Getting Philosophical: The paradox of the one-person business

[Pete Milley]

Obviously, you are a lot smarter than I am if you left this corrupt "progressive" state 23 years ago.

Our winters aren't nearly as brutal as they used to be (Thanks to fat Al Gore and his "Global Warming" thang)... and, in fact, it has been reducing my snowplowing income to a mere trickle. But it also keeps the heating bills under control and that leaves me more money for my stale bread and generic peanut butter (my basic, two-part, poverty diet).

No gray for me... you just don't find decent gray up here except in my beard... and I plan to stick with Mahindra if I do decide to revert back to the original bigger and/or smaller second tractor plan. I *do* very much like and trust the brand.

Dougster

I'm no smarter than you. I'm Irish and I get fed up faster than most. My uncle and I were in business in Lexington and we faced the same dilemma as you are now. We decided to expand just enough to get over the edge. Before long we had 3 trucks, 2 shoveldozers, a backhoe, a Gradeall, a 75 foot bucket truck and several employees. Then fuel deregulation put the first nail in our coffin. Next was workers comp. Then the licensing and on and on and on in the "Royal Family's" state. I sold out and moved out. I learned to stay small from that. I have remained under the radar since. I don't llive in a big house or have all new stuff. But I have peace of mind. That is why I suggested going smaller. Don't put too many irons in the fire.
BTW, I wasn't recommending going "grey", I was just stating what worked for me.

 

[john_bud]

Dougster,

Have you thought about side lines? Like getting rid of gophers?

Remedies for Gophers - How to get rid of Groundhogs!

jb

 

[Dougster]

I have been reading this thread from beginning, and I know several people have suggested getting an employee(s). And you keep saying that isn't an option. The whole reason for getting a second piece of equipment is to fill a certain niche. The best way to increase cash flow is to have both of them running at the same time. And you seem to indicate that besides the niche that you can fill, there is other niche's larger and smaller that could also be had if you had the right equipment. Well, IMHO, Having partners in a single business, that can fill those needs is the best solution. And you can't just think of those machines running 24/7. There is down time for Repairs, routine maintenance, and one of the most important in any business, is down time for you. I realize that this means sharing profits with another, or 2. But it also helps get those jobs that you're now missing out on, and can share in the profit from those. Now, I realize that finding these people can be very hard, but it appears that what you are trying to do now is very hard too. Just my 2 cents

I appreciate your input, but I really have no ability or desire to take on employees or a working partner. I'll give up this business and go back to my old career first before doing that. Closest I have come is to form strategic relationships with a couple of skidsteer and trucking businesses on the outer edges of my service area (not my direct day-to-day competitors). I am also closely associated with a fine tree removal service and there are a couple of large construction companies with whom I routinely share leads.

Hence my questions relating very specifically to the unique challenges of operating a one-person business.

Dougster

 

[Dougster]

I might as well weigh in on this too. Maybe my old fashioned ways still have some merit. (Does success ever go out of fashion?)

First off, no matter what piece of specialized equipment you own, you'll always need something else. That's why there's rental/lease companies. The general contractor I work for has been in business for over 100 years. You'd have to go all the way back to the 1950's in order to find where we own most of what equipment we use. The "big ticket items" we own are things that work just about every day. Occasional use equipment is better off parked in someone elses lot when not in use. Customers don't care if our equipment has our logo painted on it, or Sunbelt Rental, or Hertz, or whoever. They care about bottom line and end results.

High overhead is the best thing that can happen....for your competitors. Both the company I work for and my own business are firmly based on "don't buy it unless you HAVE to have it". Rent or make due with what you already have whenever possible.

Learn to beg.... Ask your rental agency/dealer/supplier to give you as much help as possible. Free or reduced rates on pick-up/delivery. Lower rates on slow moving rental equipment. (Helps them AND you in the long haul) Ask dealers to let you demo equipment from time to time. You'd be suprised how many breaks they'll give a good customer. (either that or I'm just VERY persuasive)

Equipment that is bigger than you need most of the time is much better than equipment that is too small most of the time. All but a very few times, it'll be one or the other.

