Dopey Business People

MossBoss

MossBoss

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There seem to be a lot of dopey people starting businesses these days. A café / bar opened up at the start of the year near to where I live. It closed last week.

This bar only had a slit type window so the natural lighting was non-existant. Actually they often left the door open during lunch time so you could see they never had any customers for their pathetic lunch menu. I don't think anyone would feel comfortable having lunch there. The atmosphere was weird.

Inside there were just two tables for two. And bar space for another 5 people. It always appeared empty in the evening. Even if was full all the time, how much profit can you make from selling 500 yen drinks?

Clearly the overheads and rent would be more than any income they made. Why do people with no business plan start businesses?
 
MossBoss said:
There seem to be a lot of dopey people starting businesses these days. A café / bar opened up at the start of the year near to where I live. It closed last week.

This bar only had a slit type window so the natural lighting was non-existant. Actually they often left the door open during lunch time so you could see they never had any customers for their pathetic lunch menu. I don't think anyone would feel comfortable having lunch there. The atmosphere was weird.

Inside there were just two tables for two. And bar space for another 5 people. It always appeared empty in the evening. Even if was full all the time, how much profit can you make from selling 500 yen drinks?

Clearly the overheads and rent would be more than any income they made. Why do people with no business plan start businesses?
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Perhaps it's called following a dream, which as you note, can be impractical and costly.

I once opened a restaurant, almost made it. I just did not have the capital. One should have five years worth of capital to make it in the restaurant business to survive. I managed to stay afloat for a year until being shut down by the IRS because I could not pay $5,000 in taxes. That ballooned to over $25,000 in penalties. I lived in poverty for years until I could payoff the debt.

Tough lesson!!!
 
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There is a ramen house in front on my house. Since I have been here (One year) nobody ever ate there I swear. When we were moving, we tried to eat there, we almost puke. I was the worst ramen I've ever tasted. Til now they still operate even without customer. They probably dont have rent, they probably own it and they live upstairs. I dont even know why they continue to operate even without customer.

There's this new cafe that opened near my place as well. It looks chic, but since it is in the middle of nowhere in inaka, nobody comes as well. I wanted to work part time there while I am studying right now. But I was observing it, nobody really comes there at all. Except one time when I passed by they were offering curry for 500 yen and there seemed to be people eating, but other than that customers are non existent. Still they are on business right now. Like the other one, they also probably dont have rent and owner's house is upstairs maybe.
 
Ches said:
Like the other one, they also probably dont have rent and owner's house is upstairs maybe.
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You might be right. Also a lot of business rental agreements which are for 2 years so even if they close the business, they would be liable to pay the rent until the 2 years is up.
 
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i cant tell you how they make profit, though you should consider the wholesale prices for drinks... whats a 2 liter whiskey bottle? 2000? then you sell one 0.2 drink for 500... sure, rent is often expensive, but most shops/bars arent owned by the people who work there... so often they dont pay the rent at all,its just some income for dude who owns that place (and has enough money anyway)...
but i can tell you the reasoning behind that,for most japanese, having their own shop is like the japanese dream... not because they want to make money, or
because they want to be self employed, but just because they want to do what they want... they try to live from their hobbies...i got a few friends who quit stable jobs, just to do what they like... one owns abar, one owns a ramen shop, one does pottery, one does farming and knit wear... and all of them knew, that it wont pay much...
 
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vondoom said:
but just because they want to do what they want... they try to live from their hobbies...i got a few friends who quit stable jobs, just to do what they like... one owns abar, one owns a ramen shop, one does pottery, one does farming and knit wear... and all of them knew, that it wont pay much...
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I can understand the people who want to get out of the rat race. But if you don't have a proper business plan you will be in trouble eventually.
 
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As a business owner I went through the laborious procedure of market research and writing a detailed three-year financial plan (for myself as we didn't borrow money), particularly cash-flow projections to ensure we would not suffer through ignorance. And so far, so good.

Knowing that 24 out of 25 business in my sector will not survive ten years forced me to think and plan clearly. Of course, reality is different, but only marginally so.

However, speaking to many Japanese small-business owners over the years, I have been shocked by the lack of financial planning knowledge and consideration when risking so much money. That said, I know a lot who are wealthy and have no need to try to break even, let alone run their businesses profitably. They business is a hobby. I am definitely not in that situation.

The three-year leases ensure that a number of businesses plod along until renewal time then call it a day. Others barely last a year. It's very sad, but that's business. Some prosper, some limp along, some die.
 
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well, most have sponsors... at least in fashion... if you ever wonder how the small underground labels survive, its because they got some rich people backing them up (of course that comes with limitations)...
and since it is a dream for most, i think it is alright to follow it... it makes them happy, wether they have a business plan,or not... most dont care much about that...
but i can also see, why that is strange to you, of course...
 
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Desktop said:
I'm with thinking its a dream for some.
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One of my staff members has a dream to start his own similar business, so he is working for me to learn more. I had to show him that translating a dream into a business requires hard work and attention to detail. Thousands and thousands of details (unless you pay others to think for you). Growing and developing a business takes passion and energy, but you need your eyes wide open and the persistence to plough/plow through the mundane and dreary tasks that cannot be ignored or left till later.

I still believe starting a business is a great thing to do, and for some people, preferable to working for 'the man', but a dream it isn't. It's harsh reality. Saying that, I enjoy every day and recommend it to those who have a good idea that differentiates them from others. 'Me too' businesses can grow tiresome quickly, so a clear vision is important.
 
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thats one thing i always liked here, people are learning and learning and learning (even though some might accuse them of copying)...

the thing why japanese people dont worry too much about is often rooted in religion (it is a deeply religious country, after all), it is all a cycle, if it turns out bad, better days will come... or youll be reborn and got the chance to try again...
 
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