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EDDIE BAUER THE TRUTH


royalforest

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Congratulations Jax snacks your my hero. I guess Warren Buffet, Bill Gates, Donald Trump ect.... should of  followed your advice. Investors give you money if you have a successful track record.  Lets please stick to the topic that was started. Actually, lets end this thread. If you want to bash my hot dog vending business, you can on the other topic section of vend discuss. Right now the only thing that has been done is a business plan. If my cart is not successful, there will be no Doglicious franchise.

I am not bashing your hot dog business just the over abuse of the OPM concept.  In fact I hope it works out for you since I always want the small business guy to win.  Everything in my business is paid for with cash and has a positive cash flow and I don't have a $220,000 debt for a failed vending business.  Of course your good friend who loaned it to you will cover it, right?  No problem if all goes down the drain, right?  For every Bill Gates, how many others have failed?  We will never really know, but it is probably in the thousands - not very good odds.  Focus on hard work, developing a sustainable business model, working smarter and growing it slowly but surely.  Nuff said.

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JaxSnacks

I appreciate your comments but I don't have a failed vending business. Yes it is not profitable yet but I am working to turn it around. I am still in the first inning. My investor has done well with me in other investments. He is a good guy, a millionaire, knows the risk, and knows I will do everything in my power to come through for him. My clients are like family to me and that is why I got so upset on this thread.

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JaxSnacks

I appreciate your comments but I don't have a failed vending business. Yes it is not profitable yet but I am working to turn it around. I am still in the first inning. My investor has done well with me in other investments. He is a good guy, a millionaire, knows the risk, and knows I will do everything in my power to come through for him. My clients are like family to me and that is why I got so upset on this thread.

No problem Royal.  I guess we all need to cool off and try to move on and tone down our ranting.  I truly hope things (hot dogs, vending, locating) work out for you (and Eddie).  I am big supporter of small business and would never wish bad things on the "little guy".  As you say, you are in the 1st inning, so keep on pluggin away and stay focused, but don't over extend.

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OPM is certainly a legal and valid approach to making money.  But OPM is a sleazy way to make money IMHO.  All upside and NO downside for one party since only other people's money are at stake and not one dime of the so-called entrepreneur.  I have seen many highly educated and intelligent people fail at business because their pie-in-the-sky idea had no way of working in the real world and was not sustainable.  When their ventures fail, they just shrug their shoulders and walk away, but the “other people” get the shaft and lose everything.  I want no part of that type of business model.  

thats why the investors get a risk premium, if they were worried about losing their money they should invest in t-bills.  if the idea had no way of working and there were no hard assets why would anyone invest, sounds like the old adage about the fool and his money.

as far as taking on debt to expand a business if there is a high probability of success, it makes more sense than selling equity because selling equity punishes you for being successful, if you have a low chance of success its pretty likely no one will give you a loan anyway but you maybe could sell a stake. additiaonlly its odd no one mentioned the tax advantages (and inflationary advantage) of using debt over cash or equity, assuming you are not personally on the hook for the money.

CNBC was talking about the “good old days” when the owners and partners of investment firms had their own assets on the line and at risk if the business failed.  So if stupid and excessive risk taking were to happen (like over the past few years), then they personally would be on the hook.

the guys on cnbc were most likely talking about equity not debt

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WOW this is better than watching Novelas( Mexican Soap Operas)

I do not know where to start...So I won't

One comment on pay paypal. They do not defend their sellers at all. My dad sold some baseball cards for a few grand. the guy pulled the money cards and return the rest. Then filed a charge back sating the he did not get what he ordered. My dad lost the thousands he was paid and the thousands in card's value that were not returned. He stopped using paypal for years and has only started using them with smaller priced items.

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No still in the whole. I am Sad and it hurts because it is more like a 150,000.00 loss. As you build a route you can only sell for approx half of what it cost to build if it is not done right.

I would say what you did is the textbook definition of how not to start a business. No need to say anymore as its all been covered but hope you can salvage something from it all.

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And what is this textbook definition you are talking about?

Its a figure of speech and you know that. But there is a general consensus on the right and wrong way to start a business regardless of what the business is.

Execute due diligence before investing

Dont throw rediculious amounts of cash at the new venture from the start

Have patience to see what results are showing from whatever you do invest before investing more

Dont setup up your business in a far away place where you cant properly oversee it

Learn to accept constructive criticism

These apply to any and all businesses, but especially vending.

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