ECN Forum Forums General Topics of the Trade Business Related Discussion Slow Spells

In what year do they teach apprentices how to read?

Let's try again, the contractors we are talking about, are small 1 to 5 man shops, they operate doing small remod jobs, and some do service repair work, we are not talking about large construction projects, the topic was, when business slows, and you have skilled employees, what are some of the ways to prepare for slow times, to avoid a lay off, is it reduce hours?, reduce days, or, lay off until things pick-up.

Remember, for a small business, the overhead cost continue, even when there is no work, laying off your employees, will not produce the needed income, to continue in business, finding work, will produce the needed income.

Let's get back to the topic!

Imagine you're working at a place, and you see all the signs that work is drying up. What do you do?
Do you simply bail out- or do you try to bring some of that "side stuff" you've been doing into the shop?

If you're a contactor, or even a foreman, and you see a slow-down coming....what do you do to prevent it?

I'll tell you what I do. I start touching base with my regular customers, to see if they have any work in the pipeline- or, maybe, some little stuff that's been getting put off.
I made sure everyone I deal with- from the bartender to the local mini-mart, knows I'm an electrician. heck, I might even suggest something, like a lighting upgrade.
If there's a new place in town, I introduce myself. If a big job finished this time last year, I swing by, offering myself for maintenance work (now that the warranty is over).
I "beat the bushes" with the other contractors I work alongside....the plumber, the HVAC guy, the fire systems guy, etc....to see what they have going on.

SLow periods can be assets or liabilities. Just sitting around, waiting for the phone to ring, is not a solution. Even a small, two or three man operation has to clear $800 every day, just to keep the lights on.

I read something interesting in Markup & Profit by Michael Stone which I'll quote:

"You must run your business as a business. Your main reason for being in business isn't to provide jobs for other people. You're in business to provide a service to your customers and to make a profit doing it. If there are no profitable jobs to work on, then everyone goes home until there are. That's the nature of construction. If you've been in construction more than a day, you'll have heard that there are some down times. We all have them; they're part of the business. If you or your employees can't handle that, then you'd all better go look into another profession, and quickly. You're in the wrong business! So, if your choice is taking a job at a loss, or sending your people home until you get a job that you can make a proffit on-then everyone goes home."

Dave

Thats also cold. But true enough.

Quote:
"Your main reason for being in business isn't to provide jobs for other people. You're in business to provide a service to your customers and to make a profit doing it."

Just because Stone feels that way, doesn't mean it is so for everyone.
There are many different reasons to be self-employed and an infinite combination of personality traits that may be held by any given business owner.

I quit "corporate America" out of disgust for the greed or those "profit obsessed" managers who run it.

I enjoy the freedom of being self-employed, and am happy to pay my bills. I have yet to determine my "target profit".
I have a good employee and when we are slow, I will try to find ways to keep him "whole", even if it means helping around the house.

I believe that the "cream rises to the top" and that if you offer a quality job to customers at a fair (to both parties) price, that you will be less likely to be slow, and, in time, the profits will follow.

[This message has been edited by Redsy (edited 04-02-2006).]

Redsy,

No offense, but lets talk again after you go through a slow spell, and do everything you can to keep your employee working. You have him even help around your house at your own personal expense. Then he comes to you and says "i want to do electrical work, not sheetrocking/landscaping/etc. X company is willing to pay me $1/hr more and they have tons of work. Sorry, I'm leaving"

It definately changes your attitude towards employees.

>>>>Then he comes to you and says "i want to do electrical work, not sheetrocking/landscaping/etc. X company is willing to pay me $1/hr more and they have tons of work. Sorry, I'm leaving"<<<<<<<

You now found out where his loyalty is...

Redsy, if you are in business for flexibility and freedom, and your not making lists about costs in your spare time, your a bad business man......(according to some on this board).......One more thing, if your slow, raise your rates, to get more work, didn't you read them books?....(sarcasm)


Dnk...

don't do that. Instead drop your pants, take jobs at a loss (hope for change orders to really screw the customer) and go into debt to keep help everyone else pay their bills.

Dnk, it has nothing to do with just raising prices - it has everything to do with raising yourself to a higher level of business. It's what you can do with the money from the higher prices (more advertising, more promotion, more profit - to help cover the slow periods)

What should you do when you are slow? Cut back on advertising? Cut back on marketing? Cut back on the things that make your company money?

Please, think before you speak.

Tiger..

>>>We all have them; they're part of the business. If you or your employees can't handle that, then you'd all better go look into another profession, and quickly. You're in the wrong business!<<<<

Tiger, if the employees are working in a business industry with up and down times, and they can't handle it, they should find another line of work, not the contractor...
After a couple years as a contractor under your belt, you will know when the slow times typically come, and with proper planning, you can overcome these.This works for both the contractor and the employee.

Dnk...