs.
About this same time, some guy from Seattle starts expanding
his brand of coffee stores. Beverages
and some limited food.
So, you expand the menu – full course meals in addition to
the coffee, scones, and desserts. And so
do the prices.
Meanwhile, that Seattle guy opens another store just down
the street. Fast service. Good coffee.
Nice environment.
Did you get that…fast friendly service. Apparently not!
Then, you decide no longer will you offer newspapers and
magazines. But, you continue to build a restaurant
and charge more than the market will stand.
Oops!
Bankruptcy, Chapter 11.
A lot of debt could be erased, employees will lose their
jobs, and small businesses will suffer from unpaid bills.
And, the blame goes to a “bad business environment and a
poor economy.”
Do ya think?