posted
I've been working out of the back of my truck and out of a home workshop for years and have been pretty successful at it. When I started painting windshields almost 8 years ago I used to figure if I made $100 a day plus expenses it was ok for my needs. My business has expanded and some days I can make $500 to $1000 a day doing storefronts/lettering etc.
Not bad for a ex graffiti kid. Anyway, Lately I'm thinking of opening a storefront and hiring someone to handle walk ins, do quotes, weed/apply vinyl while I go sling paint and work on projects as they come. The downtown where I live is under a serious refurbishing and was a ghost town a few years ago. There are businesses popping up all throughout downtown and theres not a single sign shop in the whole downtown. I'm thinking of doing it, but I need to know what I'm up against. Things like insurance,accounting, hiring employees, etc. etc.
THe way i've been running my business for the past 10 years or so has been somewhat primitave, like one man show, painting storefronts and making signs. I hardly keep records and I basically use my online banking to track my finances for taxes.
As of now, my overhead is extremely low and I already said what I make per day (anywhere from $200 to $1000 a day, but closer to the low end most days when I average it out.)
My question is....should I do it? Or should I just continue the way I've been doing it?
I ask because If I decide to do it, I need to know what types of things I should expect and if it's even worth delving into.
Ok, that was my long winded story..... and I'd appreciate advice of those who might have started out small and then expanded.
posted
Having been a freelancer myself for most of the last 25 years I'm sure there is better advice out there. For me, a storefront would mean a whole new business. Other sign people, when they make the transition to in shop production, it seems to be the end of their days "roaming the range". I would ask, is this what I want for myself (to transition to pretty much full time shop keeper, or trusting another to handle that part of the business) or do I like what I am doing now (why change)?
-------------------- Kevin Mann SignMann Sacramento, Ca Posts: 80 | From: sacramento california | Registered: Jan 2007
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I guess the answer is - will it make you more money than it costs to run? Overheads with any kind of a shop will add up pretty quickly and of course have to be paid whether you're earning or not. Your bookkeeping will have to improve, too. With a visible outlet you can bet the taxman will know all about you.
Best thing you can do, IMHO, is to go get some advice from a good accountant - they will be able to help you assess the feasability of it.
-------------------- Graham Parsons Signs 'n Such Ltd Swift Current Saskatchewan Canada. www.signsnsuch.com
"Saskatchewan - hard to pronounce, easy to draw" Posts: 710 | From: Saskatchewan, Canada | Registered: Oct 1999
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posted
thanks , yeah thats what I'm looking at. I thought about that, having a visible outlet, not only the taxman (I do pay my taxes) but the zoning people, inspectors etc etc. i'm not sure if I want the headache. The main reason I want to do it is that I plan on moving from here at least within the next five years and I'd like to build a sellable business when I leave.
I like the accountant idea, though..I'll have to look into the probability of it being a sound investment.
posted
...you will have to watch every penny, boom or bust. But it could work if you are really into entrepreneurship. ...One vital factor will be finding the right someone to work w. you. You'll be best off if you can find a partner who has any people, sales, business or production qualities that you lack, and who is also reliable and trustworthy. And (hopefully) has about a hundred grand to invest. You will need certain (big) security to cover your build, opening and overhead (they say for two years). ...Another thing to consider is, do you have a sufficient 'client base' to sustain your endeavour? And will you be able to increase it? And can you handle doing so much more work yourself (or w. the one helper)? Are you ready to work 12 hr. days? ...Your downtown location sounds like the right place (at the right time) Can you afford (or get enough loaned) to buy a building? ...I have dreamed about doing the same for years. Good luck!
posted
If you turn 10K a month, and profit 50%, thats good. If you turn 20K and profit 25% with a store front, your profit is 5K either way, and your headaches are multiplied without making any extra money to justify it.
In addition, you have to be sure the store front is babysat during all business hours. It dosen't take long to get a reputation as someone who is never there.
