Diary of Opening A New Business

[pro]

Thanks Jack.
1. If you don't mind sharing, what are your current gross monthly sales (ranges are fine too like $10,000-15,000/mo)?
2. What's your biggest controllable constraint that will slow your growth (eg. financing, hiring/labor, marketing, etc)?

 

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[JEdwards]

Jack,

Is this an original product/service or something existing that you've just added a new spin to?

something existing that I am just putting a spin on .

Hello Jack,
Thanks in advance

Let me think on that.

Thanks Jack.
1. If you don't mind sharing, what are your current gross monthly sales (ranges are fine too like $10,000-15,000/mo)?
2. What's your biggest controllable constraint that will slow your growth (eg. financing, hiring/labor, marketing, etc)?

1. $$ don't matter, profit is all that matters, let me just say, every month I am grossing just a little more than I am spending.

2. That's a good one, I would say a combination of all 3. With financing being the least thing I am worried about. It is all about hiring the right talent and marketing correctly at this point.

 

[lleone]

Jack,

Thanks for sharing as well.

Is the scaling of the business directly related to the number of sales people you have? It wasn't clear how much you are spending on marketing outside of sales calls.

Keep up the great work.

 

[winch]

Things must be going smoothly!

 

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[winch]

Actually, I guess that doesn't necessarily have to be true...

 

[JEdwards]

Actually, I guess that doesn't necessarily have to be true...

Things are growing ok.. Just wish there was better job applicants at this point.. I pay pretty good. There are just too many lazy people now a days.. Its just crazy..

Which is great news for the people trying to get ahead.. i.e. fastlaners.

Right now trying to do 10 things at once for everything to come together.. literally..

Will keep everyone posted..

 

[pro]

Gotta love heavily human-dependant businesses eh? I think that's the true path to aging quickly.

I like Jack's strategy of assigning managers so there are less people who report to him.

Speaking/managing too many people in the same day can be highly stressful.

I think it's best to play it like a video game. I'm curious how many job applicants per day/per week you recruit. How do you filter through them? I do a lot of hiring myself.

I'm curious how you split your time since a lot of my time is just spent managing managers too.

 

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[JEdwards]

I like Jack's strategy of assigning managers so there are less people who report to him.

.

My main goal is to have one person report to me. while I am at the beach. Right now I have two, and another person who I cannot decide who she should report to. So she just comes in and tells me.

Well even though I said different numbers before, I really might need to grow this to around 100 full time people to reach the goals I want. So I have been hiring a few new peeps a week.. I am 100% out of the process though, I do not interview, train or manage or any of that process at this point. Thank heaven.

How do I split my time.. I try to hire the best, (which I have come up short on many occasions) and give them set goals of what I want to happen. So far they have NOT achieved them but we are growing and besides how do I know as I am making this up as I go along..

I can say all day to myself.. yea they should be able to close 20 deals an hour.. But how do I know? Still really working on the averages.

I wish now I had a much better right hand person as personally I need to turn it up. I am really finding that I am doing a lot of things half a.. I need to change this quick.. I wish I was 20 again.

 

[Blacktye6000]

Did you ever think of not adding cubicles to make your office a little more relaxed for you workers. Happy workers = more production and better customer service. I would feel like I'm trapped and probably hate my job if I was in one of those cages. Once my company gets rolling like yours, I'm going to look into the way google and facebook take care of their workers. They have extremely talented and educated people banging down the doors to get in because of the work environment. I know it's just the beginning and your on a budget but that might help you get where you want to go faster. I still like what your doing and wish you the best! I'm dying to know what it is though.

I also like Bloomberg's model. He provides food and drinks at no out of pocket cost to his employees…

 

[JEdwards]

I give them free cokes, coffee, water, a place to sit, a cushy headset, etc.

Thinking about stocking up on monster. Not sure if I want to start that though.

 

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[Blacktye6000]

I give them free cokes, coffee, water, a place to sit, a cushy headset, etc.

Thinking about stocking up on monster. Not sure if I want to start that though.

Great thread Jack, it has inspired me as well as showed me the possibilities of having an idea, plan, execution, and fortitude can bring.

This is really helpful to those of us that have never started and ran a business.
speed+++++

 

[michelcarloss]

please tell me what chalange in seo ??

 

[Blacktye6000]

Hey Jack, this idea of yours has been dominating my thoughts since I initially read it... Have there been any significant update??

Thank You for posting this

 

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[CommonCents]

A great little book is 1001 Ways to Reward Employees. Many studies show that a little recognition goes a long way, even more than money in many cases. I implemented many in the past and have worked great. Gave my sales people "Million Dollar Club" nice plaques, they are featured in their homes/offices while paycheck bonus long spent/forgotten. Another time I brought in a Mariachi band in 24/7 production busy time and they never forgot. Our productivity increased 10%(20-$50k) more a day from happy people.

