Subject: Re: Help needed saving a business

From: [email-masked] (Kevin AstirCS "1U" KO0B)
Date: Thu, 13 Jun 1996 09:48:31 -0700 (PDT)

The fact that he is overflowing with work, but barely afloat suggests
that he is working too cheap.

If he is winning a lot more than 50% of the jobs he bids, then he is
probably working below market value.  He at least needs to raise his
rates to the point where he is not overflowing with work.  In
addition, he is going to occasionally screw up and really underbid a
job now and then....this needs to average out with some gravy jobs now
and then.  Make damned sure he charges extra for "rush" jobs etc.

The suggestion of hiring a clerical assistant to work at billing and
tax related work  is excellent.  I have never met a good craftsman who
was worth a damn at that stuff.   If he can make $30/hour  turning
handles, then paying somebody $12/hour to free up some handle turning
time is a good deal.   There are plenty of CPAs become housewives who
would welcome a part time job.   One more thing that such help can
bring is the ability to actually "see" how well he is bidding his
jobs...yes, he has a "gut feeling" now, but some hard numbers would do
a lot to improve those instincts over time.

In addition, The fact that he is working alone can serve to RAISE his
overhead...hows that?  Well do you really want your A#1 tool and die
maker spending even 15 min. sweeping the floor? how about 2 hours
calling around looking for cadmium sheeting?  

Minimum wage help can cut stock, de-burr parts, sweep floors, deliver
finished work, call around looking for oddball stock, answer the
damned phone, make the coffee, take a deposit to the bank etc.  If he
is truly working alone, then the top paid guy in the company is doing
all that stuff now.  Yes, dealing with personnel issues takes time,
but all told , he is probably spending a TON of time on mindless,
knuckle dragger tasks now.

The fact is, even, a lot of machining jobs are pretty
mindless....don't be suprised if the kid hired to clean toilets is
soon doing some simple lathe work.....This gives the boss more time to
work on the tight tolerance, high dollar jobs.

The one place he can't cut corners if he hires help is
insurance...somebdy could get a helluva cut, just cleaning swarf off a
lathe. and we all know that the per capita number of digits in a
machine shop is a number less than 10.

-KF-

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From: [email-masked] (Walter K. Stockwell)
Date: 13 Jun 1996 00:23:40 GMT

Two thoughts.

"If you've got too much business, then you're either too cheap,
or too good. And no one's too good."  Make him raise his prices
until he has the amount of work he wants.

Sounds like he wants a *job* not a business.  If he doesn't like
handling business things, he should either hire someone to do it,
or go work for a company.  He'd probably work less, and get benefits
if he signed on with a company.  :)

-- 
That bird was my bird --	__
	or some vile copy.     {^^}              Walter Stockwell
				\ \              [email-masked]
				{  -}

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From: Demon Buddha <[email-masked]>
Date: Thu, 13 Jun 1996 09:42:17 -0400

Walter K. Stockwell wrote:
> 	Trying.

> if he signed on with a company.  :)

	He WANTS a business but is better at having a JOB.  He's
	not going to give up the business until either it kills
	him or he goe under, so telling him to get a job is like
	telling the same to a 2X4.  So the only thing to do is make
	the business work as it should.

	There's got to be a way and I will find it.

	-Andy V.

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From: PPIERCE <[email-masked]>
Date: Thu, 13 Jun 1996 10:26:30 -0700

Kevin AstirCS 1U KO0B wrote:
> ....

He could work at a job for $15/hour and be ahead of himself working 
selfemployed for $30/hour!  I went that route.  Noone paid me for 
holidays, vacation, sweeping my floor,etc.  I had to supply equipment
(Stefan has to own a lathe, mill, etc., etc....), pay the employers share of social 
Security, insurance, etc...  When I had a job all I supplied was my lunch bucket and 
some hand tools...

> ........time is a good deal.   There are plenty of CPAs become housewives 
>who would welcome a part time job.   

My dad was a one man shop and his books were a mess...  I was looking at
them one night  and saw that one customer hadn't pail him for 3 years and
Dad was still working on jobs for that customer.  Turned out that Dad had
not sent the customer a bill in all that time!!!  Customer was NOT happy
when he got the bill.

We hired Charley to come in for 4 hours once a week, things immediately
turned around.  Dad's invoices were sent out, bills were paid promptly,
and everyone was happier.

>One more thing that such help can

Paul in AJ AZ

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From: [email-masked] (Paul Amaranth)
Date: 13 Jun 1996 19:09:54 GMT

>	There's got to be a way and I will find it.

I ran across an interesting article called 'Blacksmithing as a Business'
while looking for info for my horse.  Although directed at a related
occupation, I think his points hold true for any similar business.  The
URL is 

      http://www.anvilmag.com/pages/marbus.html

It's particularly interesting to see how he calculates the hourly rate
and, for that matter, the number of hours he can actually expect to
put in during a year.
--
Paul Amaranth  Manager User Services - office: (810) 370 4541 (also voicemail)
               (e-mail)     [email-masked]         
               URL http://www.acs.oakland.edu/~amaranth