How Businesses Fail
SMB Commercial Debt Collector
I’m not a super expert on how businesses succeed.
But I can tell you how they FAIL.
Here are those stories.
What I find is that there actually are not that many poor business ideas. Businesses fail through poor business practices that are nearly universal.
Outside of freak incidents – such as medical events, or something like the period during Covid 19 for a couple of years, business failures often have common factors.
1. Overspending on the unnecessaries. Attorneys and doctors are particularly notorious about overspending on expensive cars, nice offices, etc, particularly early in their careers. I have seen multiple incidents where cash flow was good, but too many bills on the frivolities.
2. Underspending on the essentials. Penny pinching as a business owner is often necessary, but you have to do it in the right way.
3. Poor financial management. When a check comes in, it should automatically be deposited, logged, and the money assigned to a purpose. What I find for failed businesses is that when money is flowing fast and easy, it can cover a ton of bad practices that may not become evident until times get tight. Good, automated financial processes are essential. Good businesses have a fighting chance in hard times with good practices.
4. Short-term thinking. Going cheap on something in the near term could be more costly in the long run. While there is a necessary balance here, being cheap as policy is part of the recipe for failure. I think I see this particularly for technology.
5. Improper debt load. Getting too little debt to grow properly can be as big a mistake as taking on too much debt to cover nonessentials. While leverage may be necessary, some businesses are married to the idea of leverage for every purchase.
@IDdoITtheSAME I would think at least send a letter and keep a copy, maybe even provide proof of revocation. Email (if possible) and mail. Tell IRS that you are no longer PoA, and will not be responding as a PoA in any capacity and have no liability as a PoA from the time of its revocation.
I also sell a ton of books on ebay. Just scored a LITERAL ton from antiques dealer. Most of the books are $5-$10 in value. I'm finding that a ton of them are for sale as reprints, or at elevated prices by sellers hoping someone REALLY wants that book. No sales in last 90.
@ryanmckeen A law firm I worked with more or less required junior associates to do something like this when their schedule allowed (trials were rare so they really wanted to go).