Anyone else having a bad year ?
Discussion
Just need to share !!
I seem to have been struggling forever this year - right back to June of last year when we took on a large contract we should not have done ( hindsight
) When you experience losses you tend to chase turnover to cover overheads, the alternative of cutting costs (staff) seems negative, gives off the wrong signals to your clients and is a waste of the resources you expended on training / recruitment over the years. Trying to stabilise the business and recover enough operating capital to cushion against any further knocks has been all I have done for the last 10 months. Cash flow becomes critical and it is infuriating to have to spend additional money on Debt Recovery and Contract Insurance that could be invested back into the Company. The hardest part is staying positive myself - the Staff require motivating and need to feel good about their work, but they are aware that things are hard and are not getting the usual investment in training, vehicles and plant etc. Many people I talk to report business as slow but having run ours for over 10 years this feels as competitive as it has ever been. I am considering options before I burn out. Sell up and do something else - or restructure completely, cut out the loss elements and concentrate on the bits that work. This makes sense other than the fact that a third of the company would be made redundant - which would not be cheap, and the biggest one of all is that the company is well established in the industry (80 years) and there would be definite loss of sales issues. To date I have not reduced my income but I have put my own money back in - I am in the Office for 6am and away by 7pm - so yes it does become a bit of an odsession that impacts on the family - I plan to give it 6 more months for a turnaround ... and then it is decision time ....
there feel better now !!
I seem to have been struggling forever this year - right back to June of last year when we took on a large contract we should not have done ( hindsight
) When you experience losses you tend to chase turnover to cover overheads, the alternative of cutting costs (staff) seems negative, gives off the wrong signals to your clients and is a waste of the resources you expended on training / recruitment over the years. Trying to stabilise the business and recover enough operating capital to cushion against any further knocks has been all I have done for the last 10 months. Cash flow becomes critical and it is infuriating to have to spend additional money on Debt Recovery and Contract Insurance that could be invested back into the Company. The hardest part is staying positive myself - the Staff require motivating and need to feel good about their work, but they are aware that things are hard and are not getting the usual investment in training, vehicles and plant etc. Many people I talk to report business as slow but having run ours for over 10 years this feels as competitive as it has ever been. I am considering options before I burn out. Sell up and do something else - or restructure completely, cut out the loss elements and concentrate on the bits that work. This makes sense other than the fact that a third of the company would be made redundant - which would not be cheap, and the biggest one of all is that the company is well established in the industry (80 years) and there would be definite loss of sales issues. To date I have not reduced my income but I have put my own money back in - I am in the Office for 6am and away by 7pm - so yes it does become a bit of an odsession that impacts on the family - I plan to give it 6 more months for a turnaround ... and then it is decision time .... there feel better now !!
It has been a strange year so far.First three months where the the most profitable in the companies history but since then things have taken a nose dive.In the past ,pals have seen lean spells but they never seemed to catch up with me.Must just be my turn.Unfortunately I don't feel any better for having said that but at least you know that there are now two spaces occupied in that boat your sailing!
We've been "enjoying" a "challenging" year ourselves.
Loads of Sales and R&D investment has been going in this last six months...not a lot bearing fruit until a few days ago. Finally we have some firm orders and a few more statements of intent.
Also shit because we ARE restructuring the business at the moment...and we will be running to stand still for the next few months in terms of servicing our bespoke software development obligations (at least revenue generating) and still completing our R&D project that we have to get done in order to make sales next year.
Would I do something else? Not today. But there have been times...
Loads of Sales and R&D investment has been going in this last six months...not a lot bearing fruit until a few days ago. Finally we have some firm orders and a few more statements of intent.
Also shit because we ARE restructuring the business at the moment...and we will be running to stand still for the next few months in terms of servicing our bespoke software development obligations (at least revenue generating) and still completing our R&D project that we have to get done in order to make sales next year.
Would I do something else? Not today. But there have been times...
We go through this on a weekly basis. I often dream of simply keeping the currently very profitable parts of the business and working from home for 3 hours a week but then remember the bigger picture. I try and look at all the 'not so great' bits of the business as opportunity costs.
In fact, I was very close to knocking it on the head before christmas but this year we're exceeded last years turnover in just 3 months.
When you're down the only way is up
In fact, I was very close to knocking it on the head before christmas but this year we're exceeded last years turnover in just 3 months.
When you're down the only way is up
srebbe64 said:
Obviously I don't know the details, but I'd be inclined to be more radical. I'd look at my probable income and then cut my costs to, say, 90% of that. You can manage the perception as far as clients go, so I wouldn't let the tail wag the dog.
Interesting that ... in January we did shed some jobs most volunarily about 1/8th of staff - we did not advertise it but word did get out and some clients clearly took advantage of what they saw as an opportunity to delay payment, part pay or just raise notional queries. I guess if you can learn lessons it is about who you want to trade with or not - if you have the luxury of choosing your clients.
aceparts_com said:
We go through this on a weekly basis. I often dream of simply keeping the currently very profitable parts of the business and working from home for 3 hours a week but then remember the bigger picture. I try and look at all the 'not so great' bits of the business as opportunity costs.
In fact, I was very close to knocking it on the head before christmas but this year we're exceeded last years turnover in just 3 months.
When you're down the only way is up
That has got to be the attitude to have - succesful people see opportunity everywhere and seem unphased by setbacks - because they keep the focus on the bigger picture and are driven to make things happen .. I seem to find myself tinkering right now - whereas I could do with focusing my energies in a more positive direction.
I know the first year is never supposed to be easy but I'm five months in and I've just one piece of income and the next isn't due for 5 months yet. Lots of promises for the end of the year, but nothing concrete and you can't live on promises. May have to go back to working for some of the morons that run my industry. 
Eric Mc said:
Busier than ever - but cash flow not as positive as in previous years. People are taking longer to settle their debts.
What's the best way to avoid gettng stung by this? Insist on payment with order for any product that you have to outlay on and only provide credit terms for the labour element? Can businesses stomach those terms generally?Gassing Station | Business | Top of Page | What's New | My Stuff