A Word of Caution: The Brutal Math of Business - 2025-11-09
Kids, I've been watching the business world, especially here in Singapore, and I need to share some hard truths —especially if you ever dream of opening a cool cafe or restaurant. The news articles I read recently paint a scary picture of the Food & Beverage (F&B) industry. Imagine this: 82% of all F&B businesses are losing money . Only a tiny sliver—about 5% to 7%—actually turn a profit. Despite these odds, and even though over 3,000 businesses shut down this year, people keep pouring money into it. Why? Because they underestimate the monster of fixed costs . ⚠️ The Landlord Trap: The "Milk Cow" The biggest danger in F&B is the rent . Landlords often treat successful tenants like a "milk cow." They let you build up a great business, attract a loyal crowd, and then, just when you're succeeding, they hit you with a massive rent hike. I saw this happen with your uncle’s ex-company. Their rent for a fruit shop went from $4,000, to $8,000, and ...