If your not growing, your dying.

[Farmboy]

I've heard this saying in the past and have wondered everyone's thought's on it. It seems most on here are one person shops and your happy that way. So do you feeling like your dying or you're right where you wanna be? There was a thread a few days ago about how flooded the market is for this business, I was just looking through our local business paper and they just happened to have the top ten local sign companies in my area listed by employee size. The top one has 35 and the next was 20. The top one's have been around for over 30 years. The last one on the top ten had 3 people. I've been doing this for 10 years and have had as many as 6 and as few as 1 (me). I don't feel I'm dying, but I do feel at times like I'm just treading water. I have yet to hit that comfort zone where the business takes care of it's self. Is it out there? I'm pretty happy with the 2 people that work with me now (over 6 years together). Hmm, I seem to have gone off topic...so I'll end this here.

 

[Fitch]

Hi Farmboy, great (and contencious) topic.

Don't think you will really get an absolute answer.

However:
Many can turn around and say " I turned over2 million last year ". Sounds impressive. But can I say that there are people that have "been there... done that". Fortunately I am not one of them by choice.

I think only a very few make it big and make it successful. By "successful", I mean without health issues (worry / stress), family problems, the business running them rather than them running the businesss, the growth and renewal of assets (without debt) and of course outside influences such as technology and commercial exterior climates such as the GFC.

Many many have gone both ways, up and down in terms of size.

The one thing that I can offer is this: don't get caught up in the "If your not growing, your dying" syndrome.

At the end of the day, it is as simple as this: take all that you earn and all that you owe. What is left is an asset, or a "reward" for all your efforts. Balance the reward aginst the risk of family, friends,, happiness, health and longevity of doing something that you truly love. Anyone can have a job, but to go to "work" everyday at something you love is a blessing. To be honest, I have not "worked" for 15 years.

In another post someone said (excuse my liberty):

"I started out of my second room in my apartment and yes with only a 24" cutter then i grew into doing digital print banner, porster, signs, screen printing now own two automatics and one manual and another screen print flatbed, i mean from one room to a big place and let me tell you this I made more money when i was in that little room than now."

This seems to be - apart from the very very limited few (who I assume do not frequent BB's like this) who own and run multi $M companies, the general amongst sign companies.

Many many (and close friends that do not desrve it with the talent they have) with the GFC were FORCED to close their doors, downsize, relinquish leases, sell properties, have properties repossessed by the banks due to really no fault of their own.

Once again - and please don't take this as selfish - but there is a balance between giving and taking - give to the craft but take what you feel you deserve,,, don't get caught up in the "If your not growing, your dying" crap.

You, your health, your family, your happiness is numero uno.

Money can't buy that.

Find the balance that suits YOU.

 

[FatCat]

I started my company as a side business which has evolved into full time. Now entering my 3rd year and have been growing, but wondering if it's enough. Seems like the investments in equipment, software, facilities, etc. keep a lot of money from reaching my pockets but I have to remember they are investments and with time should be able to bring home more if current growth continues. I honestly believe as a 1 man shop I have a lot of flexibility that big shops don't have. However, I also know I face a lot of disadvantages too.

If you're looking for a business that will be self-sustaining you'll need the right people and right marketing and business plans in place to achieve that goal. It won't happen on it's own. Successful business owners I know that don't really do the regular 9-5 have committed employees in place that run the shop and make them money. Yet they still have a hand in the business and keep touch on how things are going. I would like to reach that point someday but it's a long way off.

 

[Farmboy]

Right now the 2 I have working with me is just right. I think I am as big as I would like to get. I like being hands on right now with the customers and the work. We could do more, offer more services, farm stuff out. I don't feel comfortable with that. Fatcat...I suck as a business person. I know how to work and get the job done. I realize that hurts me on the large scale.

 

[FatCat]

Farmboy, you don't have to explain anything to me. I would count myself with you as I am no business guru either. However, I've met and know a lot of business owners in my lifetime and the successful ones seem to always have 1 thing in common. They realize they can't be experts at everything, so they hire/use the right people that are to help them grow their business and do the things they can't.

Down the road if/when I hire an employee I really want to hire someone with experience and talent in the things I am lacking. I don't want someone who only knows what I know, I need someone who knows what I don't. Some might be intimidated by that thought, but I've witnessed so many business owners use that same strategy and succeed.

 

[signs&designs]

Do you measure success by how much money you make, or the quality of work & reputation that you hold? I've been as big as me + 3, and quality and originality really started to suffer. I never got into this because I thought I could get rich (and boy was I right), but for the love of the trade. IMHO....

 

[Farmboy]

Everyone here compliments the other. After having a terrible last two years of an off season I am vowing to myself to not make the same mistakes.

 

[StopSignGraphics]

I think any growth within a company has to be planned and controlled.

When I first started in this industry, the company I worked for was just beginning to grow and expand. They mostly sold billboards and super wide stuff. They sold to a lot of large outdoor companies and smaller shops that couldn't produce the prints in house.

The first few years were great. The company had 3 buildings and about 35 employees. We ran 2 to 3 shifts 5 days a week.

