Posted October 12, 20168 yr As most of you are undoubtedly aware, I currently work from home. This is great for me in the sense that my commute can be measured in feet and seconds, and that all my creature comforts are close at hand. :) What isn't great about working from my home is that space is at quite a premium. It also has caused problems with potential customers in the past as they've viewed the lack of premises as being somehow indicative of me not being "professional" at what I do... :( My diary is beyond full nowadays; I'm already booked up past the middle of next year and coupling that with the Group Buy I'm running on here, it basically means that 2017 is pretty much booked solid so there's no shortage of work in the immediate future. So, after much umm'ing and ahh'ing on my part, I've started to look at renting a small unit locally! I've got as far as finding one that is a suitable size and price, and making some tentative enquiries about it. This is, to say the least, quite a scary prospect. All my outgoings will increase fairly significantly if I go ahead with this (rent, insurance, utilities) and I'll also have to "outfit" the new place as all of my tools and materials would be transferred from here. The only feasible way I can think of to do all of this is to sell the Zed... I suppose that, technically, I don't urgently need to expand into a unit. Working from home has served me well for the last 6 years or so and, as I said, there's no shortage of work. But I'd like to expand and have a physical presence where customers can come to - at the moment, I only provide my address when asked as I don't really want people turning up at home at all hours of the day and night! - and a little bit more working room wouldn't be a bad thing at all. A business loan is not an option, unfortunately. So, as I said, the only viable way to have a reasonable amount to plough into the business is to let the Shortie go... an idea that I'm not in love with! :( As well as being my own personal car, she also serves as a kind of mobile advertisement for what I do. There's also the small fact that she's the exact Zed I've wanted for years and years! So I'm looking for opinions, I guess. What would others do if they were in this situation....?
October 12, 20168 yr You cannot be doing much wrong if you're booked up for 2017. So what if you lose a few, it seems to me you have plenty that don't mind your set up. Don't make the mistake of going under like many start ups - keep your costs to a minimum from day 1, if it aint broke.
October 12, 20168 yr I see you're point in wanting more space to work and a 'premises', but based purely on the numbers will it allow your work rate to increase to such a degree that you're net profit then not just covers, but exceeds your current? If not then I see it as a bit futile as you're going to have the hassle and expense of driving to work each day including buying a car to do so, expense of the premises rent, expense of kiting it out and you have to sell the Zed! Your work looks absolutely awesome and the fact you already have a customer base that's filled you up for next year is testament to that and I wonder if you even need the few extra jobs that you lost from working at home? I totally understand why you want them, but still think you should keep overheads as low as possible unless your going to be making substantially more.
October 12, 20168 yr As well as being my own personal car, she also serves as a kind of mobile advertisement for what I do. There's also the small fact that she's the exact Zed I've wanted for years and years! I think you already know the answer you're going to get on here. You're going to bloody regret it if you do. I would say try not to halt your business expanding by not selling the zed, but if you're business expanding is your future, I guess that is more important than a car to you?
October 12, 20168 yr If a bigger unit equals faster production and thus more sales then maybe it makes sense. If a bigger unit won't make your work any quicker, it just adds costs to you which doesn't really make sense. Don't know how much room you have where you live you could maybe build a shed unit in the garden or something? Could be cheaper and then no extra rent
October 12, 20168 yr Author This is where the quandary gets bigger, Scott. My costs would have to increase a little to cover the extra expenses I'd have. But, with actual premises, I might be in a better position to entice customers with more "high end" vehicles. I'm not suggesting that I'd be doubling my prices for people who seem to have plenty of money - I've never worked that way - but if there are full interior restorations available at the higher end of the market, those owners are more likely to entrust that work to a "professional in premises" (I'm basing this purely on discussions I've had in the past and also on a thread on here about this very subject). Having my own workspce away from home wouldn't necessarily increase my productivity, but it would minimise the distractions. Does that mean my output would increase? Quite possibly. Building a shed or garage in the garden is sadly not an option as the property's rented. I've got a lot of thinking to do and a lot of maths to do, I think!
October 12, 20168 yr Having my own workspce away from home wouldn't necessarily increase my productivity, but it would minimise the distractions. What are the distractions? She's so fine, there's no tellin' where the money went - Simply irresistible.
