If You Build It, Will They Come?

Comments (6) Posted By Joe on July 5, 2012 in Business Basics

Can big fixed costs — like rent, payroll, utility bills, and the like — motivate entrepreneurs to stick with businesses they would otherwise abandon?

In an Inc. Magazine column earlier this year, seasoned business owner Norm Brodsky laments what he views as a pervasive tendency among today’s entrepreneurs to start Web-based ventures. “They’re launching websites because they think it’s easier, less expensive, and less risky than starting a traditional business,” he wrote, going on to mention that most of the would-be entrepreneurs to which he refers keep their day jobs as they pursue new projects.

Brodsky contends that big financial obligations are unique in their ability to drive entrepreneurs to grow sales and fix problems on the fly. They force business owners to muster every last ounce of effort to ensure their firms succeed, he argues.

That’s all true, but as powerful and effort and dedication are, there is a limit to how far they can take a person.