Top Challenge in your business right now

[Blender]

Hello all. I continue to be amazed at the quality of the responses here. I don't post a lot here but I have read a lot, and learned a lot, (and my belt edges are light years ahead of where they were before, LOL.) Now, I am asking for specific help from you (rather than just seconding all that I have read).

I am writing an article concerning the top challenges for small, creative businesses (part-time or full-time) in 2010.

For those of you trying to make money from your leatherworking could you share what your top challenge is? (If you have a couple that are equally challenging, then share both of them.) I am guessing that there will be a lot in common in the responses, but I could be wrong. The challenge can be leather specific, or one that applies to lots of businesses. The article isn't limited to leatherworking businesses but to many kinds of creative businesses.

For the article I am writing, it doesn't really matter if you are doing your leatherwork as a sole means of support or as aside-business. Once the article is published, I will post a link to it.

And to help each other out, if someone has found ways to address the challenges posted, I am sure we would all love to hear them (and benefit even more.)

Many Thanks,

John

[jbird]

Howdy John

I am a small leather company in utah part time at the moment but I do a good deal of biz my biggest hurdle is income I make and trying to keep anding to my tools and supplies and come out with a profit, so I would say over head has been my biggest challenge. I am slowly getting to a point of better profit versus over head.

My other hurdle was and is advertising and accounting

Josh

[Blender]

My other hurdle was and is advertising and accounting

Josh

Thanks for the prompt response. Just for my curiosity, what kind of advertising do you do and where?

John

[bruce johnson]

Mine is a part-time business that I take seriously. The biggest challenges I see is being one guy doing it all. The time it takes to order supplies, keep the books current, handle the updates on my site and blog, and keeping that end going. The actual leatherwork is easy compared to that sometimes. Some I can do on breaks at my day job. Other things I just have to take time out of my productive shop time to get done.

As far as expectations for this coming year, I am still seeing inquiries and orders. I don't have a lot of excess inventory of madeup products. Most everything is made to order, and sometimes I will make up another alongside it for economy of time and to have a little on hand stock. That way I have a few things on hand that are good movers - reins, a few personal goods, a few pairs of spur straps. These are kind of "want it now things" and also make a handy deal for the fundraisers and benefits I choose to donate to.

I am comfortable I have pretty much all the tools and equipment I need. I have a little set aside for an unexpected bargain if it comes up. I am seeing a dip in prices for equipment and this may be good timing for some tools and equipment. Some guys are selling excess to streamline and help with cash flow. Others are playing things close to the vest and it is more a buyer's market right now.

[jbird]

Well I do advertising on the radio here in Utah in the paper and I currently having a web site built.

Josh

[Blender]

Mine is a part-time business that I take seriously. The biggest challenges I see is being one guy doing it all. The time it takes to order supplies, keep the books current, handle the updates on my site and blog, and keeping that end going. The actual leatherwork is easy compared to that sometimes. Some I can do on breaks at my day job. Other things I just have to take time out of my productive shop time to get done.

As far as expectations for this coming year, I am still seeing inquiries and orders. I don't have a lot of excess inventory of madeup products. Most everything is made to order, and sometimes I will make up another alongside it for economy of time and to have a little on hand stock. That way I have a few things on hand that are good movers - reins, a few personal goods, a few pairs of spur straps. These are kind of "want it now things" and also make a handy deal for the fundraisers and benefits I choose to donate to.

I am comfortable I have pretty much all the tools and equipment I need. I have a little set aside for an unexpected bargain if it comes up. I am seeing a dip in prices for equipment and this may be good timing for some tools and equipment. Some guys are selling excess to streamline and help with cash flow. Others are playing things close to the vest and it is more a buyer's market right now.

Thanks, Bruce. I appreciate you taking the time to share. I really like your idea of making a second one up alongside as a lower-cost way of keeping a stock without having to do full-blown production.

John

[Blender]

Well I do advertising on the radio here in Utah in the paper and I currently having a web site built.

Josh

I keep hearing that the best customer is one that has already bought from you. Do you get a lot of repeat business? Do you have a way to contact them to let them know about other things you have for sale that they might like? (I am thinking email addresses, mailing addresses for postcards, etc.)

John

[jbird]

I keep hearing that the best customer is one that has already bought from you. Do you get a lot of repeat business? Do you have a way to contact them to let them know about other things you have for sale that they might like? (I am thinking email addresses, mailing addresses for postcards, etc.)

John

80% of my biz comes from repeat cutomers.

I file all by clients names numbers and email addys in on my cumputer my iphone and on paper.

this allows me to call and chat and also make sure they are pleased as punch.

I have a mailing list for christmas with discounts as well.

