Business Opportunities: Avoid the Glamorous
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Submitted by Businomics Blog
I’m staying at an Inn that’s part of a vineyard/winery/spa. My room is luxurious, with a view you wouldn’t believe. The food in the restaurant is top notch, and the wine excellent. I’m enjoying myself, except for a nagging concern: this joint don’t cash flow.
There is no way on God’s green earth that this business is making money. Not even with strong appreciation of the land over the next two decades will it earn a halfway decent return. It may not break even. After the owner, who made his money the hard way, dies and passes this asset on to someone else, I can foresee it being shut down. The beautiful cabins, lodge, tasting room, all falling into disrepair.
