Its so unfair why wont someone help?

Tony_H_3

Firstly, are you prepared to raise your charges to accomodate the new employee? How much extra do you need to charge? Will your customers be willing to accept the increase? What incentives can you offer to compensate for the increased charges? You could specify the product brands you are using etc....

Is your partner happy for you to proceed along this path. It's important that you agree upon requirments.

Whilst we are happy to offer advise which could increase cash flow through your business it's a pointless excercise unless you follow the other more personal tips offered by the others.

If you would rather not discuss financial matters on the open forum can I suggest you omit them from your posting and include them in a PM to me.

It would also be helpful for me to know your area where the business operates including radius covered by yourselves. This way we can maximize the income achieved by looking at the option's available to you.

Tim_L

Again, there are dangers here. It's always difficult to judge the effect of increasing prices on business - if you have a good, unique, product it is often beneficial - but you're likely to lose at least some customers. If you can't pick up more to compensate then you have a problem. I imagine you know to some degree what any competition is charging, which is going to be the limiting factor.

Then with an employee you have the problem that you have to pay regular wages, PAYE and NI, regardless of the cashflow situation of the business. And there's someone else to consider if the business has to fold - regardless of the statutory position there's an added emotional pressure with taking a decision that loses someone their job.

This is not to say don't do it, but you need to take a long cold look at the reality of the situation as it is now and make a judgement as to the likelihood the business is going to support you going forward. It's very difficult to detach yourself from the fact that you've spent X years building up the business and the feeling that all of that time would be wasted if you pull out, but there is the thought that if you find yourself in a hole, the first thing to do is to stop digging.

What it comes down to, fundamentally, is to decide where your priorities lie as a couple. If the goal is to make a success of the business come what may, then go for it 100%. But you have to bear in mind that this may mean the other parts of your life suffer, and you may be under considerable emotional and financial stress for an extended period.

From a practical point of view, and since the business has better times in the spring/summer than winter, it might be an idea to plug on for a couple of months, and use the time to talk to organisations like Business Link to get advice and an expert external view of your prospects.

An alternative, since you've been doing book-keeping for the company is to set yourself up to do this for others. It can be done easily from home (my wife does it, and she doesn't drive either) and it does lead to the possibility of permanent clerical work going forward.

The other thing is to commit yourself to take at least one step every day to resolve the situation, starting today. This may involve investigating how to make yourself more employable, drafting a better CV, working out the true extent of what you owe, budgeting, or whatever - at least one action every day, however small. This is a critical step in moving from being a passive victim of circumstances to gaining some degree of control over the situation. There are some unpleasant discoveries, and probably a fair few heated arguments to come, but don't shy away from these.

Re-reading everything you've posted so far, it's very clear that despite the temporary problems which are understandably causing a degree of depression (anyone would find this situation difficult), you're an extremely capable and resourceful person. You've been dealing with a very difficult situation as effectively as it can be, and you've been a very key part of what success the business has had. I honestly think that you need to take a good deal of pride in this, and focus on how great you are, rather than how dreadful the situation is.

Galstonian

I would seriously doubt that gambling on a price hike to enable you to employ someone else would look a good plan when all the numbers are put on paper.

The best way to increase prices is to offer something extra and not make the increase mandatory - you know the kind of thing, like a carwash with bronze, silver and gold options.  Provided the minimum service is at least equal to what is provided now you should not lose customers.  The problem then becomes one of what can you offer to differentiate the gold service?  You want something that doesn't have any initial outlay if possible.  Better still if it doesn't require too much effort as well.  I know some services start with as little as a wash and vaccum moving through waxing, polishing dressing tyres all the way through to things like pressure washing the engine compartment and treating it with lacquer.
Do you do this already?

Heddwen_2

Timli - Thanks for your kind words about me, it was nice to be reminded.

Unfortunately I am not that enthralled with book keeping myself, let alone good at it, but I could certainly branch out into other 'admin' roles thanks for the idea!

Galstonian - Yes we already do do all this, and more!

I have been contemplating the 'price hike' and it does seem a little pointless considering its spending more money that we don't have. I know one has to speculate to accumilate but employing someone opens up a whole new spectrum of responsibility, which is to date why we are trying to cope ourselves, (not that we couldn't handle these responsibilities its the hassle they'll create with laws for this and rules for that especially just for the extra one or two pairs of hands).

Thanks mates. I am hopefully off to see the CAB today so am trying to think positive.

Will keep you posted!


Thanks

Heddwen

:-/

Galstonian

Yes we already do do all this, and more!

But what do you do that other car valets in your area do not do? What is the differentiating factor that makes someone choose you rather than a competitor? It will depend on you and your clients what this might be but finding it can help make your business successful.

svmitche

Hi Heddwen,

I hope your visit to CAB is positive!

