Quote Originally Posted by imagep View Post
They do add up, but do we have a shortage of places to eat? There are at least 30 restaurants with a one mile radius of my business, and probably over a hundred within a ten mile radius of my home. Obviously these expenses aren't preventing too many restaurants from starting up.

Don't get me wrong, I totally understand that regulations to affect business decisions, but they are supposed to do that. When I built my commercial building, I ended up making it one foot shorter than I had originally intended, so that I would avoid some regulations which were based upon sq footage. If I had been a little richer, or if my business would have been a little more successful, I would have likely not even worried about those things though. That's the great thing about the American small business owner, we are flexible and solve problems creatively.
An established business is given flexibility when new regulations are introduced - they have to comply within a certain amount of time. Sometimes regulations won't affect long standing businesses at all, sometimes they do. Yet others are often stung with lawsuits (new regulations regarding the disability act come to mind: wider aisles, handles that aren't round - etc - some lawyers make circuits and seek out businesses that might not be up to standards and then press a suit against them. Good money, apparently, for the lawyer)

Also, upgrading equipment, for example, is a small cost spread out over time. A new business has to cover it all up front which boosts starting costs and makes it harder to raise capital.

A lot of people find the hassle to just not be worth it.

In my view: sometimes this is a good thing - we don't need a glut of businesses by people who aren't quite business savvy. If someone sees the measures necessary to start a business to be not worth it then there are many things about running a business that might prove to be too demanding, too.