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.