The Domino Theory: Business Failure is Often the Result of Little Problems that were Ignored or Poorly Managed

The demands (and rewards) of serving as editor of this magazine do not leave much time for other professional pursuits, which in my case, has included the practice of business law. But when a restaurateur calls me in need of legal assistance, he or she at least gets my attention. After all, restaurateurs are our readers, and the reason we publish this magazine. We want all of you to succeed, even if just one at a time.

Such was the case not too long ago, when the owner of a restaurant told me that his business was about to be evicted by the landlord of his leased premises, and he needed legal advice -- fast. His restaurant, which supported his family for the past four years, was about to be put on the street, and he was understandably panicked.

When I drive past a restaurant -- or any business, for that matter -- that has shut its doors or is near collapse, I often wonder what went wrong. Was there a defining, backbreaking moment when the owners decided to call it quits, or did a string of bad luck or poor decisions slowly take its toll? Was the concept flawed? Did the owners lack sufficient experience or receive poor advice? Were the sales and cost projections too optimistic? Was the owner skimming too much cash out of the till, and bleeding it to death?

There are probably as many cautionary tales in business as there are business failures or near misses. This is only one of them.