Josh

[mulefool]

This has been my full time business for over twenty years, you'd think id have all those bugs worked out by now. My biggest challenge is the same things Bruce struggles with. The fact that a great deal of my time goes into activities that are essential, but don't generate any income. Bookkeeping, placing orders, keeping track of inventory, janitorial work, those sorts of things. There are also alot of things I would like to do, such as research, remodeling the shop area, etc. that would be helpful but yet when the orders are piled up I can't justify working on that when my customer is waiting for an order. I realize many people delegate these things or pay outside help, but I've tried to keep my business manageable for one person. Seems like its hard to find that balance, you're always just alittle too busy, but leery of taking it to the next step and hiring outside help, for fear business will slack off and then you're stuck with an employee. I guess i got a little soured on that when I first went into business. Another saddlemaker and I opened a shop, we got real busy, hired some employees, but it seemed like the employees were the only ones making any money! If you have a slow month it comes out of the bosses pocket. Anyway I think these are common problems for many small business folks. I really admire those that can do the creative work, but are also saavy business people, sometimes that's a rare mix. Chris

[Lobo]

First problem (if it is a problem) is keeping up with production. I have a steady stream of new orders coming in, and I try to maintain the quickest possible turnaround time. Occasional spurts in orders can make it difficult to keep up.

Second problem is finding time to work on new product development projects. I always have an idea in my head that I want to test. This usually means working evenings and weekends.

I have been at the point of full-time for about a year now. The past year has brought about 30% overall increase in sales. If that happens again this year I will have another problem: hiring and training an apprentice to help with production. Having been an employer in the past, I know just how difficult and time-consuming it can be to find, supervise, and retain decent help.

So, all of my problems are basically good ones to have in business.

[RunningRoan]

My problems seem to be the same as everyone else...keeping up with the day to day. Leatherwork is a part time gig for me and I have a certain amount of time set aside to devote to it. Of course that time gets eaten up by cleaning, ordering supplies, customer service, bookkeeping, etc. Not as much time left for actual leatherwork as I'd like. I have ideas for new products, but the orders keep me too busy to work on new stuff, things for stock...or anything for myself! I have a day job also on top of my business enterprises, but my goal is to move into my biz full time. A scary thing to do in an economy such as this, but there comes a point where you just can't juggle three jobs anymore. I've done it for the past several years by working when I should be sleeping. I'm blessed to have a day job and wonder if I'd be able to find another one if things don't work out, but I'm getting tired.

[Blender]

First problem (if it is a problem) is keeping up with production. I have a steady stream of new orders coming in, and I try to maintain the quickest possible turnaround time. Occasional spurts in orders can make it difficult to keep up.

Second problem is finding time to work on new product development projects. I always have an idea in my head that I want to test. This usually means working evenings and weekends.

I have been at the point of full-time for about a year now. The past year has brought about 30% overall increase in sales. If that happens again this year I will have another problem: hiring and training an apprentice to help with production. Having been an employer in the past, I know just how difficult and time-consuming it can be to find, supervise, and retain decent help.

So, all of my problems are basically good ones to have in business.

Wow! You are right... those are good problems to have. I am glad to hear that things are doing well for you in that way.

You are right about the help. Like some of the others in this thread, are you also doing the administrative side yourself? If not, how have you worked that out?

John

[Blender]

My problems seem to be the same as everyone else...keeping up with the day to day. Leatherwork is a part time gig for me and I have a certain amount of time set aside to devote to it. Of course that time gets eaten up by cleaning, ordering supplies, customer service, bookkeeping, etc. Not as much time left for actual leatherwork as I'd like. I have ideas for new products, but the orders keep me too busy to work on new stuff, things for stock...or anything for myself! I have a day job also on top of my business enterprises, but my goal is to move into my biz full time. A scary thing to do in an economy such as this, but there comes a point where you just can't juggle three jobs anymore. I've done it for the past several years by working when I should be sleeping. I'm blessed to have a day job and wonder if I'd be able to find another one if things don't work out, but I'm getting tired.

That is a dilemma. I guess the bright side is that you have more work coming in than you can handle (at least with the time you have available.) It is tough trying to juggle one or two (or three) jobs. Been there. Done that. Earned the T-shirt.

For the rest of you readers who have successfully made the transition from part-time to full-time, can you share how you did it? Or is there a thread we can look at (I didn't find one but I may have missed it). Or can you maybe start a thread specifically on transitioning from part-time to full-time (and surviving it.)

John

[broncobuster]

I of course have the same problems as everyone else. bookkeeping(I totally suck at) keeping bils paid, cleaning. rearangeing, inventory etc all the same problems. I do mostly repair so profit can be a bit better. I live in an area where people have money, a most people dont have money. the ones with money are cheap and try to haggle on everything you do. the ones that dont have money have ya do a job but dont come and pick it up or some type of excuse. or they have ya make something whine that its to much and can get it at walmart cheaper. those are the fun ones. but in the end i get paid. the transition from working to leatherworking shop full time was kind of by necessity or just had to much invested in it anymore to be a hobby. i was running a bar and restaurant and lost my butt on it. I figured if i can lose my butt on something that i did for short period of time I can get by or make money on something i know a lot about. so here I am in a shop that if i didnt own id be closeing the doors but because i dont have rent expense Im getting by. winter months just about kill me but summer i go 7 days a week. in the shop when im not at a show(bike rallys all summer). If i had to rely on shop solely i dont think id make it. If it werent for the shows I wouldnt be this far. Its advertising for me. I get a reutation for my work which brings them to the shop. this is going on my 4th yr here in shop/store 5th yr in town as a business, im finally seeing a little profit going. its a slow go but im not in any big city, but some of my customers do. I draw people in from 200+ miles away(bikers). It is overwhelming sometimes being the manger,employee and manufactuer but i enjoy it. plus at my age in this economy no one would hire me. Im way over qualified for most jobs around here which there isnt to many. and having the ol man working his job we squeak by. Its a slow go but i enjoy the people(most) and never a dull moment. the things people want when ya have a leather shop lol.

