# Growing Business, The Next Step?



## BMAN (Aug 21, 2006)

I am looking for some advice. I have grown my business from a weekend thing to a 14 employee mid sized company and I am clueless as to the next step. My goal is to be the biggest paint company in town, right now I would say we are in the top five by size for residential but now I am looking to expand further. I want to add some other product lines as well. There is alos the winter slowdown to think about up here in the rustbelt. I know that I am maxed out as far as time in the day for what I can do. I currently do all the books, estimating, deliveries (most) and customer service. I still answer all the phone calls as well (up to 50 a day). I know I need help but I can't quite put a finger on what to do next, an office person, a sales person? a delivery driver? These are the three things that use most of my time. 
I am interested in anyone who has been here and what did you do from here. What mistakes did you make along the way?


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## Bob Kovacs (May 4, 2005)

I'd start with what you hate the most. If you enjoy the sales, I'd keep doing that and hire someone for deliveries and phones. If delivering material helps you keep an eye on how the crews are doing and on quality, then hire someone for sales and phones. If dealing with the phone keeps you from doing the other things you enjoy, hire an answering service.


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## onhitch (Mar 12, 2006)

My 2 cents says hire a secretary that can keep the books, answer the phones, and schedule appointments. Then hire a site supervisor that delivers supplies and monitors all jobs. Then you handle the sales, customer hand shaking, advertising and human resources.


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## Bill (Mar 30, 2006)

I know a man who came to VA with 1 trash truck. Set up in town. Now he is the biggest rubbish removal company in the tri city area. His words were always "Slow and steady" Dont jump in and start spending just because you think you can. What does the future hold? How much work will there be in the future? How much unlicensed competition is there going to be?

S-L-O-W and S-T-E-A-D-Y!
One step at a time dude.


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## George Z (Dec 23, 2004)

It seems that we are about the same size company.
50 phone calls a day has to go. You need a full time person doing that, 
plus scheduling, job follow-ups, screening calls, qualifying prospects etc.
You also need a dedicated sales person, or two. 
Some good job managers, with detailed scope of work and a material list
can order deliveries of paint etc. and pick-up occassional extras as needed.
Consider adding a bit of salary to their hourly rate to cover this work.


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## GregS (Oct 1, 2006)

onhitch said:


> My 2 cents says hire a secretary that can keep the books, answer the phones, and schedule appointments.


Yes, I second that. Someone to sit at home base and manage all the comings and goings there will be a tremendous help and allow you to go out and do other things that require more attention.

Just make sure whomever you hire that you give them explicit detail as to how you want things handled. Write it all down in the form of a manual. That way you can remain consistent and add new things to it as they come up.


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## MGSProperties (Mar 27, 2008)

onhitch said:


> My 2 cents says hire a secretary that can keep the books, answer the phones, and schedule appointments. Then hire a site supervisor that delivers supplies and monitors all jobs. Then you handle the sales, customer hand shaking, advertising and human resources.


 
nods!


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## BMAN (Aug 21, 2006)

I like the idea of an office person, but that can get expensive seeing that my office is my finished basement. I don't know how that would work without actually getting another place to do business. I am guessing that an office person and two sales people would cost about 80-90k a year, Would they bring in enough business to justify their cost? I am not putting up walls just asking questions based on your experience. 
This level of business we are doing is based on a competitive market where people around here are cheap!! so price point is always the main factor in landing work. 
Don't get me wrong we do have clients who call us for our quality alone and they pay well. The rest want a good price and are loyal to price alone most of the time. 
I think the sales position would also share some responsibility with supplies, scheduling, etc.


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## Bob Kovacs (May 4, 2005)

A good secretary/bookkeeper is going to cost you $40-50k/year alone by the time you figure the cost of taxes, insurance, etc.- more if you now need to rent office space. A good salesman isn't really going to "cost" you anything, since he's going to get a percentage of the work he brings in- the question is, can you afford to raise your prices to cover the commission while still getting work? 

If you can't cover the costs of these positions somehow, you're pretty much stuck at your current size, and may not be able to grow. That depends alot of how you're doing now- if you're not making at least $100k/year salary in exchange for the aggravation of running a 14-man company, you're either doing something wrong or you're in an extremely low-rent district. If its the former, you need to clean up your operations before you'll be turning enough profit to cover further growth- if it's the latter, your area just might be unable to sustain a professionally run operation and the costs of running that operation.


