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Tuesday, May 15, 2007

Lessons From My First Small Business Attempt

After reading Robert Kiyosaki's book Rich Dad Poor Dad I was very keen to start my own small business. Despite having spent my life working for a pay check I decide to become rich I would need to start my own small business that I could run part time. To this end I brought a sited soft drink vending machine for $4500.

After reading Robert Kiyosaki's book Rich Dad Poor Dad I was very keen to start my own small business. Despite having spent my life working for a pay check I decide to become rich I would need to start my own small business that I could run part time. To this end I brought a sited soft drink vending machine for $4500.

Although I'm not that mechanically minded and knew nothing about vending machine I still went in feet first. I plugged the sellers for all the information possible and he promises to forward me on an instruction manual (he never did!). Despite that vending machines are fairly simple. They are a giant fridge that hold drinks. The most complicated part is the computer vending mechanism that recognizes what change is being put through and guarantees its money and not metal rings or the like.

Everything was going fine and I fortnightly restocked the machine. It was pulling in about $70 a week, which meant it would take two years to get back my ROI (return on investment). On top of that were petrol costs, time restocking the machine and counting the money and bagging it for the bank. Everything was going fine as the machine was sited in a boatyard warehouse. Hot young men with no air conditioning dying for a cold drink.

However a few months later disaster. The boat builder owner - who was never the most friendly guy and seemed to just tolerate me locked the gates. I wanted in to my machine and he said come back in a couple of days. I came back and the company was GONE! I was afraid my machine might have gone walkabout as well and $4500 was gone (its near impossible to get insurance for a vending machine).

I eventually contacted the warehouse owner and he was kind enough to let me in. My vending machine was there, but no customers and the owner wasn't interested in being burnt again over rental so was selling up and didn't know how long it would be before a new business would be there.

I had to move the machine to a new site - which earn practically nothing. The cost of shifting the machine was expensive. I found suddenly the vending machine world was very competitive and I didn't have the time or nature to sell. Eventually I sold the machine for $3500 and although I didn't earn any money I certainly learned a lot of lessons.

My next business would need:-

No traveling
Not relying on other business owners
No sourcing product constantly
Have a known rate of return
Be larger than just my local market
Cost less money to set up
Have a bigger income potential.

I found that business on the internet.

Like to know what that business was? visit http://freedom.ws/alstar70

This article is the property of Alastair HARRIS and his immediate family. It may be freely republished over the internet but must include original links.
Alastair HARRIS is the main promoter for article-gems.com article directory (visit http://www.article-gems.com) and the getfinancialfreedom4u family of websites, blogs and projects (visit http://getfinancialfreedom4u.ws) specializing in online business opportunities and education, income being generated by affiliate marketing, Google, GDI, eBay, e books, clip flipping and more. Alastair is rated as an expert author on numerous article directories and is very open to assisting others on the internet

Article Source: http://EzineArticles.com/?expert=Alastair_Harris

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