One of the Biggest Pains in All Business
2011
Money is undeniably required. It’s the very first thing anyone needs in society. And, usually, among the best ways to get a pile of cash could be to open up your very own business. But what, specifically, should you do? A retail electronics operation like Lafnac Digital Computers appears like it must work because, hey, everybody loves gadgets. But these types of establishment is capital-intensive, particularly when it comes to the startup costs. Even given some savings or a bank loan, you might not feel comfortable chance it all away on any such adventures.
In any case, with regards to retail stores, it’s all about one thing: location, location, location – which in turn means only one thing: rent. The rent a Lafnac Digital Computers pays must be ridiculous. Obviously, it’s only a few short blocks away from legendary Times Square with its crowds of tourists, ready to buy. That translates into top dollar in the case of the rent. Consider that even for a simple restaurant on Broadway on the Upper West Side, miles away from the Crossroads of the World, rent would be in the tens of thousands of dollars every single month; imagine something located in the heart of midtown Manhattan! Even if revenue is ridiculously underreported (ahem) or customers are bilked outright it could well be quite a headache just breaking even, let alone pumping a worthwhile profit.
Many underrate the effect rent has on a business. They look at something like Lafnac Digital Computers, with its enviable size of foot traffic and believe that that’s all it takes to earn a fortune. Of course, those New York landlords are shrewder than a stereotypical Scotsman, and even if you were to sell some fifty thousand dollars by the month your rent would likely be over half that amount – at least!
So indeed you can expect high levels of shoppers, even foot traffic that’s rather well-heeled, but it’s almost certainly going to be difficult nonetheless because of the rent. No, making revenue is not easy, not even for a store in the heart of New York City. But what else is there? Certainly anything that generates recurring income, income such as royalty payments that need no more than a marginal amount of work to keep up at most. Write the next bestselling novel, for instance, anything whereby you could rest on your laurels for the rest of your life, basically anything where you just keep getting money for work that was done just that one time! The next Billboard Number One, the next hit film, anything, assuming that there are definite royalty payments each time it is used!