I was browsing the 'I Wanna...' board and someone posted regarding homeworking (an option I have been considering) and I have browsed the site posted and it looks like it has some good advice about how to homework and not get ripped off!! Might be something for you to check out.

http://www.homeworking.gn.apc.org

Tim_L

(As an aside, I wouldn't generally go anywhere near any home-working scheme I have ever seen. Many are simple cons, and the remainder are a lot of effort for little reward. The same goes for MLM activities such as Kleneze and so on)

The price hike may be worth looking at regardless of whether you take someone else on.

Fixing price levels is a bit of a black art, but essentially you need to get a feel for a few variables:

1) The price below which you cannot go without losing money (not forgetting all your costs - it's very easy to miss some of them, so you really do have to work off a balance sheet rather than intuition).

2) The low 'tipping point', i.e. the price at which you think most potential clients would start to use your service as opposed to that of your competitors.

3) The high tipping point, i.e. the price at which you would start to lose most of your business to competitors.

4) The actual value of your service to a customer (many small companies underestimate this). Considering the value of the basic service is also a good way of working out what additional services add further value*.

5) The costs and pricing structure of the competition.

You then need to set a list price taking these factors into account. The aim of the game is to maximise overall profit, which can mean doing large volumes at small margin, or small volumes at high margin, depending on your objectives.

Don't forget that list prices are not necessarily the price the customer will pay, as you can always discount. As a rule, it's easier to discount from a higher list price than to add a premium to a low list price(!), and there's another benefit that a customer getting, say, a 10% discount will feel s/he's getting a bargain, even if the resulting price is relatively high. Also you can use the discounting as part of some sort of contract arrangement, i.e. you can have a 10% discount provided you use the service for 3 consecutive months. The tricky bit is getting a list price that is high enough to allow room for manoeuvre without scaring customers off.


*As an example of an added value service, I'd  look at offering a monthly 'car park' service to local employers, where one day a week you arrange to visit to valet employees' cars (at their own expense) - similar to the sort of 'visiting canteen' system some people run around trading estates. You should be able to get ads placed inside the workplaces, which can prominently explain the discount their own company has negociated for them from your list prices! You should drum up some impulse trade this way (I'm an absolute skinflint, but I'd certainly agree to a monthly car wash for anything less than the fiver costs me at Sainsbury's - possibly a bit more allowing for the lack of hassle - and would probably buy the odd interior clean too).

lisyloo

Just something else that has come to mind.

I'm sure you've though of it already but have you considered using a small motorcycle to solve your transport problems (temporarily at least).

As long as you don't need to carry loads of stuff then bikes are MUCH cheaper than cars to run.
Use a lot less petrol, less road tax, lower insurance and maintenenace cost as well as lower purchase costs.

As it's spring then would this be a possibility for you?

AMILLIONDOLLARS

I am very worried about your statement

"I personally believe that the business would work if only I could convert my husband to working at it 24 /7 and giving it over 100% effort. However this is not as simple as it appears to be.

It has been me who set up the business from 'scratch' and for those wondering why we chose car valeting of all things the answer is it was my husbands desire.

It has also been 90% me who has kept the business running doing the admin side and bookkeeping (his brother is our accountant so that doesn't cost much). It is me who has to be motivated and come up with marketing stategies etc. At the moment I have lost all interest in it as I feel it's a one sided plan of action yet my husband wont let the business go. I have had this idea in my head for the past 6 months to pack it up and lead a 'normal' life (whatever normal is) but I will never win on this one. I know its not a competition we are in it together but its a *figure of speech. *Arrrggghhh figures can't I get away from them?

At the moment I have taken a quiet step back and am allowing the business to run itself down whilst watching our bookings getting less and less when normally I would go full throtle into generating more business. However the method in my madness here is to prove a point that my husband needs to give it 24/7 over 100% to make it succeed once and for all. Plus the good point someone made above about working harder will produce more income. Weve tried the garages, car parks etc but most garages employ their own valeters these days and others not interested"

I think your husband in on an ego trip. He wants to own a business without putting in the effort of running one. I suspect he has been showing off to anyone who will listen that "he owns a business" so cannot face the "shame" of failing. I would point out to him what about the "shame" of losing your house if he doesn't pull his finger out. You can claw your way back from losing a business, its harder when you lose your house

System

I think the small motorbike is a good idea - I`m getting one to avoid parking charges.But,it is not easy to start unless you already have a licence or at least a car licence to enable you to use a moped.The rules about getting on the road have changed a lot since I passed in 1980,and are now quite complex.
I wish you well,and please keep us informed re your progress.