Thinking of giving up!

[kellycomputerservices]

Hi Guys,

I'm looking for some kind words of advice please...

I run a small IT Support company, and have hit hard times. I've been trading for just over 2 years now, and since startup, I've not realised my full potential, or profits. I JUST make enough at the end of each month to scrape by.

2 years with no holidays, relentless phone calls one after another, I'm tired and fed up of having no money. This easter weekend I've had literally NO money, and I'm not sure what to do anymore.

I realise a true entrepreneur would get loans and try their hardest, but I'm afraid everything'll go belly up and I'll end up bankrupt. It's make or break time I just don't know if I've got the b*lls. I have confidence in what I do, and my own abilities, but unfortunately I can't predict the future.

Should I bite the bullet? speculate to accumulate and go get a loan, and invest in staff? I need to expand as I just can't handle wearing all of the different hats anymore - I'm spreading myself too thin and customer service is suffering - I wont accept shoddy service to my customers.

I love running the business, but I just need to catch a break - I've been hit by the recession (like most businesses), and I'm worried that come the end of the month I won't be able to pay the rent on my house...

What should I do?!??? :(

Thanks, I really appreciate anything you have to say - I know a lot of you have probably been in my shoes. I don't have anyone to talk to.

Keith.

[Burden]

Almost called you Kelly.

Keith, you need an energy boost.

Where do you run the business from? Home/Office/Unit etc.

Is it run fulltime just now?

What about a part-time job to supplement it while you are building it up further to be able to give you the money you need for it to work fulltime.

Are you full of business and no time to complete? but cant earn extra money or
Enough business to get through but could do with more?

[Christiane]

Hang in there! I'm in my fourth year and still no holiday and no money, not that it's a consolation. BUT I see light at the end of the tunnel at last (hopefully by end of this year). The business has grown faster in the last year, I moved to a unit last December, hired two staff, soon a third one.

Sit down and look closely at your business, see how you can increase your margins and customer base, what's the best marketing for your business, etc.

Hiring a staff is a big milestone but it doesn't need to be full time to start with, not to burden you too much. And you'll feel liberated, believe me!

You don't sound like you want to give up, you just need to re-assess your situation and adapt. Good luck!

[SLF]

Are you suffering from a lack of orders or lack of time to fulfil the orders and getting business is no problem?

No point getting a loan to pay staff to do your admin, customer service, marketing, etc if you are not even getting orders in because then how will you afford to repay the loan each month if you are skint already?

You've got to consider how long it would take for you to bring in the additional amount of orders that will cover the additional loan repayments and get paid for them - the conversion time if you like - so that you know if the risk is worth taking.

[kellycomputerservices]

I run the business full-time from home.

I find that when I'm busy, I'm real busy and time is an issue in completing jobs, but then at the opposite end of the scale, when I'm quiet, I get real quiet and then find it's completely the opposite.

I think I've reached the pivitol moment where There is just enough business to keep me busy, but not enough to take another body onboard, but without another body, I'm running into problems finishing jobs on time, getting back to people, because my time is spent all over the place. This is where I'm at a dilema.

I am not a good salesman, and all of my bussiness has come from referrals. This is not a good business model by any means, but I'm scared to take on more business that I won't be able to fulfil. I hope this makes sense.

I have put the feelers out for a junior part-timer to help relieve some of the load, and to take over some of the more trivial tasks - I think this is the way forward. Not too sure if I can afford the position yet, but I don't see any other way out.

Lastly, working from home is proving to be the undoing of everything. I'm fed up of the same four walls, day-in, day-out. Because my time is taken by the business, all hours of the day (catching up on my accounts software today), I've lost the enthusiasm for the job. I've emailed a few agencys with offices to let, I'll persue this this week to see how much it'll cost, but again it all comes down to money. Grrrr..

Thanks for the kind words guys... appreciate it.


Almost called you Kelly.

Keith, you need an energy boost.

Where do you run the business from? Home/Office/Unit etc.

Is it run fulltime just now?

What about a part-time job to supplement it while you are building it up further to be able to give you the money you need for it to work fulltime.

Are you full of business and no time to complete? but cant earn extra money or
Enough business to get through but could do with more?

[Christiane]

When I took the unit last December, my heart sank as we drove back the next day to agreed on the lease. It's a big chunk of money and not sure whether I was going to be able to afford it. My OH was gobsmacked, his comments were ''that's two of our mortgages'' blah blah blah.

Anyway if you don't move forward now, it'll get worse and worse. I don't know too much about office lettings, but in the current climate you might be able to clinch a good deal. Think positive, think you'll find the perfect office with the perfect terms. Think you can cope, etc. It's often all in the mind!

That's not to say I am not like you. I do get depressed and very down about the business sometimes (rewind only two weeks ago!), but I'll get there, just like you will.

[Esk247]

haha seriously! we all feel the same sometimes....i work from home..its the job of a freelancer!

sometimes i feel like chucking the computer out of the window or getting a 'proper' job.

but wheres the fun in that??? :)

you'll be fine in a few days! get some more work in and it stops your mind from wandering! i can go 2 weeks without having any work and then i go crazy!!! i have to invent work for myself.

if you need extra help why don't you create a partnership with other local businesses that offer something different to yours? thats what i'm going to do over the next few weeks! a few web designers, computer sales, copywriter etc!

[SLF]

have you got any family or friends that could help with admin etc?

could you exchange services? virtual admin/accounts in exchange for offering x hours of your services to their customers perhaps?

if you feel you can get the work in no problem, then I would take a small risk that you know you can afford to take.

or, instead of a loan to pay a wage, just outsource your admin, calls, and accounts - maybe that would work out cheaper and not involve a loan and you can cancel any of it should it not prove to be the answer, just go month to month and maybe get a very small loan to cover the first few months, say £500-£1000 (or an overdraft might be cheaper).

[Rhyl Lightworks]

Hang on in there. I would say after 3 years is the time to assess profitability. Until then be prepared to live with little money.

It sounds as though you are like me, and others, in that you are afraid to delegate, because you prefer to make sure a job is done properly by doing it yourself. Such people will never be millionaires, but good customer service eventually gets a good reputation, and you will see repeat customers and a viable business.

Barrie

[Kernelpower_Ltd]

if you can get a well paid job then give up and do that , if you cant keep on trying but I have worked in IT before and its a very hard sector especially with maintenance / services.

