Violent Acres starts a small business
As it turns out, starting a business is not as easy as I first imagined. It’s doable, of course, but it very quickly became clear to me that I’d have to dedicate an extremely large portion of my life to it if I seriously wanted to be successful. This meant that I would have to eliminate some of my other, less important daily obligations.
Lo, and behold, she finds out IT’S HARD. Well duh. And 90% of small business fail in five years Vi.
I have to weigh in here because in forty years of dealing with small businesses I’ve seen a ton of failures.
They fall into three categories:
- Undercapitalized – borrowing from anybody they can, banks, family, even maxing out credit cards just to open the doors, cashing out the IRA’s, forgetting that they will have NO FRIGGIN’ PROFIT for a couple years. So they live off cash flow and eventually it catches up and a critical vendor puts them out of business.
- Not working hard enough – they hire a bunch of minimum wagers because the owner only wants to work 10-4 Monday thru Friday (Wednesday afternoon off.) The employees don’t take of business like the owner does.
- Lack of advertising/too much advertising – either the owner thinks the world is going to beat a door to her mousetrap and doesn’t need to advertise. OR, the owner buys advertising from anybody that walks in the front door, no thought, no plan, no execution.