If I move from home again, I will rent some space where I can work, I will not hang a sign, and I will come and go as I please, and meet clients by appointment, much like I do now. My target market is not the general public. I am business serving business. I like it that way.
A store front invites all sorts of unprofitable areas that are difficult to make money at. Just my stray thoughts. Some will agree, some will not. Your current situation offers freedom that you cannot put a price on. Ask me how I know! Good luck!
[ July 04, 2007, 11:42 AM: Message edited by: Rick Beisiegel ]
""Good judgment comes from experience; and a lot of that comes from bad judgment" - Will Rogers Posts: 3485 | From: Beautiful Newaygo, Michigan | Registered: Mar 2003
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quote:Originally posted by Rick Beisiegel: If you turn 10K a month, and profit 50%, thats good. If you turn 20K and profit 25% with a store front, your profit is 5K either way, and your headaches are multiplied without making any extra money to justify it.
In addition, you have to be sure the store front is babysat during all business hours. It dosen't take long to get a reputation as someone who is never there.
My target market is not the general public. I am business serving business.
A store front invites all sorts of unprofitable areas that are difficult to make money at.
posted
this is all excellent advice and beleive me, I've thought of "giving up the freedom" and I don't think I'm ready to do that. When I moved from South carolina and just "packed up and left" I felt bad about leaving such a large customer base behind and not being able to profit off the strong client base I built for 6 years. That's what's got my gears turning on a storefront now, as an investment. I think I'll just keep it the way it is....too many variables. Thanks for the advice. I know what you mean about attracting business you don't want , Rick....that's why I don't advertise. I just walk into businesses that I want to do business with, portfolio in hand.
posted
The first $4 grand of income every month will goto your fixed costs. You won't have a dime of your own until you can meet that first 4 grand every month.
-------------------- Leaper of Tall buildings.. If you find my posts divisive or otherwise snarky please ignore them. If you do not know how then PM me about it and I will demonstrate. Posts: 5274 | From: Im a nowhere man | Registered: Jul 2001
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posted
In regards to your idea of building a customer base and then selling out later as an investment:
Customers are fickle-- they will probably do work with you because of what YOU offer, not what somebody else that buys your business offers. I have always thought that whole idea of buying (or selling) a customer base was a bunch of hogwash-- most customers will turn and run to save $5 in a heartbeat, unless they like doing business with YOU.
My customers are somewhat loyal to me because they like ME and what I offer and deliver-- they know they could go somewhere else and get something similar at a cheaper price (some have done just that) I have learned to take care of the good ones and let the others go elsewhere.
I have had people ask me why I don't have a storefront screenprinting shop like the other 10 or 12 shops in town. 1. OVERHEAD 2. My equipment is paid for. (See #1) 3. I don't want to have to print t-shirts 24 hrs a day for the rest of my life just to pay the bills and hope to break even. (See #1) 4. I don't like dealing with tire-kickers and the average morons that wander in off the street, with butt-ugly projects, wanting me to bend over backwards for them for little or no compensation. (See #3) 5. I like to be selective in clients and projects. (See #4) 6. I have other commitments that demand flexability (. Web business, coaching, teaching, family...) (See #1, #2, #3, #4 & #5)
-------------------- Michael Clanton Clanton Graphics/ Blackberry 19 Studio 1933 Blackberry Conway AR 72034 501-505-6794 clantongraphics@yahoo.com Posts: 1736 | From: Conway Arkansas | Registered: Oct 2001
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Today, your business is you. If you can't work, there is no business. If you want to build a business to sell, you need a plan. Besides: Adding a pile of fixed costs without a business plan isn't smart business.
I would suggest you buy and read "The E-myth Revisited" and commit an hour or so per day to developing your business plan. Give yourself a deadline for completion. There are plenty of free, helpful resources on the web to get you started. If you can, find a successful entrepreneur to mentor you.
-------------------- Jon Aston MARKETING PARTNERS "Strategy, Marketing and Business Development" Tel 705-719-9209 Posts: 1724 | From: Barrie, ON, CANADA | Registered: Sep 2000
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