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Great Bidness Advice

Discussion in 'Other Off Topic Forum' started by Texas Forever, Jan 3, 2004.

  1. Texas Forever

    Texas Forever Three Time F1 World Champ
    Rossa Subscribed

    Apr 28, 2003
    38,914
    Texas!
    One of the things that I love about F-Chat is how members of this community will offer up advice that is worth many many $$$$ without any expection in return. I continue to be amazed.

    Many of you are wage slaves and want to start your own bidness. I have been advising business owners for over 20 years now and, again, the knowledge shown by the members of this board is truly amazing.

    As an exampe, you may wish to visit this thread about opening a restaurant --

    http://ferrarichat.com/forum/showthread.php?t=4706

    I have taken the liberty of summarizing the comments below. Again, I want to stress that these comments contain hunderds of thousands of dollars worth of advice. Man, you guys are going to put me out of a job!

    Good work, DrTax

    ***One of the keys to success is that you must know the business from the inside out. The MBA approach rarely works at the street level.


    ***Wow! Great advice. Dave, where were you when I needed ya… To illustrate, I’d rather open a Subway franchise than an Einstein Bros Bagel shop. Einstein may be a better product, but things are sold and not brought. Remember, scouts end up with arrows in their backs.


    ***Write on, Bro (sic). You and Hubert are on the same page.


    ***Ah, Ryan. Harvard law doesn’t suffer many fools, eh? Listen folks, retail is tough. You can go high. You can go low. You can’t go high and low. Quick story. A while back, the WSJ did a story on a small gun shop after Wally World moved into the town. Instead of becoming a victim, this guy became a success. The first thing he did was dump all his cheap inventory. He then got the gun registrations of the people who brought cheap guns at Wal Mart. Long story short, he made a pot full of money selling quality to people who had already brought cheap. Moral? When a 10,000 pound elephant wants your seat, move.

    Ryan your manufacturing comment is interesting. Yes, I have seen any number of success stories in this area. I’m constantly amazed at the niches that exist. The only problem is that too many small manufacturing shops become one-trick ponies. They never move past their initial success. However, I have also seen a number of clients buy these stalled businesses and move them to the next level and beyond. So yes, der is gold in dem dar hills.


    ***Yep, you gotta have an exit plan. There is a time to buy, and there is a time to sell. The most successful owners can tell time.


    ***Once again, you gotta know what you’re doing and have a plan.

    Take a bow gents. Job well done.
     
  2. thecarreaper

    thecarreaper F1 World Champ
    Silver Subscribed

    Sep 30, 2003
    15,213
    Savannah
    Full Name:
    name
    thanks so much for sharing this DR TAX, i have ( basically) been running a hobby business for 2 years and have been looking into making it legit. ( on top of my regular job as a aircraft mechanic). the tax laws still make my head spin so i have much to learn. i am planning on getting a " bidness" license very soon since the new year is here. i really enjoy your posts! thanks michael
     
  3. beast

    beast F1 Veteran

    May 31, 2003
    8,965
    Lewisville, TX
    Full Name:
    Rob Guess
    Running a Business is a full time job and beyond. When i lived in NM i ran a side biz selling computers in my area since no one else did. I also rebuilt jet ski parts and sold them over the internet also while running a very buzy service dept. of a Kawasaki dealer.

    durring busy times it was common for myself to only get 3-4 hours of sleep and no social life.
     
  4. GuardsRed

    GuardsRed Karting

    Nov 4, 2003
    129
    Alexandria, VA
    Full Name:
    Sam
    This is all entirely true. Two good friends of mine and I have begun the task of laying the administrative foundation (AOI, General Agreements, By-Laws etc) for a property investment firm. The next task is to develop analytical models to allow insight into migration patters at the macro level all the way down to micro level. Then to develop a unique acquisition approach. Lastly, determine the correct entry time...now is not quite it (too much sideline money out of equities and into hard assets).

    The point is that it is a huge amount of work even for three MBA's. Hopefully in 3-4 years we can offer private placement of equity offerings and raise additional acqusition capital. The goal is to have developed the company to the point that when I retire from serving this fine nation, I have another job...

