Growth options

[Centra]

Hi Guys

Im after a little advise. I have a heating and plumbing company that I am looking to expand. We currently have 3 engineers and I would like to increase that to 5 next year.

I recently took on a 4th engineer but I have just let him go as he wasn't what I needed. What I learnt is that with the addition of a 4th engineer it became aparent that I need to take on a part time office manager in order to keep myself productive on the tools. Just to manage the engineers workload, answer the phones, take messages. etc.

This obviously costs money! More engineers, more income but also more costs. I would welcome any advice on the best way to grow the company to the next stage??

Thanks

 

[Billmccallum]

Have you thought about forming a partnership with others in your area?

If you google plumbing & heating in Swindon you will see the top 12 results, which you are not one.

 

[Centra]

Thanks for your reply.

I don't want a partner. At the moment I want total control and would like to grow the way I feel will work best.

As for being on page 1 I can't handle the work I have so it's a god send I'm not. This is why I'm on a quest for expansion as there are so many other areas of the business we can promote and also utilise our website more.

Just need to do it right!

 

[Tech4Homes]

4-5+ engineers is too much to manage whilst working on your tools.

Aside from the e-tail business I'm an electrical contractor with 15+ staff, we've tried in the busier times to work on our tools whilst running things and every time it goes wrong. There are four of us in the office, and when things get really busy that's still a struggle at times.

It would be far easier for you to employ a 4th engineer, then manage your crew from above, rather than trying to take on an office manager that will know and understand and be able to grow your business, it doesn't make sense in my opinion.

I think you're expansion plan is flawed and you should consider taking a break from the tools to find, quote, win and run the jobs and let your engineers do the physical work.

Whilst there are exceptions and I'm sure it can be argued, but "you can't run a busy restaurant if you spend your time flipping burgers"

One other tip, we've recently started "employing" people via an umbrella company so they aren't on our books, harsh maybe but in this industry we go from no work one day to loads of work the next then back to no work, these days you can't pay people if you don't have any work coming in! So the umbrella method seems to work well.

 

[peggyprice]

I need to take on a part time office manager in order to keep myself productive on the tools. Just to manage the engineers workload, answer the phones, take messages. etc.

I would agree with Tech4Homes on this one - the commonest mistake people make when they grow their businesses is to try and stay 'hands on' rather than taking a step back, allowing others to do the day job and focusing their own energies on running the business.

If you want to grow your business you have to spend time 'on' it (winning contracts, managing your staff, building the business) rather than 'in' it. You also have to structure your charges so that you and any admin/support staff can be paid from the fees your hands on staff bring in for the work they do. But it sounds as though you have a good reputation and are getting the work in, so don't be afraid to cost your jobs to cover the overheads!

But if you really want to stay on the practical side of the business, you maybe need to have a serious think about what you want to achieve with the business - there's no shame in staying small and hands on, you just have to be clear about what the right choice is for you.

And remember, you don't have to pay a permanent member of staff to do basic admin stuff like answering the phone and taking messages - there are plenty of good answering services/virtual PAs out there who can give you a very professional 'shop window' without the overhead and HR costs of a staff member.

 

[businessfunding]

4-5+ engineers is too much to manage whilst working on your tools.

Aside from the e-tail business I'm an electrical contractor with 15+ staff, we've tried in the busier times to work on our tools whilst running things and every time it goes wrong. There are four of us in the office, and when things get really busy that's still a struggle at times.

It would be far easier for you to employ a 4th engineer, then manage your crew from above, rather than trying to take on an office manager that will know and understand and be able to grow your business, it doesn't make sense in my opinion.

I think you're expansion plan is flawed and you should consider taking a break from the tools to find, quote, win and run the jobs and let your engineers do the physical work.

Whilst there are exceptions and I'm sure it can be argued, but "you can't run a busy restaurant if you spend your time flipping burgers"

One other tip, we've recently started "employing" people via an umbrella company so they aren't on our books, harsh maybe but in this industry we go from no work one day to loads of work the next then back to no work, these days you can't pay people if you don't have any work coming in! So the umbrella method seems to work well.

This - all the way. It's the fundamental difference between running a business and doing a job.

 

[SkoshBusiness]

I would agree with Tech4Homes on this one - the commonest mistake people make when they grow their businesses is to try and stay 'hands on' rather than taking a step back, allowing others to do the day job and focusing their own energies on running the business.

If you want to grow your business you have to spend time 'on' it (winning contracts, managing your staff, building the business) rather than 'in' it. You also have to structure your charges so that you and any admin/support staff can be paid from the fees your hands on staff bring in for the work they do. But it sounds as though you have a good reputation and are getting the work in, so don't be afraid to cost your jobs to cover the overheads!

But if you really want to stay on the practical side of the business, you maybe need to have a serious think about what you want to achieve with the business - there's no shame in staying small and hands on, you just have to be clear about what the right choice is for you.

And remember, you don't have to pay a permanent member of staff to do basic admin stuff like answering the phone and taking messages - there are plenty of good answering services/virtual PAs out there who can give you a very professional 'shop window' without the overhead and HR costs of a staff member.

This is a great suggestion regarding virtual PA's. They are quite cheap and very efficient allowing you to concentrate on your business. Have you considered using a freelance worker for busy periods or one-off large jobs? This can also be a viable option to keep costs low.

In terms of other admin there are loads of tools and software that can help automate processes will free-up your time to focus on what you want.