How can I Fastlane my current business?

[RHL]

Sit down. Really sit down. Sit down with your uncle, and the hard data-Number of calls, bills, etc. Know exactly how every day for a month goes: Calls in, jobs in, dollars in and out, delivery times, costs, etc.

Figure out where the bottle neck is. Anything you try without hard data will just be a guess.

Is the bottle neck that you don't have enough work? Then Andy has said everything that needs to be said. Get going with Adwords, maybe even some SEO i you have the inclination. Hire someone if you need to; you won't regret it.

Is the bottle neck that you can't do all the work you have?

Then you need to hire employees for every unskilled task you have. You should never pick up or deliver another appliance again as long as you live. You are now the repair guys. That's it. You may also want to hire another employee to train beside you with your uncle. Make him sign a non-compete then get him learning.

Constantly press for more diverse contracts. The only way to claw control back from Amazon, Sears, etc. is to rely on many competing companies. Don't be content that you have "enough" work. When you have enough work, hire more people, wrangle another company (Best Buy, PC Richard, etc.) and get busy.

But eliminate the non-specialized bottlenecks first. The most valuable asset is you or your uncle's time. Make sure that he is doing absolutely nothing every day except the things that only he can do. Taking calls, booking appointments, pick up and delivery, 100% of that should be done by an employee who can't repair appliances, and, as a result, will cost less per hour.

You cannot be afraid of hiring. In your niche, employees are the ONLY play that gets you to the Fastlane. You will be stuck in the same Slow Lane + rut (high five figure/low 6 figure take-home income) forever if you are unwilling to hire more people. You will never divorce this business from your time until you can get someone else to marry their time to it. At this time, there is no way to automate what you're doing. Human labor is the only play.

 

[tonyf7]

Almost four years ago my uncle and I got laid off from a small local furniture store. We were collecting unemployment.

My uncle is in his 60's and has over 35 years of experience in repairing appliances. I remember sitting on the front porch of the apartment I lived in at the time reading some self-help book I can't remember the name of, waiting for my unemployment direct deposit to drop, when an idea struck.

"Let's repair and sell used appliance."

I put an ad in Craigslist that morning. "We buy nonworking appliances". I got a call from a guy who's Kenmore dryer wasn't heating.

I called my uncle and we went to this guys second floor condo, gave him 30 bucks and hauled it out with no dolly, just pure man power. We loaded it in the back of my uncle's green Dodge Caravan and took it to his house. He had all the tools we needed so we went to work.

About 30 minutes later he had it working again. I cleaned it up with some bleach water, took some pictures, posted it on Craigslist and later that day sold it for $140.

Profit!

We've been doing that ever since and now we have warranty repair contracts with Sears, LG, Amazon Home Services and a couple of other small insurance and moving companies. Our work mainly consists of repairs now but we still manage to sell some appliances out of our small shop here in town.

Although I'm happy with our progress I've had some lurking concerns for a while now.

1. Even though I've learned a lot about appliance repair from my uncle, it'll take a long while before I get to his level of expertise. He's not getting any younger and if something were to happen to either one of us, the business would crumble. It cannot work without either of us which also violates the commandment of time that @MJ DeMarco mentions in his book.

2. Lack of control. Since the majority of our work now comes from our contracts with Sears, LG, etc., that puts us at their mercy. If they decide to terminate our contracts we're back to square one. We don't have real control of our income in that aspect.

3. Scale. We can physically only service a small town here in Arkansas.

The good thing is there's definitely a need for affordable used appliances, especially given the price of buying new these days. The same goes for repairs. It's usually a lot cheaper to repair than to go out a purchase another appliance. So many people know nothing about appliance repair so there's a huge knowledge gap.

A few things that have crossed my mind to Fastlane this business:

1. Hire some people. Human resource seedlings as MJ calls them. Set up a business that can run without me. Only roadblock to that at the moment is money. We make enough for only the two of us.

2. Create a system that is franchisable. Wouldn't know where to start but I'm sure there are resources out there that I can learn from.

3. Create some kind of content system like "Start An Appliance Repair Business In Your Garage With Little To No Money Using Craigslist".

4. Start some kind of Craigslist-like site but specifically for appliances only.

I'd like to know what the community here thinks about all this. I'm open to any and all ideas.

 

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[Jon L]

Almost four years ago my uncle and I got laid off from a small local furniture store. We were collecting unemployment.

My uncle is in his 60's and has over 35 years of experience in repairing appliances. I remember sitting on the front porch of the apartment I lived in at the time reading some self-help book I can't remember the name of, waiting for my unemployment direct deposit to drop, when an idea struck.

