Starting a New Year -- What does it mean to small business?

[baileyuph]

Business people big and small usually think about what they are doing and how can it be done to get better?

This type of thinking applies to most small business - what are your thoughts?

How has marketing changed and what will the changes mean going forward - namely how has technology changed the business and who is the business? 

Technology has and continues to change most business big or small - for example review what the internet has done to retailing.  It has changed or caused changes in  how we buy supplies and sell the same along with our labor.  Simply put, small business is not as a big a factor in retailing as longer ago.  Most smaller business now sell labor or a service.

Another point, demograpics has an impact on what consumers spend money on and how much will be spent.  The baby boomers spending crowd is shifting to the millennials as we speak and this will be an important factor in retailing the things we sell.   Boomers will be retiring and spending less while the new consumers, millennials as I mentioned, will be the next crowd of consumers and equally important will come out with a different focus on goods and services.  This new consumer will have more interest in environmentally friendly products, and convience in shopping (which technology pays an important role - internet) plus the millennials will be more focused on social media.  In a short word, a new consumer with different values and in different products - perhaps.

There is a lot in this picture, but back at home what does it mean to my small business and the products and services I hang my hopes on in making a go of it?

Well, to contain the scope of this discussion, my business is seeing maketing changes by what type of interest walks in the door each week.  Some of the newer/younger potential do not want the same repairs and upholstering of the older group.  They are throwing away and buying new and not as interested in the same goods and services as their parents.  For example, marine work and auto repairs, and even auto restorations is transitioning to a different market or landscape so to speak.  The younger people do not share the same interest to preserve the old  - boat, car, or even piece of furniture. 

This trend will pick up more steam over a short while, hence the question:  "what does it mean to a small business engaged in restoring/fixing things that demand is slowing and expected to drop continually"?

This is not waved as doom and gloom, but is a question that perhaps a smart business person should be thinking about - the future of what we all are doing.

Issue as such are not new, changed has been going on over history, but might be worth a few thoughts??

Any thoughts.....

Doyle

[bobbin]

Interesting topic (as usual), DB.  Here are  my thoughts:

I have always regarded my business as a "service".  I sell my labor and  my skill!

As my access to truly "wholesale" suppliers has diminished, so has my focus on my "man hours" and the real cost of those hours increased. When asked, I always reply that I "sell time".  I sell my time and the breadth and extent of my years spent "in the trenches".  I have a wealth of experience in a variety of fields with considerable depth in them all.  I charge accordingly and have never lacked for work. 

I see in the "Millenianals" an increasing appreciation for quality.  True, the trend is in the higher income ranks, but delivering top quality work and quietly educating the "young 'uns" has proven (to me at least) that there is "hope" for tradesmen.  I work nicely with upholsters and designers... I love to slipcover (most upholsterers loathe them) and I'm fully capable of small scale window treatments.  A "niche" market, to be sure; but one that's readily available and ripe for the pickin;!

[sofadoc]

This topic (or a variation of it) seems to pop up every year about this time.

I never have any definitive goals for my business regarding the coming year. But over the last few years, I've been trending toward finding ways to make more money while exerting less effort.

Many of the regulars here are in my same age range. But most of you seem to still "have your foot on the gas".

I've said it before. The only ways I can increase revenue, are to work more hours (not interested in doing that) or hire employees (DEFINITELY not interested in doing that).

I tend to look for ways to find more profitable jobs. The easiest way I've found, is to decline less profitable jobs.

While reupholstering furniture is the core of my business, it really isn't the most profitable sector of it anymore. It's tough to compete with ridiculously low new furniture prices. Most of it isn't worth recovering.

There is a nearby company that manufactures fixtures for major department store chains all over the country. They hire me to build the padded seating for dressing rooms, and children's play areas. Every few days, I open my e-mail, and find a new purchase order for 20-30 seats and benches.

I also make some pretty easy money repairing cheap furniture for local retailers. And replacing cushion foam, fixing junk recliners for John Q. Public. These areas have not slowed for me as Doyle seems to anticipate. For whatever reason, people are more willing now to spend $200-$300 to fix a $400-$500 couch. Don't ask me why they do it.