At first all the customers big or small had equal importance. Over time the larger companies became top priority. Eventually the smaller companies stopped calling. The owners didn't really care, they were making money. Eventually one business became our top client and received top priority. Product started shipping late to the other large companies we dealt with and eventually they left us too.

The larger company knew they had us by the "short hairs" and started dictating lower prices and longer payment terms. The owners caved and agreed.

Eventually it got to the point that they started to shrink. They couldn't maintain their equipment, they owed a lot of money, their credit was shot, their product was bad. The big company left them eventually. The smaller companies had found other vendors and remembered being pushed to one side.

They are still in business (barely).

The point I was trying to make was that not all growth is positive, you have to grow in a way that attracts new customers but maintains the old ones.

~Chris

 

[GypsyGraphics]

If you're not growing, you're dying... pashaw.
You grow, you slow... it's all about sustaining a level of happiness or success.... and it sounds like you've done just that.

I recently decided, with business slowing for me, instead of working harder to sustain my prior level of success (treading water, as you said).... it's time to take advantage of having to work less and enjoy other aspects of my life (get out of the water, and lounge in the sun).

I wonder how many people have business that actually run themselves, is that a realistic goal for someone who loves what they do?

If you can say you're happy where you're at..... that's success!

 

[Techman]

If a bizz wants to grow they have to know some statistics.

Customer value = how much the average customer brings to the table

Customer cost = how much it cost to get a new customer

contract amount = how much your total contracts earn over time.

advertising cost = how much it costs to run ads

after you get a few of those numbers then you can plan out an attack for growth. If it cost you $100 bux in ads to get a new customer, and he is worth $500 bux then then you will know how much more you have to spend to grow. And you will know how much you earned for that 100 you spent to get him.

If you want to increase your customer value and contract amount then you must find a higher value client and start marketing to that group.

10 new clients a month with the present value,,with 1k in spending for ads earns you $5 grand (10 x $500) you made 4 grand.

10 new higher value clients (those with a higher customer value) still costs 1k a month but they bring you more income. Lets say he is now worth $800.

10x $800 is $8 grand a month all for the same work and cost.
This is why I do not cut any calvins, or address decals, or a dear head for the back of a truck. And I will not spend much time with the client that wants a $30 bux no parking sign.

 

[Patrick46]

Here's an awesome book for anyone who really wants to move ahead in business (of any kind)...

It's called "the E-Myth" by Micheal Gerber.

It's a fascinating read about how a business grows and prospers, and altho I'm probably going to remain a 1-man operation, I learned a heck of a lot from reading this book. For that very reason, I bought a copy and am now re-reading it again. (check your local library)

and Yes.....I too suck at being a businessman.

 

[Jon Aston]

There are probably several legitimate ways to interpret (and debate) "If you're not growing, your dying."

One would be that - each and every year - your business will lose a percentage of its customer/product sales through "attrition". For example, some customers will go out of business, and some standing business will be lost to competitors. A commonly quoted percentage of business lost to attrition annually is 15%. So, in other words - using that figure - you need to replace 15% of your sales every year, just to maintain your current revenue.

If you use a tool like Quickbooks, you can easily analyze sales revenue from year to year by customer and by product. Determining where you are losing business and why (and where you're gaining business, and why) will help guide you in developing strategies for growing your business to meet your goals - whatever they are.

To take a step back, though, I would also encourage you (ala The E-Myth, and similar books) to think about what you are trying to achieve through your business, in the long run. Building a business to the point where it can operate independently of your input creates value that you likely can't get by keeping things as they are today.

For example:

1. What if you were suddenly unable to work for an extended period of time. How will that effect your income? How would that effect your lifestyle? How would that effect your family? Your employees and their families?
2. It's never too early to start planning for retirement. Building a "Turn Key" business that can operate without your input makes your business much more attractive and valuable to potential buyers. If your business depends on you to operate...then it's value is pretty much the equivalent of a bunch of depreciated assets and a little goodwill... not nearly enough for retirement.

Hopefully food for thought!

 

[signgal]

enlightening as always, Jon... You're da bomb!

 

[jiarby]

An interesting thing I have noticed is that in the last 3 years I have been running our business our largest customer has been different each year! AND... The newest "Big Customer" was not a customer in the previous year!

The economic downfall has killed a bunch of our customers, but the lesson I have taken from it is to keep looking for new customers... or new markets, or new products. If you don't do those things you may find yourself looking for a new job!

Ask yourself this....

If you lose your biggest two customers how will you replace them? Where is your 2011biggest customer right now?

 

[Jon Aston]

Thanks Teri!

Your bunny reminds me of this. Hope it doesn't offend.

Good comments @Jiarby!

 

[TheSnowman]

Our business has been around 30 years full time. It evolved from a part time when my grandparents first started it. I have invested in the printer, bigger plotter, more software, etc. I am to the point now where all of my bigger customers have gone somewhere else because they were cheaper, and are working for free, and 90% of the rest of my customers that come in gripe about the price even if they do pay it...and they over complicate every little thing as if they were building a mega building.