"Let's repair and sell used appliance."

I put an ad in Craigslist that morning. "We buy nonworking appliances". I got a call from a guy who's Kenmore dryer wasn't heating.

I called my uncle and we went to this guys second floor condo, gave him 30 bucks and hauled it out with no dolly, just pure man power. We loaded it in the back of my uncle's green Dodge Caravan and took it to his house. He had all the tools we needed so we went to work.

About 30 minutes later he had it working again. I cleaned it up with some bleach water, took some pictures, posted it on Craigslist and later that day sold it for $140.

Profit!

We've been doing that ever since and now we have warranty repair contracts with Sears, LG, Amazon Home Services and a couple of other small insurance and moving companies. Our work mainly consists of repairs now but we still manage to sell some appliances out of our small shop here in town.

Although I'm happy with our progress I've had some lurking concerns for a while now.

1. Even though I've learned a lot about appliance repair from my uncle, it'll take a long while before I get to his level of expertise. He's not getting any younger and if something were to happen to either one of us, the business would crumble. It cannot work without either of us which also violates the commandment of time that MJ mentions in his book.

2. Lack of control. Since the majority of our work now comes from our contracts with Sears, LG, etc., that puts us at their mercy. If they decide to terminate our contracts we're back to square one. We don't have real control of our income in that aspect.

3. Scale. We can physically only service a small town here in Arkansas.

The good thing is there's definitely a need for affordable used appliances, especially given the price of buying new these days. The same goes for repairs. It's usually a lot cheaper to repair than to go out a purchase another appliance. So many people know nothing about appliance repair so there's a huge knowledge gap.

A few things that have crossed my mind to Fastlane this business:

1. Hire some people. Human resource seedlings as MJ calls them. Set up a business that can run without me. Only roadblock to that at the moment is money. We make enough for only the two of us.

2. Create a system that is franchisable. Wouldn't know where to start but I'm sure there are resources out there that I can learn from.

3. Create some kind of content system like "Start An Appliance Repair Business In Your Garage With Little To No Money Using Craigslist".

4. Start some kind of Craigslist-like site but specifically for appliances only.

I'd like to know what the community here thinks about all this. I'm open to any and all ideas.

Not that you could necessarily do this, but here is a (very) fastlane approach to appliance repair. At the very least, it will open your mind to what is possible.

I know a guy that does consolidation of companies. What he does is finds a series of companies in an industry like yours (where there are a lot of small players, and everyone is engaged in small-time thinking). He offers some of the bigger players a buyout. Then, he puts together either an IPO or a private company that he then sells to private investors. He brings in top-notch management to oversee the new company. All this results in:

1) The original company owners get a premium for their company
2) Investors get a good deal
3) He gets a 20% equity stake in the resulting company

 

[Jon L]

Thank you for this advice. What makes loans bad for a business like mine?

Loans are like Monopoly money...If you have $50k in your bank from a loan, it makes you feel like you're more successful than you are. As with everything else, employees are more expensive and time consuming than you realize. You'll hire someone for, say, 25K/year, make $10k in revenue on them and repeat. No big deal because you have so much money in the bank, right? "I'll eventually figure this out," you tell yourself, "and then I'll start making money." Well, at the end of the year, you will have used up the $50k, and you'll barely be breaking even on your employees. Or, maybe you'll get lucky, who knows? The point is that a loan allows you to compound your mistakes.

Can you hire contract labor on a pay-for-performance basis? Split the profit of a deal with them somehow.

 

[Andy Black]

Almost four years ago my uncle and I got laid off from a small local furniture store. We were collecting unemployment.

My uncle is in his 60's and has over 35 years of experience in repairing appliances. I remember sitting on the front porch of the apartment I lived in at the time reading some self-help book I can't remember the name of, waiting for my unemployment direct deposit to drop, when an idea struck.

"Let's repair and sell used appliance."

I put an ad in Craigslist that morning. "We buy nonworking appliances". I got a call from a guy who's Kenmore dryer wasn't heating.

I called my uncle and we went to this guys second floor condo, gave him 30 bucks and hauled it out with no dolly, just pure man power. We loaded it in the back of my uncle's green Dodge Caravan and took it to his house. He had all the tools we needed so we went to work.

About 30 minutes later he had it working again. I cleaned it up with some bleach water, took some pictures, posted it on Craigslist and later that day sold it for $140.

Profit!

