Can I do this without employees...

[chillGMS]

Having owned a graphics business (20+ employees) and also worked solo, I've come to the following conclusions.

When you have a staff of people, you should be able to make far more money versus going it solo. For each hourly producer that's making money, the company should be able to profit from that production. A graphic artist who is being paid a reasonable wage, lets say for the sake of discussion, $25 per hour and a billing rate of $75 per hour, even if the graphic artist is only 65% productive, that should contribute to overhead and profit by $190 per day, (times days,weeks, months) that should result in an total contribution above cost of over $45,000 per year. If that's not happening, only two things can be wrong, the person isn't qualified for the position or you just aren't pricing work effectively.

That being said, when it's up to one person to do everything, how good can you be? You generally won't have time to stay up with everything, new technology, equipment maintenance, billing, ect, and things will suffer.

Most successful companies need Chiefs and Indians, it really comes down to what is most important to you.

 

[Farmboy]

Before any of us dig too deep into supporting or critiquing Farmboy's decision and handling of the situation or ramming the behavior of the outgoing "designer", its important to remind folks that nobody here except for Farmboy knows how this employee was really treated, how well Farmboy manages his company, his demeanor towards his employees, etc..

We don't even know if he is pricing his work appropriately, after all it sounds like he went straight from milking cows one day to successful sign company owner the next. For all any of us know, the outgoing designer may not even been privy to what the jobs were being sold for and was spending what he thought was the right amount of time for the pricepoint he thought they should be sold for. If the employee has more experience than Farmboy himself, he might have known the local market better than Farmboy.

Its obvious that he applied the farming experience he had when employing folks, you give me production, I give you green stuff and only green stuff. You all can get the gist by replacinbg the milk and hay for sign labor and money only, zero other benefits were offered. We can see that Farmboy doesn't seem to think fringe benefits of any kind are suitable to both attract and retain quality help, whether this particular employee was quality or not.

This is a fair summary from the information I've given. So I'll give some more
The employee has worked for a handful of similar businesses in the area for the last 20 odd years, so yes, he has more experience than I. He was pretty much also let go from most of them for the same reason. I called around before he started here and stilled hired him. A) I was in a bind B) so was he. I've known him for almost 30 years and could go into his personal issues that effect him for moving forward in this world, but I won't. Before him I had two people here that were with me for 8 years and as far as I'm concerned they helped me get to where I am. Not only did they have a 401K and benefits, I gave them cash bonuses through out the year ($1,000 ea at X-Mas, when I could). They both got married, to each other, and have moved on. As for my demeanor, I buy lunch on Friday's, always have, never raise my voice or treat anyone badly and folks are free to go anytime they need to (sometimes on my dime if it's just to dash out and back.). I'm pretty sure I'm lacking in some aspects that I'm not aware of, but I treat everyone fairly.

 

[iSign]

Not only did they have a 401K and benefits, I gave them cash bonuses through out the year ($1,000 ea at X-Mas, when I could).

As for my demeanor, I buy lunch on Friday's, always have, never raise my voice or treat anyone badly and folks are free to go anytime they need to (sometimes on my dime if it's just to dash out and back.). I'm pretty sure I'm lacking in some aspects that I'm not aware of, but I treat everyone fairly.

seems fair to me... how much $ an hour?

I can design basic layouts pretty quick :Big Laugh

 

[TimToad]

I hope you don't misinterpret my meaning or point and the same goes to Gino. Gino does have it right that we all operate here only with the information an OP is willing to share. You don't have to catalog your former, current and future generosity towards employees to gain any added credibility with me or hopefully others. Or share any problems the now former employee has or had.

While revealing the level of generosity you've offered to employees in the past changes my perspective about you in general, you have to admit that I wasn't the only responder who wasn't surprised that the employee in question felt under compensated.

We all pipe in here very generally and armed only responses based on the points and info shared by the OP.

I hope it all works out for you in a positive manner and you're able to feel good about the direction you've chosen. We small business owners deserve at least that.

 

[Gino]

Well, I for one, think we should all have a drink and toast small business. We all deserve it...........



edit : I think I can do it cheaper than Doug........................ he's not always available being so far away, so pick me....... pick me....... pick me....... pick me.......

 

[MachServTech]

nevermind

 

[TimToad]

I remember this thread well and its been on my mind for a while.

