Worst decision that that has been made

[bushinspector]

What are some of the largest mistakes that has been made in starting up a business

 

[a_lopa]

By far taking a partner,or lack of funds.

 

[Mr. Firewood]

By far taking a partner

that is the worst thing you can do to a business, like I explained it to a friend about buying out my partner and giving him the boot..."Now I only have to work half as much because I now have his half after I am done "

and almost as bad is having friends work for you, "what do you mean... you made $500 and I am only getting $100? WTF??"

 

[bigbadbob]

Starting out when the economy is about to slow down and people close their wallets, for hiring you and paying you. Been there.

 

[windthrown]

Worst business

I has several business and the worst one was a mobile auto service repair. I wound up specializing in returing cars from the dead, and working on a lot of completely abused cars. I gave up pretty fast. Sadly most people out there do not even change their oil. I worked on one car that the electrodes on the spark plugs were completely gone. I rebuilt a guys van and he refused to break in the engine, popped the clutch hard to screech the tires all over town and blew the engine in less than 2 weeks.

I had a landscape and tree trimming company with my oldest brother as my partner, and that worked out really well. We each had our own accounts, covered each other on vacations or if we were sick, and did big jobs together. I wound up giving him all my accounts when I transferred to a university in San Diego to finish my bachelor's degree in engineering.

Also, the worst part of having your own business is self employment tax. 15% right off the top. That is a big bite out of the income.

 

[underwor]

Biggest mistake when I had my own business for about 12 years, was not hiring a salesman. Never had a problem with the work, just thought I was faster than I was and that the work was fun and easy. Most people think it is hard and dangerous and so are willing to pay more that I was asking. It should have been a hint when I kept getting "tips" added on for a job well done. Also, I was getting dang near every bid. Now tell my students that if you are getting over 50% of your bids, you are probably bidding too low. Either make money, or let someone else lose theirs.

 

[Ekka]

Either make money, or let someone else lose theirs.

Very well said.

 

[soutz]

oh yeah. took some time the worst decesion was to hire more staff and tick up equipment because the biz was growing to much. A house of cards i tell ya! if in this position charge 10% more at your next 5 to 10, quotes if you are still getting them all charge more the market will let you know. otherwise you are running round trying to get jobs to pay your team and pay for your equipment. scary.Better to do 4 days work while still making the same money you would in 5 or 6. more time for fishing and much much better for your head.

 

[PA Plumber]

Working with/for friends and family.

If a customer becomes a friend the relationship works. If I have friends/family who want to become customers, I am extremely careful.