We've been doing that ever since and now we have warranty repair contracts with Sears, LG, Amazon Home Services and a couple of other small insurance and moving companies. Our work mainly consists of repairs now but we still manage to sell some appliances out of our small shop here in town.

Although I'm happy with our progress I've had some lurking concerns for a while now.

1. Even though I've learned a lot about appliance repair from my uncle, it'll take a long while before I get to his level of expertise. He's not getting any younger and if something were to happen to either one of us, the business would crumble. It cannot work without either of us which also violates the commandment of time that MJ mentions in his book.

2. Lack of control. Since the majority of our work now comes from our contracts with Sears, LG, etc., that puts us at their mercy. If they decide to terminate our contracts we're back to square one. We don't have real control of our income in that aspect.

3. Scale. We can physically only service a small town here in Arkansas.

The good thing is there's definitely a need for affordable used appliances, especially given the price of buying new these days. The same goes for repairs. It's usually a lot cheaper to repair than to go out a purchase another appliance. So many people know nothing about appliance repair so there's a huge knowledge gap.

A few things that have crossed my mind to Fastlane this business:

1. Hire some people. Human resource seedlings as MJ calls them. Set up a business that can run without me. Only roadblock to that at the moment is money. We make enough for only the two of us.

2. Create a system that is franchisable. Wouldn't know where to start but I'm sure there are resources out there that I can learn from.

3. Create some kind of content system like "Start An Appliance Repair Business In Your Garage With Little To No Money Using Craigslist".

4. Start some kind of Craigslist-like site but specifically for appliances only.

I'd like to know what the community here thinks about all this. I'm open to any and all ideas.

Read this thread:

• The biggest benefit of AdWords

Maybe listen to this radio interview I did, where I talk about that story, and where it's lead me:

• Radio interview

Definitely listen to this recorded call with @Random_0:

• AndyTalks with Random_0 about Building a Lead Gen Business

Some thoughts off the top of my head:

• There's a LOT of search volume for appliance repairs out there.
• It's evergreen - I've campaigns running since 2009 with very little change.
• It's high volume, low ticket, and deemed quite urgent by consumers.
• Click-to-sale-rate is high for the right visitors from the search engines.
• Get into many properties and drop fridge-magnets.
• Team up with other contractors for up-sells/cross-sells.
• Nail how to do it for your city, and become less reliant on Sears, LG, etc.
• Learn how to do it for your city, and work out how to scale to other cities.
• STOP doing the coal-face work.
• Start thinking of yourself as a business owner, not as an appliance repair guy.

 

[Andy Black]

@tonyf7

We've neglected to say it, but I think the input you've had demonstrates that everyone is thinking it.

Well done from going from unemployment to taking your skills and selling them and getting a started on your business journey.

Well done on all your progress to date.

Well done on being open to suggestions and putting ego aside.

Say well done to your uncle too.

 

[RHL]

Sounds like you should hire salespeople. Repairs are harder to teach than sales, it sounds like. Cleaning, photographing, and showing the appliances is easy and routine.

But then again, you're still making a mistake:

Instead of paying them a salary or hourly, what do you think if we hire someone who gets paid a flat fee for each appliance he or she repairs?

You're trying to answer with your gut a question that can be solved deftly by math. Never let instinct do math's job. That's where fortunes are lost. Sit down with the real numbers and a real workflow chart. The answer will slap you in the face after doing the bookwork.

 

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[Jon L]

#3 would require having someone on payroll. Would getting a business loan be a good idea for this?

don't get a loan. Loans are for businesses that have proven business models. (you have 5 locations and you want to open a 6th in a similar neighboring city). Loans for a business like your are bad news.

 

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[Andy Black]

Andy, just read the Adwords thread. Very useful but I did find navigating Adwords a little confusing. I'll read up more on it but wanted to ask, searches for appliance repair in my area (according to Adwords Keyword Planner) is only between 10-100 per month. Kind of low don't you think?

Launch and learn. You don't know search volumes until you're live. The Keyword Planner gives estimated searches for exact match keywords (better known as search terms).


Don't get a loan. Bootstrap this thing. You're on a journey to become a better businessman. You don't need to make big commitments now that you'll regret later when you've learned more.


*** Listen to the call with @Random_0 ***

He's been a plumber for a couple of years working with his dad who is also a plumber.

The call is week 10 of a "project" whereby:

Week 1) He starts getting lots of calls. He realises he can't close as well as he used to, and comes up with a theory why.

Week 2) We design and build a new landing page.