Sales/Closing Contests are another great idea in your setting. Put up leader charts on walls etc...

 

[TommyBoy]

No, good idea, any links or have a script by chance.. Please pm me.

Here is a website with personality tests for work: https://www.enneagraminstitute.com/Tests_Battery.asp
There is a 10min free version and advanced paid version.

 

[JEdwards]

Hey Jack, this idea of yours has been dominating my thoughts since I initially read it... Have there been any significant update??

Thank You for posting this

Well business is like that, everything new is fresh, its exciting. You think it changes often, but we are at the point of just letting it grow. It is doing well, I am very happy with the direction and confident that we will reach our goals.

I keep hiring new people, at the pace of about two a week, turn over is way down. I only fired one person probably in the last month. A few others quit, but that is expected. So really we are adding one person a week.

It is not boring though.. It has been pretty fun so far.

Money wise, we are more than breaking even and have enough to grow. I have yet to take a dollar. But I dont really need to so I am just letting it grow.

Having said all that, I think I am almost to the point where I might need to spend a few $100k on expansion, making things nicer, furniture, computers, adding health insurance, etc.

 

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[Blacktye6000]

Well business is like that, everything new is fresh, its exciting. You think it changes often, but we are at the point of just letting it grow. It is doing well, I am very happy with the direction and confident that we will reach our goals.

I keep hiring new people, at the pace of about two a week, turn over is way down. I only fired one person probably in the last month. A few others quit, but that is expected. So really we are adding one person a week.

It is not boring though.. It has been pretty fun so far.

Money wise, we are more than breaking even and have enough to grow. I have yet to take a dollar. But I dont really need to so I am just letting it grow.

Having said all that, I think I am almost to the point where I might need to spend a few $100k on expansion, making things nicer, furniture, computers, adding health insurance, etc.

Good Deal, Jack.

Thanks a great deal, again. This is very inspiring.

 

[theBiz]

Woah woah woah Jack... we went from 15k start-up costs to 100's of thousands of dollars to make employees more comfortable? Whats going on here?

Can you go into a little more into detail about expansion?

 

[Komelika]

I'm curious Jack. Does your company do anything online as far as a website or online advertising or is it all cold calling sales and word of mouth? I'm not asking for a website, I'm just curious if you utilize the web to get business done. Thanks.

 

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[JEdwards]

Woah woah woah Jack... we went from 15k start-up costs to 100's of thousands of dollars to make employees more comfortable? Whats going on here?

Can you go into a little more into detail about expansion?

Well the 100's of thousands is not to make the employees more comfortable, it would be mostly to grow the business. More better office space, Furniture, (even cheap furniture) I need warehouse space 10k to 20k sq ft, fork lift, shelves. Health insurance. It is more about legitimizing the business. I am starting to feel I am being cheap just for the sake of being cheap. Which is good but it is also not so good at the same time, because I am starting to think I am leaving money on the table. Such as do I take twice as long to do something to save a grand or five grand. Where before it was worth the money to wait.. Now not so much.

So I think my goal is to spend more to build the business.

I'm curious Jack. Does your company do anything online as far as a website or online advertising or is it all cold calling sales and word of mouth? I'm not asking for a website, I'm just curious if you utilize the web to get business done. Thanks.

I do utilize a website, but my business is not done on the web. It is part of the information process though.

 

[iCashChex]

Thank you for posting all of this Jack. I read the entire thread yesterday and I haven't been able to get it out of my mind since. I've had ideas in the past and acted upon some of them, but you've given me quite a reality check here. It might have had something to do with reading months of your updates in a matter of a few minutes, but I guess I had no idea what taking action actually meant. You've humbled me to say the least. I honestly feel like you punched me in the face with something made of metal. I'm still trying to process everything.

You mentioned something to the effect of you are done reading books, and I was wondering how you would handle this if you were to start over. Would you read as many books as you did? Or would you read less and substitute action in its place?

Great advice on making the decision to do it, also. Thank you for this and continued success.

 

[JEdwards]

You mentioned something to the effect of you are done reading books, and I was wondering how you would handle this if you were to start over. Would you read as many books as you did? Or would you read less and substitute action in its place?

.

Thanks,

This business is me starting over. I read books when I was young, early 20's.. Just decided to take more action then reading books that rehash everything. (well except for MJ's, that is a pretty good book)

Figure out your idea, figure out the angles.. Make your first sale. the rest is easy.

