Why my early business ventures failed

When I was in my 20's I had a buddy who was a budding entrepreneur, and he had such an infectious enthusiasm for starting his own business that I'd often be persuaded to join him in his entrepreneurial exploits. For some reason we didn't know at the time we nevar actually became the millionaires we believed we could be, and looking back now I can see why.

All of our business ideas centred around dealing in used cars, as we both worked in the automotive repair industry and knew the market, so that wasn't why we failed. But when I look back at what we didn't do I now know why we did. So here I'll retell the story of our failed business, and maybe you will see where we went wrong.

It would always start with a phone call from my friend to tell me of a car the chief buyer at the used car lot he worked in had found at a bargain price that we could buy. We'd pool our resources, and buy said car, and spend the next week cleaning, fixing up and making good our business investment. We knew the resale value of every vehicle we bought and always had the opportunity to turn at least 50% profit, and we'd rub our hands together with visions of our profits. We would advertise the car in the top used car ads paper in the area and even pay the extra for the papers professional photographer to take some pictures. When the paper was published on a Thursday we'd sit by the telephone and wait for it to ring.

Usually by Saturday we'd had few calls and decided our price was too high, and lower it for the next weeks listing. Looking back this was our second business mistake, the first was our ad copy in the paper, it sucked and that's why we didn't get any calls, not because the price was too high. So once we had lowered the price we did get calls, and viewers for our now bargain priced car. Almost without fail these potential buyers would come and offer us a much lower price than we'd advertised, because they were mainly small traders who knew the business better than we did, and had spotted the same car listed two weeks, and the price drop, and knew desperation when they saw it.

Invariably by the third week of poor ad copy, price drops and failed haggling we would drop the price to the point where we would only just break even. Someone would get a bargain, which usually would turn up on a sales forecourt for even more than our first price, or worse for our battered egos back in the same paper we'd used for a higher price than we'd even dared to hope for, but would not be for more than 2 weeks.

And this was repeated many times over several years, with the same results for our grand auto business ideas, no sales, no millions and still repairing vehicles for someone elses gain.

Here's where hindsight shows up our business mistakes.

1. Poor ad copy, we had no hope of getting any calls on our great cars with our very basic and uninspiring ads, even with a picture. The words just didn't sell.

2. Price dropping, when you start dropping your price, your potential customers will see you don't believe in your businesses products or services enough, and if you don't believe why should they?

3. No business plan, although we had tons of enthusiasm we had no solid plans, even if our first car had sold we would have bombed because we had nowhere planned to go forward to.

4. Lack of professionalism, as well as poor ads in the paper our business suffered from the fact we were two enthusiastic amateurs, with no telephone manner, and poor salesmanship, we also lacked in confidence to hold up our prices and stick till it was sold.

5. Impatience, I firmly believe this is our biggest business mistake, and one I see all too often in online entrepreneurs. Impatience will stifle your business. The budding entrepreneurs that were my buddy and me didn't want to wait for our profits, we wanted instant results, and that just doesn't happen. Ask any "overnight success" and they will tell you they only acheived overnight success after years of trying.

6. Doing the same thing, and getting the same bad results. We never changed our routine, it didn't work, but we kept following the same steps, and failing in the same ways. We should have been testing, and tweaking our sales techniques, instead we used the same ad format, in the same paper, and dropped the price in the same way every time.

So take a step back, and look at your business practices, can you see yourself making any of these mistakes?
Are you expecting instant riches from your business? Do you believe that dropping the price will get you more sales? Do you need to improve your ad copy? Does your business portray a professional image? Are you doing the same thing every time but expecting different results?

Be honest with yourself, look for the mistakes you might be making and don't keep making the same mistakes every time. Hopefully you can learn a little from my business mistakes and turn your own business around to be what you want it to be this year.

Douglas Titchmarsh writes a weekly blog and newsletter full of sound business advice and online tips which you can read by going to www.thediscountebookstore.com/blog as well as running an online business at www.cashinonline.info

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What Would Eminem Put In His House?
I've often wondered what Eminem might have in his house. I wonder what decor a rapper from Detroit would want. I read his bio in several places, watched his movie 8 Mile and I've thought about this a lot. I actually grew up a block from 7 Mile. I think my life was quite a bit different than what I read about him, but still, I visualize 8 Mile, I know I traveled daily down 8 Mile's east and west side on my way to school (which was across town for me).

I have some collectible items that I imagine would suit him. I might be way off the mark. I'd like to think someone like him would not indulge in mega bucks for sofas, paintings and extreme high ticket items because he's seen success, but rather would want to live amongst a more down-to-earth collection or decor. I've read descriptions of his early years as being part of the "white lower-class experience". Somehow, this doesn't line up with a home decked out from fancy Design Center furnishings, but oh well. This is my fantasy:

I think Eminem should have his walls covered with tin signs - memorabilia - like one for Ford Trucks (made in Detroit), or a tin sign of a Remington Shotgun and Duck. I have no clue if he drove a Ford or went hunting, but I do know these are big things in Michigan. And if he is a hunter, maybe he likes Deer things - a Deer Key Rack, or a shelf with a moose head.

I picture him in a kitchen with some corny things - I know he has the best appliances and cabinetry available, and maybe his counters are costly granite imported from who knows where. But I just hope he has a Kitchen Fairy on a Pie to bring it all down to reality. And a Half Eaten Apple Salt and Pepper Set. Those fans he raps to, they are more likely have that in their kitchen than an original Andy Warhol painting.