October 12, 20168 yr Author What are the distractions? Dogs, neighbours, Jehovah's Witnesses... the usual...!
October 12, 20168 yr This is where the quandary gets bigger, Scott. My costs would have to increase a little to cover the extra expenses I'd have. But, with actual premises, I might be in a better position to entice customers with more "high end" vehicles. I'm not suggesting that I'd be doubling my prices for people who seem to have plenty of money - I've never worked that way - but if there are full interior restorations available at the higher end of the market, those owners are more likely to entrust that work to a "professional in premises" (I'm basing this purely on discussions I've had in the past and also on a thread on here about this very subject). Having my own workspce away from home wouldn't necessarily increase my productivity, but it would minimise the distractions. Does that mean my output would increase? Quite possibly. Building a shed or garage in the garden is sadly not an option as the property's rented. I've got a lot of thinking to do and a lot of maths to do, I think! But if you've already got more than enough work, is that relevant? It might get you different work, but if you're still charging them the same rate then it won't generate anymore revenue for you, and your profit would go down with the increased overheads
October 12, 20168 yr Can those distractions be managed? What would you need to change in your working day to do so? "Having my own workspce away from home wouldn't necessarily increase my productivity" If that is the case, then you will need to put your prices up to cover your additional costs. That means working on projects where the prospects have the perception that a top quality job will cost them more than you are currently valuing your work at. She's so fine, there's no tellin' where the money went - Simply irresistible.
October 12, 20168 yr Author In a nutshell, it can be very easy to get distracted at home. Right now, for instance; I'm sat here instead of at the sewing machine. Andrew's right about the perceived pricing and what have you. My current niche is, by and large, people who want a nice interior but can't necessarily justify spending large amounts of money as the base car hasn't cost them much in the first place. That's why I mentioned the owners of more "high end" vehicles who are possibly in the midst of a comprehensive restoration. It's not a case of increasing the price based on my perception of an owner or their vehicle though. I price my work based on materials and estimated labour, but my own self-generated labour charges are incredibly low! That's something I need to change gradually and something that ties in to others' perceptions of me as a "professional" based on a home-working scenario. There are lots of things for me to consider in this. I was just curious as to what others would do in my situation. :)
October 12, 20168 yr In a nutshell, it can be very easy to get distracted at home. Right now, for instance; I'm sat here instead of at the sewing machine. Andrew's right about the perceived pricing and what have you. My current niche is, by and large, people who want a nice interior but can't necessarily justify spending large amounts of money as the base car hasn't cost them much in the first place. That's why I mentioned the owners of more "high end" vehicles who are possibly in the midst of a comprehensive restoration. It's not a case of increasing the price based on my perception of an owner or their vehicle though. I price my work based on materials and estimated labour, but my own self-generated labour charges are incredibly low! That's something I need to change gradually and something that ties in to others' perceptions of me as a "professional" based on a home-working scenario. There are lots of things for me to consider in this. I was just curious as to what others would do in my situation. :) To be honest, I hadn't had the faintest idea where you work, nor did I care. For me I look at the result I can expect and the price it will cost. Well maybe if you've got the choice between a GTR or a supercharged Jag as a daily driver ;), I might be a hesitant if you work in your bedroom, but nowhere does it advertise that you work in your house? It doesn't even say that you work on your own.