[cjd]

Have you looked closely at your business model - financially I mean? What would you have to do to make a profit? How much business at what price level?

If you are working as hard as you say you are, your problem is not shortage of work - my first guess then would be that you are not charging enough. My second would be that your costs are too high. It's not rocket science is it?

Don't even think of a loan until you understand how the numbers of your business work.

[directmarketingadvice]

I run a small IT Support company, and have hit hard times. I've been trading for just over 2 years now, and since startup, I've not realised my full potential, or profits. I JUST make enough at the end of each month to scrape by.

2 years with no holidays, relentless phone calls one after another, I'm tired and fed up of having no money. This easter weekend I've had literally NO money

There's a lot of stuff here that doesn't make a lot of sense. In particular the "no money" + "relentless phone calls".

(assuming these phone calls are from prospects)

What's really the problem?

Is it that the leads all come in a batch, then there's a quiet time?

Or, is it that you don't do a good job of converting the enquiries?

(or, are they poor quality enquiries?)

Or, are you charging the wrong amount and working hard for little money?

Without some idea of the real problem, it's hard to give worthwhile advice.

Cheers,

Steve

[peterjhale]

Have you looked closely at your business model - financially I mean? What would you have to do to make a profit? How much business at what price level?

If you are working as hard as you say you are, your problem is not shortage of work - my first guess then would be that you are not charging enough. My second would be that your costs are too high. It's not rocket science is it?

Don't even think of a loan until you understand how the numbers of your business work.

This quote and Steve's above, from the info you provided seem to sum everything up quite nicely.

If you are almost 100% flat out, but still broke, then you are either not charging enough or your overheads are too high.

Why not charge 50% more (or 100%) than you are now and see what happens?

[silvermusic]

2 years with no holidays, relentless phone calls one after another, I'm tired and fed up of having no money. This easter weekend I've had literally NO money, and I'm not sure what to do anymore.


I'm sure I'm not the only one thinking, yep, been there, got the book, video and the t-shirt, not that it'll make you feel any better. Sometimes this self-employed lark isn't all it's cracked up to be.

On a serious level, you need a break now and again, no one can live, think and breath their business 24/7/365, you'll burn out, seen it happen and it's not nice. Even something as simple as getting out from behind the desk and taking a long walk will make you feel a bit better, it's something I do quite often when I feel the world is getting on top of me.

I don't know your type of business but two things strike me. Unless you have other staff how can you even think of offering 24/7 support, you're not a machine and you need sleep. Get rid of those services until you have other staff.

Look at what you offer and specialise, don't try to be all things to all people. Dump the more time consuming and less profitable parts of your business, concentrate on the biggest profit earning parts. You can expand on your offering as and when you employ more staff. You may decide that you don't need or want to expand and by concentrating on other more profitable parts of your business that you're happy at that level.

Best of luck, and for goodness sake take a break now and again.

[BusinessIdeas]

I just looked at your website and I couldn't make out what you actually do. I may need one of your services desperately, who knows? I cant find a list of specific services or anything that might apply to me. It might be a start to get your marketing sorted out before you give up. Please dont take this as a ctriticism. I'm just telling you what it looks like from a prospective clients point of view - Gina :)

[SLF]

The OP said they are not flat out 100% of the time. They seem to have busy times equally as they have quiet times. I guess its the busy times they are overwhelmed and the customers need seeing to all at once, then the dead times are boring as well as not bringing money in. The OP stated that overall, the business barely enables them to make a living.

Therefore im not so sure that raising prices is the answer, though it could be part if it.

Id only suggest that if they were flat out right through each month but barely making a living and being skint this weekend suggests to me that the OP simply isn't turning over enough business. Without seeing the figures we cant tell if they are in fact running at a loss, let alone breaking even.

[Cornish Steve]

A couple of things come to mind:

1) Revisit your business plan. What's your target market? How can you tailor your offering to more closely match that market? Where are the endless calls coming from - your main market or somewhere else? Do you need to increase prices in one or two areas? Can you cut costs anywhere?

2) If you haven't already, read Gerber's 'E-myth Revisited'. It would appear to be relevant to your situation. You're not running a business right now but doing a job.

[kellycomputerservices]

I think quite a lot of you have hit the nail on the head.

The problem is I work hours on jobs, but don't charge enough. I mean in that a job which in theory should take 1 hour, takes 3 hours. I don't want to charge the client 3 hours because it looks like i'm taking the p*ss, but that's the truth.

The problem I seem to face in the IT industry, is that clients do not know the amout of work that goes into making something work. Whilst on the face of it, it may seem like a small job, in actual fact, it may take hours. I think the problem I have is justifying the time spent on issues. To this extent, I think my failings have been in actually recording exact time spent on issues, and having the bottle to charge accordingly. I'm virtually working for free! wtf?!?

This stems from my insecurities and naivity in business. I am only 25, and worry that if I charge too much, I'll loose the client, but in hindsight, if a client isn't willing to pay for the professional service, then is that a client worth keeping hold of?

I need to be more ruthless - I'm in business to make money, not work for free. Surely a client would respect me for having the bottle to charge them, regardless of the price.

That actually really helps me - like a sudden realisation now I've seen it in words that I can't believe I'm not charging people for the work I do... I work hard, and I know my beans. If the client wants that level and quality of service, it should come at a price.

In fact, I think the reason I don't charge the clients full whack is that because I'm spread thinly, they don't get the best level of service 100% of the time, so I don't want to insult them by charging top dollar for a sub-quality service. :|

[Esk247]

do you know...thats exactly how i feel sometimes!!!

i've upped my prices though! all my customers get 24 hour tech assistance and now they have to pay for it because i used to offer it free...and when its free they always phone up and ask random questions that have nothing to do with the product they've purchased! it means i have to spend 20 odd minutes dealing with that instead of doing paid work.

don't be afraid to up your prices..perhaps try it on a few newer customers first to get the hang of asking for more and then see how it goes! you'll be surprised! i'm sure they'll pay double what you're currently charging!

