Matt,
When do you know if your company is ready?
No one on this forum can answer that for you. No one knows your circumstances, and they are different for all of us. The most important person to ask this question of, in my opinion, is your accountant. And by accountant, I mean someone who is more than just a tax preparer. I mean someone who knows your business and who can be an advisor, who can impartially help with major decision making. Your accountant can be your most trusted business "partner," especially if you don't consider yourself an accounting genius.
This is our 3rd year in business and 2nd year in our storefront.
In my third year in business, I was "business-stupid." I did not know what a "break-even point" was. I did not know how to figure an hourly shop rate. My prices were mainly based on what others charged. I knew what terms like "overhead" meant, but I did not really understand business concepts. I thought "profit" was what you paid yourself. I worked many 100-hour weeks. When I hired an accountant, it was the best move of my career. For a monthly retainer, he gave me advice on everything, even on finding just the right bank and banker to use (he knew which banks were good at SBA loans and with helping businesses of my size). The money I spent on him was the best investment I ever made. In my opinion, your accountant can become one of the most important persons in your world. Of second importance would be an ongoing relationship with a banker, developing this before you really need him or her. Eventually, a broker can be added to your list of business partners.
I am 100% convinced the best return is Installing for national brands
How do you know this? What convinces you? Does your accountant agree? Just as an example, and it may not fit your situation, the company I work for now has about 12 employees and does very little national work. Yet they keep two older bucket trucks busy all day long, five days a week. The trucks break down regularly and get repaired. The owner charges cheap prices but there is always money for truck repairs. He refuses to buy new equipment.
The drawback is national brands want me to own or lease my truck.
I also worked for a company that was and is known for high prices. Their rolling equipment has always been late model and beautifully maintained. They were successful enough to buy out other sign companies in other towns as time went on till they acquired six branches. Each branch has been outfitted with one or more trucks like the two-man Elliot in your picture. With about a hundred employees, they do national accounts on a regular basis.
Do you believe a truck would take my business to the next level or put me in debt?
The answer to both these questions is yes. A major purchase will certainly take your business to the next level of debt. And the next level of stress. Will it take you to the next level of income?
These would be a good question for an accountant.
Many of us have opinions, but as Gino mentioned above, our opinions are based on our own circumstances. Some of us have succeeded despite being ignorant of accounting knowledge. Some seem to have natural business abilities, and some get lucky breaks. But most new businesses fail. And I have read that most failures are within the first two or three years, and are the result of business management.
There are many smart people on this forum. They give advice freely. This is a good thing. But always remember what free advice is worth (including my own).
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These Elliots are beautiful machines. They can lift weight, too. So they are good for far more than just servicing lighted signs. Some of the older models had a control stick that was multi-function. You could raise, extend and rotate almost all at the same time with one hand. I think the rules require separate controls these days. But when I once worked for a shop that had both an old Elliot and a new Elliot, everybody wanted to take the old one.
Brad in Kansas City
