Full Version: Trying to start Business
From: Jer (DIAMOND) [#41]
18 Mar 2007
To: Jack (ALPHASUPPLY) [#38] 18 Mar 2007
11. Don't try to be everything to everyone. Make a plan and then work your plan. Just because Aunt Mitilda wants a mug doesn't mean that you have a customer base to get the necessaries to do just that. Expand when it makes good business sense.
Thats a good one. We try to never say no and it feels great when we pull something off that seemed impossible. I feel bad when we are not able to service a customer, but then I get a great feeling when I know I did the best thing for them by sending them to another shop for that service.
EDITED: 18 Mar 2007 by DGL
From: Jack (ALPHASUPPLY) [#42]
18 Mar 2007
To: Jer (DIAMOND) [#41] 18 Mar 2007
Indeed. Another time to feel great is when you have to "fire" a customer who is much more trouble than they are worth. I always apologized, for not being able to do things to their satisfaction, but made it up to them by sending them to a constant "low-bid" competitor. I always felt like that made them both winners.
I think the hardest three abilities for entrepreneurs to develop are:
1. Always having new goals, when the old is reached.
2. Staying on track, by using time wisely.
3. Just saying no, when they should
Jack Franklin
Nashville, TN
800-908-9916
www.alphasupply.com
www.dyesubinks.com
www.colourmagic.info
EDITED: 18 Mar 2007 by ALPHASUPPLY
From: LaZerDude (C_BURKE) [#43]
18 Mar 2007
To: Jack (ALPHASUPPLY) [#42] 18 Mar 2007
Hey Jack,
Wanna spend a week on Maui?
From: Vicky (ANDERI) [#44]
18 Mar 2007
To: Jack (ALPHASUPPLY) [#42] 18 Mar 2007
From: Mark (MAXMACHINE) [#45]
18 Mar 2007
To: ALL
I don't often chip in to these discussions, but what I have heard so far is right on target. I have been doing this for over 30 years, and it can be a tough business to succeed in. Some of the things I have learned in that span of time:
1) It is easier to succeed if you are using equipment that is relatively new technology. I had one of the very first computerized engravers in Oregon in 1981. Also, we were first with CNC vinyl cutting equipment. Those technologies allowed me (us by then) to out produce all of our competitors and offer what was then new and unusual features at a reasonable cost. Laser machines are now becoming very common, and the "wow" factor is almost gone.
2) No one is going to beat a path to your door. You have to go out and get the business. Unless you have a storefront in a good location, a lot of your personal time is going to be spent pounding pavement. If you don't like to do this, you will be in trouble. I am mostly retired, but I have one person that works for me that spends half of his time selling for me, and enjoys it. Most of the people that like to run the machinery are not very good salespeople, and the reverse is true as well.
3) Trophy work is a miserable way to try to make money. I can't count the number of times that someone has come in and said "I have a budget of $47.23, and I need 82 trophies, and I want them to look nice. Maybe something in walnut." I would rather sit at my machine and make sales samples that we give away than make trophies.
4) I am constantly amazed at the number of people that write into the various forums saying "I just bought a laser machine. What do I do next to make a lot of money?" Ideally, the business should be there before you buy anything. My first business in the engraving field was when an electrical contractor needed phenolic labels for electrical switch boxes. I said I could do it after he told me how many he needed on a monthly basis, and how much he would pay for them. Then I went out and bought a pantograph. This was in 1975. By 1981, business had increased to the point where we purchased a Dahlgren CNC engraver.
5) When you start, as they say, you had better keep your day (or night) job. You are going to make lots of expensive mistakes, and you still need to eat. In my first business, (not engraving) I worked second shift at an aircraft plant and ran my small business during the day.
6) You need to really LIKE what you are doing. If you are in it just for the money, you won't last long. I love being an engraver. At our peak, we had 23 employees. (we became a sign company that produced all kinds of signs, large and small.) Now that I am retired, I still do engraving because I like it. It makes people happy. I love hearing the "ooohs and Ahhhs" when the customer sees what we have made for him.
7) You must be innovative, always looking for new ways to use your equipment. When I had my first machine (a New Hermes IRX-K pantograph), reverse engraving was very difficult. There was only one set of reverse lettering templates available, and very expensive. I was able to solve the problem by mounting the letter holders upside down above the table, reversing the stylus, and engraving the work looking through a mirror mounted where the table was. By doing this, I could offer sub-surface lettering of any size or font using my regular fonts and logos.
8) As has been said here, you might make a deal with the fellow that is close to retirement. He can get more for his business by selling it to you, and if you include a year's training or so, you will be way ahead of the game.
I could go on like this, but don't want to be a motormouth!
Good Luck
Mark
From: Cody (BOBTNAILER) [#46]
18 Mar 2007
To: Mark (MAXMACHINE) [#45] 19 Mar 2007
Rev up your engine!!
For those of us that have only been in business for a short time, it is WONDERFUL to find such nuggets of wisdom. To get them all in one place (like this) is a sweet bonus!!
From: bosch [#47]
18 Mar 2007
To: Cody (BOBTNAILER) [#46] 18 Mar 2007
Cody,
I could not say it any better than you just did.... I have received more information and knowledge from this post than I ever thought I would and even received some information about business opportunities that I had not even thought about.
I'm with you rev up your engines and keep the information coming.
Thanks to all for your information and sharing it. I have found it to be a great help.
From: gt350ed [#48]
19 Mar 2007
To: Doc (GREAT_ATLANTIC) [#27] 19 Mar 2007
I've never quite understood dissuading anyone from grabbing a piece of such a powerful market.
I could not agree with you more!! Trophies represents about 35% of our revenue. We sell at between 3 and 4 times our cost. We do a fair amount of trophy business. Actually, when it comes to youth sports, we do very few "column" trophies. There are SO many alternatives these days. And when we DO the larger column or multi-column trophies, we get our price. We have multi-column trophies that approach $100 per; sometimes more.
On the otherhand, as I've mentioned here numerous times, a laser is a money machine. No question about it. We have two. But I would not finance a purchase without a business plan. There's nothing worse than having an unused new laser sitting in the corner next to a $500 monthly payment coupon.
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