[silvermusic]

I just looked at your website and I couldn't make out what you actually do. I may need one of your services desperately, who knows? I cant find a list of specific services or anything that might apply to me. It might be a start to get your marketing sorted out before you give up. Please dont take this as a ctriticism. I'm just telling you what it looks like from a prospective clients point of view - Gina :)

Having had a closer look at the web site I tend to agree with that. Exactly what are the services you offer? I.T support is a very general term and means different things to different people. What you may consider low level no brainer things could well be services people are willing to pay good money for, from software installation to two/three PC networks, etc. I feel this is one area you may be missing out on. Never forget people are paying for your knowledge as well as you time.

[QVA - Emma]

if a client isn't willing to pay for the professional service, then is that a client worth keeping hold of?

You hit the nail on the head there. Charge more, look at the market PC World et al all charge £70 ish an hour for support services.A friend charges £60 an hour IT Support plus call out charge in emergencies. You have to cover your costs, you can knock the odd half hour off here and there IF they are a long standing client as you KNOW you will get repeat business.

You don't need to hire someone full time to work for you, you can use a VA or Virtual Assistant. I am a VA and I use a VA to work on some of my inhouse tasks rather than employing someone to do it. It is cheaper, I only use her 6 hours a week, I am not responsible for her PAYE, NI etc just an hourly rate. It enables me to get on with the core business tasks rather than having to worry about returning calls to suppliers, making sales calls, following up e-mail requests and answering the phone.

Sit down and work out what takes up time that can be done by someone else, like me it may only be 6 hours a week or maybe less. But even at £60 an hour that's an extra £360 a week you could earn, paying out roughly £100-120 a week for.

So what do you plan to do with your extra £240 a week I just found you???:D

Regards

Emma

[Lasting Designs]

Get your prices sorted out and if you noticed a particular time is slack, use this time to do some marketing. If a day isn't making you £'s, spent it by being found...

Advertise, network and look to companies who maybe looking to downsize their IT bills, offer them an terms on your quiet times, if they ain't paying its better to get 75% of its potential than nothing. Can you double up, do two at a time, it seems most PC stuff that I've done waiting to load is a big factor, you could be doing something else whilst you wait, or isn't what you do, not like that.

Chin up pal, working on your own is difficult, but hay, theres plenty of support here, but then you know that, best of luck.

[derek_mcgilvray]

Ok, so charging more is possible and will make a big difference.

Your other problem, of periods of too much work, could be overcome by finding a good casual worker. Perhaps enquire at the local college.

Hope this helps,

Derek

[My Owl 1]

I decided to do UW as a way of subsiding my income and getting to go on holiday too. Worth a look... but also if you enjoy what you do keep at it... if you don't change. Life is too damn short!

best wishes

Avril

www.savemoneywithus.co.uk

[scribe]

When i take my car in for a service or work to be done, i expect to pay a fair amount the same applied when my camera broke i knew it would cost me .If my computer breaks down then i will pay whatever it costs. From a customer point of view i just want the job done . As a builder i charge a good but fair rate for the job my customers expect it, we all have to earn a living and not to be working for nothing .
Hope this makes sence it's been a long day.

[Burden]

i agree with above, you expect to pay to get the problem sorted.

car / phone / laptop are the 3 things that usually cost me to repair and i expect it.

[BusinessIdeas]

You still need to make the website clear about what it is that you do and the services that you offer - Gina :)

[Esk247]

if your kelly computer services are the .co.uk then you need to make it a little clearer as to what you are actually offering for those monthly prices that flash up.

if your website is the .com then in internet explorer all of the text is out of position on the homepage.

[Cornish Steve]

Your other problem, of periods of too much work, could be overcome by finding a good casual worker. Perhaps enquire at the local college.
Better still, get to know other companies in the field and approach one of them to take on work when you're overwhelmed. In return, they may refer work to you. Competitors can sometimes become nice partners.

[maxine]

Totally agree with CJD to revisit your financial model. How much volume, at what price, for what level of profit and then decide the way forward from there.

Your posts to me have quite a few alarm bells. If your main source of new business is via referrals and those referrals are based on a cheap service then it is likely that that is the kind of new business you will attract.

You say customer service is important and yet by your own admission this has been slipping because of not being able to deliver this 100% consistently so if your customer service was a reason for referrals then this is also at threat.

As far as taking a loan on goes I am sure this works for some people who have never looked back etc but from my own experience I would never ever look to take on an additional fixed cost without some level of reassurance that I could get back that return on investment. It is a committment that will compete against your personal finances such as paying the rent and I would suggest only to do this if you already have a financial buffer to see you through in terms of cashflow for 2-3 months until you start seeing pay back. If this is not likely then a loan I feel would add to problems. Using a VA or outsourcing some of your work on a flexible/pay-as-you-go basis would seem a much more sensible option ie; accountant, VA, temp or casual staff, subcontractors etc.

Also, have you done any real market research? It seems that you are not confident about your pricing so some market research could help to build that confidence. Find out who your competitors are, what they charge, what they do for their price and preferrably how they do it. You will then have some knowledge about what would be a fair price for work rather than just a feeling and take away some of the emotion :)

Perhaps you can structure your pricing in such a way as to fit in with your business better ie a lower price if flexible deadline for completion or longer turnaround times etc.

You might also benefit from an outsiders look at your business such as business link?

Good luck

[Wendy.Rule]

Guess I am going against the general consensus but if you are, by your own admission, not good at sales and get business by referrals, then you must generally be good at service or you would not get the further referrals?

I wonder also if you can define some of your service levels more clearly to your customers - rather than 24/7 support. It is realistic to provide support between 9am and 6pm weekdays and then they can ask for 24/7 which has a covering fee - £ for being on call and £££ (higher than normal hours rate) for a call out. This gives your customers the option to pay for the additional support 24/7 with an acceptance of the small fee for being on call outside 9am to 6pm weekdays. With enough customers requesting this you will automatically get a pay that is reasonable.

If you want to build your business faster then sort your website, if you are happy with current business levels it is no value as you are getting business by referral...

Good luck
Wendy

[charles2]

dear Keith,

Just carry on and don't give up. I believe you will succeed in your business sooner. Meanwhile, it will be better if you try out varied way to run your business!

[mr mobile]

Freshup and focus on 2 things i.e, cutting down the expenses and increasing the profit margins But don"t do it half-heartedly.

Keep your confidence level high all the time and you"ll succeed eventually.

[Ashley_Price]

Forgive me if some of the following has been repeated elsewhere in this thread.

