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  1. #1
    We are a relatively new company. Im in this 15 yrs but all my guys are newbies for the most part .They all have some construction experience but not hvac. Anyway we are doing real good. Well you tell me, we started with 1 guy with 2 new houses. So my p and I said hell lets do it!Worse case I'm back to work for someone BIG DEAL!So we opened up. In 9 months we've managed to do around 30 or so residentials, some service, and some new construction. My p does bath renovations and we did 2 of them that were BIG Profits. Seems like bath renovations are a home run let me tell you. Now we have been able to have 4 guys full time employment, we have joined the chamber of commerce. We bought a 10x6 brand new job trailer, also a sh&% load of new equipment that well, has benefitted us greatly. We both have brand new trucks. We have a small office in my house thats getting there and were looking into a used box truck. Now we got SOOOO many jobs in the making and well we confirmed a 3 floor commercial building that ll be starting in the winter. The work is all there and there's no signs of it slowing down. Our reputation among some VERY IMPORTANT people is incredable.We seem to be doing all the right things. But the $$$ flow is always tight. We put a lot back into the business were very aggressive in building this empire. My P and I cant complain about our salaries. I'm making 2x what any local guy is gonna pay me. So when does the surplus in the $$ area start??? How many yrs until i'm not waking up running to the screen to check the account?? Don't get me wrong we are not in jeopardy, but i want to be able to have a large enough cushion to where i wont even look at the #s and know its alright. Some say 5 yrs, seems to me if we were conservative and didn't spend what we do spend yes wed save but there's no way we could do the projects we've done. Its unbelievable what overhead adds up to. My last 2 tries at self employment went south. I had half Temprite is 100% legit and we are fully insured, liscensed, chamber members, and soon healthcare. WOW its expensive!!Any input would be helpful

    [Edited by temprite contracting on 10-08-2005 at 09:30 AM]

  2. #2
    Join Date
    Jun 2003
    Location
    Florida
    Posts
    9,548
    my friend just started his own business and is learning how much $$$ in sunk into overhead etc. Alot more than most people realise. That's why so many small businesses fail. Sounds like you're doing it right. As for the amount of time, that's probably a variable that varies with each company. Do you want the lastest/greatest tools,equipment,ect., or a larger salary with scraping by on the tools you depend on. Best of luck to you.
    If everything was always done "by the book"....the book would never change.

  3. #3
    Join Date
    Mar 2002
    Location
    Gaylord, Michigan
    Posts
    729
    I would look into what you are paying yourself. I know it is normal to want to make money, especially when you are putting in so many hours. But for myself, I am taking the minimum that I need out of the business. I more interested in growing the business, than making a great living at this point.

    Everything has some impact on cash flow. Just try to be as efficient as you can. Getting to the jobsite quick, keep supply house visits to the minimum. There are tons of things you can do, and each one adds up.

    Sounds like things are going good for you. Get a handle on your cash flow issues, and you should be golden.

  4. #4
    Join Date
    Nov 2004
    Posts
    146
    if you don't do 95 grand in the first years consider another line of work.

  5. #5
    Join Date
    Mar 2002
    Location
    Gaylord, Michigan
    Posts
    729
    Originally posted by anonymous
    if you don't do 95 grand in the first years consider another line of work.
    You are talking profit? Or what?

  6. #6
    Join Date
    Jun 2003
    Location
    Florida
    Posts
    9,548
    Originally posted by anonymous
    if you don't do 95 grand in the first years consider another line of work.

    This sounds like a business attitude destined to fail.
    If everything was always done "by the book"....the book would never change.

  7. #7
    Join Date
    Nov 2000
    Location
    Waco, Texas, USA
    Posts
    6,153
    This is a common theme among new companies. They all are sooooo concerned if they are "busy". Guess what. Being busy and making money are two different things. You can increase work load by advertising and lowering prices. You can decrease work load by raising prices. If you are that busy as you claim why don't you start raising prices gradually?

    Yeah everything is peaches and cream in the beginning because you claim all those vehicle & tool expenses early on. Then 4 yrs. down the road you wonder why uncle sam needs so much more this yr.???

    I think you are a little short sighted sitting in a long term position. Paying your guys 401k? Paid vacations for employees? For yourself?
    "And remember my sentimental friend......that a heart is not judged by how much you love, but by how much you are loved by others" - Wizard of Oz.

  8. #8
    Join Date
    Aug 2002
    Location
    Office and warehouse in both Crystal River & New Port Richey ,FL
    Posts
    18,836
    If you continue to grow,that's takes most of the profits.

    If you are really busy ,raise your pricing and you'll get that cushion sooner.

    I'd recommend joining ACCA and taking some of their new business classes,or something similar..But for starters rasie the price and put 2% or more,of all sales, in a separate account.

    [Edited by dash on 10-08-2005 at 05:07 PM]

  9. #9
    Join Date
    Dec 2001
    Location
    Chicago, N/W burbs
    Posts
    8,004
    Remember that you sell 3 things
    1> Quality Products
    2> Prompt Service
    3> Low Prices

    You can only sell 2 at the same time.
    The customer pays for everything
    Add a warranty reserve account

    PS: I don't own a business but I did stay at a Holiday Inn Express last night!
    R2B4BTU

  10. #10
    I agree steve 401k , paid vacationsa etc.. Yes we have taken and offer paid vacations after 1 yr. Also were getting healthcare for all employees . We joined the local chamber of commerce to get not only insight on local economy and businesses, but a lower healthcare plane. We gave paid holidays after 3 months employment. My p and I have all the same goals and thats to build a future for us and our employees families. OOO ya 95 grand the 1st year???Whats that about?? With a payroll like ours we better do 95 grand every threee to four months like were doing. You kidding me.

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