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Open a Shop

Should you open this business?

The Risk Chain

Most bad business decisions do not fail all at once. They usually break at one layer of the chain.

Location

Can customers actually reach and notice the business?

Traffic

Will enough people show up without wishful thinking?

Conversion

Will visitors become paying customers?

Cash Flow

Can revenue cover fixed costs and owner pressure?

Survival

Can the business survive slow or uncertain months?

Questions You Must Answer

  • - Why will customers come here instead of somewhere else?
  • - How many potential customers can actually see or reach this location?
  • - What sales level is needed to break even?
  • - What happens if the first three months are slow?
  • - Which assumption would make this business fail if it is wrong?

Common Mistakes

  • - Confusing foot traffic with actual customers.
  • - Believing a busy street means people will buy.
  • - Underestimating fixed costs before revenue is stable.
  • - Starting with optimism instead of observed data.
  • - Assuming effort can fix a weak location.

Real Examples

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