Firstly, it is common knowledge that most businesses don't survive the first three years, usually through a range of factors including poor planning, lack of adequate finance, etc.

Secondly, (and I'm not pushing for work here) if you find that you're too wrapped up in non-fee-earning tasks, hand them over to someone else and get on with what brings in the money. Don't think that just because it's your business you have to do everything or are the only one who can do it. You don't see "Mr Sainsbury" manning the tills at your local supermarket do you?

You really need to decide for yourself whether you should continue or not. It is difficult but at the end of the day it is a decision only you can make - no one else's opinion (outside of those that are directly affected by your decision) is important.

If you are married, have children, etc., then you need to make sure that if you do continue your family will back you. On the other hand you need just as much support if you decide to close the business. Either way, you are going to have enough stress without any additional from family and/or friends.

Many people on here know that I feel if you are motivated enough, work smart (rather than hard) and put the effort in, you will succeed. But ONLY YOU can decide whether you have the will and determination to do that.

[easyasit]

you know keith this might help you it might not so heres my current situation

I was made redundant from my job a month ago now. Admittedly i have have had few interviews. But see i am taking this opportunity to as well as look for work, to start up my It Consultancy here in northants.
I have done it before and the money helps. I know this is the line your in, so without disclosing my secrets i will offer this.

a) make sure you get plenty of excercise and fresh air, this builds up endorphins in the system
b) Get re-motivated, this can be done by, watching some rags to riches flims, like Woman of Substance, or some of the catherine cooksons
c) listen to some nice music, the upbeat can do stuff that gets you boogying.
d) never be afraid to expand your skills and knowledge look at what skills you can develop reasonably quick and make money from them. Like training?
e) If your thinly spread and money is too tight to contract services out, then look to delegate within the family. With you wife, kids, friends help?
See if you can nonimnate an expert to be book keeper so you can spend more time planning.

From my part, i am soon to be married so i cannot quit, and furthermore my future wife wants to build heer business too alongside mine. So i need her she needs me.
For me true easyasIT has been far from a success financially though people appear to enjoy the courses (that is they appear to be downloaded)

I guess what i am saying is, dont give up, would you really like someone else to b your boss?

I also agree with Steve, if you get too much work on, start delegating to other engineers who work freelance.

Hang in there chap :-)

[Ashley_Price]

b) Get re-motivated, this can be done by, watching some rags to riches flims, like Woman of Substance, or some of the catherine cooksons

Rather than fictional stories, why not read business biographies, these are great motivators. Some include Richard Branson, Philip Green, Ted Turner, etc., and biographies about businesses themselves, Ryanair is a brilliant one showing how a small business can take on and beat a big, government-backed airline.

[easyasit]

Yes, i have also read Branson, but to be honest its not like the man never had money to start with.
However agreed the books are an inspiration.

I should add though that what i mentioned in my thread works for me, and is not for everyone i am sure :-D

[mattley23]

I think we have all experienced these type of situations and feelings in the past, i know I have for sure.

My business, although not trading in the same industry as yours, is reaching its 4th year of trading and ive gone through periods where I havent taken a wage from the businesses in order to keep things afloat, even when my staff have been paid. When we get into this situation we see ourselves working all the hours gods sends and not getting the finaicial rewards we think we should get for the time and effort put in.

I can only draw from my own experiences and, for me, im onsite 9 hrs a day working, then i come home and spend a furhter 3 to 4 hours either seeing customers, pricing jobs, making calls or typing up quotes. All this with making sure i spend time with my 2 young daughters every night too.

Then we look at the balance sheet at the end of the week, month, year and wonder why we bother! Where's the thousndand of £'s profit we thought we were going to make, where's the fast cars and where's the great holidays???

Again for me, i spend far too much time away from actually 'running' the admin side of business and sometimes i lose focus on outgoings which can have drastic effect. But sometimes we cant help it as we get involved in the work we are doing which is often the case for me.

Majority of times it can be put down to 2 things, we;re either not charging enough for our services or we letting expenditure get out of control and thats what its sounds like for you. As you've mentioned your getting work from referrals so you must be giving a good service to keep getting this repeat work and be recommended.

Why not do some 'test shopping' on your competitiors and find out what they are charging for similar services, that way you will be able to see where you sit in regards to pricing and adjust accordingly.

Id also re-look at your marketing plan and get your name out there. And id definately agree with doing something to your website. I also didnt really know what it is you offered until i went deeping into your site. You definately need to let people know what it is you do/offer in plain English on your home page otherwise they'll just head to your competitior.

Hope that helps and all the best

[wevet]

On your quotation tooll you have one of my favourite hates: "What is your turnover"
what has that got to do with what you are offering? You are offerring to supportthe range of hardward NOT act as their financial consultant.

A friend has 2 servers 6 workstations and a turnover of around £750k another has 1 server 2 workstations and a t/o of £16m. What you seem to be saying with that question if it sounds like you can afford it I am going in BIG!!

I would never, ever ask for a quote from a company who sounds like they are quoting on "what will the client stand" rather than, "what is an economic price i can offer my services at and make a reasonable profit."

It is right up there with "whats your budget"

You could also try offerring WEEKEND SUPPORT that seemsto be rarer than hens teeth.

[Ashley_Price]

I would never, ever ask for a quote from a company who sounds like they are quoting on "what will the client stand"...

In all due respect, if you hover the mouse cursor over the box next to annual turnover an explanation does come up and, in capitals, that they're not asking this to see "how you can afford". But the box doesn't stay up for long.

[SLF]

I cant imagine any company wanting to part with their turnover details in most cases. Whatever the explanation, it is going to put people off the whole idea. I thought exactly the same thing as Wevet. It needs to be the client working out how cost efficient it is, not the supplier.

[mattley23]

I tend to agree, if im making an initial enquiry for a service i dont really see the point of revealing my turnover. Surely that is something that would be factored into the discussion once the intial approach is over and im am interested in using the company?

[Lasting Designs]

In my view its okay to ask the budget, in my business, if a campaign is being quoted for you need to know whats planned, your caveat is that you don't want to land them with a huge bill should the knock on effects of whats being produced not be controlled. You make it clear that you'll aim to keep the costs to a minimum, but stuff happens and sometimes things crop up that makes in unavoidable.

