100 mph - 0

[kolwdwrkr]

To start this off, this is a topic of failure. I've worked very hard at becoming wealthy with poor end results. We begin in July 2004 when I started a woodworking shop. My "expertise" if you will is in woodworking and that is the extent of it. I have no business skill what-so-ever and that is why you should NOT do the following.

As stated I started in 2004. The reason I started was because I was supposed to be a partner, and the guy basically screwed me. So I told him that I would be his sub contractor and I would start my own business. He started slacking in payment so I stopped working for him. He went out of business and I took his designers. Business is business. I was the one who was doing the work for the designers, he was reeping the rewards. Now, at this point I now had a shop, tools, and clients. This is within about a month after I started. We started getting very busy and ended up getting a second shop in early 2006.

In 2007 we got out of those two shops and got into one. My sales were up from 150k the first year to a soring 700k. Then in April of 2008 my wife left me. She was the accountant, secretary, salesperson, tax preparer, etc. Basically she did everything but design and build the work. So there I was with this business and no way to run it. She left at the end of a very large job, a job that we stopped advertising for because we were to busy to take on new work. By the end of the project there was no work. Remember she stopped advertising, and I was to busy producing to know about the office. That was mistake #1. If you start a business, KNOW the business. DO NOT rely on someone else. If they leave you will be in a bad situation.

Now, remember we were doing very well. I was making a lot of money, had a little girl, and then bought a house. Now I had a mortgage, shop, employees, etc. Basically I had to much overhead. When I ran out of work the bills kept coming. I was paying them with credit cards, etc. Mistake #2 Create a NEST EGG for when things go south. Basically create a "get out" strategy that will allow you to continue living without being at the end of your rope.

She also left me with 20k in tax debt from 2007, as well as all the tax responsibilities of 2008 which remain unpaid. Mistake #3 ALWAYS hire a tax person or Accountant to do the taxes. This person or company should take care of your business on a regular basis and won't leave you when you need them.

In August of 2008 my business shut down and I haven't had work since. I have been trying to market my artwork but cannot afford "payed for" advertising. Here I sit, looking for ways out of this mess. No money, no way of paying for bankruptcy or taxes, etc. House is in foreclosure, am behind on car payments, and have child support.

I am here now to offer the advice. I hope that it finds everyone well, and that if you have made some of the same errors I have that you have the chance to change things for the future before things go to hell like they have for me. So to re-examin the Don'ts:

DO NOT rely on someone else to run your business. It is your business. KNOW it!

ALWAYS have a nest egg reserved, or a "get out" plan if things go wrong.

ALWAYS have an outside agency take care of your taxes unless you can do this yourself. If your spouse is responsible for the book keeping sit with them and learn it, taking the time to perform the duties from time to time.

NEVER choose to know one aspect of your business. I stated that I was a woodworker. That's what I chose to do. That is fine if I stayed working for someone. However to own a business you MUST be able to be customer service, sales, management, etc.

I am not writing this as a pitty post, nor did I join this site to solicit myself. I want to be able to learn from true successfull people on how I can be successfull. If you'll accept me to the site I will do my best to research, ask questions, etc so that I can improve my way of life based of the proven stragedies. I am not after handouts and will never ask. If I happen to have information that is of use I will most certainly share it. I wish everyone here luck in life.

 

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[Runum]

Sorry to hear about the tough lessons life has dealt you. If you haven't worked since August 2008, have all those bills, and have no emergency money how are you feeding yourself?

 

[kolwdwrkr]

Simple. Neglect the bills. Everything is being taken away. I have been selling the only things that make me who and what I am.... My tools.

 

[Runum]

OK, how long are you going to last doing what you are doing? What is the plan? What is the IRS, bank, ex-wife, etc. going to do to you?

