How to be successful

[bob_the_builder_2006]

Hi

 

I am currently starting up my own buisness, my business supplies screens, lighting, projection and sound equipment. I hire them out at a cost and just go and set up and take down on conferences and events. If anyone can help give me ideas on how I can make the business successful, and what clients I might be able to use. or if you have any general ideas in expanding the company.

 

 

 

Thanks to all

[RoyF18]

How far on in the set up of the business are you? Have you got any gear/customers etc yet or is this just still at the ideas stage?

[lightsource]

Hi

 

............ and what clients I might be able to use. or if you have any general ideas in expanding the company.

 

I don't think there'll be many BR members willing to divulge their client list readily. Expansion of one company, could easily lead to the demise of another, depending on the location etc.

 

Do you have any previous experience of this line of work, or is this a new venture?

[Pete McCrea]

1) S**t loads of hard work.

2) Don't price your self low simply to get work. You erode client expectations, rip the bottom out for everybody else and make the industry unsustainable.

3) More hard work.

5) Build up trade cross hire work. This means buying the right kit to make others hire it. Not necessarily the kit you want. It also means making and maintaining relationships with the other companies not trashing them. Get them on your side and people will refer work when they can't handle it. Slam them and they'll slam you.

6) A load more hard work.

7) Treat every client well.

8) More hard work (spotting a theme here?)

9) Don't nick my clients!

10) A few late nights working hard.

11) Watch the cash flow. That could be the thing that kills your business if you don't have the cash when you need.

12) More Hard work.

 

Good luck.

[frazer]

Talking from A Level Busines Studies Experience.

 

"One third of new business' fail within the first two years and only 44% survive five years"

 

You need to think of survival and not expansion. Ensure that you have an adequate business plan in place. Set yourself targets and keep a firm hold of those purse strings. Market your business, be it business cards, telephone calls, or a website.

 

I have boxes of folderwork and books in my attic, couldn't possible put it all down in one post.

 

I also agree with lightsource, I know my manager would not be happy with me handing out his client list.

 

Frazer

[Rob_Beech]

One thing that Pete forgot to mention there was that often there is alot of hard work involved :)

[Bobbsy]

Being slightly facetious, the first thing to do is stop hiring things at cost. One thing that the dreaded men in suits always drummed into me is that you should be charging about 40% over cost which, after overheads, will amount to about a 25% before tax profit.

 

You can achieve this by either raising prices or dropping costs.

 

Now, being realistic, in this cut-throat business it's nearly impossible to achieve these sorts of returns, but the moral of the story is to not undervalue yourself or your services. As a follow on from this, you also have to be honest with yourself and, if you can't achieve successful revenues then you need to know when to pull the plug.

 

Bob

[paulears]

Aha Bob! After typing a reply just like your's earlier on (and deleting it), he actually said "at a cost", not "at cost" - he doesn't mean cost at all - he mean hiring out for a fee (I Hope!!).

 

Half the battle in business is understanding business terms, fixed and variable costs, input and output tax etc - a pretty easy thing to get wrong until you've been there.

P

[Stutwo]

The most valuable thing I learnt about this business - low prices = low expectations of the standard of you and your kit. Meaning, the job will go elsewhere to someone charging a realistic fee.

[Steve Cavill]

I would have to disagree with the above statement.

 

Its a fiarly common realisation, that those who come in with a lower price than yours get the job, even if they are "cowboys" with no real experience. Customers always look for the lowest price!

 

Which in turn tears the industry apart!

[nicemms]

Again from A Level Business Studies Experience.

 

Don't put your prices rediculously low! This will a) put your competitors out of businees, and put pressure on them to match your prices, when theres not a chance that they can realistcally and b) put you out of business because chances are you'll be making a loss, and not even covering your variable costs, let alone contributing to your fixed costs which leads to c) if other businesses go out of business from stupidly low prices and so do you, there'll be very few firms left in the market, so very unhappy people.

 

Obviously you want your prices to be competitve, but not so low that you end up making a loss.

 

If you have the ability, produce cash flow forecasts and budgets and try to work out your fixed and variable cost, so you can set a price and work out your break even output.

 

In terms of aims and goals:

1. Stay in business, focus on keeping positive cash flow at all times.

2. Once you can do that sucessfully, think about going for profit more.

[Ike]

I agree with Steve on this one.

 

The best bit of advice I can give is to ignore any from people who aren't running a successful business...

[Pete McCrea]

I'd third that comment. It's all well and good quoting from text books, but it's a world away from the real life. There's nothing quite like the stress of trying to manage money owed with late payments and impending wage roll to focus the mind

 

You **MUST** learn to create and manage a Cashflow Forecast- that will tell you how your going, if you are, and enable you to plan properly.

 

Learn from those that have done it well, and don't make the same mistakes as those who haven't.

 

Pete.

Owner of what I'd call a successful business.

P.S.- Did I mention hard work?

[paulears]

n terms of aims and goals:

1. Stay in business, focus on keeping positive cash flow at all times.

2. Once you can do that sucessfully, think about going for profit more.

 

Positive cash flow? Explain this one to any of us who work for ourselves - lofty aim, with hardly any chance of it happening in any planned way - I have many suppiers who MUST be paid before my regular clients cough up - and the reality is there's nothing I can do about it!

 

Going for profit? What do you think we do - for the second year running I have not been able to increase what I charge, because of competition - and ths is so common whenever you speak to others in the same boat.

 

I can't believe we're being given advice from people who have never been in business, but assume their knowledge gained on a 'studies' course is in fact valid and reliable!

[Rob_Beech]

Around myself a job that I would happily provide kit for, and engineer myself (and provide a member of crew) for say £600 will be done by someone else for £300, often £200.

 

Of course, they get Peavey Hisys instead of Turbosound Qlight, Phonic desks instead of A&H/soundcraft, CS series amps instead of crown amps and EAGLE / YOGA mics instead of Audix / Senn/Shure etc.

 

But, its £200, instead of £600. It'll also be 1 or maybe 2 barely useable monitor mixes instead of 4. The show will be horrible sounding, the bands wont hear a thing, the audience little more, and it will be full of feedback.

 

But its £200.

 

People WILL go for the cheapest option AT FIRST. If they make a profit, the event isn't a COMPLETE disaster, they'll carry on that way. It is only Clients that have problems with the £200 system that will (if there is budget) pay for one any better.

 

 

It's not how it works 100% of the time. but from alot of experience with this it's very regular.

 

Rob