Shanli Liu, CPA, CTPFreedomfolio · I help 7 to 8 figure service business owners and ecommerce sellers keep 10K to 75K of profit- without IRS headaches | CPA. Virtual CFO. Tax Resolution Pro | $5MM+client tax savings | Book a free 15 min strategy call

2 Hard Businesses to Start

Name: 2 Hard Businesses to Start
Uploaded: 2024-08-20T21:00:42+00:00
Duration: 23 s
Channel: Shanli Liu, CPA, CTP
Description: In this brief commentary, the speaker argues that gyms and restaurants are especially difficult businesses to run because they attract owners and…

20 Aug 2024 · 0 min

Watch on YouTube

0:23

In this brief commentary, the speaker argues that gyms and restaurants are especially difficult businesses to run because they attract owners and operators driven by personal passion for fitness or food rather than profit motives. This passion-driven entry floods the market with participants willing to work at break‑even or even loss, suppressing prices and margins. The speaker contrasts this with fields like mortgage sales or investment banking, where practitioners typically stay only if they can earn money, implying those sectors maintain healthier profit incentives.

Gyms and restaurants are two businesses that are just very, very hard businesses. Restaurants and gyms are two businesses that people get into because they love food or they love cooking or they love fitness. So basically, because of that, the market is priced at break-even or less because people are willing to do it and not make money. No one stays in mortgage sales and doesn't make money. No one stays in investment banking and just does it for passion.