One man shop growing pains

[gnubler]

I'm a one man shop, I know there's a few more of you on the forum. Just over one year in business and there is more work than I can handle. Small rural resort town undergoing a rapid population boom post-Covid. I'm running 60 hours a week minimum, reality is kicking in and I need to make changes or abandon ship. General labor and installs is a growing challenge, subs and anyone in the trades are immersed in building houses, no interest in contract labor sign installs. Have gotten by hiring a retired friend for one-off installs, does good work but I need a more reliable and professional solution. Would love to have a wide list of subs to seek out for different jobs, but it just doesn't exist. I have outgrown my shop space-wise and there are no commercial spaces available. I recently replied to a 3-day old ad for two commercial spaces with a drive in bay and they were already snapped up. Guys around here are doing shop work out of their storage rental units, I've seen it. I feel like I cannot compete with other employers and am pretty much exhausted. The other sign shops here don't return calls, and one keeps the front door locked.

The funds are there to grow the business, but I can't do it alone anymore. I think of options daily: Hire a manager. Bring in a business partner. Downsize services. Try to sell the business. Close the business outright and move on. How are other small shops coping? Have you cut out certain services? If you have been in my position, what was the breakthrough?

 

[Texas_Signmaker]

I stay small and rose prices to decrease workload and make more $. I pay subs triple what they can make at their day job so when I need someone.. they are there. My pricing is dynamic, so the busier I am..the higher the price, and if I slow the work too much I lower the bids.

 

[victor bogdanov]

Raise prices. I'm not a one man shop but we do have limited capacity, my prices are dynamic depending on how busy we are.

 

[Ray Miller]

When I first started I easily put in 60 hours a week. Closer to 90 or 100 hours a week. If you're only working 60 hours a week you only have a 1/2 weeks worth of work for an employee. Do you think you can find someone good to work barely 1/2 a week and be happy? Your list of suggestions sound desperate and not thought through to me. Raising your prices might
help.

 

[Stacey K]

I had much of the same problem for quite a while. Exhausting. I started raising prices on small jobs and stopped doing a lot of "personal vehicles" or told them the turn around would be a few weeks and then I would do all the little stuff on a Friday or Saturday. Sometimes I turn down small things down like raffle tickets or things like that that I have to send out and don't make much money on. If I can fit it in, I will do it. I have a lot of "decal" customers and over the years I've told them January and February are the best times - they actually came back!!!

As far as installations go, I don't do much that I can't do myself. I tell people upfront that it's really difficult to find help to install signs and surprisingly most people say they will figure out the install themselves. I use my snowplow guys shop and pay him $50 CASH a day and a donut. I really only need it in winter and rainy days - I try to do all vehicle installs right in front of my shop or in my house garage if I can. I have access to 2 other shops. One is a heating and cooling guy and the other is a semi driver. I had paid them $50-$75 CASH per full day. I would encourage you to drive around and look for metal buildings, most of them are in at 7am and not back until 5 so you can use the shop space without interruption. Anyone I asked so far has been great about it. I have the customer drop off at my shop and drive it over or I have them drop it off at the rented space and I meet them - people are more understanding that you realize in these covid times.

I also went through the shop and have only one of each tool labeled with it's own spot, everything is labeled and I have extra of everything in the back room. It helps a lot to stay clean and organized if you can.

Cut the smaller things out especially personal vehicles and find a metal building you can rent by the day. It's a start.

 

[balstestrat]

When I first started I easily put in 60 hours a week. Closer to 90 or 100 hours a week. If you're only working 60 hours a week you only have a 1/2 weeks worth of work for an employee. Do you think you can find someone good to work barely 1/2 a week and be happy? Your list of suggestions sound desperate and not thought through to me. Raising your prices might
help.

Why would he not have? That's 40 hours for someone to work full time and lots of more free time for him to work on other stuff.

 

[Gino]

Same here. I put quite a bit of time in when first getting started. In fact, I still put in close to 55 or 60 hours a week........ and that's cut back since my wife got sick a few months ago.

You can only raise your prices, if your work is worth it. If not, you dug yourself a hole. If people really like your work and NOT your pricing, they most likely will become repeat, otherwise, as your work tapers off and not too much new stuff to take it's place...... you might start looking for something else to do.

 

[Ray Miller]

Why would he not have? That's 40 hours for someone to work full time and lots of more free time for him to work on other stuff.

I guess I'm built different. If I have 60 hours of work, I'm not going to pay someone else to do it and only have 20 hours for myself. An extra 20 hours a week is nothing. Once you get closer to 70 or 80 then it's time to get a good employee. If you think you can immediately fill up another 20 hours worth a week do it right away.

 

[Stacey K]

Gino - That's a good point. Most of my repeat customers never even ask for estimates anymore.

Another thing I've done is with people who continue to ask about every little charge and how much for 2x3, 3x4, 3x5, bla bla....I tell them a range and say I can't give them an exact price on every product, but my prices are reasonable and I will do good work. I don't go out of my way for some of the price shoppers. They will waste your time and go somewhere cheaper anyway, likely to a lady with a cricket - let them go.

 

[gnubler]

I'm in a similar position as Stacy (thanks for your detailed reply). I started the business with a walk-in storefront and was open to any and all jobs that walked in. Now it's become a PITA, like I'm a magnet for the retired crowd who want one sticker for their tractor and I'm trying to get rid of them. I do have possible places to do winter installs (my customers' metal buildings) but they're scattered all over the county, which is why I've been looking for my own commercial space so everything's consolidated. My current landlord came by a few weeks ago and was laughing about how I've outgrown the space. I'm German and pretty organized like Stacy, but need another table and twice the square footage if I want to bring an employee in. There's barely room for two people to work comfortably and I don't think that would attract a quality employee.