Well, maybe not. We don't mind our celebrities living it up to the hilt. We just want to relate to them and in Eminem's particular case, he's carved himself a space in the limelight that draws attention from ALL walks of life, not just those in his newly acquired (hopefully) wealthy class. I just hope he keeps some reminders of those early years by surrounding himself with some of the simple delights around.

Loretta Logan is a freelance writer. Visit her favorite things at www.shop-tilludrop.com

Gas Prices Go
Recently, the price of gas has gone up approximately three or four times a day, depending on how energetic the person is who climbs up and changes the prices at your favorite filling station, until the only word for the skyrocketing astonishment is "gas-tronomical!”

President Bush took a bold stance on the issue, saying, ““Americans understand the price of crude oil is going up but they will not accept manipulation of the market. And neither will I!”

Proud words, perhaps evoked partly due to anxiety about how his credentials as an ex-oilman might weigh untowardly on his credibility and on his already in-the-well approval ratings.

In the same speech, perhaps not quite recognizing the astonishing similarity to manipulation, but in a consumer-friendly sense, he announced that he is increasing the supply of the suddenly pricey liquid by temporarily halting deposits to the U. S. Strategic Petroleum Reserve.

Nevertheless, as a result of the dramatic revaluation of the ironically golden liquid, some surprising new players have entered the gasoline business. Tiffany has announced it plans to install a fuel pump next to the counter in which it displays its most extravagant diamonds. Cartier intends to retail the gaseous bauble in solid-gold thimbles. And DeBeers, the legendary diamond merchant, will promote its pricy petrol with a variation on its usual slogan, "A diamond is forever," with “A tankful is not forever."

On the other hand, Average Americans, in an effort to accommodate the daily dozen or so price rises, have adopted new ways to get to work. One, called deep carpooling, requires commuters to stuff themselves into cars until their arms and legs are sticking out the windows. Another is to hitch a half-dozen or so cars together, so they can all move along with only one engine burning the precious fuel.

Others have once again opted for the uncertainties of mass transportation and, as expected, are often arriving at work late en mass.

But Americans are a can do people, no matter how much a can of Middle Eastern oil attempts to grease the skids in their wallets.

Tom Attea, creator of Newslaugh.com, has had six shows produced Off-Broadway and has written comedy for TV. Critics have called his writing ""delightfully funny" and "witty" with "good, genuine laughs."

Tripods: Staying Still For The Perfect Photo
When it comes to buying a tripod there are a few things that need to be looked at and checked out. All tripods will come with a replaceable head or a fixed head. Some of the tripods on the bit more expensive side will come with a replaceable head that allows the photographer to select the size of the head that will fit your camera. Some of the tripods that are great for amateurs come with a fixed head and in compact style for easier use and carrying ability. Most tripods that have the fixed heads will come with the tilt and pan handles.

Tilt and pan heads have two different handles attached to them from the sides or bottom. One is used to move the camera up and down and the other is used for the side-to-side direction. These types of heads are vital to the movie industry and anyone wanting to take mpegs with a digital camera. The ball and socket heads work well with still photography and it is needed for a firm locking and an easy give for the use of one or more camera that may need to be changed during photo shoots.One of the most popular types of tripods are tabletop or mini tripods.

It is quite simple to mount a camera on to a tripod; all you need to do is screw the camera on it. Yes, it really is that simple! Tripods are used to keep your camera steady and extremely still. In the photography world there is an unwritten rule of thumb on when one should be used, 1/focal length s. For an example if you have a 200 mm lens, the slowest speed that you should use without a tripod is 1/200 s. Anything over that your camera should be mounted on a tripod for a more clear and steady picture.

Albreht Moy has many photographs for sale at his website.

Paying Referral Fees to Designers as a Creative Subcontractor - Should You Do It?
Kirstin,

I am a faux finisher and I do some murals, too. When my clients ask me for referrals for designers, I give them names of people whom I think can help them. Should I let the designer know that I referred them?

- Arlene, Baltimore, MD

Arlene,

Not only should you let the designer know you referred someone to her, you should also ask for a referral fee or a percentage of the contract if she gets the client.

In the creative industry it is somehow "standard" for designers to get a percentage of contracts for murals, faux finishes, and other artistic work, but somehow it is not standard for the reverse. He who has the client's trust is the one who holds all the power. Should you be the one who the client trusts enough to ask for a referral, you should be rewarded for giving that referral.

If someone refuses to pay a referral fee or percentage for work you handed to them, then work with other designers or vendors. There are plenty of people out there who understand the value of a "hot referral" and are thrilled to reward people for them.
We all know how difficult and costly it is to get a new client and how much time and effort is spent on marketing and selling. If someone hands you a "hot referral" that leads you right to new business, you should reward that person with a check. Don't see it as a loss of income, see it as a gain in new business. Without the referral, you wouldn't have had the business. Most successful businesses - in every industry at every level - make a portion of their revenue from money paid to them for referrals, and you should, too.

-Kirstin

Kirstin Carey is the author of "Starving Artist No More: Hearty Business Strategies for Creative Folks". Kirstin knows that most creative professionals hate sales, contracts and discussing money. She consults creative folks on the business side of creativity so they make more money, attract better clients, and love what they do. Get proven strategies and insider secrets to help creative types like you get the business help you need at www.MyCreativeBiz.com