What is your company’s financial state of being if it is fully leveraged?

ferfighter:

how do you avoid that situation?

When a company is fully leveraged, it means that the company is out of money and near bankruptcy. This is not a place anyone wants to be, especially if your company is your only source of persoanl income.

For myself personally, I worked out a business plan to prevent this from happening before I stepped in to make a deal. Before I go into my plan, it would help to know what my business is…

I run a MMA (Mixed Martial Arts) fitness class at a studio where I sub-lease the floor space; meaning I pay for the space to use it.

My business plan that I came up with went like this: I will give the studio 25% from the total of what I bring in. To the owner this sounded good enough and he took it. It also helped that at the hours I chose no one else was using so how could he say no to making money while he slept?

This plan covered me incase I could not bring in clients. He already had a facility with some resources (training equipment). I invested some of my own and kept it mobile with the plan to move to a bigger facility if my class should grow. If my class, did not grow, I walk away without owing a penny.

I told him to give me a month from the time I started to get people coming in. I told him that I would get the class to ten clients to start. He shared with me that he had other instructors running their own classes at different hours; some who only had one paying client so if I could bring in just one, I would be in the green. Little did I know how relevant this would become…

Two weeks into my grand opneing no one came in. I posted flyers at places where I thought my target clients would come from (Pasadena Community College and sport retail stores) and no bite! I was giving away a free month trial just to get people coming in the door and no luck! People are always willing to try a free sample, I thought a free month would be impossible to say no to. What was I missing?

One day my brother went to visit some friends from high school. I told him to tell them I said hi and mention my free class I was offering. The following week, three of his freinds had showed up. Out of the three, two of them signed up for my class when the trial ended. I was already one client ahead of the other two instructors. SWEET! I spent $40-$50 on advertising my class and my leads come through word of mouth, which was free… Life has it’s strange humor at times >:o

The last thing I arranged with the owner was that I would collect the income so he would not have to track people down. For me, I did not want to wait for him to cut me a check; the second smartest business move I ever made ;) Since then my class has grown to seven clients. I’m slowly but surely getting up there.

Ferfighter

http://ferfighter.blogspot

Comments
Great class!

jhurgo:

Really a great class free and very helpful whatever Industry you are in. Entrepreneur to me is “Freedom” you can create anything you want at your own time.

Thanks to CEC/PCC that they have this kind of class to help students / professionals to discover their passion and the teacher is Great!.

Jhurgo

Comments
Great class!

jhurgo:

Really a great class free and very helpful whatever Industry you are in. Entrepreneur to me is “Freedom” you can create anything you want at your own time.

Thanks to CEC/PCC that they have this kind of class to help students / professionals to discover their passion and the teacher is Great!.

Jhurgo

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Week 11 discussion

What is your company’s financial state of being if you are fully leveraged?

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Practice acts of kindness

jhurgo:

Its the little things….

Its not what you say , its what you do

Jhurgo

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Who am I? Who are you?

lateralthinking:

There are people who feel stifled and held back by the 9 to 5 job and all that comes with it.  From birth we are trained to fit into the box and become part of the ‘work force’.  Some people simply are not content being worker bees all of their life and need more creative freedom to follow their dreams to success.  We call them Entrepreneurs.

What makes them an entrepreneur?

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The Debate

In the beginning entrepreneurs were created with an eye for constant change. Vanessa Summers, the Financial Guru, an official blogger of Entrepreneur.com states in one of her recent seminars, “when the environment Changes its time to shift and adapt.” According to Vanessa, in the end highly successful entrepreneurs appreciate and embrace change as a universal law of life ( September 17th, 2009). Are entrepreneurs born? Look at yourself.

What are some of the facts that make you know you possessed a skill set not common to most? Are you involved in numerous projects at one time? Do you bore easily? Have you been blessed with many talents? Do ideas come to you quickly? Do you question the mundane and the mediocre? Have you decided to give 110% to everything? Have you seen the diamond? Do you have the magic touch? All of the questions are asked with the purpose of stimulating your mindset toward the path of Entrepreneurism. Entrepreneurism is a mindset embraced by those who have a touch of gold, have seen the diamond and those who realize they are destined to lead!

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I see the brilliance in everyone because it doesn’t benefit me not to
Martina Brown-Johnson
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