More risky than service businesses are retail stores and restaurants. Unze said the start-up failure rate there is about 70 percent. The reason is competition from big-box retailers and chains. A corner bookstore sounds warm and fuzzy. People call all the time for a nice little bookstore.
Restaurants have the same problem.
Chains continue to build here. And that goes to the root of starting or buying any business - doing the homework. Ray Garcia, director of the Albuquerque Small Business Development Center, said the biggest mistake entrepreneurs make is overlooking market research. When you go into business, you're making an investment. It's no different from any other investment decision - buying a certificate of deposit or a stock.