Snap Decision

I have been recently working with a gentleman and helping him structure his business in a way that will be profitable for years to come. A couple of days ago I received a phone call from him saying he had found a great opportunity. I could tell how excited he was so I began to listen to him explain the business he was considering buying. For clarity the business he was looking at was a retail location - golf course to be exact. After he said the word unbelievable about 10 times I began to ask him a couple of questions the first of which was, "where is it located." He said it is in the middle of nowhere. My first reaction, challenge to attract customers. I then asked why do you think this is a good idea when everything that we have discussed is different. He began to explain his end goal is to buy a course and the opportunity is presenting itself now. I listened a little longer and then said before you make a decision we should review the financial documents and make sure it is worth it. Two days later we both agreed now is not the right time and he should remain narrow and strategic. Yesterday I get a phone call that says I am the proud owner of the course and now I need to figure out the rest.

Small business is great but there is a reason why 70% + fail. It is because snap decisions like this are made without critically thinking. You have to take out personal emotion and look at the facts. In this case it is a golf course in Ohio that means it will likely be closed for 3 months out of the year. It is in the middle of nowhere that means customers are less likely to travel to your location unless you offer speciality services that your competition does not offer. It has been for sale for 3 years that means the price is too high or it would have been sold a long time ago. Business is not easy you have to be willing to step back ask hard questions and walk away. I love the entrepreneurial spirit but hope he does not become part of the 70%.