For all of those ill informed individuals, who do not know what a GHD is, it’s a tool used to straighten your hair perfectly. These little babies usually retail somewhere in the $300’s depending on the matching accessories released with each model. You’ll notice from my title that I claim to have paid for the world’s most expensive GHD, so et’s go back a couple of years & you can explore my disaster.
I was a stay at home mother with four children. I like to invest and had a go of a few things over the years, some more successful than others. I had started at the time, a little system which involved building investment properties…..But we will need a whole other blog for this system, so let’s continue on with what brought me to the heading above.
I had read a quite a lot about investment diversification. Particularly about branching out and diversifying into buying businesses. So I thought, hey let’s give it a crack.
I had already established other business structures from scratch, so I how hard could this possibly be, right? Let’s buy a cheapie & give it a whirl. As this is one of my greatest failures, I will list all my mistakes in order, in hope that you learn from mine & don’t make the same ones.
I do understand this all happened due to the disasters happening in my personal life at the time, but the point is, if you want to go broke, just let your personal life cross over into your professional, cause it’s the sure way of losing everything you’ve worked hard for.
- Bored out of my brains, I decided to buy a little business to help reduce my ex husbands potential high tax bill in our company/family trust structure. I decided to spend a mere $25,000 on a salon in the main street of Bundaberg. What could go wrong? Location Location. Lots!…ARROGANCE
- Where was my bloody business plan? I was the annoying person who drove everyone crazy about preparing business plans & due to this and that for some reason, I just never found the time to prepare one for the salon. I was truthfully a complete hypocrite. I could write a business plan with my eyes closed. Apparently I was too far above writing one for my own business, why? Well it was only $25,000, probably wouldn’t matter that much, it’s not like we’d borrowed a million right? NO BUSINESS PLAN
- Bullshit figures. The figures were crap and my gut told me they had been fiddled with, but I did it anyway. IGNORED INTUITION
- Hired family. What was I thinking? There are actual sayings about this. Never Never do it, but I did that one too. HIRED FAMILY (this one isn’t set in stone, depends on the situation I guess)
- Because I didn’t have a have a business plan, I had not planned for what happens if something unpredictable goes wrong, like your husband at the time having a head on motor bike accident, which lead to both of you having a bit of a break down, car accidents, bills piling up in washing baskets, the list could go on all day I promise you with our past events. We now have a person controlling a business who is going through a self esteem crisis creating further destruction, along with the judgement from others, escalates what started as a quaint little snow ball & turns into a horrific avalanche, gaining momentum rolling in your thousands of dollars on it’s way down. Don’t worry it does stop, when its flattened you like a pancake, all because you had no plan in place. So, there you are winging it with nobody to help you fix the situation. Basically if you had completed a business plan, you would have nominated a person to take control when clearly you were not capable of continuing at that point. AGAIN NO BUSINESS PLAN
- When did you start to become a failure? SELF DOUBT – you simply can not afford to be not thinking straight, so take time out to do so.
- Know when to dump it. So you’ve made some terrible decisions for what ever reasons. The most frustrating thing is when you know the mistakes are out of your control & not your doing & due to your pride you keep trying to make everyone happy and the business continue, far past the point when you should have shut the door. If it’s completely broken, as in smashed to smithereens. Dump it today, dump it now, dump it quickly. KNOW WHEN TO CLOSE THE DOOR. NO MORE DOORS CAN OPEN FOR YOU WITH BETTER PATHWAYS UNTIL YOU CLOSE THE OLD ONE!
- Never try to hire yourself out of a mess. I took on a partner to try and fix it. That was the worst decision I made. Why? Because nothing was in writing. EVERYTHING IN WRITING.
- The biggest hurdle was that I wasn’t a hairdresser, so I couldn’t even fill in. IF YOU DO NOT HAVE THE QUALIFICATIONS NEEDED FOR THE BUSINESS, WHAT IS YOUR BACK UP PLAN, IF YOUR STAFF CAN’T WORK
The point is, never cut corners when buying a business or any property for that matter. I think Winston Churchill said it all – “He who fails to plan, plans to fail!” When it all went bad, I begged & borrowed to sort out the mess, tirelessly paying out each creditor. Years later I’m still finding I’m paying for an odd expense here or there, as they arise. Messes are made, but clever planning ensures productive outcomes if things do go wrong. Of all the products & equipment in that salon, I was left only with a four year old GHD….Well Done Melissa! Not my most impressive moment.
Whether it’s buying a business or buying a property, I’m still amazed how many people we see coming into our office, who have made financial decisions to buy particular businesses or property based on their own Internet research, or friends input only (Just ask your local doctors, what they think about their patience’s, self diagnosing themselves from their own research).
My message to you is, there are experts in the areas of buying selling, funding, & planning for a reason. They become qualified for a reason & that reason is to help people like you & the former me, make well thought out educated decisions into their financial future.
Don’t get me wrong, I am always the first to encourage someone to extend their knowledge, so doing your own research is a must, but don’t rely on that information solely. Armed with the knowledge which you now have, is what you take to the professionals. I can guarantee there will be something you have not thought about which they can bring to light for you & create relevant pathways & solutions to the purchasing of your new business or property.
By the way, all you ladies out there & guys that can’t come up with a good present for your beloved…Buy a GHD, they are an excellent product, actually the best hair straightener on the market, but just pay standard retail, don’t do what I did!