 

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[kolwdwrkr]

Runum, Soon I will have nothing. I have been looking for a job as well as trying to take on new work. My license to do business is still valid. I do have the basic tools left. I was hoping to be able to get a job quicker then it's been so I can rent a place with a garage. If I keep my tools I keep the ability to restart my business. One fear I have is getting caught up in the day to day hustle and bustle of an everyday job. A normal job is never enough, it only pays the bills at hand. If you get a raise, you spend more money. It balances out. Whereas if you are the owner the amount of money you make really relies on your strategy, and is always changing. Now that I realize that having a business is not a fixed income, if I am able to start again, I will realize this and become an entreprenuer and pick up other ways of income.
I told my ex that we needed to do this. I told her to invest in stocks, so we set up an e-trade account. It sat idle. I told her we needed to invest in real estate. Never happened. (with the exception of the house that I live in. Which isn't an investment, but an expense rather) Once the tools are gone I'm just a worker bee. I wasn't joking about the "skid row" comment in my original introduction post.
I'm not sure what people can do to me when I have absolutely no way of paying them. Once I get a job they will garnish my wages to the point to where I can't afford a roof over my head. I need to file a bk but can't afford to. I am trying to save as much money as possible to pay the first and last months rent on the new place I find.
I wasn't intending on using this forum to whine. In fact I was sure there was a rule about acting victimized. I am not victimized and am not looking for pitty. I made all of my own mistakes, and am willing to share the knowledge I have learned with others before they suffer the same fate as me. At this point it will be a waiting game. I am going to spend as much of my time trying to learn what to do if the next time ever comes back around. The bad thing about my industry is that there are no investors to seek out. The SBA is a joke when getting a loan, and any government aid seems impossible to get. It seems as though if you fail, you fail. I hate to go into a little tangent here, but maybe I should go get artificially inciminated, have 8 kids, and then ask for a house. To bad it wouldn't work on a male.
Anyhow, like I said. I am here to learn. I really don't want to be the guy on here that people don't want to talk to because they think I'm only here to solicit or get pitty. I've made my mistakes, and hopefully can do it right next time.

 

[Runum]

OK, you say you don't want pity, cool. What's the plan?

Russ, where's your plan thread?

Found it:

http://www.thefastlanetomillions.com/your-goals-your-fastlane-plan/544-how-develop-your-plan.html

As has been suggested, spend some time reading success stories here. Read some of the legendary threads. Lot's of great free advice. Then work on the plan thread. Post your questions and your progress.

 

[kolwdwrkr]

I'm still in the shock mode of losing everything. From time to time I have a dream of a plan and it involves me, a little cabin, a shop in the back yard, and a fishing pole. Seems like everything in between has been left out.

 

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[kolwdwrkr]

You know what's funny about my little dream? It would probably cost under $300k. LOL. There's people that make that in a few days and wouldn't put a nickle in my cup. Crazy world.

 

[Russ H]

kolwdwrkr,

I was all ready to BLAST you for being on such a pity ride, but then your follow up posts convinced me otherwise.

YOU have a CHOICE.

Succeed. Or Don't.

There is ONLY ONE PERSON to blame for the predicament you're in (hint: it's not your wife!).

By the same token, there is ONLY ONE PERSON who will dig you out of the hole you find yourself in right now.

You need to figure out how to do that.

FAST.

Either that, or continue the death spiral you're in right now.

. . . Crash and burn.

Most of the really successful people on the Fastlane Forums have gone through periods where their abilities-- and sanity-- were tested to the extreme. They lost everything, or risked everything-- or, they were poised to lose all that they had worked so hard for-- but figured out a way to make it.

They persevered, and made it through.

We're going through some incredibly stressful stuff right now. I have never, ever been tested at this level. Every day I look at the image and motivational quote below it. It gets me through the day.

Looking at the image of a man about to walk on the moon, I realize that the only thing different between that man and every other person on earth is that man had the DESIRE-- and the MOTIVATION-- to get there.

Everyone has hard times befall them. Everyone has to choose how to deal with it.

Your next steps-- and choices-- are up to YOU.

