Business Expenses

[sofadoc]

I don't hate answering the phone as much as I used to.  Now, it's more of a welcome excuse to take a break.
The greatest thing about this business is:
You're your own boss. Nobody looking over your shoulder tapping their watch.
I really don't care anymore about maximizing my productive time.
Having said that, I have absolutely no patience anymore for piddlin' jobs that don't pay.
I used to think that you had to "Take the bitter with the sweet" in order to keep return customers. Now, I only take the profitable jobs. If a customer gets offended because I won't do their silly stuff, so be it.

[JuneC]

You're my HERO, Sofa!  ;D  Hardest thing to learn in this business is to walk away from the unprofitable jobs.  Problem is recognizing them.  Like the old Kenny Rogers song - "Know when to hold 'em, know when to fold 'em, know when to walk away, know when to run".  Hardest thing to learn to say is "no". 

June

[bobbin]

Great read, you guys.  I knew it would be.

In our home, I "declared war" on vampires a few years ago.  Vampires are those appliances that draw electricity even when they're "off" because even when you think they're "off" they're actually just lurking.  Any "solid state" appliance fits the vampire bill.  Anything with a clock on it, is a vampire.  So, we use strips for things like electronics.  Everything is plugged into a strip and when we're done watching TV or using the stereo we switch off the strip, ditto the computers.  We unplug the coffee maker/etc..  We cut our electric bill by nearly $15/mo. doing that.   Programmable thermostats!  In the summer we flip the emergency switch for the boiler to the "off" position when we've finished with the shower.  Big savings there with the price of oil pushing $4/gallon.   We don't have air conditioning, we use AWNINGS instead and deal with the occasional hot and humid day (New England). 

I do the same thing in my shop, as does the husband in his.  Battery chargers draw juice all the time even when they're not "charging" anything!  I have a wood stove in my shop but I only use it when I'll be in the shop for a full day... we're not into wasting seasoned firewood either.  I keep my shop at 40 degrees when I'm not in it.  I time my orders to my local supplier and usually pick them up myself, scheduling them to coincide with our routine "pleasure trips" to that city. 

I have always categorized my work by color and operation.  I minimize the number of thread changes that way (matters on overlock machines).  I do all the prep. work at once, and then sort the work by machine required to perform it.  I minimize the number of times I turn on the machines that don't have Servo motors, and plan to convert them to Servos as soon as funds allow.  That approach was learned in garment factories  and alteration sweat shops and it's a concept completely lost on my present employer who refuses to turn up the thermostat because "costs are too high".  Flourescent lighting is the norm in my shop.  Only 2 "vintage" lamps have incandescents in them and they're used infrequently... less than the Aladdin oil lamps, actually!

I'm still struggling to set up my business for maximum efficiency, but I am moving toward on-line ordering and bill pay.  I have seen first hand the wasted time running for the telephone and the loss of productivity because of it (robo calls infuriate me!), not to mention the calls to a supplier to "add to my order"... that's what computers are for! hit "send" before your order deadline and be done with it, for Pete's sake.   Don't even get me started on the lost time "required" to maintain a post office box when it's not necessary. 

[Saddleman]

I think it is real important to always be a better accountant and keeping track of anything that can be a business expenses so it can be taken off of gross income and not pay taxes on that money.  I look at it as for every dollar I can show went to an expense for the business then that is at least 25 cents that I do not have to pay in taxes.  That really adds up.

In the Artisans and Money Joe Rollings talks about how important it is to come up with your own "products" to sell so that you can create "production" work for your shop even if the volume is on a small scale. 

I been trying to think of ways that this applies to upholstery shops. 

For marine I can where once a certain cover, bimini..etc is made for boat make, model...etc  then you market that as a product and try to draw in more business for the same boat.  Creates that repetitive work that patterns and having done the job better helps makes it go quicker.  Something could go with autos. 

Furniture seems a lot tougher though because there is not that make, model and year thing to reference to drawing the repeat business on. 

Loren

[kodydog]

Good point Loren. My wife (the accountant) keeps time of every peice we do. She constently updates our price list.

Upgrades are a good money maker. Toss pillows. arm covers, rewraping cushions used to be free. Not these days.
When I call a custimer to set up a delivery I'll tell them I have enough fabric left for a couple of toss pillows. Most times they say do it.

[Mike8560]

i only order what i need  limiting stock. i used to have a wall full of zippers and snap ect. ive left my commercal  shop space cutting rent light and water sewer phone . that a big savings there. my troublte is time  . It  seenm ive only got a good 6 hours in me ( my dads used to day that )  so by 230 or 3 i dont feel like starting something new.

[kodydog]

Hay Mike I Know what your saying. I just saw an add on monster. A factory in NC looking for upholsters. The pay was good, best I've seen in that area. Twelve hour days. Three day work week. Maybe when I was younger but now I don't think I could handle those hours.

[Mike8560]

I minimize the number of times I turn on the machines that don't have Servo motors, and plan to convert them to Servos as soon as funds allow.  

I am setting up my own shop here  not finnished yet  and have noticed that power is a bit short at time when everything is on the light and  ac ant two machine. the machine non servo will draw allot of power when first turned on spinning up and with the ac going on the same circut can dim the power  . so if a servo only runs wen the pedle is pushed would it use power as mine doese at start up each tiem you sew?  i guese setting up my own shop is the savings no rent extra light bill phone computor ect.