As Gold Drops .........

Originally Posted by unknownk

Nobodies overhead is $0. To compete you need to have the proper equipment to maximize profits or even stay in the game. If $55K (loan to be paid back over a few years I assume) is enough to bankrupt a company they were in trouble a long time ago.

Unless you intimately understand the dynamics, competition, market etc of any business, you cannot make any claim that a particular business was in trouble prior to obtaining a loan.

If you have never applied for a business loan, then you certainly cannot make any claims as to a business that seeks or obtains one. Unless you have a proper D&B, a history of transactions spawning over three years at least, where you are making a profit, it is very difficult, specially in today's world, to obtain a reputable loan. The alternatives may be a shady company that withdrawals funds off your credit card machine, or attached directly to your bank account, and only short term, high interest which is very expensive. A customer backing out on a long term contract, market fluctuations, cost of business insurance, changes in the law, etc.

I have owned several businesses where I have had to close my doors. A car stereo, alarm and pager/cellular phone store where I was clearing well over 200k per year, Good Guys and Circut City opened up, and killed business overnight. I was in business 5 years, had an established credit history and D&B yet couldn't get even an SBA backed loan. An international trade business where one bad deal emptied my business account, a home loan mod company that I had to close because of the change in laws, regardless of the fact we helped over 100 people keep their homes, an organic produce market that I had to close because 2 years after I opened a Winco and Super Walmart opened the same year not more than 1/4 mile away. I owned a grocery store where in one single year my workman's comp went from just over 12k to over 82k per year and that came right out of my pocket.

There are so many factors outside the control of a small business owner that affects their business that you cannot say much about a business closing their doors unless you know for sure the reasons and factors that conspired against them.

So I would suggest, prior to climbing onto your lofty horse, to think first before posting with such certainty on anything you know nothing about, that you educate yourself better on business. Frankly speaking your post leads me to believe you know absolutely nothing about owning a business. You post is either out of complete ignorance, or only meant as a bad troll.

And think about this, as competition becomes more prelevent, prices go down, costs rise, if you are only making 100k per year and either must take out a bad loan to stay competitive or close up shop, you should probably take out the loan for 55k, specially if your business takes on the debt and not you personally. Even if you fail, the business is tagged with the credit burden, not you personally. This is also the reason some loans are difficult to obtain. Most people wait until they have no other choice, to borrow against their future.



And one more thing. Overhead are things you spend money on. Consumables, rent, licensing fees, employees, equipment, etc. If you are working out of your home, picking up scrap on your way home from work, not needing insurance because you are the only employee, and you already have medical insurance, etc. You will be described as having no overhead or very little. Take the statement as meaning something like this instead of nitpicking and arguing semantics. You will find that communicating with others will be far easier if you simply seek to understand a statement in the spirit ofhow it was meant instead of a literal translation that leaves no room for understànding.

Scott