Such a great question from Ben on the business business business Facebook page
Has anyone scaled they're business back to just themselves? “We have an electrical business, have pushed hard the last 12 months to grow but all we have earned is debt. It's frustrating, we have spent lots of time,money and effort to systemise the business. Our instant overheads per month are 20k. We have grown to have an office person, additional tradesman and adult apprentice. We pay a marketing guy $2800 p/m. Has anyone been through this. Cheers, Ben.”
“I know it sounds like a cop out but ROI with having Staff never seems to justify itself. We invested heavily in coaching, marketing ect all that it has done is bring in financial strain. The return on the marketing has been ok, But once again the additional jobs it does bring in just keeps employees employed.”
What should Ben do?
Some comments
IK - growth equals cashburn - it takes pain, cashflow, innovation , failure, challenges and a team to grow a great business.... but once you have achieved this foundation - you can start working on your business , which ideally you can then sell.
If you stay a small business - ensure you put in place a “virtual team” and stay educated - continually upskill. Have a look at www.bbg.business
Candice T - Hi Ben last year I mentored two sparkies and three solar company owners. They were in a similar situation as you and all but one ended up scaling right back to themselves and keeping 1 maybe 2 and contracting work as they needed it. The numbers were better and they were able to balance work and life better as they didn’t have pressure to take jobs all the time.
On the other hand I’ve mentored a business in nsw that is a 40 staff and they weren’t interested in scaling back they wanted a plan to dominate and take over - so it can be done also.
Di C - Ben, what about your web content as well as your website? You can spend heaps on Adwords, but your website and content can let you down. I'd be happy to have a look at the content on your website to see if it needs a tweak here and there - or even a rewrite. I've worked for many tradie businesses through an Adwords specialist. PM me if you want to chat.
Gabriella S - I work on my own and can use contractors to scale up ir down. As for marketing look at social admate from Australia Post. Also chat to Will Court from UBICO marketing
Stephen I - Dude, I was managing a bunch of cleaners and a group of airbnbs and scaled back as it became a bit much to keep up the quality I demand. No shame in slowing things down if the processes aren’t right.
Am redesiging our scheduling process so its a bit more automated then will have anothet crack at scaling.
Tania A - Ben i grew an electrical contracting business from 0 to multiple 7 figures and 28 staff over a solid decade I now consult and coach trade services clients among others to help them get their business growth formula right
I’d be happy to have a complimentary chat just to give you some ideas of how you can make some shifts that will help you drive your business in the right direction
Ben H - Yep, been there done that!!! Lol.. shut mine down 12 months ago to teach other tradies how run their business instead.
There are three things I will tell you if you want to be profitable.
1: Get yourself on the tools here and there... you will always need to do it.
2: out sourcing your marketing = outsourcing your income.
3: Don’t buy lavish vans, tools and offices... and focus on a progress payments with private clients and deposits
Corey - its a common issue - people always think more is better. Even if the scale up increases income, it's not always worth the effort. Sometimes a small one man band is nicer with less money, than a lot of moving parts for a little bit more money. :)
Aidy B - Ben Mussig thats tough dude. Have a day off and assess. Or at least try and get time off somewhere for your own mental health.
Whats your business plan?
What do you do when you get busy?
Have you thought about your exit strategy?
If there is a foreseeable future where it gets better, it is easy to hang in, but work to life plan.
A big company with big debt is never a plan. Calculated risk only. Try not to make decisions on fingers crossed.
Alana J - Hey Ben I had to go through a transition phase with my business. Have scaled it but a lot smarter so a lot less strain on me. Happy to share my experience in terms of what is relevant to you if you would like to have a chat
Jack Challis - I’m going to head a very different direction to the rest of the comments here. I was a one man band domestic plumber. Grew my business but got onboard a fantastic coach who has helped me return triple what I pay him. From starting 4 years ago I have 24 staff including admin, accounts, storeman, operations and quality supervisor. And most importantly making more money than ever.
Scaling up is difficult but if you get the right people, coaching, systems and network it’s extremely rewarding and enjoyable. Happy to offer suggestions to anyone. I have more freedoms and I’m loving running it. I’m 29yrs old. My coach is Barry from the game changers. Highly recommend. Best of luck 👍🏼🛠🔥