tips from business owners!

[Dog Tag]

Microsoft Excel is your best office friend.

Learn how to use it, even just to a basic standard and you will have one piece of software you can use for ACCURATE built up quotes, invoicing, tracking overheads, producing management figures [essential for your bank manager if you want his money] even flyers & posters. Everything is interchangeable with each other book or sheet.

I took a while to become a fan but now I'm a convert, I turn to Excel more than anything else.... an incredibly powerful tool.

 

I even have an Excel spreadsheet for comparing the price of my purchases across retailers....!

 

Incidentally, if anyone would like a tailored costing spreadsheet let me know, I'm more than happy to help you out.

 

Agree Excel is great for keeping track of everything. Do you use macros on your spread sheets? I used to use Access but found Excel the best.

[Dr.Green]

pay cheap pay twice is my moto -

[Hodge]

So if your van blows up tomorrow can you afford a new one? Chipper? what happens when you kit is worn out and needs replacing? can you afford to go out tomorrow and buy a second hand chipper, £6-8k?

 

Its a H&S requirement that you have 2 guys on site when climbing, how can you work alone? If you are a gardener and just do hedges and wee stuff then fair enough but I was referring to tree surgeons / arborists in the posts I made.

 

Having kit that is paid for doesn't mean that you should be cheaper, its just a different way of working from someone who hires it in and claims the cost against tax.

 

Do you work part time? That would be different.

 

 

Is there a company in your area who is vat reg?

 

Yes I could replace the stuff of I had to. I don't work alone I have a subby climber I use and a subby Groundie I use when needed. I charge enough to cover insurance, repairs renewals, wages etc. what I was trying to get across to you is that each buisness is different, I do things how they suit me best and what you are suggesting may work for you but it wouldn't work for me. There are a couple of vat reg company's near me that do the council stuff but all the others arnt vat reg. at the end of the day turn over is vanity and profit is sanity. I make enough profit to do all right and that's what matters.

[Hodge]

What will you do when they are worn out???

 

I like the fact that I took out finance on most of my kit, it taught me to charge what it costs, now its paid for I still charge the same, that way I will have the money to repair and replace it.

 

I will replace them, I look after my gear, I too bought on finance and now it's paid off I charge the same and stash that away for a rainy day.

 

This has started from Tom saying a 2 man crew should be turning over 80 grand, which In my case and most of the crews in my area is not feessble.

Like I said before I make a good living out of this and my operation works well, everybody's company's are different. I have low overheads as I own my yard and land/barns etc. I have little advertising costs. And the profit I make is re invested in my buisness. I don't employ as I have found this was a problem in the past so I use self employed where needed.

[GardenKit]

As you may see ,I am not a tree worker, but run a pretty good little busines.

 

In my opinion the best advice I have seen on this thread is from Tom, i agree with his principles and beliefs. I to, feel that too many are selling themselves too cheap. Value yourself, and others will value you.

 

Consider as well, which parts of your business actually make money and concentrate on those.

 

Years ago I was introduced to Paretos Law and it has played a big part in my business plan.

 

Paretos Law, also known as the 80-20 rule, states that in every aspect of life there is an 80% 20% balance.

 

One example is for instance that you will get 80% of your work from 20% of your customer base.

You will get 80% of your profit from 20% of your jobs

You will get 80% of your hastle from 20% of your customers.

You will get 80% of your staff problems from 20% of your staff

 

And so on. Check your existing business, you will find its not far off.

Then maximise on the good 20%.

[WorcsWuss]

Agree Excel is great for keeping track of everything. Do you use macros on your spread sheets? I used to use Access but found Excel the best.

 

I don't, my sheets are pretty static with numerous small inputs, so for building up a quote, doesn't matter if it's 500 quid or £5m, I use the same sheet. Because it's built up from every task, purchase & overhead, I know EXACTLY what all our costs are so when the odd joker wants to haggle & shake on a deal, I know how far I can go!

 

I've developed variations on it for friends who run small businesses, good little system.

[Gareth Dalzell]

As you may see ,I am not a tree worker, but run a pretty good little busines.

 

In my opinion the best advice I have seen on this thread is from Tom, i agree with his principles and beliefs. I to, feel that too many are selling themselves too cheap. Value yourself, and others will value you.

 

Consider as well, which parts of your business actually make money and concentrate on those.

 

Years ago I was introduced to Paretos Law and it has played a big part in my business plan.

 

Paretos Law, also known as the 80-20 rule, states that in every aspect of life there is an 80% 20% balance.

 

One example is for instance that you will get 80% of your work from 20% of your customer base.

You will get 80% of your profit from 20% of your jobs

You will get 80% of your hastle from 20% of your customers.

You will get 80% of your staff problems from 20% of your staff

 

And so on. Check your existing business, you will find its not far off.

Then maximise on the good 20%.

 

This is an interesting theory and one often used in business development. It does have a self limiting ability and in a modern business with social responsiblity it is rather anti social and self defeating. It is worth bearing in mind, but don't go implementing it completely or your'll have no business in a few years time, no friends and be a social outcast.

 

So in reality I,d sack 80% of my staff because they only make me 20% of my profit and like wise when Mrs Smith phones for a small tree job with a low margin I'd not return the call?

 

A broad portfolio of business customer types builds for a better, more secure business and long term profit if its done correctly.

 

As mentioned though it is always worth keeping this theory in the back of your mind just don't be sacking 8 out of every 10 of your staff today without careful thought -even though it may sound very appealing some days.

[WorcsWuss]

I think it was 80% of trouble from 20% of staff... so it's only 2 in 10 you need to sack...!

 

 

[Profit is all down to you!]

[Gareth Dalzell]

I think it was 80% of trouble from 20% of staff... so it's only 2 in 10 you need to sack...!

 

 

[Profit is all down to you!]

 

But it's also 80% of your profit from 20% of your staff so you only need 2 guys - this is the problem with this theory - if you implement it in your business you won't have one which is why you need to use it with caution and awareness but not as a business model complete.

[wrekin tree care]

i too am just in the process of getting my business of the ground. Toms thread good and his pricinfg reflects mine even though im not working every day so not Vat reg at the moment. I use barcalsy my business works for my quotes and stuuf. i would be interested to see a excel version though if anyone would be willing to share.

 

As far as advertising im doing it mainly by leaflets got about 10 jobs from a 700 leaflets but im hoping people keep them sand dont phone you striaght way.

 

many thanks to all