Rewire
Senior Member
- Location
- Lake of the Ozarks
Not sure what i will do next still busy shutting down I meet with accountant and lawyer next week to do all the final paperwork. I may check and see if i have any VA bennies and go to school.
shuting down a business
- Thread starter Rewire
- Start date
- Status
Funny how things work, we increased advertising and raised rates to pay for the increase cost in advertising, and work load picked up, we also started working every other weekend.
ptonsparky
Tom
- Occupation
- EC - retired
A couple years ago a friend retired from electrical contracting and could find no buyers for his inventory. All of it neat, clean, and sorted. He finally gave it to me. I have used a good share of it by now but am not really sure whether the extra costs for storage was worth the price.
Good luck.
Good luck.
flyboy
Member
- Location
- Planet Earth
It's called knowing how to run a business.
kwired
Electron manager
- Location
- NE Nebraska
Rewire
Senior Member
- Location
- Lake of the Ozarks
But if you sell them you have income and it must be reported
not if you sell it for cash.
GUNNING
Senior Member
- Location
- Gainesville, Florida
downsize and try increasing advertising and reducing hourly rate.
downsize and try increasing advertising and reducing hourly rate.
I raised my rates till I was on the other side of the demand curve. Got the customers back by lower rates. People equate cost with quality.
On a side note, I just fired a service company out of Sarasota Fl for not paying invoices dating back since February, but they call every week with "work". Problem is the Work order has a Do Not Exceed $0. I'm making money now just by not working for them. They have to find somebody locally now that charges triple what I would have charged. Good news for them is there retainage goes up, bad news is they were keeping %100 anyway.
Back to, upping the cost. If you outstrip your demand by cost ( = hourly rate) you loose your customer base. I chose to increase demand by reducing my hourly rate and increasing my markup. Costs stayed the same just the perception of a savings was made. My advertising increases as a percentage of net was minimal, 1 or 2%. Yet because my exposure went up service work went up 500%. Had a lot of winers but the checks cleared.
downsize and try increasing advertising and reducing hourly rate.
I raised my rates till I was on the other side of the demand curve. Got the customers back by lower rates. People equate cost with quality.
On a side note, I just fired a service company out of Sarasota Fl for not paying invoices dating back since February, but they call every week with "work". Problem is the Work order has a Do Not Exceed $0. I'm making money now just by not working for them. They have to find somebody locally now that charges triple what I would have charged. Good news for them is there retainage goes up, bad news is they were keeping %100 anyway.
Back to, upping the cost. If you outstrip your demand by cost ( = hourly rate) you loose your customer base. I chose to increase demand by reducing my hourly rate and increasing my markup. Costs stayed the same just the perception of a savings was made. My advertising increases as a percentage of net was minimal, 1 or 2%. Yet because my exposure went up service work went up 500%. Had a lot of winers but the checks cleared.
Rewire
Senior Member
- Location
- Lake of the Ozarks
We have no license in our area so anyone with tools can be an electrician and now that the condo,house market has crashed we have an abundance of 'electricians' out their doing work. its a race to the bottom with no winner. People are getting three esimates to hang a ceiling fan.
hardworkingstiff
Senior Member
- Location
- Wilmington, NC
Welllllllll.
I think it's the law you are supposed to report it. It's also a law that I don't exceed the posted speed limit too.
macmikeman
Senior Member
- Location
- Planet macmikeman
Rewire, sorry for the news. If it isn't fun and profitable then you did the right thing, but I'm afraid maybe you might not have learned how to make it fun and profitable, which makes this twice as sad. I wonder if you can get a refund from the EPA for the lead extortion payment.....
Anyway, good luck to you, hope you find a good paying job soon, and preferably one in this trade if you can find it.
Anyway, good luck to you, hope you find a good paying job soon, and preferably one in this trade if you can find it.
- Location
- Massachusetts
Rewire, I wish you the best of luck wherever life leads you.
Sorry you have to close up.
- Location
- Massachusetts
Hey be helpful or just don't say anything, that is just uncalled for.
Sad to say my cinema service business may be next in line for a shutdown. This has been the worst year in the 12+ years I have been doing this. This industry is always very flaky, and subject to the whims and trends of both cinema owners and Hollywood.
It has always been a "feast or famine" type of business, and this year has been several months of famine.
If I shut down, hopefully I can pick up a job with a local EC.
If not, there's a Starbuck's a few blocks from my apartment.
It has always been a "feast or famine" type of business, and this year has been several months of famine.
If I shut down, hopefully I can pick up a job with a local EC.
If not, there's a Starbuck's a few blocks from my apartment.
Rewire
Senior Member
- Location
- Lake of the Ozarks
I think the not being fun part was the clincher. I could have road out the slow times but it was just not fun anymore the frustrations were getting to be a bit much.
These companies burn so many bridges with their bureaucracy it's amazing they have anyone left working with them. But to totally stiff you on payment is adding insult to injury -- or vice versa. Hopefully, on the other end of this tunnel, if they're still around, they'll pay up.
stevenje
Senior Member
- Location
- Yachats Oregon
That's cold flyboy. Don't kick a man when he's down. Offer a hand to help him up.
flyboy
Member
- Location
- Planet Earth
My sincere apologies if I offended Rewire. It really wasn't my intent, but in retrospect I see how that came acrosss.
Having said that, I won't accept blaming the economy as the sole reason for going out of business. There's always more to it than that. I'll make no apologies for saying that. I have 23 employees who depend on me (and my team) to keep them in a pay check.
That responsibility has a way of making you learn how to do the things necessary to survive the bad times. For me, this is the second time going into survival mode. The first time, in 1989, I wasn't successful and filed Chapter 7. But out of the ashes rose a business person at the helm of a thriving, growing, profitable organization. Rewire has hopfully avoided bankrupsy which certainly puts him in a better position than I was in 1989.
Anyway, anyone who wants help in the way of coaching, ideas or support need only ask. I love to help and give back to the generation coming up in the trades. I do it all the time.
Again, my apologies.
brother
Senior Member
How long were in you business??
I won't accept blaming the economy as the sole reason for going out of business .Oh really heres a heads up! this economy has been in reverse for almost 4 years now thats more than enough time to destroy any business. Maby you should take some time and read all the post in this thread
you will lern that there are a lot of guys suffering through some of the toughest times that we have ever been through .
So in your OP you stomp on the man in his darkest hour.
So you get called on it,so what do you do? you post an apologie and go right back into rubbing it in telling us how good your doing hey thats great! I hope it stays that way for you.
The fact is you have customers that right now have money ,well that can change at any time without notice then all of a sudden you have 5 guys in the shop every day with nothing to do then 8 then 11 see how fast it can all fall apart. thats just a small list but you should get the idea!
REWIRE I wish you the best of luck. and please do not give up brighter days will be soon.
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