Week 3) He was right. Now he's getting less calls (per visitor) but is closing more of them, and at twice the price.

Weeks 4-5) Gets too much plumbing work and is ill from working too many hours.

Week 5) Makes the critical and pivotal decision to NOT reduce the amount of plumbing work he generates, but to subcontract the work out.

Week 6) 92 calls and 30 jobs.

Week 8?) He's the bottleneck for calls. I suggest he uses a call-centre. "No way. A plumber needs to answer the phone."

Week 10) He's using a call centre and no longer answering the phone or doing jobs.

Weeks 10+) Stabilising profitability and scaling to other cities.

 

[MJ DeMarco]

Marked NOTABLE - some great replies as well as a great little "hustle" business described in the first post.

 

[Random_0]

It's a common thing to see confusion here of how to 'fastlane' a people run company

MJ DeMarco calls it a human resource system

1) Find a repeat set of customers
2) Sell to them individually
3) Delegate each step/process/etc to somebody else
4) Tweak and adjust your processes until the system is completed from order to delivery

Oh, and target densely population regions with a reasonably high population

 

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[tonyf7]

Cool.

Let's us know when you've finished listening to our chat, and what questions you have from that. Then we can dig deeper rather than cover the same ground.

Here are my takeaways from your chat with @Random_0 while we wait for our interview.

My biggest take away from your interview with Random is that just because you own a business doesn't make you a business owner.

The business can very well own you.

This isn't my first time learning about business systems that run independently of the owner's involvement and I understand the concept, but I was completely blown away by how unaware I had become to the fact that I am the one being worked by my business instead of the other way around.

Even after reading @MJ DeMarco book I saw myself as having at least one foot in the Fastlane door simply because I owned a business, but in reality I've just created another job for myself.

Just like a fish who isn't aware it lives in water because it was born there, I also wasn't aware I was still swimming in the slowlane ocean because it's all I've ever known.

I should be the one providing jobs instead of working one.

Aside from that revelation I also realized how little I've utilize resources that are right in front of me.

AdWords have been around for ages. I see them every time I Google something, but not once has it ever occurred to me to utilize this tool. Honestly, I didn't think AdWords worked. I can't remember the last time I've clicked or even paid attention to one. But it's obvious by Random's results that they do indeed work. It's also possible that the AdWords I've seen are ineffective at making me click or that I've desensitized myself to them because of a false belief that they don't work.

Hearing Random talk about his fear of losing control also rang a bell. I'm so used to BEING my business that delegating aspects of it makes me nervous. I've been my own employee and boss for so long it's hard to think of giving up control. But now I'm also curious as to how I can start delegating more so I can actually get down to running a business.

Hiring contractors and/or consultants is something I've been reluctant to do, partly because we need to make more money, but also because I've been trying to do it all myself. Although I give myself credit for getting as far as I have, I now realize that hiring a pro could have saved me a ton of time. It's comparable to people who spend a whole Saturday morning trying to repair their own washing machine when they could have just paid us to do it in 30 minutes so they could enjoy the rest of their morning playing outside with their kids. Who knows what potential I could've reached by now with the help of a solid team.

I think Random said it in your interview that you just can't do it alone.

Another take away is the concept of upgrading your problems. Currently our problem is that we want more customers so we can make more money. But I want to upgrade that problem to the next level which would be having an abundance of consumers and not enough time to meet all their needs, which in turn would require/allow us to expand. Realizing the problem is there, looking to solve it and seeking bigger problems is an eye opener for me.

My mind is racing with ideas, questions, desires and fear.

Feeling overwhelmed because there is so much I don't know but also excited because I have so much to learn.

 

[GuestUser450]

You can't really "fastlane" a business, given that much of it is structurally inherent to the model.

I'd say sell, after you apply #3: Content System.

A book sharing your story and methods could do well for lead gen and profit but also as a brand builder for valuation. Promoted with the usual media, a DIY youtube channel, possibly affiliate deals with appliance parts supply co.s; you could grow ancillary products and services to max out your business to sell and fund the vehicle you want.

 

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[tonyf7]

Read this thread:

• The biggest benefit of AdWords

Maybe listen to this radio interview I did, where I talk about that story, and where it's lead me:

• Radio interview

Definitely listen to this recorded call with @Random_0:

• AndyTalks with Random_0 about Building a Lead Gen Business

Some thoughts off the top of my head:

• There's a LOT of search volume for appliance repairs out there.
• It's evergreen - I've campaigns running since 2009 with very little change.
• It's high volume, low ticket, and deemed quite urgent by consumers.
• Click-to-sale-rate is high for the right visitors from the search engines.
• Get into many properties and drop fridge-magnets.
• Team up with other contractors for up-sells/cross-sells.
• Nail how to do it for your city, and become less reliant on Sears, LG, etc.
• Learn how to do it for your city, and work out how to scale to other cities.
• STOP doing the coal-face work.
• Start thinking of yourself as a business owner, not as an appliance repair guy.

