I just realized I haven't posted any personal business philosophy in months! Oh well, time to catch up. Actually, I will let the "I Will Teach You To Be Rich" blog author do my work for me.
A particularly stupid business idea from his great post:
" Ideas that compete on price. I was worried about putting this one down until I heard a friend of a friend say he was going to start a service to compete with Wal-mart on price. WAL-MART, THE WORLD'S MOST TECHNICALLY ADVANCED COMPANY IN LOGISTICS AND PRICING. Anyway, listen up: It seems like competing on price would be a good thing, until you realize that when you lower the price, you usually make less money. People are completely willing to spend more for other things like design (Target), service (Ritz-Carlton), hot people (Hooter's), etc. Don't compete on price. Once you factor in things like time and gas costs, it's very hard to compete against the scale of bigger stores. Also, you'll get the worst clients--the ones you'll have to pry money from--frustrating you with your low cash flow.
Hope you enjoy and learn something.