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## ruskent (Jun 20, 2005)

How do you know when you maxed out growth at your current size?


Maybe be you could stay the same employee size but only go after the more profitable jobs?


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## Hammer_Nail (Jun 16, 2008)

*Get a website..*

Get online get an edge. *Elgin Web Design* can get you online for under $100.


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## orson (Nov 23, 2007)

Hammer_Nail said:


> Get online get an edge. *Elgin Web Design* can get you online for under $100.


Their site looks like a $50 website.


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## GrayGhost (Jul 21, 2008)

That website looks more like a $10 site! And you would let them design a site for you? Crazy... I made my own. Cost me $9.99 I think. And I own my domain and everything. No annual fees or monthly fees. Can't believe how much you guys pay for web sites. I've been reading all these post talking about $100 a site and go daddy and what not crazy. I guess I'm of a younger generation?? No offence to you veterans of the field or profession. Take it for what it's worth I guess.


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## Schmidt & Co (Jun 2, 2008)

All the above posts have been good one's. I would suggest joining the PDCA (Painting and Decorating Contractors of America). Its been a great resource for me of other contractors in my area to network with. Secondly, read the "E-Myth". Its a great book on systimizing your buisness. One person cant do it all & you need to learn to delegate. I have a hard enough time wearing all the hats with only 5 painters! 

Obviously if you are going to hire non production employees you need to have job discriptions for accountability. Oh, and a buisness plan for your future growth. Its a great excercize putting it all down on paper. Look back on it periodicly and see where you are in regards to your plan and make adjustments as you need.

Good luck!


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## Carport King (Jan 7, 2008)

*Choices-Choices-Choices!*

My hat is off to all the great post here. I would look at one of the 14 you have to make into a job site super. Once you sell it he takes over from there and orders all the material and picks up and runs the job to completion.

This is where I would start. Then after this is running smooth then I would look into an office/bookkeeper/phones type person.

I do not answer my phone all day. On my voice mail I tell them I check my voice mail at 9am and 1pm and at 5pm and I return every call everyday. This just gives me the freedom to stay clear headed and not have the phone ringing constantly.

Good Luck


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## TigerFan (Apr 11, 2006)

GrayGhost said:


> That website looks more like a $10 site! And you would let them design a site for you? Crazy... I made my own. Cost me $9.99 I think. And I own my domain and everything. No annual fees or monthly fees. Can't believe how much you guys pay for web sites. I've been reading all these post talking about $100 a site and go daddy and what not crazy. I guess I'm of a younger generation?? No offence to you veterans of the field or profession. Take it for what it's worth I guess.


So how come your website isn't in your sig line so we can critique?


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## BMAN (Aug 21, 2006)

have had a website for a long time, now in its second version. Lots of good advice here guys keep it coming.


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## orson (Nov 23, 2007)

use a couple hyperlinks in your sig to link your website to a couple of relevant keywords in your signature. Helps your search engine rankings.


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## Mike Finley (Apr 28, 2004)

orson said:


> Their site looks like a $50 website.


Their website says "CHEAP web design" not "We charge what it takes to do great web design"

They should get some points for being honest, right? 

:laughing:


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## ruskent (Jun 20, 2005)

I too am trying to take it to the next level. Right now everything is on me. Books, sales, job site supervison, material ordering, everything. Without a doubt it is wearing me down. I am always exhusted. Always behind on everything. Most of all I am always in a bad mood.

Right now 10 hours of my day are occupied 6 days a week. I am on the job all the time which is killing me. I have all these ideas that I have no time to implement.


The only good thing is that we are making money. We are a profitable company with good maragins. I am currently interviewing guys to run the jobs. I have good installers right now, but that is all they are. Good installers. If I give them more then 1 helper, they can not handle it. They do not want the responsiblity of anything besides the installation. Hiring a super, will cost me more money. But it should allow me to sell enough jobs to start a 2nd crew that only does smaller jobs. Then I could send a installer out with one guy and be okay.


Now I am just rambling!


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