Is This Guy a Failure?

[SquarePeg]

I go get veggie and juice smoothies after working out. The guy who owns the store has a cousin who owns another smoothie operation elsewhere in the city -- as well as many other businesses.

I was like, cool, a serial entrepreneur! But the guy tells me his cousin actually keeps failing, losing money then opening another business (apparently, all having to do with serving food), one after the other....

So it got me curious; what would y'all say: is this guy a failure? Should he quit? Maybe switch industries (non-food)??

[mainstreetcm]

I wouldn't say he is a failure. It takes some serious work to get each business opened, operating and marketed correctly in the community. If he can just keep doing that over and over he has a ton of resources--that have to come from somewhere.

Now if each business keeps closing down it sounds like he needs some business management skills. It's hard to truly comment without knowing the situation. Is he closing the shops down because they aren't making enough money? Or is he going out of business because people just never show up, or stop coming after visiting one time?

There is a lot of stuff going on here, especially under the surface. For example, as an outsider looking in I would think that having the resources to open up one business after another even though they keep "failing" would seem suspect.

Are they fronts to hide illegal business?

I could go on and on. Maybe he sucks at customer service, or the food/beverages served are absolutely terrible.

To say he is a failure is a bit premature.

[Le Roi]

Nah, I'd say he is learning to operate businesses.

I had a millionaire Angel Investor who himself was a successful entrepreneur tell my business class that he'd rather invest his own money in a business run by someone who bankrupted his previous business than someone new who had never experienced business bankruptcy. He said that someone whose business went bankrupt learned a lot of lessons about business that the one who never went bankrupt didn't.

[SquarePeg]

Originally Posted by mainstreetcm

I wouldn't say he is a failure. It takes some serious work to get each business opened, operating and marketed correctly in the community. If he can just keep doing that over and over he has a ton of resources--that have to come from somewhere.

Now if each business keeps closing down it sounds like he needs some business management skills. It's hard to truly comment without knowing the situation. Is he closing the shops down because they aren't making enough money? Or is he going out of business because people just never show up, or stop coming after visiting one time?

There is a lot of stuff going on here, especially under the surface. For example, as an outsider looking in I would think that having the resources to open up one business after another even though they keep "failing" would seem suspect.

Are they fronts to hide illegal business?

I could go on and on. Maybe he sucks at customer service, or the food/beverages served are absolutely terrible.

To say he is a failure is a bit premature.

Indeed, but that was the verdict of this guy, who was his cousin, who owns that smoothie shop I frequent, so I'm assuming he has all the facts! But then that made me wonder just what the standard among entrepreneurs is for "success" or "failure"...I mean, this guy considers his cousin a nut for constantly opening and losing and opening again, but I would've thought that this is par for the course with entrepreneurs, to keep trying -- I mean, you have starving artists, too, and somehow that's considered normal...so isn't it normal for an entrepreneur to fail??

[SquarePeg]

Originally Posted by Le Roi

Nah, I'd say he is learning to operate businesses.

I had a millionaire Angel Investor who himself was a successful entrepreneur tell my business class that he'd rather invest his own money in a business run by someone who bankrupted his previous business than someone new who had never experienced business bankruptcy. He said that someone whose business went bankrupt learned a lot of lessons about business that the one who never went bankrupt didn't.

You know, that's a great point. I actually tend to be an optimist like that, believe it or not, but in trying to "train" myself for entrepreneurship I've found that I've got to ratchet up the little bit of skepticism I was born with, lest I get taken away by some marketing campaign!

[Margarita888]

Not exactly a failure, maybe just hasn't learned his lessons yet. The food business is a tough industry to make money in. Your goods are perishable and there is a very small profit margin involved even if you do it right. Unfortunately, for most people in this industry, this is the only thing they know to do. And they think all they need to do is make good food. A huge part of your success is going to be marketing and execution.

[AKLight]

Sounds like he's got some good qualities, like persistence and self-belief. Not a failure. Just a learner.

[RichGrad]

There's no failure, only feedback.

I guess what this guy needs to do is learn from his mistakes and not repeat them again in his new business(es).

[jaydeschizo]

Originally Posted by SquarePeg

Indeed, but that was the verdict of this guy, who was his cousin, who owns that smoothie shop I frequent, so I'm assuming he has all the facts! But then that made me wonder just what the standard among entrepreneurs is for "success" or "failure"...I mean, this guy considers his cousin a nut for constantly opening and losing and opening again, but I would've thought that this is par for the course with entrepreneurs, to keep trying -- I mean, you have starving artists, too, and somehow that's considered normal...so isn't it normal for an entrepreneur to fail??

Most entrepreneurs don't mince their words, if you open business after business and fail to make money at them you're an idiot. There's nothing wrong with failing and trying again, but if you can't learn from earlier mistakes you're doing something wrong, perhaps it would be time to realize you don't have all the skills you need and you should partner up with someone who can complement your skills.

Though there is too little information to call this guy a loser, some businesses, the car-sales business comes to mind, go bust at every recession, occupational hazard, and there is nothing wrong with starting again afterwards, it may actually be financially smarter to go bust and restart after the economical storm has passed.

To summarize, nothing wrong with failing, but if it didn't teach you anything or make you a better entrepreneur you're probably an idiot.

[falcan]

Jayde lol, spot on about being an idiot if you don't take away your lesson. Now I feel a little like an idiot I have repeatedly repeated my mistakes in few cases(particulary taking on too big project). Sometimes you learn a thing and then you kind of forget how important it was...on the other hand if you repeat something bad 2x you pay 2x more attention the next time(I have almost a fear now of starting too big projects)

[Curtis2011]

Originally Posted by SquarePeg

I go get veggie and juice smoothies after working out. The guy who owns the store has a cousin who owns another smoothie operation elsewhere in the city -- as well as many other businesses.

I was like, cool, a serial entrepreneur! But the guy tells me his cousin actually keeps failing, losing money then opening another business (apparently, all having to do with serving food), one after the other....

So it got me curious; what would y'all say: is this guy a failure? Should he quit? Maybe switch industries (non-food)??

He will be a failure until he succeeds

So the answer is: maybe.