when do you quit

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Rewire

Rewire

Senior Member
Location
Lake of the Ozarks
I see alot of talk of cutting prices and doing what ever it takes to stay in business so I started to think at what point do you call it quits and close the business. Do you wait until all the money is gone or do you get out while some cash is left. Do you wait a month with no work comming in or do you quit after two weeks.This is one part of my business plan that is not complete , The plan when to get out.
 
electricmanscott

electricmanscott

Senior Member
Location
Boston, MA
I don't really have an answer. Fortunately I have some money in the bank so I can ride it out for a while.

The problem is, there are not too many places to go if you do decide to call it quits.
 
Mule

Mule

Senior Member
Location
Oklahoma
Our local Chevy dealer just made that decision. Huge building, cant imagine the overhead..... Creditors took back all the inventory, he was left with the property which was a supreme location. So dont know if he sold it or leased it, but now the local Pontiac dealer is re-locating to that property, which was great move for them...

For me, I'm just getting started....Look OUT, here I come.....:cool:

As a contengincy, I cashed in some of my 401k and it put it in reserve for myself some un-employment, if I need it. Speculating that it will be along time before the 401k comes back, We'll re-invest in some rental real esate which is also down. So either way would should come out, ok.......Hey they cant eat you.....
 
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Pierre C Belarge

Pierre C Belarge

Senior Member
Location
Westchester County, New York
There are a number of contractors in our area who have closed the door. I am aware that a couple may have waited too long. They are tens of thousands of dollars in debt, have no work and do not know where to come up with the money to pay the debt, let alone survive. I feel bad for them, as it is such a hard decision to close, thinking like in the past the light at the end of the tunnel was just around the corner...which I believe is yet a long ways from today.

As mentioned, what to do if one does decide to get out??? There are alternatives, but not great ones.
 
F

fisherelectric

Senior Member
Location
Northern Va
That's a hard question with a lot of variables. Depends on the size of your business. If you're a small or one man shop you could just lay low and wait for this to blow over and take whatever work you can. If you're a larger shop it's different. Do you own or rent your shop or warehouse? Can you sell some trucks? Tools or equipment?
I remember in the early'70s (when I was a sprout) my boss went from a sixty man shop to six guys (mostly family) in a matter of weeks. Sold most of his trucks, only bought material on an as needed basis, worked us short weeks...whatever he could to stay alive, and when it was over built up to right back where he started. I would cut overhead as much as possible and do whatever I could to ride this out, but my short answer would be a definite NO...get out with some money while you can...don't spend your last dime trying to keep the doors open.
 
S

~Shado~

Senior Member
Location
Aurora, Colorado
I would have to agree with something Pierre mentioned...

The time to get out is before you are at $0.00....not once you've gotten negative. You would still have a debt(s) to pay and nothing to accomodate it.

You can always rebuild, start over, etc...its just easier at ground zero as opposed to the bottom of the pit.
 
highendtron

highendtron

Senior Member
Odd as it seems, delegate all you can and try a part time job. Try to stay positive and demand material costs up front or pay as you go. Steer away from general contractors because of the extra risk. Also, marry well! Good Luck!!!
 
Dnkldorf

Dnkldorf

Senior Member
I'd have to talk it over with an accountant and a lawyer first.

From what I see in the media, bankruptcy laws are extremely liberal today.
Some folks rack up debt, file, and walk away with lots left over.

How they do it, I don't know.
 
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CopperTone

Senior Member
Location
MetroWest, MA
If we closed our doors today - I wouldn't even be able to get a job in the eletrictrical field where I live. We do have reserve funds to pay the bills but it won't last more than 5 months.

Going into bankruptcy is a heck of a headache - not that I have ever been - Cut as much as you can right now - think of yourself only - getting to zero and not owing anything - it will be easier to rebuild than if you rack up debt and not pay it back - supply houses not wanting to do business in the future, screwing any sub contractors - it is a small world so be careful who you screw - the key is to not screw anyone.

- sometimes all you will have left in the end is your word and reputation. You can't declare bankruptcy on that. You still have to live in your community.
 
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A

aline

Senior Member
Location
Utah
Rewire said:
I see alot of talk of cutting prices and doing what ever it takes to stay in business so I started to think at what point do you call it quits and close the business. Do you wait until all the money is gone or do you get out while some cash is left. Do you wait a month with no work comming in or do you quit after two weeks.This is one part of my business plan that is not complete , The plan when to get out.
Click to expand...
I'm not going to call it quits until I make back everything I've already lost.
It may take awhile. :)
 
C

c2500

Senior Member
Location
South Carolina
I'll chime in...diversify. I am a licensed builder, electrician, and plumber. I hate plumbing but will do it. I love electrical work, and made a majority of my money last year in the trade. Being a builder affords me a whole different world of opportunity...from being one of those dreaded home inspectors (i am one by being a builder) to marking up everyone elses work, (of course there is risk in this), or doing whatever work I want as I am top of the food chain as the state views me.

2 cents worth to think about.

c2500
 
electricalperson

electricalperson

Senior Member
Location
massachusetts
this thread is pretty scary...now im worried about how my company is doing. we dont have any work at all and been messing around at the shop and propertys for the last couple months. i hope i dont loose my job
 
cadpoint

cadpoint

Senior Member
Location
Durham, NC
electricalperson said:
this thread is pretty scary...now im worried about how my company is doing. we dont have any work at all and been messing around at the shop and propertys for the last couple months. i hope i dont loose my job
Click to expand...

If you plan to fail then you've failed to plan! Yes, it is "real time"!
 
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Mule

Mule

Senior Member
Location
Oklahoma
IMO this thread is NOT healthy discussion, get out and survive, dont mope around. It wont solve anything. Paint a house, haul peoples trash, detail cars, clean out peoples garages, barter electrical work, mow lawns, build decks, storage buildings, just get up and do it.....

I just talked to a AP mechanic that got laid off from OKC, went to work at Cessna nearly 200 miles north, worked there 5 months while living in a camper, just got laid off, and is going back to work at Tinker Air Force base. This guy is making it happen, he's a surviver.

If you have a skill, use it for something else, or something.

Remember a half glass of water, can be either half full, or half empty, its your choice......its a opertunity.

So not trying to be rude here, but be healthy in your thoughts......:D
 
cadpoint

cadpoint

Senior Member
Location
Durham, NC
IMO this thread is NOT healthy discussion,
Click to expand...

We're who we are in or out of our line of vocation of our choice!

Some times when I hear the phrase, "your the electrician, aren't you", I don't correct them to the aspects of my State law which state such, I'll joking say, "yeah don't curse me..."(depending on the situation).

There's nothing else said electrical in nature beyond this, we all know other, and I can almost say, that everyone will know what to do! WIT!

... get out and survive, dont mope around. It wont solve anything. Paint a house, haul peoples trash, detail cars, clean out peoples garages, barter electrical work, mow lawns, build decks, storage buildings, just get up and do it.....

I just talked to a AP mechanic that got laid off from OKC, went to work at Cessna nearly 200 miles north, worked there 5 months while living in a camper, just got laid off, and is going back to work at Tinker Air Force base. This guy is making it happen, he's a surviver.

If you have a skill, use it for something else, or something.

Remember a half glass of water, can be either half full, or half empty, its your choice......its a opertunity.

So not trying to be rude here, but be healthy in your thoughts......:D
Click to expand...

Nor, I brother ...
 
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