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Old 05-20-2013, 08:57 PM
newguy123 newguy123 is offline
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Stay on with crew or RUN the business

I'm at a threshold where my business has enough weekly accounts to justify a 2 man crew for a full week of work. My question is directed towards those that are or have been in this situation. Did you stay working with your crew, or did you let them go and concentrate on advertising/securing more jobs?

I appreciate any insight and/or questions.
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Old 05-20-2013, 10:06 PM
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richardcog richardcog is offline
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Stay on with crew or RUN the business

Ask your self this if you get hurt out there then what? You are the owner step away and work it from the office and grow it. Weed out the bad for good there are so many these you can do in office.
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Old 05-21-2013, 01:30 AM
Babbages01 Babbages01 is offline
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I forgot who said it, but "work for your business, not in your business."

If you can justify staying in the office and taking care of that aspect plus advertising, let your guys run around and do the work. Afterall, the more you advertise, the more clients you get. The more clients you get, eventually you'll have to add a second crew.

The gist of it is, let other people make money for you.
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Old 05-21-2013, 10:25 AM
djagusch djagusch is offline
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Be prepared for less income/profit for awhile. Currently you have profit plus a hrly wage doing the work. The hiring takes away the hrly you have been paying yourself.

I reduced debt before the hiring/growth and made some life style changes during this stage. The nice thing is it has worked out and have went back to the normal lifestyle.

The least stressful way I've found for large planned growth is to reduce debt before the growth (knowing the growth may add short term debt). After you get your growth slow it down but keep growing (15 to 20%). Reduce the debt again and repeat.

Growth shouldn't be a straight path. It will have peaks and valleys in the growth line.
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Old 05-21-2013, 02:24 PM
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McFarland_Lawn_Care McFarland_Lawn_Care is offline
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When the business profit margin is high enough to make your salary, then you can step back. Before that, I wouldn't. The guy above me, hit it on the head.
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Old 05-21-2013, 08:06 PM
newguy123 newguy123 is offline
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Quote:
Originally Posted by djagusch View Post
Be prepared for less income/profit for awhile. Currently you have profit plus a hrly wage doing the work. The hiring takes away the hrly you have been paying yourself.

I reduced debt before the hiring/growth and made some life style changes during this stage. The nice thing is it has worked out and have went back to the normal lifestyle.

The least stressful way I've found for large planned growth is to reduce debt before the growth (knowing the growth may add short term debt). After you get your growth slow it down but keep growing (15 to 20%). Reduce the debt again and repeat.

Growth shouldn't be a straight path. It will have peaks and valleys in the growth line.
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Yeah...right now the business is debt free. But growing to a second crew would demand debt, but that will probably be next year.

Quote:
Originally Posted by McFarland_Lawn_Care View Post
When the business profit margin is high enough to make your salary, then you can step back. Before that, I wouldn't. The guy above me, hit it on the head.
We're at that point...I guess it's time to take a leap of faith...
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Old 05-21-2013, 08:11 PM
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Efficiency Efficiency is offline
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Quote:
Originally Posted by djagusch View Post

Growth shouldn't be a straight path. It will have peaks and valleys in the growth line.
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Good post but I have to disagree with you here.
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Old 05-21-2013, 10:14 PM
newguy123 newguy123 is offline
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Good post but I have to disagree with you here.
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Why so Efficiency? Thanks for the input...it's appreciated.
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Old 05-22-2013, 12:05 AM
djagusch djagusch is offline
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Originally Posted by Efficiency View Post
Good post but I have to disagree with you here.
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20% growth most can handle with ease. It should be linear 20% or lower. I went 200k to 400k in a 12mo period. I managed debt and cash flow pretty well and most of my debt will be gone this summer. If I were to jump 400k to 800k again it would take a big amount of debt to do (that would be linear growth line). I don't think most could do that. Instead this year I will go for a controlled 20%. Work on systems and being efficent. Then plan a greater growth year the following year.

Main reason is each level requires different support staff, buildings etc. Changing yearly gets pretty costly and doesn't allow time to lean/perfect systems out.

Vankoolie would say that is the best way to go about. I also think he says 20% of sales in cash and 20% in loc or you will have cashflow issues that will hurt you in the long run. Maybe 10% each but don't have my notes around.

To each their own but doubling yearly I couldn't handle.
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Old 05-22-2013, 09:25 PM
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Efficiency Efficiency is offline
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I dont know what id do with 20% cash and LOC. we are at about 5% for each.
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