There's exceptions to every rule, mine included. But these basic ideas have worked well for me and my employer.

In the end, running a successful business is as much about weathering the low points as it is delivering in the busy moments. Watch that overhead and protect your operating capital.

Good observations and advice Junk. I'll put you down for keeping it lean, mean, simple and renting with a smile when it becomes necessary.

Dougster

 

[Dougster]

This is a big change for me of never turning down work. But sometimes things are outside my competative advantage and it's just not something we're good at. If they really want it, of course I'll take care of my customers, but I'd really rather do what I"m good at and have the exact right equipment for. (and of course I've been busy lately, so I can say this. )

My emphasis added to your quote!

As we become more successful (or in my case: "less unsuccessful"), I think we all tend to give away the "less than perfect fit" jobs more easily. It is certainly much easier to give away a bad fit job when you are already working steadily 10 hours a day! But this whole thread is about revisiting those "less than perfect fit" jobs and asking the question: "What would it have taken for me to win and do that job"? And I don't mean looking at extreme mismatches, insane risks or blatently obvious losers. I mean looking at the jobs where: a) equipment limitations (including rental costs/hassles) were clearly a part of your decision and, b) where there was at least a partial fit or strategic interest or time void to fill that the job could have addressed.

Dougster

 

[Dougster]

I sold out and moved out. I learned to stay small from that. I have remained under the radar since. I don't live in a big house or have all new stuff. But I have peace of mind. That is why I suggested going smaller. Don't put too many irons in the fire.

Well said. This must be a common theme for those who have, wish or plan to flee the Bay State. But I have a long way to go before I even qualify as "small." I've at least got to get revenue and profits up to the point where I am self-sustaining every month (not just some months). I'm still feeling that I am a bit below "critical mass" even for a one-person company.

Dougster

 

[Dougster]

Dougster, Have you thought about side lines? Like getting rid of gophers?
Remedies for Gophers - How to get rid of Groundhogs!
jb

Oh JB... What am I going to do with you???

Dougster

 

[LoneCowboy]

My emphasis added to your quote!

As we become more successful (or in my case: "less unsuccessful"), I think we all tend to give away the "less than perfect fit" jobs more easily. It is certainly much easier to give away a bad fit job when you are already working steadily 10 hours a day! But this whole thread is about revisiting those "less than perfect fit" jobs and asking the question: "What would it have taken for me to win and do that job"? And I don't mean looking at extreme mismatches, insane risks or blatently obvious losers. I mean looking at the jobs where: a) equipment limitations (including rental costs/hassles) were clearly a part of your decision and, b) where there was at least a partial fit or strategic interest or time void to fill that the job could have addressed.

Dougster

I guess I made my point poorly.
The point is by dropping those less than perfect fit jobs, I'm making more money on the other jobs and not beating up my equipment not making as much money.
Being "in my niche" instead of "close to my niche"
I think people appreciate that I'm honest and they then look for work to give to me. I know a couple bids lately have gone that way. Of course it kills me I have all this equipment and still can't do some stuff.

 

[tlbuser]

Dougster,

Have you thought about side lines? jb

Around here, the fire depts. have boot drives to raise money. They "panhandle" at the intersections. Maybe you could fab up a mini bucket and do your own "bucket drives" ?

 

[tlbuser]

I guess I made my point poorly.
The point is by dropping those less than perfect fit jobs, I'm making more money on the other jobs and not beating up my equipment not making as much money.
Being "in my niche" instead of "close to my niche"
I think people appreciate that I'm honest and they then look for work to give to me. I know a couple bids lately have gone that way. Of course it kills me I have all this equipment and still can't do some stuff.

The only problem with running a niche operation is when the niche part fizzles out. Then what? Huge problem for a lot of the residential market right now. The remodeling market is supposed to be doing an upswing due to declining sales. We'll see.