My best wishes to you-- you are in the right place if you want encouragement, support, and inspiration. There are LOTS of folks with that stuff here.

-Russ H.

 

[yveskleinsky]

Could you potentially sell your carvings on consignment? Could you also get a roommate to help shoulder the load of the bills? ...Are you dead set staying where you are, or are you open to moving someplace more affordable?

I can understand being in shock mode still. Take a deep breath and know that this too shall pass. Hang in there--and glad you are here.

 

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[Runum]

Do you know that some states don't have garnishment for wages for debts other than IRS or child support? Some states don't have alimony. Some states have lower costs of living. I like Yves suggestion. You might need to consider it.

 

[kolwdwrkr]

The last thing I wanted to do is seek pitty, and I'm sorry if it seems like I am. I came here because I am lost. What should I do next? I mean, lets face it. The industry I am in to begin with is a poor one. Very few people actually gain wealth from it. Sure there are very Large companies like kraftmaid and the like but those are corporations, so the founder isn't necessarily rich right? But that's the point too. You can be successfull.
As far as the room mate situation goes, I have a live in girlfriend with 2 children, and mine stays over 3 days a week. So there is really 5 of us to worry about. She pays for their food with her child support. The other bills are paid by some of the support as well as my selling of tools. I think they need to be mentioned to help set the scene here.
For the consignment of my carvings, the problem is that CNC machines have made hand carving irrelevant. I could make furniture pieces on consignment, although I may have the Chinese to contend with. I'd like to think I can sell the work as an artist, but as I wrote earlier I think you need to be recognized. That is what I'm striving for and is my goal. For now I just need to become stable again.
My bills at one point were 30k a month as well. I had a 4300 sqft shop and at one point had 6 guys. The workers comp, taxes, rent, insurance, etc are the worse and most expensive bills in the country. The work itself is simple, but 500 greedy hands have to come pick your business apart before you get paid. You work hard to reward someone else.
Now that I'm at the bottom again I have to look at it as though I am starting over. Pretend I'm an 25 year old that just got my contracting license. I've acquired my journeyman experience and feel ready to seek out my own business. We'll pretend I'm married too, like I was when I was 25, but this time I'll be running every aspect.
So, now I have this license and the basic tools. But I do not have a client base, and I do not have start up capital. (We should try to pretend the outstanding debt does not exist). Where do I start? I don't have employees, no salesperson, no accountant, etc.
What about an investment? Is there something that I can invest in that will give me a quick return while I save for marketing costs?
We have to forget the loan scenario. Pretending I have good credit like I did in April of 08 is out of the question (815 btw).
I will definitely go through and look over things here. I hope to learn a lot, although I'm unsure if there are even similar business's here. So I should start with the success stories first? Then the legendary threads, and then the plan post?

 

[1mancrew]

Get your gloves on cause it is time to get to work and pull your self out of this mess. It is not going to happen over night, but one step at a time.
I would like to ask a question, if you had that much business, that meant you had a customer base at one time, where did they go? Can you go back and establish your relationships with those customers and start working back up. If you did good work they will remember, keep working on those relationships until they tell you not to come back.

 

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[kolwdwrkr]

I've been strongly considering relocation. Should I choose to do so I need to make sure there is work there. This place is expensive but it may be due to the amount of people. With people comes opportunity. A cheaper environment may have less people, less opportunity, and you may need to have an "in". I really like my cabin idea the best. A cheap home with a shop that I could eventually own. Here I would always be paying a shop lease.
If I could sell my art nationwide It would make things a lot easier. It wouldn't matter where I shipped it from. But since most of the work is specifically cabinetry and millwork the installation is part of the process.
Relocation is definitely a consideration. Anything that will help me improve my way of life is a consideration.