I have raised prices and also lost jobs, and I'm ok with that. I know it sounds like I'm making excuses, but lately have been at the end of my rope trying to do it all. I live in a small town and heard the other sign shop can't find any workers anymore, they all left, so he's running the show by himself and is about to call it quits. I'm unhappy and it's affecting my health.

 

[Stacey K]

Don't give up! I would suggest you take a good look at where you are making the most money. I'm going to say it's making signs and doing vehicle installs.

IMO You have to cut back on the small stuff. I know exactly where you are coming from. The small stuff bogs you down really fast - and they always want a detailed estimate - that needs to stop also.. I hate to encourage you to be an Ahole but sometimes you just have to be stern and tell them that you have several very large jobs that need to get out the door and the best you can do is give them a range...$ and time. Another thing I did last summer was have a minimum and I tell them the minimum is only during busy times and once I slow up then I have time to work on the smaller stuff. It's OK to be honest with people and tell them that you have many large jobs and you are struggling to find help so at this time you are unable to take on anything under $100 or whatever, please check back in Fall - or whatever.

No matter what, these days are stressful with all the supply chain issues. What used to take you and I 5 minutes to order from Fellers can now take a couple hours to try to find things. Everyone is in the same boat so if they don't understand then they aren't worth working with. I still get overwhelmed you need to cut yourself a little slack. Signs are not emergencies.

 

[Gino]

Some signs are emergencies............. depends on whose angle you are viewing it from.

 

[gnubler]

Thank you Stacy, you described my scenario to a T. Most of my customers are understanding, but that doesn't help with the workload and associated stress. Feels like there is no light at the end of the tunnel, and while that's great for business it's hard on me psychologically, and it's hard for me to be a dick but it's going in that direction. The following quote was posted on the forum almost exactly a year ago. Back then I made a sign out of it and have it on my office wall, and I'm still coming to grips with the realities of running my own business. Welcome to "Ugly Tattoo" Signs and Decals

Owning a business is akin to having an ugly tattoo in a visible area. You live with it 24/7...and so do those close to you. It's not like a dirty pair of socks / underwear you can shimmy out of and into something fresh whenever you feel the need.

Your ultimate mission, should you choose to accept it, is to "know thyself well".

 

[gnubler]

Gino, that sign is racist now, haven't ya heard?

 

[Billct2]

Do you like making signs? If you do keep looking for an assistant, eventually you will find someone who enjoys the wide variety of work involved in a small sign shop.
And at the same time raise your prices, it's how capitalism work, supply and demand. If you're not losing bids you're too cheap. Most good repeat customers will understand.
If someone has a reliable vendor they don't want to start shopping for an unknown quantity in a tight market.
And if you don't like making signs, stop.

 

[2B]

As someone who works at a "small" shop;
Make sure to utilize the MANY outsource options, working in-house is all good BUT if you can use vendors to get the same quality product quickly, for a decent price, and FREES UP YOUR TIME, DO IT!
Signs365, 24 hr production, next day delivery

* Look at the products offered. Which has the highest ROI, what is being requested most, Which has less stress on you?
* Look at your customers. FIRE ANY CUSTOMER THAT IS A HASSLE or charge them appropriately for the added hassle
* Turn down projects
* Raise your prices, ideally you want the 80% win ratio
* Charge labor appropriate to the market, I personally charge 1.5 MORE than going rates. Most people will DIY the labor side and this will allow you to focus on other work

 

[gnubler]

Thanks for the tips. I outsource a lot, all printing goes to S365 or Firesprint, I don't print in-house. Yes, I like making signs, but am spending way too much time on admin duties (estimating, ordering materials, permits, bookkeeping) and graphic design. It's just too much for one person and I need to streamline.

 

[Notarealsignguy]

I think many of us are in the same position, you just have to power through and save for a rainy day or make adjustments and say no more often. I'm working 7 days a week 10-12 hours a day doing regular work M-F and working on shop improvements on the weekend. I also have 6 FT employees and 2 part time, the full time guys are 50-60hrs and also burnt out. You can raise your prices but making more money won't relieve the stress. We have 3 different but related businesses here. It was great when it was slower because we always had a good revenue stream from one or the other but now it's a burden. For sign work, I won't do installs or sub out or refer anyone. They can put it up themselves, find a GC to do it (there are hundreds of them) or go to a different sign shop. I think Gino manages to run his shop and do his own installs but to me, that is way too much for 1 person. If you don't hire someone, pick your poison, install signs or make signs. Installations take too much time away for me.

 

[Notarealsignguy]

Thanks for the tips. I outsource a lot, all printing goes to S365 or Firesprint, I don't print in-house. Yes, I like making signs, but am spending way too much time on admin duties (estimating, ordering materials, permits, bookkeeping) and graphic design. It's just too much for one person and I need to streamline.

As said by 2B, get rid of people that are needy or are a hassle. I consider people that constantly ask for hard quotes to be a hassle and I ignore them. It's unprofessional but there are plenty of people that will take a verbal ballpark or not ask at all. Estimates are a huge time suck and my usual response to "how much?" on unfamiliar jobs is beats me. It sounds dumb but it works. On regular crap, make yourself a price list so you can quote it quickly.

 

[bob]

Years ago it was said that inside of a one man sign shop is a starving sign painter. It doesn't seem to be all that different today. In a small operation the point in hiring someone is not to assume some of your burden but to make money for you. The criteria for hirng people is this; 'will this person add to my bottom line?" Only when you have sufficient overhead to absorb a new employee can you hire someone to make your life more comfortable.