Argentine friend with successful small business reports decline in revenue of 55% in recent months. Attributes it to economic crisis in the country. Says everyone is cutting back. Anyone else know of similar stories?
Sergio, sorry, but you can't have a successful business if your sales decline 55%. It would seem to me that a drop in sales of that magnitude is more indicative of a shitty business model.
Perhaps you should clarify that he HAD a successful business, and things changed, and business went to hell. That's happens in the US too. Only a few years ago Hewlett Packard paid like $8 billion dollars for an English company, only to write it all off in a year (HP lost the entire $8 billion in that deal, in one year!). That was a really shitty business too. Want to know more? Talk to the guys from Sears, K-Mart, Radio Shack, Toys R Us, and so on. They all had successful business and then Amazon showed up and they realized that they really had shitty businesses. Argentina does not have a monopoly on dropping sales. Did you ever hear about how many people lost their homes in America as a result of the 2008 crisis? You would think Tesla has a successful business, and yet in their 15 years in operations they never made a profit. What kind of business is that?
If you are going to be in business, be prepared. Shit happens all the time, and not just to your friend. Yet, some business people always seem to manage to continue to run successful businesses. Apple, the most valuable company on Earth today, was a few days from going bankrupt at some point. Gates and Microsoft, their archenemy, bailed them out with a loan. Want more? Read about Space X, and although their success today is unbelievable, they were also like a few days away of total bankruptcy. Their rockets were crashing instead of going up, and yet they persisted.
Tell your friend to stop lamenting and figure a better business model; one that is sustainable and get going!