It also allows you to suggest if the budget could be extended by say 10% then better value for money savings can be made, i.e £400 budget goes to £440 but in return the stationery pack they ordered goes from 500 pieces to a 1000, when 500+500 over two orders would have cost them over £130 more. They save in the long run, or they tell you that's their absolute limit, but they'll thank you for thinking of them. And you've made another £40 if they take you up on your suggestion.

[hlsps]

Take advantage of the free courses run by Business Link, they will help you write (or in your case review) your Business Plan, look at Financial Forecasting, Bookkeeping, Marketing etc. They are three hours long, will get you out of the office, introduce you to new people, who may have new ideas, and in the longer term be of benefit to your business.

I agree with the others about dropping 24/7 support. Look at the opening hours of your Clients, do they really need 24/7? If so I am sure they would pay for this.

Again, look at areas of the business you are neglecting, could someone help you with those, if not a VA what about a family member? Sometimes it just needs a fresh pair of eyes to look at a situation to help turn it around, I am sure that Business Link are working with the government scheme that covers that.

A lot of people have commented on the fact it is not clear what services you offer? Are you clear on this yourself? Also, is a particular service taking longer than the others and offering lower returns? Your bookkeeping should help highlight this, it may be that just by dropping a particular element and concentrating on others that you would have a more even workflow.

I also agree with the get out and get some fresh air! I started running last year (am in middle of time off due to illness) and quite often would go out at 6am on a morning (even in the dark and cold and wet) and found that just half an hour left me feeling more alert and happier for the rest of the day, it is a way of clearing your head, put your ipod on and think of nothing, just chill, or just run and think through things. I do some of my best thinking on runs, there are no interruptions, its a change of scene and more importantly its me time.

I hope you get your decision made that will be of most benefit to you, it would be a shame after all your hard work to quit, but if that is what is best for you, then that is what you should do.

There is another thread on this forum, the online florist, I think it is a great thread, they overcame so many obstacles and now look at them. (They are saved in my favourites for the next time I need a florist as well!!)

Really hope things work out for you.

[Alison Jones]

From my part, i am soon to be married so i cannot quit, and furthermore my future wife wants to build heer business too alongside mine. So i need her she needs me.
quote]

Your brave getting married then going into business with your wife.

I got married in August 2006, in December 2008 went into business with my husband. Luckily he is only at premises evenings and weekends as has another full time job alongside it or I would not be able to cope as we are both very stubborn and argumentative and have very different ideas on how we should run the business. Good luck to you. One thing we found was at first we were not getting any break from the business so we made sure Sundays we went out (not talking about the business at all) for a walk or pub lunch and it made things less stressful.

Alison

[SmilePrint]

Get a copy of Michael Gerbers E-Myth, .. oh yes, and read it.

I'm afraid you may find yourself (and most forum members) described there as Technicians suffering from and Entrepreneurial seizure (you'll understand when you read it).

BUT, once you "get it", once you truly understand that you're in business, and discover why you're in business (no its not for the long holidays....!!), I'm sure you'll get an answer to your basic question, and not just a "hang in there kid" answer from someone who doesn't know your circumstances at all.

Seriously, read the book.

Hope you find what you need.

Best wishes

B

[kellycomputerservices]

Wow, such a possitive response from you all. There are quite a few points raised by different people, and I would like to thank you all for your input. Although I wont quote you all, I thank you all the same - here are my replies to the most popular questions/points:

Website:

This is a fairly new design which was funded 100% through business link, but unfortunately I was landed with a terrible marketing/webdesign agency who delivered the site. We went with the angle of... Someone will only be looking at my site only if they are looking for IT support, so why bog the site down in useless jargon and information, if all they're looking for is IT support.

I agree with you all that in hindsight, the site needs to explain in detail who we are, what we do, and what services we offer. Not only will this make things clearer for those who stumble upon my site, but will help market it through search engines.

24/7 is probably misleading, but it's not actually a 24/7 service. This service falls under our standard working hours 9am-6pm, with the added advantage that your systems are monitored by our intelligent network agent aroiund the clock, and we are informed instantly in the event of a failure and or possible problems. It's a proactive service. It looks as if I need to rethink the naming structure of my products/services. This again was a suggestion from the marketing company. :(

Cost Calculator / Turnover Question: This is asked not to see what a potential lead can afford, on the contrary - the cost calculator (although not yet functional) is designed to give the potential lead a suggestion based on their answers to which product would best suit them, and give them a comparison of what a support contract would cost in comparison to their earnings, and potentially show how they can save money. ie. their quote is equal to £x per day, or the equivelent of 1 hours turnover to them a month. It's just used as a way to justify the expense of a support contract vs. how much money they stand to lose if they weren't covered. (i hope that makes sense).

Exercise:

I think this is a major key factor. I don't really do any form of excersie at all, and I feel sluggish and tired, and struggle to get up in the morning (partly due to the thought of the day ahead) - I don't have a great deal of confidence in myself to go out running. I have had people shout slurs at me all my life about my appearence, and I'm afraid to go out running incase people shout insults at me - I'm not the kind of person who can shrug them off easily, I take things to heart (not a good personal trait, especially in business!). I want to overcome this and get out there, just not sure how to take the first steps.

Pricing:

I have done market research with my competitors, and I hit just below market average for the service I am offering.

The problem I have is my competitors employ several staff and can guarentee they'll be available to take a support call, and then the client knows that their problem will be dealt with within a set time.

My problem is that I may not be able to answer their call if I'm busy etc, so they then leave a message, it might be an hour or so before I picjk the message up to add their issue to my helpdesk, and in that time they don't know whether their issue is being dealt with so they'll keep calling over and over.

Then when I start to work on their issue the phone will go again, or emails will come in, and I'll get pulled away on ther things/jobs because everyone expects me to jump for them when they call. I think I have entertained my client base for too long now with a notion that I will look at their problem straight away, in an effort to keep everyone happy, but in truth this has backfired on me and now I need to undo this preconception.

They don't seem to realise I'm running a business and i can't just drop everything to sort them out (unless they had a support contract, then they would jump the queue and become my priority). I think they see me as 'Just Keith' doing some IT work for a few people, and don't realise that there needs to be a set structure for handling their issues, and if I'm not contractually obligated to them, they have to wait until I'm available to sort their issues. This is where the support contract comes at a premium because in my mind, if that's the level of service you want, it costs £££ compared to if you pay-as-you-go. A contract means defined SLAs!

