Times are tough, or are they?

[signage]

I think NASA is coming to a college near you! Ask any of they kids what they are going to school for and they don't really know. So they are going just taking up "space"

 

[James Burke]

I think NASA is coming to a college near you! Ask any of they kids what they are going to school for and they don't really know. So they are going just taking up "space"

That's the truth...

I taught HS for six years and I think it should be mandatory that slackers quit school after tenth grade and go fling cow manure (by shovel) for two years...THEN come back to school with a new attitude toward learning. It sure would make the teacher's jobs a lot easier.

JB

 

[btropical.com]

That's the truth...

I taught HS for six years and I think it should be mandatory that slackers quit school after tenth grade and go fling cow manure (by shovel) for two years...THEN come back to school with a new attitude toward learning. It sure would make the teacher's jobs a lot easier.

JB

Atleast the food in the cafeteria would not have spoiled in the 2 years

 

[TheSnowman]

This may be after the fact, but try to run on your own cash as much as possible and avoid debt.

I actually had an insurance agent tell me I was crazy for not "embracing" debt, and that my business could grow larger and faster with it. Yeah, that might be the case. But it's not a good thing when the crap comes down in a slow economy and your banker knows your telephone number by heart.

A part time job is always handy.

JB

I bought a business that was in the community 25 years, and I'm in my 6th year now. I can tell you two things. The older I get (I'm only 28) the more appealing it is to never get loans for things anymore, and a part time, or just a "spending fun money" job once in a while, is ALWAYS a good thing. It pays for my vacations and weekend mini-trips all year long. My equipment is all paid for now, and my business will be paid for shortly, but I intend to be cash only from there on out...no more business debt.

 

[James Burke]

It's amazing how the most remote incidents can effect us now days. At the part time job, they just bought a $100K machine last month to do work for one of the main Japanese auto makers. Now it looks kind of sketchy since the earthquake....first tier suppliers are beginning to drop like flies, and I believe it's only a matter of time before it trickles down to subsequent tiers.

But that aside, John 1, I believe you should be looking at the long term. Fine tune your business plan and hone your marketing plan, and then work your tail off.

JB

 

[tattoo.dan]

Cash only here too. Seems like I am always working on a printer, but at least I don't have to make a huge payment on a new printer when it is just sitting there during a slow month. Business is up 188% from first quarter this year compared to first quarter last year. We moved to a new location last February and I believe that is the main reason. I highly doubt the trend will continue. Should balance out starting next quarter. But this spring is crazy! Has a lot to do with the services you offer and who else offers those services in your area.

 

["Deposit Please"]

Times aren't as tough as you think. People are using "bad economy" excuse as a bargaining tool. I see alot of spending around here, shopping malls, car dealers..etc.

 

[WildWestDesigns]

Times aren't as tough as you think. People are using "bad economy" excuse as a bargaining tool. I see alot of spending around here, shopping malls, car dealers..etc.

It depends on the area that you are in. I see a slow down at times that before you couldn't even get a parking spot. So there are some areas that have been affected, even in the "old money" sections that I've gone to.

Not all towns have been affected or affected as much as others, but I can see where it isn't all just a bargaining tool. Even then, you've got to ask are they still buying on credit or other they using coupons etc or something else going on that the price isn't the full price or are they going to make payments etc.

Just because they are spending doesn't mean that they aren't going beyond their means.

 

[Craig Sjoquist]

I am sorta busy, and I do 98% by hand, ride my bicycle to sell and to job site.

But with $4-$5 gas prices coming well could be another story by next year.

 

[Tiogy]

I was in that exact same position a few years ago. Our biggest client offered to buy us out and hire me to run their internal shop. I had worked for the dealership years ago and knew a couple of people there who could attest to the commonality of "broken promises" on behalf of management so I knew that things were not likely to end well if I took the offer. That was just before the "great recession" hit and since that time, that dealership probably lost 80% of their business. While that had a terrible impact on our business as well, we survived by being as efficient as possible and adapting to customers needs. Fortunately, we have other customers that were in industries that were relatively unaffected or even thrived in the poor economy.


Business has been down over the past few years - no doubt but, this past winter brought steady work and was much better than anticipated. I am surprised at the number of customers that are spending money on new equipment so far this year. That has us considering a new printer and a few other small upgrades but, we also have a much better understanding for the need to better handle our own finances and plan for the next down period.

