When I was in high school, the corner drug store that had survived the depression, was purchased from the Greek owners by a gentleman by the name of Frank. Frank became a good friend, and I kept track of what he was doing.
While the Greek family was waiting for Frank to take over, they changed the way they did business. In the past, they had watched every penny and kept the local school kids in order as to not bother the other customers. At the end, they gave out free ice cream and relaxed their operation. That was their way of saying “goodbye.”
Frank took over and I think that maybe he thought the school kids and those playing the pinball machine were his main source of income. Gambling was illegal, but Frank paid out in cash for the number of games won. Cheating was easy as ABC, so Frank often lost.
The store lost money by people stealing, Frank being too generous, and the fact that older customers went up the street a few blocks to another drug store.
Frank had to sellout.
Frank started an automobile repair shop next. He hired a mechanic and sat at his desk waiting for customers to come in. He might have made it if he had been a mechanic himself. He was not a mechanic and the mechanic doing the work could not bring in enough income to pay them both.
Frank’s plan was to have a several mechanics to support the operation. Too little business and Frank’s lack of knowledge in automotive repair done him in. He was broke and would have to find a job working for somebody else. I don’t know what happened to Frank after that, but I’m sure it was not in fulfilling his dream to run a profitable business.
When I was a kid, I watched several businesses started just after WWII fail in our neighborhood. The problems were not always in not knowing the business fundamentals. Often, it was just underestimating the market. But businesses fail everyday of the year because of a lack of assets. Those who start businesses know this. What some of them don’t know is that:
“Assets are Not Only Financial”.
“An asset is something of value. Something detrimental is a liability. A lack of knowledge is a liability.
The first step in considering a new business is to list and evaluate your assets AND LIABILITIES. Any short comings must be rectified (fixed) before you get too involved.
Home Business Tip: Don’t jump too quickly into a new deal if you lack knowledge of the required everyday operations
A Tippy from Flippy: Find the information you need by simply asking those in the business. Also go to local, state, and federal agencies to learn more. And don’t forget the Chamber of Commerce and local financial institutions.
Keeping Up with the Jones’: In business, it’s best to stay ahead of the Jones. Taking care of every aspect of the business will do the trick. But if you slack off, you Will slack off!
Fiddle Dee & Fiddle Dum: Did you write a good business plan, one you are proud off? Tear it up and write it again. lag bolts When it doesn’t look so great because you have identified all of the risk, then you are on your way to either resolving the risk or dumping the project. That is what a business plan is for.
Can’t Ya’ Get Goin’?: Must be too small a carrot. Start over!
All Things Come: It’s not always what you have in your pocket that brings you success, it is wisdom to recognize your assets and liabilities.
Life Success Quotation: Great men sometimes end up in the gutter. Some get up and get going again. Others give up and die in oblivion. The difference is in recognition of ones own capabilities and opportunities.
Business Success Quotation: Seek the advice of others, but you must evaluate the speaker. If you don’t, you may be led astray. The answer you have been looking for may not be the right answer. Push on!
From the Eye of the Potato: You need to know the details of your business to succeed.
John T. Jones, Ph.D. (firstname.lastname@example.org), a retired college professor and business executive, Former editor of an international engineering magazine. To learn more about Wealthy Affiliate University go to his info site. If you desire a flagpole to Fly Old Glory, go to the business site.