Outsourcing:

This might not be a bad idea - I'm going to look more into VA. I have made some enquiries about managed offices - i have a call answering service at the moment on my 0845, but I think I can get more services for the same price in a managed office.

I DO need to find where I can delegate, and concentrate on what I do best - IT! Although I love the nitty gritty stuff, if I'm not out there working making money, there's no point doing all the admin, marketing and development side of things. I need to go back to basics and look at how to make money!


In Summary:

I'm going to hang on in there, but I need to change a few things.

Marketing - make website clearer about what I actually do, and use this to sell the company.

Pricing - get some balls and have the courage to charge people the market price for what the service is worth - no more 'favours' or 'discounts'.

Timing - start to emphasise that the on Demand service is not prioritised, and works on a queueing, first come, first served basis. If they want priority service, then they need to sign up to a contract, and pay the premium.

Health - sort my personal life out. get out the house more, go for a run. I suppose the key to healthy mind, body and soul is to feel good about yourself, and keep fit!


Guys, I want to thank you all again for the kind words of inspiration, and support. I have taken all of your comments on board, and I'm pprepared to push forward and make this a success.

Keith x

[Ashley_Price]

Gees Louise - you don't believe in a short post do you? :D

I'll have to read through this and come back to you!

[UKSEOAgency]

its good that you have changed your attitude - a Positive Mental Attitude is essential if you are going to earn the money you want to earn.

If there is anything we can do to help you - drop me a PM and I will be happy to help you out!

[Lasting Designs]

Regarding exercise and abuse, by an ipod and turn the volume up, works for me? You can play a game of "what are they saying" think up a few witty lines such as "Well I'll be damned (I'm being polite), superman does workout" helps put a smile on your face, the key to start feeling better about yourself, you'll see the energy flow after that. Good on ya, for sticking it out.

[SmilePrint]

Keith,

sounds very much like you're on the up.

I'd say that's one up for the forum. This is exactly why you joined, why I joined. So we could get objective business advice when required.

The journey has only just begun with your new resolve. Keep your spirits up and sound the guys here out again with other issues, because they will arise!!

Best Wishes

[reggiemental]

A latecomer to this thread, but just wanted to also add my support Keith.

Having read through the posts, it sounds as though you now firmly have the bit between your teeth and ready to give this your best shot.

Good luck from me also!

[warehouseone]

Keith

If you PM me I will give you a number of a friend who may be able to help. They are a 3 year old IT Support Co. that have been where you are and came out the other side. They maybe able to help you through outsourcing or back office support...not sure but he is a nice guy.

Hope it works out for you.

Liam

[Ashley_Price]

This might not be a bad idea - I'm going to look more into VA. I have made some enquiries about managed offices - i have a call answering service at the moment on my 0845, but I think I can get more services for the same price in a managed office.

I DO need to find where I can delegate, and concentrate on what I do best - IT! Although I love the nitty gritty stuff, if I'm not out there working making money, there's no point doing all the admin, marketing and development side of things. I need to go back to basics and look at how to make money!I don't want to sound like I am trying to sell my services (although I am) but we might be able to help you. If you want to PM me we can discuss what your requirements are/might be.

BananaOffice provides outsourced office services, including telephone answering, dealing with your paperwork and admin, etc. give us a shout.

Even if you then decide to not go with us, you will have a better idea of what you are looking for.

[scubadiver007]

Do you have a business plan?

[Watermill Accounting]

You need to re-think on your business and marketing strategies. Business is all about selling. You need to learn to sell yourself. Also you can consider starting another business if you have some ideas. I am also working from home which keeps my costs low. But I think a good workout at gym/ swimming keeps me going. Get someone with whom you can discuss your business. Get someone with whom you can discuss your business.

[UKSEOAgency]

I am of the cando attitude when it comes to business, I can make enough money to make make a living!
Once you are consistently doing that - Aim Higher - I can make enough money to buy xxx I wanted.

I have set my goals on a gorgeous house near us, and I want to be in a position to buy it when it hits the market!

I dont have the attitude that I will never make it or we are struggling by, sure we are having a hard time getting there, but we are a new company and so its to be expected. I thoroughly believe in this company, and where we are going! It is with this conviction I can push forward day and night!

In My opinion, the difference between a winner and a loser in business is in their attitude! A winner has the cando attitude, a loser has the hasdone attitude.

From what I have read of you - you have that can do attitude, but you were feeling a bit under the pressure. Now is the time you can turn the business around to make a good profit for you to live from.

I wish you all the best!

[extremedistro]

Hi Keith,
I have a background in IT and have a few ideas that may help you...

Please feel free to drop me a PM

Cheers

[cjd]

In My opinion, the difference between a winner and a loser in business is in their attitude!

My bullsh1t detector went off after the 3rd exclamation mark; an intervention was inevitable - it's just something we both have to live with!

[estwig]

My bullsh1t detector went off after the 3rd exclamation mark

Well that's me scr*w*d from the off then!!!!!!!!!!!!!!!!!!


Whhhhhhhaaaaayyyyyyyy!!!!!!!!!!!!

;)

[cjd]

Well that's me scr*w*d from the off then!!!!!!!!!!!!!!!!!!


Whhhhhhhaaaaayyyyyyyy!!!!!!!!!!!!

;)

I have been able to callibrate you as an exception.

I love the 'yes we can!' approach - works every time. Look I can fly!!!

[estwig]

look Mum, I've been calibrated!!!

I feel as though I have been assimilated, are you Borg???

;)

[hlsps]

Hi glad to see you feeling a bit more positive today. If you would like to give the running a go pm me with your email as I have the Cancer Research 10k training plans. I went from sat on my a**e for sixteen years to running a ten mile race in the space of six months last year by following that. And as for being worried about what anyone else thinks - trust me at 6am there is hardly any one else out there and I seriously dont think you can look any worse in lycra than I do :p

Let me know if I can be of any help.

[dataferret]

Hi Keith
I sympathise with you I really do. Your first problem is you live in Wirral, one of the hardest places to do business and in my opinion one of the worst places to try to set up and run a business. It is a place of extremes - absolute affluence set against grinding poverty with both client groups wanting everything for nothing. The business support in the area is an absolute joke and the local council is absolutely corrupt. But the fact you are still in business and have clients is cause for hope and proves you can succeed despite the obstacles being thrown in your path.

