Last night at a local Meet-Up ( www.meetup.com ) of South East Small Business, Business Development and Referral Networking, we had an interesting discussion about mistakes in business. For example: Whether to pay outright or borrow for stock/equipment?
The example one business gave, was paying outright for equipment that would be sign-written to advertise another business (he organised advertising for businesses). The issue was that spending $10,000 on the equipment took all the spare money the business owner had, while the payment for the advert was monthly over a multi-year contract.
Hindsight showed that it would have been better to get a loan for the equipment, then add his mark-up for the advert and service on top of the monthly re-payments, and he would still have his $10,000 to use for cashflow and marketing.
Have you had a similar experience?
What Better Business Decisions can you share?