Part 7/12:
Retail businesses face extreme challenges today. With 90% of new retail businesses failing within their first four years, high operating costs combined with shrinking foot traffic make retail stores a precarious choice. The negative float in retail—where cash is tied up in inventory before sales occur—compounds this risk further.
Restaurants: A Difficult Feast
Restaurants are equally tough with a staggering 60% failing in their first year and 80% in four years. Factors like high initial investment, cash flow challenges, and intense competition contribute to their high failure rate. Notably, successful alternatives exist in the fast-food sector, which often has a lower failure rate and offers a higher chance of profitability.