We put a contract on a piece of property about 40 miles from here in a prime market for a new sign shop.
This will be our second location, we've done the research on the town, and the competition barely has a pulse, the market is growing and the town has a solid business base. Our name is known there as we have customers that travel to us to get work done now.
Our location is prime, 1500 square feet, our own building, (used to be a steak house) on the busiest road in town, directly across from the biggest grocery store and smack dab between the newest car wash and a laundromat, also cadicorner to the high school...Gota love those kids for the decal work.
We've got a great employee to run the shop that is actually a long time friend, he is currently traing in our shop here and is doing quite well.
My question is what are the little things that will creep up on me and bite before I see them coming, does anyone or has anyone here ever ran more than 1 shop?
I know we can do the work and get the work, we have a plan for advertising and have already joined the chamber and will be joing the rotary as well.
So what is there that I need to be on the look out for as far as things that I havn't thought of?
Is there anything specific you would do to get things on the right track?
Thanks for the input folks.
Shawn
-------------------- Shawn Setzer Signs by Shawn 826 Hwy 47 East, Troy, MO Posts: 241 | From: Troy, MO, USA | Registered: Jan 1999
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Friends are friends but money is money. Money makes people do goofy things sometimes. I am not making disparaging remarks towards your helper but just keep a close eye on the till.
A profit sharing program along with a good rate of pay and benefits will go a long way to keep small jobs from ending up in someone's pocket other than your own.
"Trust is a must or the game is bust". Nelson Burton, Jr. used to say that about bowling. I know that trusting your ball along the first arrow is far removed from running the shop, but the idea still applies. There has to be a major trust level on both sides.
You will also have to remember that no employee is ever going to work as hard as the guy who's name adorns the outside wall.
This is a major step and I wish you the very best.
Have a great one!
-------------------- Bruce Bowers
DrCAS Custom Lettering and Design Saint Cloud, Minnesota
"Things work out best for the people who make the best of the way things work out." - Art Linkletter Posts: 6464 | From: Saint Cloud, Minnesota | Registered: Jun 1999
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I totally agree, and we have had candid discussions over this very subject, he knows that if 1 dollar is stolen, he's replacable, but on the other hand I am paying him well, $400 per week plus 25% of any cash decal sales and profit sharing after 1 year.
You can never know if some money goes missing but I've got to have a certain amount of trust to be able to sleep at night as well as run the other shop.
This was our biggest hold-up in doing the second shop, getting someone that was able to do the work and able to be trusted!!
Will let you know how it goes.
Shawn
-------------------- Shawn Setzer Signs by Shawn 826 Hwy 47 East, Troy, MO Posts: 241 | From: Troy, MO, USA | Registered: Jan 1999
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I am very pleased to see that you have addressed this issue with frank discussion. Communication is key for any relationship to work. It sounds like you have a firm grip on this. Excellent!
I have that kind of relationship with my partner. We have to be able to trust each other when the other is gone for vacations or whatever.
We have often thought about opening up a second location but are extremely happy with the way things are going here.
We still wish you the very best in your new endeavor!
Have a great one!
-------------------- Bruce Bowers
DrCAS Custom Lettering and Design Saint Cloud, Minnesota
"Things work out best for the people who make the best of the way things work out." - Art Linkletter Posts: 6464 | From: Saint Cloud, Minnesota | Registered: Jun 1999
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Sound like you have all your ducks in a row. I think if properly executed, having the second shop should actually improve the bottom line in your primary shop.
I would keep purchasing centralized, and have suppliers drop ship to second location, Suppliers respond well to Volume and Average purchase. so you should realize some savings on supplies. By now you should be doing all purchasing with a credit card that gives travel miles. - I travel often and haven't paid for an airline ticket since 1996. Card is always paid in full on payment due date so I dont pay interest either.
Having a second shop also allows you to look at acquiring equipment that you perhaps couldn't justify from having 1 shop, keep the new (solvent printer, summa dc3, whatever ... ) at your primary location, use second location as an outlet. Make sure the manager at the second location is trained on the new equipment and knows its needs and limitations.
Good luck - Please keep us posted - this is a subject that interests me greatly.
-------------------- Mike O'Neill
It has yet to be proven that intelligence has any survival value. - Arthur C. Clarke
I never thought about the miles thing... good idea!!
As far as purchasing goes, all orders will be placed by me from our current shop and billed to me, but will be dropped by our supplier to the other shop for their supplies. We're planning on a bi-weekly (twice a week) meeting for now to go over jobs, problems, customer relations, and supply issues.
We already have a screen printer about an hour south of me that we source our screen printing from and we are looking at the bigger digital stuff but havn't decided on a machine yet. I know as soon as we purchase, something better and cheaper will hit the market!! but that's just the way of the puter.
We currently are the only shop in the area that hand paints as well as vinyl so that should also give us an edge. also our competition in the new area hasn't layed hand on an airbrush I think, so that will help also.
As soon as we get the building purchased I will post pics of the interior and exterior to get opions on the best way to market us to the local public, 3000 heads are better than one you know!
Also, over the weekend I have learned that our competion has learned that we are coming...Only 2 people knew, but its a country town and word travels fast!!
Well if you can't tell already, I'm very excited, will keep ypu all posted on what's going on.
Shawn
[ July 15, 2002, 08:28 AM: Message edited by: Signs by Shawn ]
-------------------- Shawn Setzer Signs by Shawn 826 Hwy 47 East, Troy, MO Posts: 241 | From: Troy, MO, USA | Registered: Jan 1999
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Hiya Shawn, I'm just curious. What's your current shop like and how does it compare to your new location? To make the impact of starting the second location a little softer on your wallet, you may want to consider one location a satellite office. Basically, just a place to take orders & do some minor production. But not a full blown sign shop. It will keep costs down by not having to maintain duplicate inventories or equipment. As business warrants & sales increase, you can start investing into equipment you may want or need. Havin' fun, Checkers
-------------------- a.k.a. Brian Born www.CheckersCustom.com Harrisburg, Pa Work Smart, Play Hard Posts: 3775 | From: Harrisburg, Pa. U.S.A. | Registered: Nov 1998
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Shawn..Like Mike says.."Air Miles" or whatever REALLY works if ya use a credit card that accumulates em!!! I used to just use my credit card for personal things..THEM Mike mentioned about usin it to pay shop accounts..WOW that built up the air miles in a hurry!!!!.flyin free next January!!! THAT is a GOOD thing!
-------------------- Dave Grundy retired in Chelem,Yucatan,Mexico/Hensall,Ontario,Canada 1-519-262-3651 Canada 011-52-1-999-102-2923 Mexico cell 1-226-785-8957 Canada/Mexico home
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