Question of the Day, Oct 1

Why do small businesses fail?


Author: Back in PA Mike

Crotchety middle aged man with a hot younger wife dead set on saving this Country.

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flash
flash
October 2, 2015 9:14 am

the for FUs

Regulations
Taxes
Insurance
Employees

Francis Marion
Francis Marion
October 2, 2015 4:41 pm

Nickel said: “I can’t hire you.” I asked him why that was so and he told me, “If I hired you then I’d be working for you two weeks from now.”

LOL! – I refused to hire a guy years ago on the same premise – I knew if I brought him in I’d either have to make him a partner or have him end up as my competition. Neither were a good option.

He went and did his own thing and started a distribution co. for our industry. I’m now his customer and we have a good working relationship as years later I presume he definitely ‘gets it’.

The biggest barriers I see:

Lack of forsight:

Misjudging expenses during start up phase
And over estimating demand for product/services

This is the death spriral combo.

Also – as businesses grow (should they survive) – lack of understanding of the business climate as a whole – the broader economy and social mood as well as impending legislation in all its forms – and not having a plan B to cope.

I say this of course and could get blind sided tomorrow. Hubris is a bitch – something I try to be aware of knowing that I will never get rich in the game I am in and to be happy with what I have and not to envy thy neighbour.

Partners – different opinions on them. They can be good or bad. Sometimes necessary in terms of capital and spreading the work load – they are great if they share the burden and are honest – a curse if otherwise. I have been fortunate – I wouldn’t have gotten as far as I have come – as modest as it is – without them. It has been getting close to a decade with them. I am glad they are there.

Fran

NickelthroweR
NickelthroweR
October 2, 2015 6:16 pm

@Llpoh,

Well, I don’t believe in editing myself. I wanted this guy to understand that I was an aggressive go getter right from the start. Getting the job any other way just doesn’t seem right to me and I owe it to people to let them know exactly how I see things.

I was telling this guy, in my own way of course, that I was gonna lock things down and do so fast. Not only that, I was gonna run things in such a manner that his biggest concern was going to be finding enough work to keep us all busy. Finally, I was willing to back up my big mouth with specific fast approaching dates.

That attitude can freak some people out especially if what they really want is to be the “boss”. I don’t have time for that.

Stucky
Stucky
October 2, 2015 6:27 pm

NickelthroweR

Loved your answer. Can’t tell you how many times I wanted to say exactly the same thing to that dumb-ass question. But, I never did.

Two “Golden Rules” of interviewing;
—1) Don’t make your future boss feel threatened by hiring you
—2) Don’t make your future boss look like a dumb-ass by hiring you.