We specialized a few years back and I think we have a very good reputation for doing excellent work and rely on "word of mouth" to bring us new projects. If you have something to offer that competing shops don't, some people are willing to look beyond the lack of commercialism portrayed.

We have been running our sign shop for 21 years out of our home and I have no doubt that many potential customers pass us by because of it but, we also continue to maintain some accounts that other large shops can only dream of having. I think it really comes down to what you have to offer and how reliable your service is. Having said that, I do agree that there is a limit to how much revenue can be generated as a home-based sign business.

I have an office in the basement where I have my PC, vinyl cutter and printer and the shop is a separate 3-car garage where we prep the jobs. Some of our customers apply their own lettering and there are many cases where we go to the customers location to complete projects on-site. We also have access to a large building a few miles away where we can work on trucks when needed.

There have been times when I have entertained the idea of selling the business and moving onto something different but, it would have to be something where I can do it on my own terms. Maybe, one of these days I will work up enough courage to pursue another business venture but, there is a lot of research, preparation and learning to be done first.

Best of luck to you - what ever you decide.

 

[johnnysigns]

We're busy, but it's definitely not the consistency I'd like. I can't complain as we're still steadily building a new client base in the direction I'd like the business to be growing. Service, service, service is really what keeps us above our competition and is attracting the new growth. It doesn't hurt that we can screen print, digitally print, mount/laminate, CNC and offer packing/fulfillment to our clients. When this is over this low spot will have weeded out a lot of the people that were pecking away at us from oversaturation in the printing and display markets.

 

[Wes Phifer]

I started and ran another shop for ten years from 2 to 6 employees, bigger shop, etc. I sold it and quit for a few years. No I opened back up in my house. I really like it. Especially the overhead. I already had contacts so I have stayed pretty busy and making almost as much money(take home) as I did in the big shop. I am however worried that when I want out I won't have anything to sell since it is not a business in a sellable location and the whole business is me. How do you other home based business people feel about that?

 

[Marlene]

seems like it makes a huge difference where you live. our shop does both local and work for national companies so we are lucky in that we have different sources for work. there are some for lease signs around but it doesn't seem to be any more than usual. we have more little companies than huge so when closes, we suffer jobs losses but not at the scale of some places.

 

[WildWestDesigns]

I am however worried that when I want out I won't have anything to sell since it is not a business in a sellable location and the whole business is me. How do you other home based business people feel about that?

Equipment and maybe leads are what you'll have most to offer to the next person.

Leases around here are out of sight. There was a store that came in and 4 months later they went under. It was a part of a pretty successful regional chain of stores and the demographics here could support it, but overhead was way too much.

I'm sure that being home based (or at least on the home property may not exactly be within the house) there are trade offs. I like not having to worry about the "hit" I have to take if I were to sell or go under before my lease contract was finished. Equipment should have some value even if you have to sell it over the internet. Leads may or may not have any value to the person that gets your equipment, depending on the specifics.

Not having to worry about a lease agreement is the single most positive aspect of being home based that I like. It allows me to be competitive while delivering quality goods. Although, lacking that store front it really does pay to have good word of month, no amount of ads came make up for that.

 

[SlightlyChilled]

Maybe you should start another thread directed at home based sign shops and ask how they have made it work out for them

I think that a home based shop might do ok in a rural setting but I cannot imagine how it would do well in larger cities and towns. Personally I would not shop for signs at someone who worked out of their home. I would wonder how committed that person was to their business. You may be a professional but I think most customers are expecting either a retail or commercial setting and have an opposing view of a basement/garage shop as being less professional. What happens when they want to visit you? Do they sit in your dining room and have a sales discussion? If you never have anyone visit you at a shop then you already limiting your potential greatly and having to spend alot more time looking for the business yourself. How else are they going to find you? I assume you cannot have a sign in your yard saying so? Many neighborhoods have rules against it

I think the larger companies that you want to do business with are going to only want to work with what they "perceive" as the professional sign or graphics shop. Otherwise you are mostly doing work for the "small fry" types that won't bring in the serious workload you are hoping for.

HAHAHA What!!! Just do to the fact that someone is a home business has nothing to do with making them look small. In most cases people never even see where they are buying from.... My fathers comp does a butt load a year in sales and service. Do you know how many people come to see the shop ZERO. You can make your self look so big and still work from home... Why pay a land lord when you can pay your self....

You can look at it how ever you like. I'm not trying to pick a fight just a the flip side to the coin....