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  • Growth or Death?

    Theoretically or factually:

    In business, are you either growing or dying?

    J.C.

  • #2
    Re: Growth or Death?

    We recently chopped off an appendage but a new one seems to be growing in it's place

    Comment


    • #3
      Re: Growth or Death?

      Interesting question. I've no scientific evidence to back this up but over the years I've seen way more plumbing contractors go out of business because they tried to get too big too fast then those who have stayed smaller and only did what they do best.
      Teach your kids about taxes..........eat 30 percent of their ice cream.

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      • #4
        Re: Growth or Death?

        I'm working on expanding my customer base so that I can focus on service and repair and leave the remodels for someone else.

        As far as employees go... NOPE
        sigpic
        www.uandiplumbing.com

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        • #5
          Re: Growth or Death?

          Depends on your definition of growth.

          Comment


          • #6
            Re: Growth or Death?

            I think it depends. For big businesses it is definitely true, if you aren't growing you'll lose market share; and with a smaller share your cost/unit is likely to put you at a disadvantage to your competitors.

            For a one man show, if you've gotten to the point where your saturated you may not need to "grow" in terms of the amount of work you're doing. But to keep up with inflation, you'll at least need to grow modestly in terms of profit.

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            • #7
              Re: Growth or Death?

              Thats a good one. I wish to grow...but not to the point where I have to keep an eye on someone else. I finished the year with no debt, money in the bank, kids have shoes, and meat in the pasta.

              Like I said, good question.

              Comment


              • #8
                Re: Growth or Death?

                Originally posted by U&I Plumber View Post
                I'm working on expanding my customer base so that I can focus on service and repair and leave the remodels for someone else.

                As far as employees go... NOPE


                When you finally get to just "service and repair" ...you'll never look back.

                Such a better way to make money in the plumbing industry and the money/cash flow is much more immediate.

                I wish all my customer's jobs were under the 3 hour window. Could get far more work done, be in more driveways in a day.


                A customer of mine said he saw me 7 times on the road last week, said I was "everywhere".

                That's what I want the rest to think; a bigger company with a fleet of trucks. Name:  2cb17aa8efea0c6193d030e4dcb30a8c.gif
Views: 1
Size:  1.4 KB
                Last edited by DUNBAR PLUMBING; 04-04-2009, 10:25 PM.
                Northern Kentucky Plumbers Twitter Feed | Plumbing Videos

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                • #9
                  Re: Growth or Death?

                  Originally posted by DUNBAR View Post
                  When you finally get to just "service and repair" ...you'll never look back.

                  Such a better way to make money in the plumbing industry and the money/cash flow is much more immediate.

                  I wish all my customer's jobs were under the 3 hour window. Could get far more work done, be in more driveways in a day.


                  A customer of mine said he saw me 7 times on the road last week, said I was "everywhere".

                  That's what I want the rest to think; a bigger company with a fleet of trucks. Name:  2cb17aa8efea0c6193d030e4dcb30a8c.gif
Views: 1
Size:  1.4 KB
                  Yes Sir,
                  The ticket is to not spend more than 3 hrs at any one place if at all possible.
                  sigpic
                  www.uandiplumbing.com

                  Comment


                  • #10
                    Re: Growth or Death?

                    I'm always trying to grow. I want to grow into a two serviceman, one dispatcher, one supervisor / serviceman (me), company.

                    No bigger.

                    At this point in my business career (one man shop), if I'm not growing, I'm dying.

                    Dying today though, slow for some reason. Just talked to my friend that works for one of the larger rooter companies and they're slow right now too. Recession?

                    Lenny

                    Pronounced A-Bear Drain Care

                    I know, it doesn't make sense.


                    http://www.hebertdraincare.com

                    Comment


                    • #11
                      Re: Growth or Death?

                      Hebert, I was wondering how things are down south, we are a little slow right know on plumbing service, had a great month in A/C and heat in march.

                      I believe it is the attempt to be growing that will determine whether you are growing or dying. If there are no attempts to improve or grow your company you are DYING! Dont ever be complacient.

                      Comment


                      • #12
                        Re: Growth or Death?

                        Slow today, one call came in today to set up for tomorrow morning.

                        I stay steady with about 60 jobs per month average.

                        I do sewer and drain only and would be busier if I took every large plumbing job.

                        I just prefer drain work. My masters license is renewed but dusty. Going to the continued education class in June in Kenner.

                        A lot of people are still rebuilding down here but I hear that the rebuilding work has slowed too, because of insurance claims, and road home money being tied up, and some are just not rebuilding, leaving their abandoned houses rot or be taken over by the local parish governments.

                        Every time I complain about things being slow I usually find myself too busy the following week.

                        Lenny

                        Pronounced A-Bear Drain Care

                        I know, it doesn't make sense.


                        http://www.hebertdraincare.com

                        Comment


                        • #13
                          Re: Growth or Death?

                          My wife worked for senator Vitter before during and after Katrina, so I know all about what the people are going through and the red tape that it takes to get things done, thats primarily what my wife did was cut the tape. after about 2 years she had as much of it as she could take. It is hard trying to help people but never get any where.

                          Comment


                          • #14
                            Re: Growth or Death?

                            Essentially, the thesis statement would be accurate. However, one would have to clearly understand what 'growth' referred to. In the purest sense, growth is the increase of the bottom line/profits. It is traditionally viewed from the short term and long term perspectives. Short term growth could be something as simple as taking an overtime job on a weekend night. Long term could be the cost/repayment schedule of a piece of equipment, and its asset value at the end of the payback period.

                            Market share is not the only barometer of growth. In fact, adding customers can be (and often is) the death of a small business. The bottom line can almost invariably be improved by more effective cost controls and pricing controls. During a recession, pricing becomes more competitive and profits can suffer noticeably. Ergo, during these times, creative cost controls are often the most effective, quick options.

                            Some thing can dramatically change the financial rewards to a small business owner is the formation of a "C" corporation. This is usually shied away from because of the fear of "double taxation." However, this can be more than offset by the fact that a "C" corp. can own assets. For example, if the business owner uses the company truck a lot, and currently gets the benefit of writing off mileage, the corp. can own the truck and all costs, including loan and repair payments and insurance are paid by the corp. Hence, the money to make such payments does not go through the owner's (taxed) income. A "C" corporation is not for everyone, but it should definitely be reviewed.

                            If increased market share (more customers) is the objective, be creative and bargain hard for traditional advertising. Newspaper ads are way down now – and excellent pricing is available for the hard negotiator. The Internet is the coming thing – and has largely already arrived. It takes several months and a reasonable investment to initiate a web presence, but over time it is exceptionally cost effective and rewarding. Place ads on local sites – that's usually free.

                            I am not really sure why I got into this thread – but I sure got windy!!!
                            Measure TWICE - Cut ONCE! 'Cause the Lumber Stretcher is broken!
                            I'd throw more things away, but I'm afraid someone might want them...
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