 

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[FrankSmith]

Hi Jack,

Thank you for sharing your story.

If you don't mind can you share how you marketed your previous businesses for example the Pest Control you mentioned earlier if this thread or any other businesses. I see you have good systems in place. Do you mainly do phone sales to grow them...

I am really interested in just asking generally what marketing / sales methods you have used in the past to grow the business.

Wish you the best.

 

[JEdwards]

Phone sales has always worked..

Back in pest control I call residential.. I do not call homes anymore, Never again, only businesses and then I only call for something they need or already buy. Makes the call much easier..

Hope that answered your question.

 

[Blacktye6000]

Phone sales has always worked..

Back in pest control I call residential.. I do not call homes anymore, Never again, only businesses and then I only call for something they need or already buy. Makes the call much easier. Hope that answered your question.


great point!

 

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[theBiz]

it would be mostly to grow the business. More better office space, Furniture, (even cheap furniture)

Is this truly essential?.... do you think this will help bring better talent on board and if so is it cost efficient? I know many old timers who run big businesses and make real deal money with drop ceilings that have those brown spots on them while other businesses with beautiful offices are breaking even.... at the end of the day does it matter as long as employees stay? We cant all have a googleplex for employees hahah. thank you

Figure out your idea, figure out the angles.. Make your first sale. the rest is easy.

Stop it, it is not that easy!

Phone sales has always worked..

Back in pest control I call residential.. I do not call homes anymore, Never again, only businesses and then I only call for something they need or already buy. Makes the call much easier..

I have been hearing alot about do not disturb. I do not want to get too into your business but do you generate or just buy leads. Im assuming you just took a huge database of businesses but even then...... is that effective, how do you know if they are using or need your product..?

Maybe just to give an idea how about the old pest control... where did you get leads for something like that? What was your angle on pest control?


thank you, learning alot here.

 

[JEdwards]

Is this truly essential?.... do you think this will help bring better talent on board and if so is it cost efficient? I know many old timers who run big businesses and make real deal money with drop ceilings that have those brown spots on them while other businesses with beautiful offices are breaking even.... at the end of the day does it matter as long as employees stay? We cant all have a googleplex for employees hahah. thank you

Stop it, it is not that easy!

I have been hearing alot about do not disturb. I do not want to get too into your business but do you generate or just buy leads. Im assuming you just took a huge database of businesses but even then...... is that effective, how do you know if they are using or need your product..?

Maybe just to give an idea how about the old pest control... where did you get leads for something like that? What was your angle on pest control?


thank you, learning alot here.

1. I think you are taking what I am saying a little different, Its not like I am buying everyone massage chairs and bringing in a masseuse once a week. I am thinking very little will be spent on actual furniture etc.. well cubicles, even cheap ones aren't cheap. computers, headsets, chairs.. even cheaply just to get someone on the phone will cost 1k in set up.. I will post some pics of the new place, just trying to hold off till the last possible second.. My first business we started with a few folding chairs and green plastic lawn chairs, so I understand cheap. I just like the nicer things in life. Right now I feel we are below even half way nice..

I also understand what you are saying about people with nice offices breaking even, last dec I was at this guys office and they had the nicest office I had been in, in a long time. every piece of furnture was perfect, flat screens on every wall, 20 employees, at least.. They were looking for 5 million in a round of financing..

I asked how much they gross a month.. they said 20k in sales.. humm, looks like they are losing a ton.. but nice office.. Nice idea.. to bad they spent there money on stuff.

2. Your right, making the first sale is the easy part.

3. The pest control was years ago, literally we just called out of the phone book.. Now I am calling/selling B2B for something they need. Cant live without. as in they have to have it to do what they do.That makes it easier.


Tomorrow is a big day, I have finally reached a milestone and can start concentrating on another aspect. This is going to be a great test. This can really take us to the next level in my original goal.

 

[theBiz]

3. The pest control was years ago, literally we just called out of the phone book.. Now I am calling/selling B2B for something they need. Cant live without. as in they have to have it to do what they do.That makes it easier.

Well in B2C you were probably calling homes especially when cell phones were not big.... this actually seems easier to me because of secretaries.....

I worked in sales and found it really hard to get through the secretary...... Are there any strategies you can share that helps your cold callers get in touch with the business owners/decisions makers as this seemed so hard.

 

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[JEdwards]

Yes, After I would say 5 million phone calls easy. I have the best way to get through the gatekeeper and get the owner/mgr/buyer on the phone.


No, I am not going to tell you. Sorry.

All the calls for the pest control was to consumers and before cell phones. Residential calling is done. No more for me.

 

[Giles]

Good read, thanks for sharing.