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Sad to watch people going broke

Discussion in 'Off Topic Threads' started by cubancigar2000, Dec 3, 2010.

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  1. cubancigar2000

    cubancigar2000 Well-Known Member

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    I assume this is happening everywhere?? I see so many new restaurants opening up and they are closed within 6 months or sometimes less. People who lost their jobs are cashing in their retirements, savings, home equity if they have any left etc just to create a job for themselves by opening a business. Seems like the restaurant thing is their attraction because I see more new ones than any other kind of business. We like to try new spots so we normally give these new places a try. Some are good and when you go back for more they are gone?? You cant buy a job around here - it is getting pretty sad to watch. I feel fortunate to be retired but I feel like my retirement income is shrinking and it is really not. It is just that everthing is going up in price. Obama has not a clue nor does he care. Nothing will change until people have jobs, absolutely nothing. But it will get worse and it is. I am not a negative person but this is how I see it
     
  2. blkcloud

    blkcloud Active Member

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    We havent seen anything yet..
     
  3. neofight

    neofight TS Member

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    I too, am retired and pretty much on a fixed income, if you don't consider the wild market swings. I made my way in better times, but had a few hiccups along the way and once came close to losing everything. But, we survived and went on about the business of living, provided for our family and it all worked out.

    We have 5 kids, all adults and working, but it's been tough for a couple of them. They made some bad choices and are now paying the price. It pains me to see them and anyone else suffer though all this. I know what it's like to have to make choices when there is so little money and i do hope that things will turn around so people can really have some hope for a brighter future.
     
  4. Jeff P

    Jeff P Well-Known Member

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    I guess I don't have an entreprenurial streak in me....I look at businesses, and I can never find one I think I'd like to own. I, too, see lots of restaurants open, and most close....and that's the problem.

    MOST new businesses go broke, in good times AND in bad, no MATTER what they do - video, food, clothes, whatever. Sometimes they catch on and you end up with a Walmart. Sometimes, they're just successful little local stores.

    I'm convinced that most folks go into business because they'd rather work 90 hours a week for themselves for nothing than 40 hours a week for a paycheck from someone else.

    Good for them....I admire them. I support them when I can. But I doubt I'll ever do it.
     
  5. AEST BOSS

    AEST BOSS Member

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    The big mistake is thinking it is easy. You can't expect to make a profit in your first 3 years. Sometimes you can do it sooner....but you can't bank on that.

    It takes a lot of money...and patience to get discovered. Most people don't have either.
     
  6. BigBruno

    BigBruno TS Member

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    Nothing like good Christmas cheer. Thanks. Now where did I put that shell. Goodbye cruel world.
     
  7. Palos shooter

    Palos shooter Active Member

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    I don't know if any of you have heard of the Plunge protection team http://www.thenewamerican.com/index.php/economy/commentary-mainmenu-43/2715-stock-rally-due-to-ppt-conspiracy
    This is how they stablize the markets..We have been lead like sheep..The government is not our friend by a long shot..Read this and weep ..http://www.thenewamerican.com/index.php/economy/commentary-mainmenu-43/2715-stock-rally-due-to-ppt-conspiracy..Maybe some day the american public will wake up and see what the government is doing to us,,Untill then just look at the sports on T-V ..that is what the politicians want us to do..
     
  8. Charkat1

    Charkat1 Member

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    My late husband was a hospitality educator. Wrote a widely used food, beverage, labor, cost control book and was highly respected in his field. He always said that most people "think" they can operate a restaurant because they like to cook. What many don't know is the business end of it. So, they fail due to their own ignorance. Restaurants always had one of the highest failure rates of any business.
     
  9. Setterman

    Setterman Well-Known Member

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    Charkat1's comment was more true than most know. Seldom does the new start up business owner have both the business experience, accounting background, and the talent/work ethic to make it work.

    The first 5 years are always scary till you get established, and even then you still have to perform and be consistant on your product/sales/accounting.

    That's why less than 10% of new businesses make it past 5 years.
     
  10. b12

    b12 Well-Known Member

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    Some of the biggest mistakes today is think that with a college edu. that you can walk out in the world and things are laid out for you and you can't fail.
    Also large corporations only look for the college grad for control positions. Thay no longer want the person who can and has worked their way up from the botton. I don't do why things have changed that way but it has killed the American corpations in the US. Many young people have lost out in the higher educantion schools because of the cost. It is expected you should borrow you next 10 or 20 years in debt for a 4 year degree. But greed has lead the country in the hole. And it is always expected that the 40, 50, hour week working mans paycheck to bail the countrned theisy out and to still keep his family confortable. Thats who pays the American bills. I think the Clintons, Bushes, Obama's never leaned this cause life had been given to them one way or another.
    You can't start a business when there is no comodity to produce and no people with enough money to buy.
    If the politations want to compromise on the Bush tax cuts, instead of Obama trying to cut off the breaks at 250,000.00 Why not just compromise on some of the loopholes the rich get to slip thru and the working class don't get to use. b12
     
  11. Shooting Coach

    Shooting Coach Well-Known Member

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    Locally, at least eight new gun shops have opened recently. One had a display case with FOUR handguns in it. Nothing else in the shop. The new shops are $50-$75 higher on guns than we are.

    Right now, they are having a "dealer transfer" war. $20 transfers, including a $10 TICS background check. This is a money loser if paid help is doing the work.

    We expect most of them to be gone by the spring. One that has been here since the early 60's closed the first of the month, one that had a "million bucks in seed money" is looking for a buyer, another is in a deadly tailspin that will end it its closure.