We actually get some pretty decent business from people who find us on Google. And you're right, it's deemed urgent by most people. Many don't even ask for an estimate and just have us do the repair.

"Start thinking of yourself as a business owner, not as an appliance repair guy." - Thanks for this. Don't think I was really thinking like a business owner.

 

[devine]

The point is not in translating your whole business into fastlane, that's impossible.
The point is finding a detail about your business that is fastlane and scale it up.

 

[Andy Black]

@RHL and @Jon L are spot on.

You all think this is "throw up an AdWords campaign then pick colour of Ferrari"?

Here's the stats for the first few weeks of our project (revenue is hidden):

EDIT: Watching with interest to see if anyone realises the significance of what I've just dropped here, or if you're all intimidated by a spreadsheet. Haha.

 

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[tonyf7]

Myself and @Random_0 were chatting.

We'll do a three-way call with you @tonyf7, if you're happy to drop it into the forum.

Right... I need my beauty sleep...

Btw, thank you for doing this to both of you. Much appreciated.

Its pretty neat to see people contribute so much, in such meaningful ways, from all the way across the globe.

Sent from my SM-G935V using Tapatalk

 

[Random_0]

Here are my takeaways from your interview with @Random_0 while we wait for our interview.

My biggest take away from your interview with Random is that just because you own a business doesn't make you a business owner.

The business can very well own you.

Which is still a better and more rewarding life than working for somebody else

Hiring contractors and/or consultants is something I've been reluctant to do,

It's unavoidable - hire experts to do their thing and middleman the process

I think Random said it in your interview that you just can't do it alone.

If you did, you'd be stuck doing the thing you do best and stretching yourself out thin with crap results.

Another take away is the concept of upgrading your problems.

As long as you're committed then each problem will probably uncover new barriers to each step you need to take. You've already passed one step: What do I do about hiring?! - You have already worked out that subcontract workers are a solution to that problem

My mind is racing with ideas, questions, desires and fear.

Feeling overwhelmed because there is so much I don't know but also excited because I have so much to learn.

Just start now, the fear is because you're about to start something new. Have your old actions got you rich?

 

[BigBrianC]

Try to get monthly contracts with people that sell appliances? Their customers call them and say their stuff is broken, you go fix it. The seller pays you a flat monthly fee, regardless of how many repairs you do. Some months you'll profit, some you won't but the important part is that it'll be recurring. That'll allow you to hire a contract worker, train them, etc.

Your first step should be shifting to working on improving your 'business, not working in it. Take Andy's advice.

 

[tonyf7]

@tonyf7

We've neglected to say it, but I think the input you've had demonstrates that everyone is thinking it.

Well done from going from unemployment to taking your skills and selling them and getting a started on your business journey.

Well done on all your progress to date.

Well done on being open to suggestions and putting ego aside.

Say well done to your uncle too.

Thanks @Andy Black

It's been an exciting journey and based on all the resources in this amazing community, I think I'm only getting started!

 

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[Random_0]

I like this approach because I don't have to do any HR stuff like payroll and insurance.

The costs of HR, insurance, pension payments (UK), sick pay etc will be virtually imossible for you

You need to start making progress. What's your first bottle neck? The leads.

Get your phone ringing, then monetise it, then systemise it

 

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[Random_0]

Holy crap Andy! This is EXACTLY what I'd like to do!

Would you mind giving mine a quick look? It's a free Weebly page so I know that's probably the first thing I'll need to change. When we started funds were pretty low and I had to go with whatever I could get.

Why not more salesy?

https://s17.postimg.org/8intltu3j/appliance.jpg

I need my appliance fixing. Give me your number, now, or bye. *close tab*


edit: no matter what you're selling - repaired appliances or appliance repairs, it's kinda the same idea. you need to be obvious about what you want your customers to do

 

[Jon L]

@RHL and @Jon L are spot on.

You all think this is "throw up an AdWords campaign then pick colour of Ferrari"?

Here's the stats for the first few weeks of our project (revenue is hidden):

EDIT: Watching with interest to see if anyone realises the significance of what I've just dropped here, or if you're all intimidated by a spreadsheet. Haha.

