Thinking of giving up!

kellycomputerservices · Apr 13, 2009

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.

i234i · Apr 13, 2009

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 · Apr 13, 2009

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 · Apr 13, 2009

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 · Apr 13, 2009

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.

i234i said:
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 · Apr 13, 2009

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 · Apr 13, 2009

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 · Apr 13, 2009

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 · Apr 13, 2009

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 · Apr 13, 2009

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 · Apr 13, 2009

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 · Apr 13, 2009

kellycomputerservices said:
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 · Apr 13, 2009

cjd said:
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 · Apr 13, 2009

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 · Apr 13, 2009

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 · Apr 13, 2009

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 · Apr 13, 2009

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 · Apr 13, 2009

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 · Apr 13, 2009

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 · Apr 13, 2009

crewgirl25a said:
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 · Apr 13, 2009

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???

Regards

Emma

Lasting Designs · Apr 13, 2009

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 · Apr 13, 2009

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 · Apr 13, 2009

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 · Apr 13, 2009

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.

i234i · Apr 13, 2009

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 · Apr 13, 2009

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

Esk247 · Apr 14, 2009

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 · Apr 14, 2009

derek_mcgilvray said:
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 · Apr 14, 2009

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 · Apr 14, 2009

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 · Apr 14, 2009

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!

Ashley_Price · Apr 14, 2009

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 · Apr 14, 2009

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 · Apr 14, 2009

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 · Apr 14, 2009

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 · Apr 14, 2009

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 · Apr 14, 2009

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 · Apr 14, 2009

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 · Apr 14, 2009

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.

Thinking of giving up!

Christiane

Christiane

Esk247

Rhyl Lightworks

Kernelpower_Ltd

silvermusic

BusinessIdeas

Esk247

silvermusic

scribe

BusinessIdeas

Esk247

easyasit

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