Taking your business to the next level...

[AC123]

Evening all

I've been running my business from home for about a year now. Gross profit comes in at £6-10k/month - this is now consistent and often towards the top end.

I'm getting to the point now where I am very busy so thinking about expanding and taking staff on, probably in a telesales/marketing role so I still control the accounts.

I'm just looking for advice really, i'm sure many of you have made this first expansion step. It's certainly a lot easier when it's someone else's money and not yours!

My house is suitable for me but not really for staff. This would mean premises which comes with a cost, not to mention the rigmarole of employing someone who has to pay their way. My main advantage & how I'm picking customers up at the moment is down to price, I can supply their products cheaper - this model won't work if costs go through the roof! I am tapping into 5% of the current market, if that.

Helpful hints appreciated.

Ta

[Steve H]

How much of the current market do you think you could ultimately capture?

What I mean is that if you you can get 20x the business you're getting now with 20x the staff then 20x£6-10k a month gross would cover those costs no problem.

On the other hand if you're only ever going to see 10% of the business in that market then I'd say keep life simple, optimise what you are doing and make a nice £1k per month without the hassle of staff.

Businesses don't always need taking to the next level..........

[fridaypassion]

Been through a similar thing you need 40k of additional income minimum to get a benefit from 1 staff member. Sounds like you have a good thing going. Keep your overheads low and if you can make that sort of income without going into the merky world of business premises keep it that way.

Use profits to invest in passive income from other sources so buy property/shares etc diversify while still exploiting the main business.

All the costs and hassles of staff make being an employee a very unappealing prospect.

[Wilmslowboy]

Just some food for thought....No need to take on premises, or even hire people, think about using freelancers…(this is after all the gig economy).

Plenty of web sites about where you can commission all sorts, including tele sales etc if they good , keep giving them work, if they are not move on.

Might be more expensive by the hour, but you gain in flexibility and lack of risk.

My experience, is often they are higher qualified and experienced that the hour rate suggests


Worth a quick try ??



https://www.peopleperhour.com/hire-freelancers/sal...

[DSLiverpool]

Freelancers - it’s a risk if they are representing your business as they don’t care that much on quality or service.
Staff payback - a 3 month probation period shoujd be enough to see if the person adds to the business.
Do you sell an item or sell the hours?

[Hoofy]

AC123 said:

My house is suitable for me but not really for staff. This would mean premises which comes with a cost, not to mention the rigmarole of employing someone who has to pay their way. My main advantage & how I'm picking customers up at the moment is down to price, I can supply their products cheaper - this model won't work if costs go through the roof! I am tapping into 5% of the current market, if that.

Could try part-time staff, contract basis, working from home? Do it for 3 months (or whatever is appropriate for your business) and see what the results are like.

If the costs are too great, then you know why the bigger boys charge more, and perhaps you're already tapping into 100% of the market that's available for a business such as yours with your costs.

[angelboy]

fridaypassion said:

Been through a similar thing you need 40k of additional income minimum to get a benefit from 1 staff member. Sounds like you have a good thing going. Keep your overheads low and if you can make that sort of income without going into the merky world of business premises keep it that way.

Use profits to invest in passive income from other sources so buy property/shares etc diversify while still exploiting the main business.

All the costs and hassles of staff make being an employee a very unappealing prospect.

Sage advice!

[Redarress]

Absolutely agree with all of the above. Staff bring many headaches and premises significantly hit your profit as you have to factor in increased insurance, telephone,internet ,sick pay holiday pay rent ,rates Employeers NI . If it were me I would run at least another year as you are or possibly build a low cost home office in your garden for staff but do it economically then use the next period of trading to generate money to allow your pension to buy small suitable premises.
Running another year with little added overhead will further prove your business model also

Bear in mind your USP is the fact you are cheaper than competors. The path your considering may take away your USP

[classicaholic]

I made more money in my first 2 or 3 years working with no employees although from a small unit.
I grew the business into a multi million pound turnover and I have never made as much personally as I did when it was just me!
A current example from this week is 3 Employees just don't work like you do and want their hand holding everywhere, they can't get to the airport without you arranging it & paying for everything up front, God knows how they ever go on holiday!
Stay as you are & sub out the stuff like accounts & basic admin and concentrate on the core business, you can probably double turnover without wasting all the time on accounting & tax filing etc.

[DSLiverpool]

classicaholic said:

I made more money in my first 2 or 3 years working with no employees tc.

I did as well until I sold it ;-) it’s not always a fast reward.
My new venture sells people by the hour so I wsnt as many GOOD staff as possible.

[jonamv8]

Could you partner up with someone similar to you, with the same mindset and motivation to do what employees won't?

What sector are you in?