October 12, 20168 yr Si...From personal experience.... and quite obviously....renting premises has to increase the amount you have to earn each month quite considerably! You suggest that you productivity may well go up with less distractions....but there will still only be one of you...and you can only do so much.....if getting premises meant that you could employ others to multiply your output then the maths my stack up....only you know what you are earning now and what the impact of renting would be on your ability to pay yourself.....Just my opinion...of course :wink: [sIGPIC][/sIGPIC] "Exaggeration is the enemy of credibility"
October 12, 20168 yr Dont do it, within a year you will find yourself struggling to meet the rates and rent, which is additional to what you experience now. As said, expanding means growing bigger, that includes extra hands to get jobs done quicker. I would look at taking on part time, a helper/apprentice and operate as you do now, not ideal for space no doubt but the outgoing initially is considerably less. Although you rent, there is nothing stopping you erecting a standalone workshop ( non concrete base) which can be taken down if and when you move, if you have the garden space. Getting a unit is a natural route to take, but the figures need to stack up as a business :thumbup1:
October 12, 20168 yr The guy here in Carlow that was doing my Koenig seats, back in 2012 decided he was getting too much work for his premises (granny flat at side of house) he was doing motorcycle seats, cars, artic lorries, he even had one of those Yank Juggernauts in for a full retrim, did seats, curtains, dash, roof liner, even floor mats. Decided he had to go bigger and got a unit in 2013 /14 (can't remember) kitted it out, full cutting desks etc and lasted six months. I'm still trying to get my seats back:thumbdown: You have a good solid client base from here and other forums/clubs, you have a fairly regular income coming in with little overheads. I'd stay put mate, the other thing could be to get a decent sized garden shed (depending on size of garden) they can do all types of home office/sheds, insulated, wired etc that are flat packed for installation and removal, so this could be brought with you if you decided to move house:thumbup1:
October 12, 20168 yr Dammit, just seen Grahams post, it took me 20mins to write the above as we have a new distraction in the house. Just like having kids again:biggrin:
October 12, 20168 yr As the lads have said, I can't see this paying off unless you're going to employ more people.
October 12, 20168 yr You need to write yourself a business plan, a financial one that will make it clear how much more work you need to do in order to pay the additional overheads. If that needs an additional employee in order to make the numbers stack up, then that is a significant change. Like someone said earlier, what about a dedicated workspace at home, e.g. a log cabin in the garden?
October 12, 20168 yr Maybe speak to who you're renting from. You may be able to work something out for adding a shed/workspace because it could increase value of the property?
October 12, 20168 yr You need to write yourself a business plan, a financial one that will make it clear how much more work you need to do in order to pay the additional overheads. If that needs an additional employee in order to make the numbers stack up, then that is a significant change. Like someone said earlier, what about a dedicated workspace at home, e.g. a log cabin in the garden? What he said. You need a business plan mate,personally, I'd stay as is. Your good reputation will carry you through, whether at home or in a unit. Overheads can be a killer.
October 12, 20168 yr Author Any kind of standalone structure here is a no-no, sadly. The garden isn't big enough to accomodate anything big enough, for a start. As I said in my opening post, I've found a small unit locally that is reasonable on the rent front (within my budget, basically) - what I need to find out is what's included within that rental price and what isn't before I consider anything above and beyond simply looking at the options. Taking on an employee or apprentice would be impossible here and now as there's barely enough room for me. Thank you one and all for taking the time to read and respond - I value each and every opinion that's been posted thus far. I don't want to shoot myself in the foot financially which is why everything is very speculative at the moment. Mrs Mondo thinks it's a great idea, though I suspect she just fancies having a spare bedroom back... ;)
October 12, 20168 yr Absolutely a business plan for at least 3 years, costed and realistic! If you cannot expand at home with perhaps a workshop in the garden (garden offices are very popular and acceptable for small businesses these days) then look for a unit on easy in/out terms or sub let as these often come in very cheap compared to committing to rent rates insurance etc, allowing you to return back to basics if needs be. Selling the Zed will only release initial capital so longer term losing it's "show" potential for customers may become a negative, although you could have a small showroom area for visitors. Either way a good position to be in if your booked up through next year as well, so congratulations for achieving that!
October 12, 20168 yr I wouldn't sell your car though, as said, its advertising your business, you could (if you wished) put some sign writing on your back window to help advertise when you're driving around and at shows. Good reason to keep the car, another reason is the rise in value, 3rd reason is its relatively rare to find a factory TT manual :thumbup1::yes:
October 12, 20168 yr Author The only reason I'd consider selling the Zed is to have some available pennies to kit the unit out, Richie. I'm not talking in the same way as your guy did (sorry to hear about your seats, by the way :( ) and getting all the gear available - more a case of upgrading a couple of things and having a back-up fund available should I run into any problems. But everything about this is a huge step for me, and not one I intend to take lightly. As has been said, I need to sit down and work out some concrete figures and projections and see where that leads me. The only thing that may happen prior to that is me physically going to look round a unit to see how the size of it and the available facilities would suit me. :thumbup1:
October 12, 20168 yr How will renting a unit make your more money? You can only do so much work so fast without employing staff.
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