    These are just the tip of the iceberg. I bitch because I can hardly sell a gun for $25 over cost with my own wholesale business, when I should be thankful I'm not a hundred thousand + in the hole, my savings are gone, and my house is in hock.
     
  12. phirel

    phirel TS Member

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    Starting a new business can be exciting and rewarding. I have started several, got them to a very profitable point and sold them. First, you must understand the business. Then you must understand the market.Next, you must be willing to work as hard as necessary to make the business work. This requires that you enjoy doing that type of work. You must also offer something different than your competition.

    I started my first business when I was 12 years old. It was a lawn mowing business. First Summer was OK but not great. The next Spring I made a change. I offered a special free lawn fertilizer treatment to customers if I could mow the grass all Summer. This got me a lot of new customers and their lawns grew faster and needed mowing more than other lawns.

    Pat Ireland
     
  13. over/under

    over/under Member

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    Has to be Bush's fault. Just ask any liberal.
     
  14. Bob Hawkes

    Bob Hawkes Well-Known Member

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    Wouldn't it be nice if we could go back to the simpler times Pat speaks of. I hate to read a sad thread like this, but there has been a lot of truth and wise experience posted here. I'm sure Rosey knows the failure rate of contractors is extremely high, exceeded only by restaraunts.

    Not good times here in Taxachusetts either. Yet our Govenor wants to give driver licenses and college education to the illegal's. To quote our Attorney General Marth Coakley,"it's not illegal to be illegal in Massachusetts". HUH?? and both were easily re-elected.

    Gog Bless America.
     
  15. School Teacher

    School Teacher Well-Known Member

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    As I remember the classical economic theory of pure competition, if a business is started and becomes successful, others will follow. This will continue until all similar businesses are breaking even.


    Other new businesses will still be opened until all businesses are operating at a loss. Those businesses with the least capital or weakest management will then fail and the economic model will return to equilibrium.


    The classical model featured a large number of small businesses such as retail, farm and cottage industry manufacturing.


    Managerial talent in terms of market research, product design, pricing, distribution, advertising, packaging, efficiency of operation, etc. is what allows a business to be successful over time. Just copying another business model often leads to failure.


    Introduction of a massive competitor such as Wal-Mart that competes using economy of scale dooms small businesses that offer similar products.


    When businesses are successful, the owners should be rewarded with an economic return. Yet, communists and socialists see these successful businesses as evil and tax or regulate them out of existence.


    Proletarians of the World Unite = Spread the Wealth.


    God Bless the successful entrepreneur.


    Ed Ward
     
  16. phirel

    phirel TS Member

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    doggai- If a person does not enjoy working under pressure, they will not be successful operating a business.

    Pat Ireland
     
  17. Setterman

    Setterman Well-Known Member

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    I remember working 12 hour days, and then going home to do the records, accounting, and drawing plans till we could afford an office manager/book keeper. My wife had some accounting experience which helped a lot.

    We were lucky. We hit the economy on the upswing, but worked our tails off.

    We had to be bonded to do large projects, so we had to sign off on everything we owned. Made you pucker a bit if you know what I mean. That was 20 years ago, but running a business has not gotten any easier. Regulations and tax laws change and now it is tough for clients to get financing for new projects.

    Forget about vacations, watching your kids ball games, and a good night's sleep. The first 5 years test your metal.

    But it's a great feeling when you're awarded a project because of your reputation.
     
  18. b12

    b12 Well-Known Member

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    The hardest part of starting the business is the Work. I mean total work from doing the manual labor to repairs to making calls to conversing with the regular customer. Working late hours. Starting early in the morning before the employees get to work. Keeping enough work for you employees to work atleast 40 hrs. a week. Keeping supplies on stock. And when that is all done you get to do the books, payroll, figuring taxes, figuring the benifits. And this is just the easy part. Forget wkends, vacations, school functions, Holidays except Christmas. And a very good understanding wife and family that also help besides holding her own job. Their were times we used her paycheck to make payroll. I don't know many women that would be willing to give up a hard earned check to keep a business. going. But it went and it worked. I started a medical divce sub business and built it up over ten years when we sold it and went to work for many major medical companies over the year.
    Have started other business and helped other business get going. One thing I never done was borrow a dime on any of it. I always remained debt free. If I could not pay for my equipment or meterails from the business itself then I did not purchase it till I had the money. I have friends that are hugh bankers of large instutions and I will tell you this. Listen and listen good. They all said in one term or another that one reason I was sucessful is I never let them loan me money. If you borrow money from those boys they will make sure they will get theirs first and let you be eaten.

    If you can't start on a shoe string then don't do it. for the last 20 yrs my wife and I have never owed anybody anything. And neither of us never graduated Highschool. We also have a friend that owns 3 medical manufacturing co. and he never went past 8th grade.

    You just got to be willing to work you ass of and sacrafice. b12
    PS. Sorry about any misspelling but my supper is getting cold.
     
  19. recurvyarcher

    recurvyarcher Well-Known Member

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    I wish B12 could teach a course in every high school in America. I benefitted from the same advice, only my Grandfather gave it to me. I have never borrowed money to start a business, although I have started some successful ones.

    And as stated above, market research, innovative ideas, and dedication will usually get you sucess.

    Failure, though, is just another opportunity.
     
  20. blkcloud

    blkcloud Active Member

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    I pretty much went into business when I was 12.. I only have to work half a day now.. the first 12 hours...
     
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