By Eddie Mugulusi
The Brutal Reality Behind Small Business Failure
Every week, a new boutique, café, or mini-store closes in silence.
Recently, I watched a small boutique shut down after exactly one year in business.
Not because they lacked customers…
Not because they had a bad product…
But because the numbers simply refused to add up.
Their biggest killer?
Rent.
The owner finally gave up the physical shop and moved everything back home to run online.
And honestly, that decision might save their entire future.
The Hidden Cost That Destroys Small Businesses
Their rent alone was 1,000,000 UGX per month.
That’s 12 million shillings a year—gone.
Add another 3 million for paint, mirrors, décor, branding, and setup.
Now you’re looking at 15 million shillings lost before the business ever stood a chance.
Fifteen million that could have:
- Bought more stock
- Funded delivery operations
- Paid for ads
- Improved branding and packaging
- Built a reliable online presence
But instead?
It went into walls and tiles.
Into a room that drained them month after month.
The Emotional Trap: Why Entrepreneurs Rush Into Renting
A physical store looks like success.
It feels like progress.
It feeds the ego.
You get compliments.
People congratulate you.
Your friends call you “a serious business owner.”
But behind the scenes, the store is quietly suffocating your cash flow.
You’re paying to look successful…
not to become successful.
And rent becomes your biggest business partner—
one who does nothing to help you grow
but still takes their cut every month.
The Most Dangerous Phrase in Business: “It Will Pick Up”
Almost every struggling shop owner says the same thing:
“It will come.”
“People will start coming.”
“We just need more awareness.”
I’ve said those very words myself.
But the truth?
Customers don’t come fast enough to save you from overheads.
Rent doesn’t wait.
Bills don’t wait.
The landlord doesn’t wait.
While you wait for the business to “pick up,”
your money is quietly walking out the door.
What Most Entrepreneurs Don’t Know
These business owners aren’t bad.
They’re just unprepared for the math of survival.
Rent feels like an investment.
But for a new business, rent is a monthly debt—a tax on your hope.
Landlords get paid whether your idea works or not.
They are the only ones smiling when you close shop.
The Smarter Way to Start a Business Today
I’ve lost money the same way.
And it’s why I now tell anyone starting a business:
Start from home.
Start online.
Deliver.
Build your name first.
Let your customers be the ones who demand a physical location.
Not your emotions.
Not pressure.
Not ego.
When customers start saying:
“You’re too hard to find.”
“Where’s your shop?”
“We need a pickup point.”
—THAT is when you’ve earned the right to rent.
When a Physical Store Actually Makes Sense
A physical location is only useful when:
- The numbers justify it
- It increases your volume
- Your existing customers need the convenience
- You can directly measure the revenue it will add
- Your online side is already thriving
Otherwise, you’re just renting a place for your ego to sit.
The Earned Rent Principle
Here’s the new rule:
Don’t get a shop because it feels right.
Get a shop because it’s earned.
You earn it when:
- Your living room can’t handle operations anymore
- Your delivery load is overwhelming
- Your customer base is growing faster than your capacity
- Your brand is strong enough to attract in-store traffic
When rent is earned, it becomes leverage, not a leak.
The Final Word: Don’t Let Rent Kill Your Dream
Storefronts look good, but they bleed quietly.
You don’t need four walls to build a brand.
You need customers.
You need movement.
You need proof.
And you can build all of that from your dining table.
The smart entrepreneurs delay rent until rent starts making them money.
The rest?
They keep feeding landlords while their dreams die inside empty shops.
Unlock your true potential 