Planning to Open a Business? Don't Expect Profit
Owning a business requires a ton of hard work and dedication without much immediate payoff. P.J. Ryder has invested his time, money, and effort into his club for over two years and is just now seeing profit in the future. Between rent, electricity, water, and supplies, any money gained can quickly be used for business survival when the bills come rolling in each month. Furthermore, he works for free since profit is practically nonexistent.
Many people look to opening up their own business if they are unable to find a job in such a tight economy, with employment being over 30% in some areas. In order to make Ryder's dream of opening a club come true, he maxed out credit cards, used death inheritance, and took out a $50,000 home equity loan. He pays approximately $26,000 a month in bills. Over the last two years he has spent anywhere between sixty and seventy hours a week laboring for his dream without much of a payoff.
In short, opening a business requires dedication and hard work without immediate results, especially during the current state of the economy. This should also be taken into consideration when investing in new companies.
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