In short, I'm at the happiest point ever in my career.

[SteveA]

Hey Doyle -
Some good points there but rank me among the small shop owners who don't consider those issues.
- set in my ways - paying the bills  - more there then I can upload
SA

[Mojo]

2015 is going to be an interesting year. I am still wanting to grow the business more but in order to do that I need to increase my online presence as well as being present at select rallys.

I have a two year goal I am working on and the wife has bought into the concept so we are both working towards it. Unfortunately it will require hiring a part timer. I am maxed out on production and every year gets harder to work long hours.

If I can squeeze another 30 % in sales this year I will be happy. I am very into planning and I believe alot of that has to do with my OCD issues. I HAVE to know where I am going and I need a clear path to follow. I could never just wing it without alot of . :)

Most of this stems from my upbringing and my many years ion the corporate world. 2015 will be interesting.

Chris

[Mike]

im with dennis.   . I want to slow down and with my brother recient stroke ill be at it alone so I just want to get by and do as little as necessary

[MinUph]

New Year New business for me.

  I am optimistic for 2015. I have been around through many changes in our business type and seen very busy times drop to very slow times. In the past several years in Florida I have seen the same ups and down trends. But the downs have always bounced back. Now back in Syracuse I doubt that would be the case. So I think location has much to do with the business. I have no set plans for the year except to produce good work, pay my help and see where it goes. I am hoping it goes in the right direction and an confident it will.

  There is still something to say about offering fabric sales whenever possible. After all that is where the $$ are. Designer work is still at a premium for me, and will continue but fabric sales is sort of a goal.

  I have pretty much dropped Marine and Auto work as I don't like the work involved in getting it in and out of the boat or car and it is hard to mix furniture and vehicles in the same shop.

  So guys and gals hang on and enjoy the ride. It will be a great year. As long as were on the right side of the grass it's all good.

  Happy New Year..

[kodydog]

The baby boomers spending crowd is shifting to the millennials as we speak and this will be an important factor in retailing the things we sell.   Boomers will be retiring and spending less while the new consumers, millennials as I mentioned, will be the next crowd of consumers and equally important will come out with a different focus on goods and services. 

Doyle

Demographics is the key. Florida is poised to surpass NY as the 3rd largest state. All those retiring boomers are moving here. And I wouldn't say they will be spending less. Plenty of them have fat retirement accounts. SS and medicare is icing on the cake. Our best customers are professionals in their late 50's early 60's. They live in nice houses and earn a good living. I don't see their spending habits changing as they retire.

One of our best customer just retired. He was a financial broker and she raised the kids. They sold their house in Gainesville and moved to a nice, really nice house three blocks from the beach. We just picked up a van full of furniture. No cutting corners for these folks.
http://www.politifact.com/florida/statements/2014/apr/14/bill-nelson/florida-surpassed-new-york-population-bill-nelson-/

[sofadoc]

Sometimes it seems like Florida and Texas have 2 entirely different classes of retirees.

Retirees in Florida are people that planned for retirement, and are now enjoying the fruits of those plans.

In Texas, retirees are merely people that got too old to work (2 words.......fixed income).

[kodydog]

Nope. We have both types here too. But I'm talking about targeting customers. I try not to target the retired folks who never put money aside for the day they could no longer work. And when I hear the words "fixed income" I simply give them an estimate and move on. I'm not saying we never do work for the "tight budget" folks but we just can't afford to go down on our price when they call. We are now doing a pair of recliners for a "fixed income" retiree. She kept going down on our price and we kept going up on her "budget." In the end we came to a happy medium. When her daughter delivered the fabric she told me her mother is getting ready to go on a cruise. Hmm.

[Mojo]

Ed:

I have customers who if you asked them they would say they are strapped and on a fixed income yet they are sitting on a huge 401 K that they will never be able to spend in their lifetime.

I have a friend who retired and sold all of his McDonalds stores. He is a millionaire 20 times over yet if you ask him he will tell you he is on a fixed income and needs to watch his pennies. :)

I get a kick out of some of these guys. They drive million dollar buses and whine over their fixed incomes......lol

Chris