In my case, its a Tesla, but who's counting

 

[BigBrianC]

By the way, this is the best thread I've seen for turning a service based business into a fastlane one. Amazing

 

[Andy Black]

I was literally just thinking and taking notes on this idea.

The drawbacks I can see right off the bat is that appliances change every year. I'd be creating videos 24/7 just to keep up with all the changes. Same for the PDFs.

Unless I could outsource the video and PDF making, but that would require some capital.

I was also thinking of a platform where skilled appliance techs can post their own videos for free and other rookie techs or DIY consumers can purchase those videos. Price per video would vary based on skill level required for the repair.

Kind of like Udemy but for appliance techs.

Sent from my SM-G935V using Tapatalk

My advice?


"Grow what you know." (Bryce Cleveland)

You're getting leads for appliance repairs, and you and your Uncle are the "money nozzle" on the end of your current sales funnel.

Do more of what's already paying your bills? (Listen to this interview).

Get more leads?

Get a new problem of too many leads?

Solve that new problem?

Keep going?

 

[tonyf7]

Thanks for listening and for writing your takeaways @tonyf7

It's as if a flick has been switched, and I'm delighted.


Yes, as business owners we will always be problem solvers. That not only goes with the territory, but is a role we need to revel in.

Solving one problem means we will be confronted by a new problem immediately. This indicates we're MAKING PROGRESS.

When we're still trying to solve the same problem, then we're not making progress. We are then (by definition) STUCK.


And yes, as the business owner our job is no longer to DO the work at the coalface. We create jobs, we don't do them.


@Random_0 is making great progress because he has got over his ego. He's not "fearless" - because that isn't normal. He's *courageous* because he faces his fears and takes them on regardless.


Let's have a chat next week. I much prefer calling them chats than interviews. We're just guys shooting the breeze over a virtual coffee.

Personally, I'd love to just hear you two guys talking together. I think that would be a really interesting chat to eavesdrop on.

We'll work something out.

Thanks again for your feedback.

Seems in addition to being problem solvers that business owners are also problem seekers. Not sure if you're into hip hop but maybe @MJ DeMarco will get this Notorious B.I.G. reference. One of his songs says "Mo Money, Mo Problems" but now I see it's really more like "More Problems, More Money."

Changed "interview to "chat" btw.

 

[G-Man]

I bought my washer/dryer from an outfit in DFW that appeared to be doing very high volume. @amp0193 Seems has some experience and had some great insights on that thread:

https://www.thefastlaneforum.com/community/threads/appliance-flipping.69978/

Hope that helps

 

[tonyf7]

Not that you could necessarily do this, but here is a (very) fastlane approach to appliance repair. At the very least, it will open your mind to what is possible.

I know a guy that does consolidation of companies. What he does is finds a series of companies in an industry like yours (where there are a lot of small players, and everyone is engaged in small-time thinking). He offers some of the bigger players a buyout. Then, he puts together either an IPO or a private company that he then sells to private investors. He brings in top-notch management to oversee the new company. All this results in:

1) The original company owners get a premium for their company
2) Investors get a good deal
3) He gets a 20% equity stake in the resulting company

Damn! Had no idea this was even possible. Reminds of my how mortgages are lumped together and sold.

 

[tonyf7]

Loans are like Monopoly money...If you have $50k in your bank from a loan, it makes you feel like you're more successful than you are. As with everything else, employees are more expensive and time consuming than you realize. You'll hire someone for, say, 25K/year, make $10k in revenue on them and repeat. No big deal because you have so much money in the bank, right? "I'll eventually figure this out," you tell yourself, "and then I'll start making money." Well, at the end of the year, you will have used up the $50k, and you'll barely be breaking even on your employees. Or, maybe you'll get lucky, who knows? The point is that a loan allows you to compound your mistakes.

Can you hire contract labor on a pay-for-performance basis? Split the profit of a deal with them somehow.

Interesting. I can see how that could happen pretty easily. Getting a loan to upgrade our "store front" was what I had in mind. Our current shop is basically a huge storage unit with a really high sealing and doesn't look very conventional. But I think it also makes people feel they're getting a deal when they buy appliances from us because of the implied low overhead.

Anyways, no loans for me!

Thanks for explaining.

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[Random_0]

#3 would require having someone on payroll. Would getting a business loan be a good idea for this?

From my point of view no

You can use self employed sub-contractors that only get paid per job. One model I use it charge the customer 100 and pay the subcontractor 50