 

[kolwdwrkr]

1mancrew, good points. I worked with a lot of designers. I did the Philharmonic House of Design and donated the labor to benefit that society. The designers I worked for would come to me for their own personal work, but had other "cheaper" companies doing the other work. They had established commissions with these companies. This isn't even legal because they are working as either Sales agents or General Contractors for the client or builder.
Maybe we can ad that to the list of things I could have done wrong. I always followed the rules and lost work because of it. The other clients I had gave me "full house" projects that my little packed 2 car garage don't have the capacity for. One thing I try to do is steer clear of the work that I could get into trouble on. Lets say I took a kitchen and was building it. Then the sheriff arrived with my eviction notice. That would end that, and I would be getting suid.
Now I know when I have to be out. May 7th is the auction date to the house. I'm sure I should try to be out around then.
I've made a lot of good relationships while in business. Now that I'm down I have called them and asked for work and help. They have said they are not busy and don't know anyone looking for work. That leads back to what I originally said. Don't trust anyone.
To Russ H, you're absolutely right, and I can't stress it enough. It is all my fault, my problem. Not anyone elses. That is why I don't want pitty. But talking about it and getting direction is hopefully my first step out of it.

 

[1mancrew]

Ok, so they don't have work right now, keep after them. Sorry if this seems harsh, but you have got to think about what you can do and how you can overcome the road blocks in front of you. Get around some positive people and they will rub off on you as long as you are trying.

Do you have a friend with a garage you can work out of for a short time? How about an old business friend that might have a small place in the back of his shop?

If you are considering moving, find out where your line of work is thriving and move there, look in the yellow pages for you future customers and get busy calling on your new customers.

 

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[Runum]

I can tell you that there are many of us on this forum that struggle everyday. The key is to have a plan and to take at least one step every day toward making it come true. Many on here are working 2 and 3 jobs in places that they don't like just to achieve their plan. We have heard your plight, we sympathize. What are you going to do tomorrow to start to turn your life around?

 

[kolwdwrkr]

I need to research the best places to continue my business where housing is affordable, and then search for jobs in that area. I need to call people and make connections as well. I need to gather everything up that I have for sale still, and make them more appealing to the public. These things I have for sale will help me pay for these changes. I need to continue searching these forums for additional information, and post questions when they arise.

 

[Runum]

OK. That's a lot to do in one day. Are you going to work at all tomorrow?

 

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[phlgirl]

First off, I commend you for having the courage to post this here. +++

As Russ mentioned, this forum can be a great place to get support/ideas/criticism, if you are open to it and prepared to follow through.

Clearly, you have a talent. A talent which, when marketed properly, is capable of producing income.

If you are too bogged down by shock, fear, sorrow, etc. to do it yourself, maybe it is time to think about offering a serious commission to someone who has time/know-how to market your product? Give them half…hell, give them 75% if it makes sense, but get the sales end of things moving. Network with people in your industry and tell everyone you meet that you will give them a cut for any orders produced. MJ (owner of this forum) said somewhere, recently, that the focus needs to be on the income generating activities and he is dead right. If you have already taken the credit hit, forget about the expenses, for now, and deal with finding a way to fix the income.

If you re-read your posts, I think you will see some blame issues. Try to clear you head (which I would imagine is extremely difficult right now) and focus on starting anew.


If you have made mistakes, there is always another chance for you. You may have a fresh start any moment you choose, for this thing we call "failure" is not the falling down, but the staying down. – Mary Pickford

 

[kolwdwrkr]

Runum, Have to at some point. I should have started yesterday, and now I am just another day behind in life.

 

[Runum]

Runum, Have to at some point. I should have started yesterday, and now I am just another day behind in life.

Dude, gotta get over the past. You don't seem to be yet. You do not have time to dwell on the losses. How are you going to make Thursday a better day? No negativity.

 

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[1mancrew]

Dude, gotta get over the past. You don't seem to be yet. You do not have time to dwell on the losses. How are you going to make Thursday a better day? No negativity.

This is the bottom line! Each day is another oppurtunity to make that day better and build for the next. you have to start sometime, make it Thursday!