75% of my customers don't have email, or a fax, and yet they call it a "business". All of the things above have still allowed me to pay my bills, but I have lots of customers that say "that's not what I ordered" because they left it at my discretion so they didn't have to deal w/ proofs since they don't have email or a fax. Even if I'm right, leading to lost money, and unhappy customers even though I just did what they said.

I am to the point where I would much rather go work for someone else and come home and forget about it, because it seems like every day, there is a new kick in the junk from a customer, or previous customer, or a new customer that thinks that they are doing me a favor by "giving me a chance" then ripping on me when I'm more expensive than the other guy.

Like I say almost every day to my family, I refuse to work for free, especially with the risk that one takes owning their own business. I'd rather go somewhere else, show up, get a check, and go home. Is the grass always greener on the other side...sure it is, but at this point this is a "job" not something that I look forward to in the morning. It's too bad we live in a wal-mart world, but it is what it is. I'm just thankful to be paying my bills at this point.

 

[Patrick46]

Kraig, it sounds to me like it's time to re-vamp your business!

First off...get customers to sign "design approvals"...that way they can't come back and ream you about using your own discretion.

next it sounds like you need to RAISE YOUR RATES!!! If all your getting outta this is enough to pay your bills, then your not charging enough to make it worth your while to own your own business. You'll work 5 times harder for yourself than for someone else...so yopu might as well get compensated for it.

Try reading that book I listed above. You might find it eye-opening!

All the best of luck, my friend!

 

[imagep]

Here's an awesome book for anyone who really wants to move ahead in business (of any kind)...

It's called "the E-Myth" by Micheal Gerber.

It's a fascinating read about how a business grows and prospers, and altho I'm probably going to remain a 1-man operation, I learned a heck of a lot from reading this book. For that very reason, I bought a copy and am now re-reading it again. (check your local library)

and Yes.....I too suck at being a businessman.

I've read the book twice, it seems like it was written about my business. After reading it I saw all the traps that I have fallen into. Unfortunately, although that book can make us more aware of our mistakes and business cycles, it does very little to enlighten us on how to avoid those issues.

 

[imagep]

There are probably several legitimate ways to interpret (and debate) "If you're not growing, your dying."

One would be that - each and every year - your business will lose a percentage of its customer/product sales through "attrition". For example, some customers will go out of business, and some standing business will be lost to competitors. A commonly quoted percentage of business lost to attrition annually is 15%. So, in other words - using that figure - you need to replace 15% of your sales every year, just to maintain your current revenue.

If you use a tool like Quickbooks, you can easily analyze sales revenue from year to year by customer and by product. Determining where you are losing business and why (and where you're gaining business, and why) will help guide you in developing strategies for growing your business to meet your goals - whatever they are.

To take a step back, though, I would also encourage you (ala The E-Myth, and similar books) to think about what you are trying to achieve through your business, in the long run. Building a business to the point where it can operate independently of your input creates value that you likely can't get by keeping things as they are today.

For example:

1. What if you were suddenly unable to work for an extended period of time. How will that effect your income? How would that effect your lifestyle? How would that effect your family? Your employees and their families?
2. It's never too early to start planning for retirement. Building a "Turn Key" business that can operate without your input makes your business much more attractive and valuable to potential buyers. If your business depends on you to operate...then it's value is pretty much the equivalent of a bunch of depreciated assets and a little goodwill... not nearly enough for retirement.

Hopefully food for thought!

Almost exactly my thoughts.

 

[imagep]

I've heard this saying in the past and have wondered everyone's thought's on it. It seems most on here are one person shops and your happy that way. So do you feeling like your dying or you're right where you wanna be? There was a thread a few days ago about how flooded the market is for this business, I was just looking through our local business paper and they just happened to have the top ten local sign companies in my area listed by employee size. The top one has 35 and the next was 20. The top one's have been around for over 30 years. The last one on the top ten had 3 people. I've been doing this for 10 years and have had as many as 6 and as few as 1 (me). I don't feel I'm dying, but I do feel at times like I'm just treading water. I have yet to hit that comfort zone where the business takes care of it's self. Is it out there? I'm pretty happy with the 2 people that work with me now (over 6 years together). Hmm, I seem to have gone off topic...so I'll end this here.

I really don't think the saying is correct.

1) I have seen a heck of a lot of businesses grow like crazy and then go out of business.

2) I have seen others that have remained a mom and pop shop for decades - with mom and pop eventually retiring moderately well off.

3) I HIGHLY suspect that my little shop makes more money that some of our much larger competetors. One of my largest competitors is nearly $50,000 behind in property taxes (public record available on the internet), that leads me to doubt if that company is making more money than mine.

I once asked my locally owned bank for their business, the bank prez totally blew me off, said he had to give his business to his customers that were bigger (as in they owed the bank more money than I) and could handle their work. A couple of months ago the bank prez was terminated and by the board of directors and last week it was in the local paper that the bank lost $44 million bucks last year. I am proud to say that I made at least $44 million dollars more than those arse holes.

Since I have been in business, I have made more money than General Motors. As a matter of fact, last year my business made more money than a heck of a lot of huge corporations. Now if only I could get a $10,000,000 salary increase.