1) I can help you with your office space without you needing to take out a loan
2) I can direct you to sources of funding and business advice
3) I can help you with some planning and one to one advice
4) I may be able to help you with the occasional support staff you need

I am afraid I do not have a magic potion to make you earn more but it is worth giving me a call for a chat. I have already left my number on your voicemail and will look forwards to hearing from you. At the very worst you now have someone to call who lives local to you and who can plug you into support networks local to you.

With a bit of luck we can work out how to move you forwards.

[Watermill Accounting]

Hi Keith,

Looks like quite a few ppl are here to help you. What are you waiting for?

[MarkRae]

I run the business full-time from home.
Same as me...

I am not a good salesman, and all of my bussiness has come from referrals. This is not a good business model by any means, but I'm scared to take on more business that I won't be able to fulfil. I hope this makes sense.
I know what you mean - the thought of taking on more work than you can handle is scary, but (if I'm reading you right) the work you have currently isn't enough to sustain you, so you're in a bit of a catch-22 situation...

Have you considered advertising for a commission-only salesperson? I've worked with these people before - most of them are fairly pushy, some of them even ruthless, but they certainly bring the work in because if they don't they don't get paid!

Do you have a network of people that you can use as sub-contractors as and when the need arises? That can make all the difference... I'm part of a group of IT contractors all of whom specialise in different areas of IT, and we help each other out when required. But, because we are all freelancers, we understand how the cash-flow works, so we don't get paid until the person we're subcontracting for has been paid. That way there's never a payment problem.

Also, you're based in the North-West of England, and that's where all your clients seem to be. Which is fine, of course, but have you considered spreading out a bit...? I appreciate that some of your business necessitates on-site work, so maybe now's the time to think about reducing that and building up your off-site services. I'm based in London (though originally from Newcastle), but only one of my major clients is in London. Makes no difference...

I have put the feelers out for a junior part-timer to help relieve some of the load, and to take over some of the more trivial tasks - I think this is the way forward. Not too sure if I can afford the position yet, but I don't see any other way out.
You mention that you had no money at all over Easter, so taking on a junior is only going to increase your overheads in the short-term. What will you do if you can't pay this person's salary? I'd think very seriously about employing a non-revenue-generating person at the moment...

Have you looked for outside investment? Not necessarily via a bank loan, but maybe via a 'business angel'...?

Lastly, working from home is proving to be the undoing of everything. I'm fed up of the same four walls, day-in, day-out. Because my time is taken by the business, all hours of the day (catching up on my accounts software today), I've lost the enthusiasm for the job. I've emailed a few agencys with offices to let, I'll persue this this week to see how much it'll cost, but again it all comes down to money. Grrrr..
Ah... Well that's a different argument altogether! Home-working doesn't suit some people at all. For my part, I absolutely love it! I have a room which I've converted into an office, and I have a rule that no work-related stuff is permitted anywhere else. That way, I can simply close the office door and 'shut it out' for the rest of the day - works wonders for me...

Unless you really feel that home-working is affecting your business, I'd strongly urge you not to consider renting office space at the moment, as it's (IMO anyway) a completely unnecessary overhead...

[Janebert]

Hi Keith,

I haven't read the entire 7 pages of this thread, so please forgive me if I repeat what anyone else has said.

The first thing that you said was that you weren't reaching your potential (or words to that effect). This means (I think!?) that you know you can offer more, make more impact and make more money, whilst enjoying yourself more.

What seems to have emerged during the process of people offering insights and you making fresh comments is a lack of confidence in yourself and what you offer. On the one hand, you're wondering if you should take on staff, and yet you're simultaneously saying you have no money. You may also be afraid to drop unprofitable, hassley clients and to specialise.

The first thing to say is this:
1) Don't hire staff until you've sorted out your lead generation, sales process, pricing and business model
2) The business is not investible because it's not scalable and you're not doing anything particularly unique or innovative.
3) If you're struggling to pay your rent, then you can't afford to service a loan
4) Given the above, you probably can't afford premises either

What you need to get a handle on is the fundamentals of why you're in business, who you want to serve, in what way you want to specialise, why you are uniquely positioned to serve that market, what you need to charge to make a decent profit to invest back into the business and give yourself a reasonable life and myriad other things.

It seems to me that you're making the fundamental mistakes that I know I've made (and still make!), and which many first time business owners make. These are:

- not charging enough (so you attract crappy clients who take up 3 times more time than good clients who pay at least twice as much)

- not being in control of your marketing and sales process, meaning you can't predict/forecast new sales into the business and you're probably not maximising revenue from existing clients

- not having a plan for continued success and growth

- not specialising so that you become the "go to" expert in your field

- not meeting the needs of a market in a way that makes then want more

In fact, I think you said yourself that you were afraid to charge people for some of the work that you do because you felt what you were doing was sub-standard. Is it really sub-standard? Or is that just your judgement of it? If it is sub-standard, then why are you doing sub-standard work - what is the fundamental problem there? Lack of time?

I think you have a number of structural issues which you need to iron out. It shouldn't be difficult or onerous, assuming that your business is built on solid foundations and is viable. Just a case of adopting a different mindset, learning some new habits and getting some perspective from at least one 3rd party advisor or mastermind buddy.

Also, no need to be in business on your own! There's heaps of support out there, but you may need to be prepared to pay a little bit for it. My best advice in that department is to find some successful business owners to mastermind and mentor with.

I could probably help you bottom line what the issues are and how to tackle them, if you haven't done so already. Think of it as a heat-seeking missile aimed precisely at it's target compared to a scatter gun approach. Please get in touch via my website if you want to talk things through.

Jane

[scubadiver007]

This is your mission statement:

What you need to get a handle on is the fundamentals of why you're in business, who you want to serve, in what way you want to specialise, why you are uniquely positioned to serve that market



Do you know the price your customers are prepared to pay? You have to be very strict what kind of customers you are prepared to do business with. Those who are "on side" will make you happier and will give you motivation.



- not charging enough (so you attract crappy clients who take up 3 times more time than good clients who pay at least twice as much)




I know I need to understand the basics of book-keeping and accountancy! Whats your cashflow?