 

[kolwdwrkr]

Runum, I should have started a long time ago. I think I need to quit sobbing and get back out there. There's no sooner time then tomorrow. And just think, I'm going 5 mph faster now so I'm on my way ;-) Thanks everyone for the encouragement.

 

[Runum]

Runum, I should have started a long time ago. I think I need to quit sobbing and get back out there. There's no sooner time then tomorrow. And just think, I'm going 5 mph faster now so I'm on my way ;-) Thanks everyone for the encouragement.

You're welcome. Focus on what you do have. Tomorrow you will be blessed with another gift, 24 hours. The same gift the richest man and the poorest man in the world gets. You have your kids and they have you. You have your brain, talents, and your experience. What you do with those gifts is a choice. Take one step to ad to those gifts tomorrow. Good luck.

 

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[Sparlin]

Hey guys, I have only read bits and pieces of this. I am not an expert by any means, so I will throw this out there and let more qualified people address these thoughts.

It seems that Kol is an expert in his field. Maybe he isn't finding a market for his product; however, could he not teach his skills to others?

I'm thinking he has a few options. I'll list them... the experts can decide if they will fly.


1. Teach Wood Working Seminars. If you have the skills you claim you do, why not approach Vo-tech type schools and offer to teach a class. If not that, find organizations such as American Cabinet Makers (made up) and find out if they have any conventions or shows coming up. You could lecture on the fine details of carving, working with different types and grains of wood, polishing, etc. If you have the skills, make them pay for travel expenses. You could even go from High School to high school and guest lecture for a day in shop class. Charge $100 bucks for your expertise for a few hours of lecture.

2. Write an E-book: it takes some time, but write a book covering the basics to more complex skills and include photos. Even better, have a friend follow you around and film for a few days. Make a video that you can sell online.

3. Launch a website and teach skills for free. Sell your products on the side. (Include the e-books and or videos)

4. If you mass produce a certain item of quality, send it to major retail chains that deal with your niche. Home and Garden places, Interior designs, furniture outlets, even Walmart would be options. If you can't give away samples, take it to them to show. Or video / take photos and mail it to them.

If they order only one product that you can mass produce, even 200 of them, you will be busy for a while.

5. List your items on Ebay. You may not get rich, but it will help with bills.

6. Market your skills to people that can afford it. Take some samples of your work to wealthy people or businesses that are remolding (not AIG).

7. Pull a Tim Allen. Contact the makers of the tools you use. Tell them you will go to county fairs and demo their products.



I'm sure I can come up with more, but those are thoughts you might consider. Whatever you do, good luck. YOu are never going to succeed until you see yourself the way you should. You have the skills, show us how you can use them. Trust me, I know about bad luck and letting life go because of a few bad incidents from the past. It's hard, but you are the one that will have to get yourself out of this. I speak to myself as well on some points. You'll make it. If you don't choose success, then you choose failure by default. Choose wisely. I think you can do it.

 

[Runum]

good suggestions:cheers:

 

[1mancrew]

I hope you have a great Thursday and use it for the beginning steps to your future.

 

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[mtnman]

Everything that Sparlin mentioned!

Next, is something that might strike you funny, but was done to me and I'm grateful for it.

When you're ready, (we all have our own time that we need to sulk and are able to make the decision that we want something more) stop whining.

I would assume you have massive talent, passion, etc...

You've done this before, you can do it again.

You're not a lost sheep. You have experience in an industry that produces revenue.

You have a history. Surely this includes resources you can access just ONCE more.

And passion. If you truly want this (to OWN your own wood working business again) then fight for it.

That dream just bitch slapped you. So what. Are you going to walk away, or put your head down and ask, "how can I do this"?

There is so much opportunity it's crazy. But we all have our OWN time frames as to when we are ready to grow and change our thinking.

For instance, do you know how many people would be interested in what you do? There are millions of people on this planet. Did you know that you can access a percentage of them that like woodworking online?

