Busisness Fudamentals

Not as Simple

From The Grand Rapids Business Journal:

“We will see more closings because there was a big rush of people getting into this industry all at once, and they can’t all succeed. It’s a business, and not all businesses succeed,” he said. “Many will fail because they weren’t managed properly, marketed properly or didn’t make good beer.”

http://www.grbj.com/articles/87512-too-many-breweries-in-west-michigan

The article also stated that –  “among the characteristics for potential failure of small breweries includes the many challenges all small businesses face: long hours, business strategy, lower-than-expected profits or longer horizon to profitability than expected, and under capitalization.”

All of the above reasons for success or failure revert to understanding business fundamentals. New ventures also have some degree of risk….that’s the business environment. To reduce the risk….know the basics….understand the market/customer….produce a good product….give the customer value.

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