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  1. CPisHere

    Inventory is Evil

    HOT! 
    Correct. I agree completely. The problem is most people going into inventory-based businesses do not realize this, which unfortunately included me. Luckily I've been able to stick it out but it's been a painful learning curve. What do you consider a very healthy growth rate for an...
  2. CPisHere

    Inventory is Evil

    HOT! 
    Maybe I'm not being clear... If you have an inventory-based business with 50% margins, and you double your growth - to achieve that you either massively increased debt or didn't take out profits (depending on other costs, maybe both). True enough, as soon as you stop growing, that profit...
  3. CPisHere

    Inventory is Evil

    HOT! 
    The context was that there was no Net Income because it was reinvested for growth.
  4. CPisHere

    Inventory is Evil

    HOT! 
    Just because it's Evil doesn't mean you shouldn't invest in it. Obviously you should if your business requires it. But let's take an information marketing business from a few years ago as an example. They have $100,000 in DVD's for inventory, which they believe is a competitive advantage and...
  5. CPisHere

    Inventory is Evil

    HOT! 
    Can you pay your bills with growth?
  6. CPisHere

    Inventory is Evil

    HOT! 
    Your product is your unique advantage, and to sell it you need inventory. But if you have 50% margins & double your sales, all of your profit is now tied-up in inventory.
  7. CPisHere

    Inventory is Evil

    HOT! 
    Anything that restricts growth & prevents you from removing profits from a business is evil. The problem with inventory, and in some cases Equipment, is that it seriously harms your ability to grow and/or actually take "on paper" profits out the business in cash.
  8. CPisHere

    Inventory is Evil

    HOT! 
    I'm glad I've got a conversation going. Some people seem to believe that since Inventory is necessary and/or valuable, it can't be evil. Let's go one step further... What about employees? Are employees a necessary evil?
  9. CPisHere

    Inventory is Evil

    HOT! 
    I own a physical retail store, and I'm saying Inventory is evil. It's a NECESSARY evil, but it's still evil.
  10. CPisHere

    Inventory is Evil

    HOT! 
    Great analogy. Can you explain further?
  11. CPisHere

    Inventory is Evil

    HOT! 
    Inventory is something you can use to differentiate yourself, absolutely. And inventory is generally good for/valuable to the consumer. But for profits, and actually taking cash out of a business, it's terrible. Push that burden to others as much as possible. People assume that big retailers...
  12. CPisHere

    I worked 20 hours yesterday

    EXECUTION 
    Just an update... Here we are less than a month later & I now only put about 4 hours/week into my business as I shift it into maintenance mode. I am testing how easy & long I can run it like this but will be ramping up the hours for growth in the next month or so, which will allow me to quit...
  13. CPisHere

    Inventory is Evil

    HOT! 
    FYI for others, WCR = Working Capital Requirements. This & cash conversion cycle are two concepts I never learned before opening an inventory-based business that I wish I would have. They can be managed but if you don't recognize them & pay attention to them they will destroy you.
  14. CPisHere

    Inventory is Evil

    HOT! 
    Tim Cook himself has said that inventory is fundamentally evil. For some businesses it is a NECESSARY evil - and those business certainly have other positives that may outweigh it, but it's still evil.
  15. CPisHere

    Inventory is Evil

    HOT! 
    Dan Kennedy (and others) say "Inventory is Evil". Owning an inventory-based business, I have to agree. #1 it's expensive to get started or grow - as you have to buy inventory before you can sell it #2 it's a giant risk for not moving (requiring mark downs), getting stolen, going obsolete, etc...
  16. CPisHere

    What book are you reading? Right now. Post up!

    NOTABLE! HOT! BOOKS CHAT 
    I just finished 3 Grant Cardone books... 10X Rule, Sell or Be Sold, & If You're Not First You're Last. They are good - motivating and helpful to understand the work necessary to win. But Grant totally lacks prioritization as a principle. You have to pair his books with like 80/20 Sales &...
  17. CPisHere

    Found location I'd like to lease....

    Another option, if you just want a job & not a real business, is to just watch kids out of your home. A lady charges $50/day per kid, she watches 5 kids/day Mon-Fri. That's over $5k/mo she makes tax-free. I doubt many childcare centers beat that.
  18. CPisHere

    Found location I'd like to lease....

    Look at daycare businesses for sale. The ones I've seen are not very profitable - doesn't seem like a great business model. But if you still want to go for it, figure out what your expected revenue would be. The facility could fit 20 kids, and you charge $500/month per kid - that's $10k/mo...
  19. CPisHere

    Can Real Estate Investing Really Lead to the Good Life?

    REAL ESTATE 
    THIS. Real estate requires substantially less talent, but more cash, than entrepreneurship, which is why the success rate of real estate investors dwarfs that of entrepreneurs. And that's not a dig at real estate investors.
  20. CPisHere

    I worked 20 hours yesterday

    EXECUTION 
    I have a full-time job with a 1 hour commute each-way, and I just recently bought a janitorial service company. My goal is to get this business to generate $8,000/month take-home while only requiring 1 day/week of my time within the next 12 months. That's about two times what it's making right...

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