A little far fetched with zero capital and web skills, but there is profitable niche online that would LOVE to see a woodworking video blog, that illustrates what you do once a week.

Hell, even a garage shop, with dust collection, organized tools, and WOOD gets people going.

I can only imagine that a select group would kill for carving talent and illustrations, guides, and so on.

This is just one idea. I'm sure there are many opportunities waiting at your feet, though you may not see them at this moment.

What doesn't kill us, only makes us stronger.

 

[kolwdwrkr]

Regarding the online tutorials here is the problem. #1 is that unfortunately there are dozens of people that have had the same idea. Here are a few that I frequent: Lumberjocks.com, finewoodworking.com, woodcarvingillustrated.com, thewoodwhisperer.com, woodweb.com, etc. All of these sites are geared to provide the average woodworker, especially hobbiests, with insite on how to do woodworking, what brands of tools are best, etc.

On sites like lumberjocks, there are several people giving video tutorials, or writing blogs. I'm no exception. Basically they found a way to learn through forums without paying for the education. That tells me that the only way that would work is if I were selling tools, hardware, and accessories.

Maybe I need to invent something that relates to woodworking. But then to patent it and produce it is another demon, and if it doesn't sell I'm screwed anyhow.

What I was thinking of doing, and you can tell me what you think, is to make videos that are directed specifically for an employee of a woodworking shop. Instead of showing techniques that are beyond most skill levels like carving and such, I would be showing how to make a cutlist, how to make a faceframe, the carcass, a drawer, etc. The basic fundamentals to cabinetry. This would even include mounting doors, installing guides, etc. I would show techniques that the business owner would have to teach, but instead of him teaching it, he pays for a set of passwords to my site.
I would sell a set number of passwords to him at a monthly fee (residual income) that he can ad to or subtract from. One password would be the master key to the site, and would control his account etc. The additional passwords could be given to his employees to have access to the videos he tells them to watch. This way they can watch the video on their own time and he wouldn't have to pay them. He would then have all new employees sit and watch the video, and could also refer to it as they go along, in case some people are slower then others in the learning process.

This site could also be a forum between the owner and employees, almost like a live session. They could set up meetings and go over the next day if all the employees weren't available. When you are an installer you find yourself in the field until after closing. It is also difficult to call everyone in for regular meetings unless you do it first thing in the morning. The biggest loss of time I experienced was in the morning and right after lunch. The employees should walk in and get straight to work. If you distract them with a meeting then it takes a while for the motivation to kick in and for them to stop talking to each other. If you lose 1/2 hour you lose it for the whole crew including you. A crew of 6 would equate to a 3 hour time loss because each individual counts as a 30 minute loss. Having the meeting at home for 15 minutes would cost nothing, would guarentee everyone would have the correct information, etc. You could also use it to exchange work orders.

If you work for a car dealership, well at least the one I worked for, they show videos on how to conduct yourself, harrassment videos, etc. They teach you how to be an employee and what is expected. My video and site would cover everything from shop safety and tool set up to the actual cabinet making procedures. I could start off with cabinet making, and as time permits and if it is generating income, I could include a furniture section.

I'm not sure how it works to be able to sell product from the site. I would assume that getting sponsors would be simpler. That way the viewer would just click the link and buy from the company. So how do you get sponsors?

Anyhow, I don't think I can really target the hobbiest with all of these free websites. I think I would have to be targeting small business's that are just starting up or need a way to train without the owner teaching. When I ran the business I had to take the time to teach. That takes time away from designing and selling.

I was also thinking that I could sell design services. Whereas I would do renderings on my program and provide shop drawings as well as 3d drawings for their clients. Again this would target new business's because most shops have their own software or design team.

So how do I get all of this going. I will need a website and someone that knows how to manage it. (I have one but my ex-wife has all the info and software for it and won't take time to discuss it).
I need a way to get sponsors on the site.
I need a way to market the site.
I need the videos for the site.
I need investors to help get the ball rolling.


What does everyone think of that?:huh2: