On 2014-10-31, Bob La Londe wrote:
"Ignoramus28704" wrote in message
...
We all have heard of "poverty cycle", where people are trapped in low
paying jobs, have to work a lot just to make ends meet, have no time
for education, start drinking on top of that etc.

This poverty cycle is real, and while it is possible to get out of it,
it takes a real feat and a superhuman effort.

What I want to bring up is that there is an analogy of poverty cycle
for businesses. This is includes one-man businesses, just as well as
larger companies. The poverty cycle for a company is being trapped
in a low return, high hassle business. Similar problems accompany
companies in poverty, such lack of funds to improve, lack of time to
think about doing things differently, being unable to reject
undesirable clients, etc.

A big effort needs to be made to stay out of the business poverty
cycle. Getting out of it, may be completely impossible (unlike for
people).

I


Its certainly a problem in business to decide how you want to work, and how
to stay in business doing it. All the business models they teach you in
college work... on paper. The thing is unless you are the dominant bullying
big player (Wal-Mart, Ford, Bass Pro Shops, Home Depot, etc) in your market
segment many of those things are invalidated or distorted by necessity for
customer service, conditions of your vendors, selection vs turn rate vs
repeat & addon business.

Even for the big players there are times when its tough. Look at GM.

Both small and big businesses can be in a business poverty cycle. What
determines if the business is in poverty is a non-working business
models, low returns, and a lot of distractions for management.

GM is a perfect example.

i