For just a little background, I bought an existing sign company last May and took over on May 1st. It is 8 years old, averages about $250k gross per year and has always had the two principals and one full time employee. I have 35 years experience in a variety of sign and graphic design work environments. We inherited one employee who while being close to 65 and with nearly 40 years of signmaking experience, we viewed him as a vital part of the transition puzzle and possibly longer.

Within weeks of taking over, it was apparent that the nearing or already in retirement pace, forgetfulness, chronic mistakes of the same types, not much attention to detail, zero consideration of the shop's financial viability, etc. were not boding well for our decision to retain him. The previous owner was like Farmboy, no paid holidays, no benefits, years went by without meaningful pay increases, etc.

We tried the "sweeten the pot" method from day one to try and motivate and thought that an instant and decent pay raise, paid holidays, two weeks of paid vacation and an end of year bonus would prove sufficient.

Despite being paid for the entire week between Xmas and New Years, given a bonus and minimal responsibilities to handle while being fully paid for the couple of days leading into the fully paid Xmas break while my wife and I left to go visit my 85 year old dad, none of the work was completed, other jobs were rushed through and the employee left early each of the work days he was fully paid for.

It is now the end of January, my wife and I let him go with one week's notice after our return on Jan. 2nd and us trying to process what we could have done better. Bottom line, sometimes an owner can't do anything better, and its best to act in your own self-interest until ready to staff the company with employees you think fit the model you have built.

We've worked 29 consecutive days with the last three weeks being just her and I and for the first time since taking over last May, it feels like our company and we are really enjoying it. We're incredibly busy for this time of year and my wife is getting the crash course on lots of stuff she hadn't gotten to do before, because we always had to leave the "real" work for the employee. We have the energy of a couple of 30 year olds and this is the most fun I've had in decades.

Sometimes, we just have to put the thing on our own backs and run with it. The customers are sensing a new enthusiasm, and its showing up in the quality of the work also.

 

[HDvinyl]

Does that mean you're hiring Gino??

 

[TimToad]

Does that mean you're hiring Gino??

Not if me sharing that I've not been this happy in decades and he still gave me a dislike.

 

[Gino]

Haha........ when I'm on my tablet, stoopid sh!t happens. I didn't mean to hit 'Dislike'.

Besides, I ain't cheap. We'd have to negotiate hours, benefits, my commute, work breaks, duties, vacations, retirement, lodging (if necessary on long days), responsibilities, health plans, whose boss and numerous other things. Heck, ya gave that other old geezer a raise, more time off and he still ran the show for months, so I want something outta this deal

Ya know, I often wonder if I could work for someone else..... then it dawns on me....... who the fug would want me ?? But I do know, I'd never wanna do it by myself again. Heck, I need someone to pick up the things I drop. I need someone to blame when something goes wrong. And most of all, I need someone who wants to work and needs cheap money




Tim, your situation was different then the OPs. His person was trainable with potential. He has a future to invest into. Your guy was looking for an excuse to leave and probably felt not needed as he was a pawn in the trade of the business. Sometimes, being a bossman means making decisions that are tough.

Good luck to the OP here and you Tim in your new crew. Working..... and living with a spouse can sometimes be a little trying on a relationship

 

[TimToad]

Yeah, those buttons are so close to each other, that I have look over my tri-focals at times to make sure I hit the correct one.

That's a pretty big wish list you posted. We'll have to think about it.

The wife and I have worked together before and are very similar in our personalities and work ethic, so for as hard as we work, its actually pretty relaxed around here.

While our situations were different, the gist of the points I made were that we all have to do what feels right for ourselves and makes us most happy and content. Its also critical for the survival of our businesses that we can operate in an efficient manner and put the kind of people we feel will best accomplish that in place. After all, its our life's blood, sweat and savings going into keeping these businesses going. Its us who are here on the weekends doing the stuff that the unmotivated, or uninspired folks we may hire didn't get done during the week, etc.

Regardless of the circumstances, any of us should have enough pride to act on whatever good faith gestures like we extended and put in a decent effort every day.

Well, I've got a truck to get some graphics on today and primer for one of the nicest routed HDU I've ever done, so I better get at it. Can't look over my shoulder and wait on someone else to do it for me. Frankly, that's exactly the way I like it.