HowBusinessesFail

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.

[HowBusinessesFail @BizFailures]

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.

[HowBusinessesFail @BizFailures]

@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.

[HowBusinessesFail @BizFailures]

@adamwasch And that if you say you paid the debt, you can actually prove it if the opposing party provides pay histories.

[HowBusinessesFail @BizFailures]

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.

[HowBusinessesFail @BizFailures]

@AMandoSch Agreed he sounds like the biggest jerk - but how often was he wrong?

[HowBusinessesFail @BizFailures]

@resellerrowe I just scored 3500+ antique books off of fbm for CHEAP. I'm hoping it was cheap enough.

[HowBusinessesFail @BizFailures]

@TobechiOgazi That's why I do contingency on collections. Though consent judgments tend to be rare in my world.

[HowBusinessesFail @BizFailures]

Hey @elonmusk

Just grabbed 5 shares. Let's see how it goes.

[HowBusinessesFail @BizFailures]

@Ghost_Legal_ It's going to get harder and harder for debtors to fight these with electronic records on a lot of debts.

[HowBusinessesFail @BizFailures]

@CoachRolfes Depends. A ton of that stuff is worth what it costs to ship it, unless you have a good way of selling it locally for cash.

[HowBusinessesFail @BizFailures]

@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).

[HowBusinessesFail @BizFailures]

@FabianSani8 And what if you're say...John Adams or Thomas Jefferson?

[HowBusinessesFail @BizFailures]

@DietCoke_Esq Only if collateral liquidation value won't cover amount of note. Including legal hassles.

[HowBusinessesFail @BizFailures]

@ConnorAbene It doesn't matter if you hate accounting. If you want a successful business, do it anyway.

[HowBusinessesFail @BizFailures]

@DannyMagazu Not necessarily, but it puts you behind the person who was there 15 minutes early.

[HowBusinessesFail @BizFailures]

@SellersCounsel The debt portfolios we buy tend to be about that short, but they're also pretty comprehensive.

[HowBusinessesFail @BizFailures]

@r4ralxrita If anyone gets the money....

[HowBusinessesFail @BizFailures]

@DietCoke_Esq @Harbiola0709

[HowBusinessesFail @BizFailures]

@salesprocapital @jonbrooks I'm not a fan of "widespread" when it comes to housing data. I think it's far too local to look at national data trends.

[HowBusinessesFail @BizFailures]

@resellerrowe Ebays fees are actually market low. Try putting something on commission at an antique store

[HowBusinessesFail @BizFailures]

@ConnorAbene You don't have to like it. You have to do it to be successful.