Hi everyone! I’ve just filed my first LLC & am planning to open a vintage boutique in my city- I’m completely new to owning a legitimate business of my own. I thought this would be a great question to ask as I know I’ll be making many mistakes in my first year of business.
Please feel free to comment your favorite mistake!
Your least profitable customers will be your biggest headache.
Don’t be afraid to get rid of customers if they’re too much hassle, even in the early days and you’re worried about cash and profit.
I wish I learned this sooner. You actually have to “fire” customers. My dad always taught me to “take in everything you can, money is money” and that was such terrible advice. I own a 3 bay garage and I remember back in 08’ when we were dead and I had all 3 lifts filled with those cheap customers. Was making peanuts on all 3 cars combined. An actual REAL profitable job showed up and I couldn’t take him in at the time and he went some place else. Then I’ve had guys who would being me “favors” all the time and then I realized he never gave me anything real. Always said his customers were just broke and couldn’t afford more. I know now that he was cheap with me and would charge his customers like crazy. 20 years and I’m learning every day.
I love that expression ‘firing customers’ !
I’m probably going to fire a client next week for the first time. She is such a time suck. Not profitable. She spends hours of unbillable time asking dumb questions about my very detailed proposals. If she approves, it goes through magnitudes of revisions, then she fights the bill. It literally says “as bid” and reflects the proposal cost. No idea how she thinks she has a leg to stand on. She can go waste someone else’s time