As a smart small business owner, you should have seen this coming. Perhaps you should have not over extended yourself as much as you did, otherwise you would have not had liquidity problems. Then again most small businesses fail due to under-capitalization.
Is my business the first to die because of the election?
- Thread starter longdayjake
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longdayjake
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Yeah that must be it. If I had a lot more money to work with rather than using credit I would have bought a lot more bullets. Sadly I am a sole proprietorship and can't just throw up my hands and claim bankruptcy if the credit gets out of control. Most people I talked to about starting a business told me to get an LLC so that I could just claim bankruptcy if I got over extended. Though I admit it was tempting to do I thought at the time that I would rather avoid such problems and work with a reasonable amount of debt. As far as me blaming the election, I have the evidence in that even with the slow economy I was doing just fine to supplement my income until the day after the election. I set up this business so that it would not hurt me or my family if it was to go under but rather to support my taste in expensive firearms and in feeding them. I own and shoot a lot of guns thanks to this business. So, in my eyes my business was a success because I am now the proud owner of thousands of rounds of ammo, an m1a, ar15, m1 garand, and various other military and hunting rifles and none of these purchases has made it difficult to pay my other bills. Also I have built up some crazy credit all in my name. I can see how some people would think that my business plan was a failure but I just see it as a job well done that I just can't maintain forever. Those that have bought from me will attest that I run a business really well because I am always in contact with them and my shipping and customer service is excellent. I am not the only one having issues getting things in stock right now, but I may be the only one with nothing at all in stock. I admit to be kicking myself in the butt for not having maxed out every bit of credit I have before the election, but I decided to play it safe. If that makes me a bad businessman then so be it.
Have other bullet sellers gone out of business this week after Obama was elected president?
Seems to me this is happening to Jake, but it is not necessarily wide spread.
Jake, take it from another businessman. Hang in there, bud. Keep the day job and hang in there.
You'll get your suppliers back. You'll get your customers back.
You're not the type to lay down and die. Keep kickin'.
Seems to me this is happening to Jake, but it is not necessarily wide spread.
Jake, take it from another businessman. Hang in there, bud. Keep the day job and hang in there.
You'll get your suppliers back. You'll get your customers back.
You're not the type to lay down and die. Keep kickin'.
Archie
Member
Jake, you've got a good attitude
Not blaming the whole world for a local misfortune; that's refreshing and actually encouraging.
I'm thinking about starting a small business when I retire. Something small that will keep me busy, give me a little profit and not destroy my life savings if it doesn't work out.
I understand the late "Colonel" Harlan Sanders (of Kentucky Fried Chicken fame) went bankrupt or bust numerous times before he finally made it big with the celebrated fried chicken recipe. It's hard to win if one quits at every dissappointment, and it doesn't sound like you're a quitter.
Life goes on.
Not blaming the whole world for a local misfortune; that's refreshing and actually encouraging.
I'm thinking about starting a small business when I retire. Something small that will keep me busy, give me a little profit and not destroy my life savings if it doesn't work out.
I understand the late "Colonel" Harlan Sanders (of Kentucky Fried Chicken fame) went bankrupt or bust numerous times before he finally made it big with the celebrated fried chicken recipe. It's hard to win if one quits at every dissappointment, and it doesn't sound like you're a quitter.
Life goes on.
Art Eatman
Moderator In Memoriam
If you've watched commodity prices lately, you already know that they've fallen quite a lot. Base metals as well as other items.
Many suppliers had to buy during the runup in prices. They're holding, now, as much as possible, hoping for a re-inflating of prices so they won't sell at as much of a loss.
Many suppliers had to buy during the runup in prices. They're holding, now, as much as possible, hoping for a re-inflating of prices so they won't sell at as much of a loss.
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longdayjake
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That makes sense.
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longdayjake
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This just in. I was able to get some bullets just now, but my prices don't reflect much profit. If they start selling like crazy then I guess I will get to raise my prices like everyone else. Sadly, I don't think they are that good of a price as it is. But don't tell anyone. They are still cheaper than anyone else on gunbroker.
I just contacted my supplier, he's been busy this summer laying in a stock of bullets to get ahead of orders. Just sent him a MO for 1500 9mm LRN's, 1500 .38 SWC's, and 1500 .44 SWC's. This is the guy I mentioned earlier with the Magma machines in his garage.
Double Naught Spy
Sus Venator
It is kind of you to sell at little profit, knowing you don't have a good source with which to resupply. It seems awfully shortsighted of you as a businessman, especially given your opening post, to be doing that.
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longdayjake
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The reason I am not selling for much profit is because the bullets that I just bought were sold to me at higher prices then I am used to. Also, I bought a lot more than I probably should have and am hoping to pay off the credit as fast as possible. Once I pay off the credit I can relax and let my stock sit longer. Yes, that is short sighted but it keeps me out of trouble.
jeff-10
Member
+1
Are you reselling bullets or loaded rounds? If bullets, then on a small scale it does not seem viable. Maybe you could start manufacturing them?
Flatbedder
Member
As a buisness owner I will say this. Your suppliers will protect their largest and most important customers first. I run a trucking company that specializes in flatbeds. I have seen what has happened to the metal and scrap metal industries in the last 2 months. Not pretty. Just when smelting and mining companies were slowing down to adjust for the down turn there seems to be a spike in demand. Copper, brass, aluminum etc. If there is a lag in the supply chain, and therefore, a lag in production and distribution, what small inventory there is, is going to go to the largest customers first. Sorry, but that is just the economic facts. I just tried to log onto Magpuls website to order 10 more 30 round mags. Guess what? no more direct orders. They are only supplying to their dealers and distributors. Things will balance out, but it will take a few weeks to get production ramped up and supplies moving again. As a transportation company owner, I can tell you that things have slowed dramatically. It will take a while to get some loads out on the road and get the factories back up to speed. I believe there will be plenty of goods available before "Lord Obama" decrees that EBR's are no longer available to the commoners.
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