    Then I want to start a bank...no kidding.
     
  5. pete04222

    pete04222 Formula Junior

    Nov 1, 2003
    613
    Maine, USA
    Full Name:
    Peter Cyr
    DrTax,
    I always look forward to reading your posts because you give some great advice and good opinions also. Some good plain "Texas Sense".
    Thanks.
     
  6. ryalex

    ryalex Two Time F1 World Champ
    Owner Consultant

    Aug 6, 2003
    21,228
    Las Vegas, NV
    Full Name:
    Ryan Alexander
    He also has "Taxes Sense!" ;-)
     
  7. maranelloman

    maranelloman Guest

    Good post, Dale!
     
  8. racedecknc

    racedecknc Karting

    Nov 24, 2003
    198
    Winston Salem
    Full Name:
    Ed
    I have owned a business that failed. It sucks really bad, but it was an education. I made it out with my family and my life, but not much more. I plan to write a book someday of how to avoid the problems that I had.

    I am now blessed with the greatest accountant in the world, and he insists that failing in business is more valuable than an MBA, education-wise.

    Ed
     
  9. Texas Forever

    Texas Forever Three Time F1 World Champ
    Rossa Subscribed

    Apr 28, 2003
    38,914
    Texas!
    An entrepreneur who had never failed is dangerous. Glad to see that you that have picked yourself up and jumped back into the race. Remember, if you only hit that darn ball 3 out of 10 times, you will get a multi-million dollar contract in baseball.

    Good luck, DrTax
     
  10. writerguy

    writerguy F1 Veteran

    Sep 30, 2003
    6,786
    NewRotic
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    Otto
    I have taken a couple of pitches to the head but that still gets you on base (groggy but in scoring position)
     
  11. Texas Forever

    Texas Forever Three Time F1 World Champ
    Rossa Subscribed

    Apr 28, 2003
    38,914
    Texas!
    Whoa! Head shots, now that's a different story, partner. You should always remember my motto --

    If you see it coming...

    Duck.

    DrDucky
     
  12. writerguy

    writerguy F1 Veteran

    Sep 30, 2003
    6,786
    NewRotic
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    Otto
    Too true but there have been times when you don't see it coming and still gotta be able to dust yourself off and get your ass down to first.
     
  13. Schatten

    Schatten F1 World Champ
    Rossa Subscribed Owner

    Apr 3, 2001
    11,234
    Austin, TX
    Full Name:
    Randy
    Great advice, and I just want to thank you guys for being an inspiration to the pitfalls and successes of businesses.

    I have tried as well, and although it hasn't failed completely, it isn't going anywhere at the moment. I've learned a lot along the way, so much more than if it were a total success. That would be all too easy. My MBA and accounting colleagues ask me questions. Most of them I know through experience so much more than just a few paragraphs out of a book. Although I don't know everything they do through trained professionals in classes, I do know more aspects of how a business operates than a theoretical class might project. It isn't to say that a MBA is a bad thing at all. Definately not. Maybe an MBA would have helped out greatly in what I've done. But I'm glad I did what I did and that I have a direction in where I'm going. For the time being, it's nice to have a paycheck, working in IT during the day, even if it is for someone else. It is only a matter of time before I'm back on my feet and at it again.

    Thanks again!
     
  14. Tyler

    Tyler F1 Rookie

    Dec 19, 2001
    4,274
    dusty old farm town
    Full Name:
    Tyler

    Dale, that's VERY true! My failures have been the most expensive and valuable education of my life. It made my successes that much more sweet. The relationships both personal and professional that survive your failures are truly forged for life.
     
  15. racedecknc

    racedecknc Karting

    Nov 24, 2003
    198
    Winston Salem
    Full Name:
    Ed
    I guess also that I'd add don't gamble what you can't afford to lose in a business venture. Don't start a business with debt, unless you have separate funds to live on until the business can support you. Figure what you'll need to live, then double it. Don't ever go into business thinking that you're wits will get you through, because when things go bad you lose your ability to think rationally, and this can cause you to hang on too long, and lose too much.

    Ed
     

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