[Denise]

For the rest of you readers who have successfully made the transition from part-time to full-time, can you share how you did it?

The old saying "The best way to make it as a full time saddle maker is to have a wife who works" is truer than we would like to think - at least at the beginning. In our case, I worked for the income to support us while Rod was starting the business. Fortunately for us, within less than 3 years I could come home and work with him and our business has supported us ever since. With the two of us, while I work in the shop a bunch, I also handle a lot of the administrative stuff so he can keep building. Keeping production up to pace with orders can be a problem at times (but a good one). We decided long ago that we didn't want to go the route of employees. Reasons - difficulty getting and keeping a good one, training time, quality control, lack of space in the shop, government regulations when you have employees, etc. etc. One guy we know who is a good businessman was at the point of max production and crunched the numbers regarding hiring. He figured somehow that he would need to triple his production to pay for one employee. He is still a single man shop.

[mulefool]

"the best way to make it as a full time saddlemaker is to have a wife that works" or a husband. Yep that's true. Part of the problem is the up and down nature of income. If you have a mortgage and regular monthly bills you want a steady reliable income to make sure they get paid. Another problem is health insurance, in the states anyway. We're pretty lucky to have it available through my husbands job, but if we had to go out on the individual market I shudder to think what it would cost, probably over $1000.00 a month for poor coverage that might put everything we have worked for at risk if we had large medical bills. Chris

[RunningRoan]

Unfortunately some of us (myself included) don't have spouses who can work in town!

[Denise]

Insurance, I am sure, is also a major challenge. Here in Canada we don't have to worry about losing our place due to medical bills but things like dental, eye exams, etc. still aren't covered. Individual coverage for this is high enough that we save a little each month towards those bills rather than pay the premiums, and so far we are ahead. However, a major illness or disability that stopped us from working would have severe consequences, even if the medical bills were paid for. The benefits you get from working for someone else are more important than a lot of people think, at least early in their careers.

[UKRay]

I believe the major disadvantage for me is not having proper retail premises to display my work - but this could also be my greatest strength! I work, full time now, from home and sell via my website, at shows in the summer months and through a good number of retail shops. I love the web sales and resent the re-seller business because they are making, in some instances at least, more than I do from my work. I can only justify them when I think how much a 'bricks and mortar' store would actually cost me to run... It makes me grateful I don't have any store bills to pay when the month is a poor one.

Other disadvantages are that there is only me working, so nobody is around to pick up the slack. However, I'm the only one who needs to get paid so that ain't too bad!

I switched from part-time to full time at Christmas - was it only a few weeks ago? It feels like a year already. I went from a three day week at a job I hated to working full time for myself and I can tell you I have never worked harder, but I love every minute of it. The work is coming in - albeit slowly. The inventory level is growing slowly and the workroom is always busy with folks dropping in to pick up jobs.

The process was a long one. I started by creating a writhing mass of internet link websites, blogs, Knols, forum posts, newsletters etc. This took almost a year to complete. I made these so they pointed at a blogsite URL, but changed the target URL to www.barefootleather.co.uk when my main sales site went live.

Having got my web 'real estate' in hand including a powerful link structure that drives extra traffic and gives me a tad more 'respect' from the search engines, I now have a website that allows me to sell my products easily and doesn't take much managing. I still work on it for an hour every day but that is a small price to pay for the opportunities it brings.

As my business is primarily on-line, I have had to find time (and an excuse to leave the workroom) to create 'hard copy' for labels, letterheads, business cards etc - an online business still needs almost all the things that a 'bricks and mortar' business needs. It is pretty well done now thanks to some good friends - and extra huge thanks to Tina from this forum who did some wonderful design work on my logo. I'm now looking forward to another summer of trading at fairs and events around the UK complete with all the right paperwork and the backup of a web based 'selling machine'.

Sorry, that went on a bit, but the transition from part time to full time took a while too!

Ray

[Denise]

I switched from part-time to full time at Christmas

Congratulations, Ray! I didn't know you had made the leap. All the best in your full time business now! (And I hope I don't hijack the thread too much.)

[Blender]

I want to thank all of you who have replied to my question. The information you have provided is useful and helpful.

I am waiting on additional answers in another forum (not leatherworking) before I can complete the article. So, if anyone still wants to contribute, there is still time. (But not much.)

As I mentioned, I will post the link to the article when it gets published.

Thanks again for all your help and support. You are the greatest!

John