Firehouse Mike
01-20-2015, 03:14 AM
So just a bit of background first....I've been detailing on and off for over 20 years. Officially opened business in March of 2013. Had an OK first year, last year I was up well over 200% in net profit. Figured it would be a good time to get some new wheels for the biz. Ordered a beautiful new 6x12 trailer, red with lots of diamond plate. It was a bit more than i wanted to pay, but i was getting new customers all the time, no problems; I'll make up the difference when it slows down with money from my other job. No worries...
May of this year I was laid off from said other job. Summer time details kept coming in , still no worries until September hit. Details stopped like a brick wall. Got a month or two behind on payments and came home one night.....trailer gone, along with my entire business inside of it. Repo'ed. So I was able to get all of my inventory and loose items out of it, but everything that was bolted down or secured to a wall or floor was now "part of the vehicle" and I could not get back. Water tank, pumps, vacuum, air compressor & reels, cord reels, power inverter and battery banks, ect...Around $2500k to replace that equipment. I've had to turn down a few jobs this month because of this losing even more income.
Moral of the story is not to overextend you self or rely on other income to pay your business expenses. I read on forums all the time when guys are always asking when should they buy a shop or a new van, ect... I say when your down time income is at LEAST 50% higher than your expenses, start to think about it. I jumped into a large expense WAY to soon and have learned a valuable and very expensive lesson from it. I'm still up and running and will continue to grow this year, just downsized a bit. For now... besides a trailer was a PITA to get in and out of apartment complexes anyway:xyxthumbs:
I'm all about sharing knowledge, be it skills or life lessons such as this. So take it for what you will, but keep it in mind when making that big purchase or other business decisions.
Mike
May of this year I was laid off from said other job. Summer time details kept coming in , still no worries until September hit. Details stopped like a brick wall. Got a month or two behind on payments and came home one night.....trailer gone, along with my entire business inside of it. Repo'ed. So I was able to get all of my inventory and loose items out of it, but everything that was bolted down or secured to a wall or floor was now "part of the vehicle" and I could not get back. Water tank, pumps, vacuum, air compressor & reels, cord reels, power inverter and battery banks, ect...Around $2500k to replace that equipment. I've had to turn down a few jobs this month because of this losing even more income.
Moral of the story is not to overextend you self or rely on other income to pay your business expenses. I read on forums all the time when guys are always asking when should they buy a shop or a new van, ect... I say when your down time income is at LEAST 50% higher than your expenses, start to think about it. I jumped into a large expense WAY to soon and have learned a valuable and very expensive lesson from it. I'm still up and running and will continue to grow this year, just downsized a bit. For now... besides a trailer was a PITA to get in and out of apartment complexes anyway:xyxthumbs:
I'm all about sharing knowledge, be it skills or life lessons such as this. So take it for what you will, but keep it in mind when making that big purchase or other business decisions.
Mike