The chance of a lifetime: You are asked to start a bike shop. How should it be done?

[R-Soul]

They dont want some constructive advice to save them from their own stupidity, they want to tell us what a bunch of stupid blind old fogies we are. Thats why several posts ago, I started to actively encourage these experts to put their money where their mouths are & get on with it.
I think FAB is a great idea & the brainchildren of it should crack on ASAP with getting it off the ground, I mean, look at Sam Morgan, the brains behind Trademe. Youse fullas could be the next him.

FAB? What is FAB?

[onearmedbandit]

FAB? What is FAB?

Find-A-Bit. A made up company used as an example by a previous poster in the thread.

[Scorp]

FAB? What is FAB?

My vote is for "Fondle a Babe"

... but unfortunately I think it's Conquistador's "Find a Bit" idea.

[steve_t]

FAB? What is FAB?

Haven't you seen Thunderbirds? Or am I showing my age again

[Scorp]

Haven't you seen Thunderbirds? Or am I showing my age again

I remember it well. But I never did know what FAB Virgil actually stood for!

[T.W.R]

Cool. I've worked in a wide variety of businesses and have a business degree and a diploma in direct marketing. And in that time I've learned that if you own your own business, and it doesn't make enough profit for you to line your pockets, that a). you're wasting your time, and b). you'll quickly go out of business. I'm surprised this hasn't occurred to you too. I agree, that becoming too set in your ways can be bad for business, but not as bad as ignoring the imperative of turning a profit. Profit is king.

you should go to the top of the class for that you can't have read some of my earlier posts in the thread.
profit isn't really the king of having a successful business in the long term because if you screw to many in the chase for the almighty dollar it'll come back to bite you on the arse.....perfect example is Ray Kroc.....have a wee google and rethink your strategy

[PrincessBandit]

I remember it well. But I never did know what FAB Virgil actually stood for!

Funderbirds are Bo Virgil.
For what it's worth, I don't think many businesses would stay afloat if they were run completely from a customers perspective.

[Scorp]

you should go to the top of the class for that

Funny how irony is a one way street.

profit isn't really the king of having a successful business in the long term because if you screw to many in the chase for the almighty dollar it'll come back to bite you on the arse.....perfect example is Ray Kroc.....have a wee google and rethink your strategy

No profit IS king if you want long term success. Because if you're not making a profit, you're going out of business. And then there is no long term.

P.S. I said 'profit' is king. I didn't say screw your customers to the wall. Big difference.

[onearmedbandit]

Profit is necessary, why without it how can you provide ongoing support in terms of service or supply of goods. Any decent customer will realise this. Making an obscene profit is in some cases is highly questionable (I can accept that some goods are extremely hard to source etc or some services are provided by very highly trained and experienced people) but profit at the end of the day is king, because without it your doors shut.

[bogan]

Or is sustainability King, because it keeps profits in check

[Katman]

I must be deluded. (And doomed to failure).

My passion for motorcycling is King.

[T.W.R]

No profit IS king if you want long term success. Because if you're not making a profit, you're going out of business. And then there is no long term.

P.S. I said 'profit' is king. I didn't say screw your customers to the wall. Big difference.

OK so if things aren't doing well you're going to keep your profit margins up :slap: A successful business will always cut it's profit margin when things are looking grim so they can keep afloat in order to survive.....a successful business is continually adjusting to the economic enviroment

[Scorp]

OK so if things aren't doing well you're going to keep your profit margins up :slap: A successful business will always cut it's profit margin when things are looking grim so they can keep afloat in order to survive

You can "keep afloat" on a small profit margin, but without one, you sink. Reducing margin is one thing. But if a business has to cut it's margin to the extent that it isn't actually making a profit, it's not a successful business. It's about to fold. That's why I said that profit is king. Because if you're not making a profit, you're making a loss. And if you're making a loss, you're on your way out of business. Simple maths.

.....a successful business is continually adjusting to the economic enviroment

Only if it's also making a profit. Otherwise it's just continually dead.

[Robert Taylor]

They dont want some constructive advice to save them from their own stupidity, they want to tell us what a bunch of stupid blind old fogies we are. Thats why several posts ago, I started to actively encourage these experts to put their money where their mouths are & get on with it.
I think FAB is a great idea & the brainchildren of it should crack on ASAP with getting it off the ground, I mean, look at Sam Morgan, the brains behind Trademe. Youse fullas could be the next him.

Motivated dealers like Scott411 are already using their own form of FAB.

[Smifffy]

You can "keep afloat" on a small profit margin, but without one, you sink. Reducing margin is one thing. But if a business has to cut it's margin to the extent that it isn't actually making a profit, it's not a successful business. It's about to fold. That's why I said that profit is king. Because if you're not making a profit, you're making a loss. And if you're making a loss, you're on your way out of business. Simple maths.


Only if it's also making a profit. Otherwise it's just continually dead.

Have you ever actually owned a business? Sometimes losses are made, and if you close your doors in a panic the first bad month you have then you may as well close now. IMO that kind of thinking is what made this last recession bite all the harder. In previous years, during a bit of a blip in the economy, manufacturers would continue to build a bit of inventory to keep running, businesses with sufficient capital weathered the storm, and creamed it when the under-funded "lean" businesses folded.

Now with all the MBA fuck-wittery leading to every asset a business ever had being sold off and leased back, with the funds going to executive bonuses, rather than back to capital, the whole thing collapses.