This is an exercise in capital cost and operations costs. I’ve daydreamed about this all the time, if I had X amount of money. Very often, in my ambitious dreams I always end up spending so much on non-ROI that the dream just Crashes. By what I mean by Crashes I will end up with a cost that is not ROI, that goes into being a brand in the industry. you might think that is a GOOD thing, but note that by the time you are a brand you may not like what you are doing 🙁
I’ve dreamed about an Airsoft business, that crashed at about 4M; a Re-enactors Historical resort at about 20M (its 60hectars or about 150acres), software company providing some needs my company can use but design it to allow other businesses to outsource the same service to us at about 4M, etc. etc..
At every 2 to 3 year mark, there is that option that should allow me to cut my losses and someone who will take advantage of that sunk cost ROI branding and jump in at the Excellent Losing cost of buying a business.
What my fantasies tell me is that I’m better off salvaging someone’s business which they cannot sustain and transform it. The BIG problem is that, sometimes a failing business have a hidden defect even if all the numbers and strategy is sound that even the owners themselves could not have seen. these businesses earn a “Cursed” reputation because no one is able to explain why they fail despite having everything going for them.
We may think we are entering a business as an Objective 3rd party rescuing it but too often I hear about such stories (especially from my wife and mother), that I ever got Xmillion pesos I’m much better off buying a franchise of something that will sell – like a Subway franchise in a place that meets the demographic sweetspot (call center agents trying to be healthy).
One one revalation of these fantasies and anecdotes is that if I ever do make a software company or pursue any line of business I should be the most valuable asset – if I build CnC machines I should be able to built it myself, a software that I could program and I do, etc… the Chief creative source should be the entrepreneur.
Any project I do where I like it and I’m not the most expert around, the cost of the business skyrockets because I have just given the keys to someone who is not me. the only person you can trust the most and pay the least to keep loyal is yourself.
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