- not being in control of your marketing and sales process, meaning you can't predict/forecast new sales into the business and you're probably not maximising revenue from existing clients



Do you have a business plan (it has made me realise how vital this is)

If you want a good book buy "Business Plans for dummies"


- not having a plan for continued success and growth


Contact business link!


Also, no need to be in business on your own! There's heaps of support out there, but you may need to be prepared to pay a little bit for it. My best advice in that department is to find some successful business owners to mastermind and mentor with.

[jussurvivin]

Hi Keith

I have had the same dilemma - I ran a recruitment business which I believe is the hardest sector to work in at the moment...great :eek:been in it 18 years and started my own business 12 months before recession struck.. so just moved out of the offices I successfully moved into and set up from home ..same 4 walls but going to make an effort to go out networking to see and speak to likeminded people..I have taken this Accounts Manager role in the meantime to pay the bills and will continue my recruitmnet on a part time basis until business picks up..

If I was you however sounds like you want to stay in what you do and obviously you are good as you woudlnt get so many referrals I'd look to maybe partner up with another small IT support company or look for a contractor - like yourself so you can maybe share the work load or just contract out some of your work - I know a young IT guy who is currently completing his Scientic Degree in Computing who does work for £10.00 an hour to get rid of his loans - could this help you? Save you the cost of recruiting and maybe have someone likeminded to speak to - stop the loneliness?
Personally I wodulnt speand money on a lease - if you were going to get funding invest in software/ branding/ image etc - if you have the resource available on a "as and when" concept - you need to pick the right person obviously but it will allow you to continue to build up your business with the confidence that the work can be done - Andrew has built a website for me and he has built a CRM, he also helps me anytime I need customer support whether it be on my home or previously my network - woudl strongly recommend his ability - he lives in St Helens - doesnt drive but has always done my work remotely...maybe worth a chat - Hope this helps :) Don't give up though - if you are in a position of too many customers and not enough time that is a brilliant position to be in at this economic time ;) Keep fighting your cause

[accountancyextra]

Hi Keith,

You've recieved lots of good advice on this thread. I'll add some more thoughts for you:

- What is different about your business? If you are perceived as being the same as everyone else, all you'll be able to differentiate on will be price and that generally leads to go going out of business:( Unless you have a clear differentiator, you'll only ever be able to charge "just under the average" for your service.
- The quality of the referrals you are getting will generally be of similar quality to the clients who did the referring. I.e. crap clients, crap referrals. Do you know why you get referrals? Is it because you offer good service or is it "go see Keith, he's really cheap" types.
- DON'T rush out and hire staff or get an office just yet. They won't be a magic pill to solve all the problems. Instead, take an afternoon out and do some planning work. Work out a simple breakeven point, including a reasonable level of drawing for yourself. What does the revenue figure look like? Is it achievable? How many jobs (estimated average) will you need to do each and every week to hit that figure? Can you do this yourself or do you need help? How far short of the figure are you now? What effort will be needed to get there? All these questions need to be answered before spending any more money! If you need any tips on how to do this, just call/ e mail/ PM me, I've got some stuff that may be of use
- Look at outsourcing some of the functions in your business that can be easily outsourced. Admin/ VA has already been mentioned by Ashley. What about bookkeeping, which will cost you £15-£20 per hour (far less than the £70 ish that you should be charging for IT work)
- Then think about the longer term for the business. What does it look like when it's "finished". It's much easier to plan your course of action if you know where you are going with the venture.....maybe it's the 26 weeks holiday a year and two ferraris that you want by the time you are 30. If so, look at what you need to do to get there and work towards that. Put a plan together for yourself, but not the type that you need for the bank. A plan for you. A short document that you have at hand and that you regularly refer to. Sort out your slaes and marketing strategies. How will you attract clients and why will they come to you? You've talked about a good service, but what do you mean by that? Is it quick turnaround, onsite service (i'm back to what makes you different bit now ;))

Hope that adds something to what you already have. Keep your chin up. Business is tough, but ultimately is very rewarding in many ways.

[Epindura]

Look you are not the only business man going through that, that's why you hear most entrepreneurs go out of business within their first year. My recommendation will be seek for a day job (part-time) to sustain you while you carry on learning how to make your busines a success.

I have got some ideas on marketing your IT business, feel free to get in touch and lets brainstorm together, I am from an IT background too. I may have some ideas which may jut save your business and get you out of your misery.

Eddington.

[DavidRyves]

Not read all the posts - jeeze there are a lot of them - but for my halfpenny's worth:

- It sounds like you need a 'buddy' to work with - not necessarily a 'Partner' but someone with complimentary skills (sales?) to yours to take the business forward -maybe in return for a small equity stake or a commission only deal??;

- You say you're busy - is this busy as in busy with billable work or busy as in 'the busy fool' messing around with stuff that doesn't earn you money (like doing the accounts - I read that somewhere earlier - and other stuff that isn't revenue generating);

- Is your pricing right? If you're busy, you're in demand and can raise prices, drop your lower rate/slower paying clients and focus on those that pay decent fees and pay promptly - and then focus on generating more clients of this type of profile;

- Are you billing everything you can? - loads of small businesses don't - I know - I do a monthly exercise of going through every client and looking at the odd email and phone call I've had to deal with that I haven't thought about recording for billing purposes - this typically adds £1k - £1.5k of income a month which I would not otherwise have billed. Also, look at whether you are fully charging expenses - travel time, mileage, train tickets, subsistence etc.

Loads of other stuff I could add but the above is enough for a starter...

Hope things work out

[Bruce_Andrews]

There's been a couple of people mention getting out and about, but try a bit of breakfast networking - FSB, and some locally run groups, only charge for the breakfast - i.e. no sign up and commitment.
1) gives you something to get up (and out) for
2) gives you some alternative conversations
3) you'll find people only too happy to give free advice - filter and use with caution:)
4) you might even get some work - you'll certainly find companies for a bit of strategic partnering.

and if this works for you, you can then look at one of the many and varied subscription groups.

oh yes
Look very seriously at getting a mentor - check out Business Link first - in the E. Midlands it's very heavily subsidised, and the mentors are real business owners.

[nada587]

Make $40 to $160 Per Hour Just By Sharing Your Opinion!!