Failing Business.

J_B

I know nothing about your business but do know that in my world, you have a job to find a builder who can quote let alone turn up to do a job, so why you business is struggling, I know not.

Grumpy_chap

SPDH said:

I have dropped my salary to 30k. 

trailingspouse said:

Can I just clarify - you say you've 'dropped your salary to £30k'. Is this actual salary, paid entirely via PAYE, or is it a mix of salary and dividends? 

SPDH said:

No that's salary only. 

Has your Accountant advised you on the most tax-efficient ways of taking drawings from the company? 
For an Owner-Director, taking PAYE salary at £30k is more than many would choose to take in that way.

SPDH said:

I will price my next jobs at an increased rate leaving room for some negotiation in the hope that we manage to get one and actually make some money. I'm not holding out much hope though. Just to get a reply from people is hard enough so a conversation negotiating a next step would be great. 

When you provide a quote, do you drop it through the letter box and await the phone to ring, or do you work it a bit?

If you drop the quote round, you could always knock on the door and, if the prospective Client is in, then hand the quote to them personally and invite them to contact you with any queries.  If the customer opens the quote there and then, you can start to engage their receptiveness.

Do you make follow-up calls a couple of days later?

Bradden

I'd also suggest you look at costs from alternative suppliers.. you may find that you could save money shopping around and thereby be more competitive. At this time of year merchants are keen for the sales so it's the ideal time to do it. 

SPDH

Morning. I've had some more feedback this morning from potential customers which I have provided quotes for. A couple are basically holding fire to see if/when more covid restrictions will be enforced and 2 are concerned about the costs of the work despite us being quite competitive compared to the other quotes we have recieved.

To answer questions, I cannot take dividends whilst the company isn't making profit so the 30k salary I take is the bare minimum I need to cover my families needs. Also in line with my accountants advice.
We always follow up our quotations even if it's just for feedback.
I use multiple suppliers and merchants to get the best costs. Before covid we were in the top 10 buyers for 2 of the local branches of travis perking and jewsons so our rates are actually alot lower than the majority of people pay.

I have had another 2 enquiries since I last posted which is obviously pleasing but once again, I will now spend hours visiting the jobs, quoting and engaging during the evenings and weekends whilst currently laying bricks on a gable end for less than £150 per day although I have taken the advice of actually putting my prices up in the 2 quotes I did last night. One of them provided me the feedback that we were competitive with the costs but they are going to hold fire making any decisions.

We are down to 5k in the business bank after settling invoices last night and I'm afraid if no new projects are confirmed within the next 3 weeks then its inevitable that I enter into some kind of voluntary liquidation.
I have also recieved a few voicemail this morning from tradesmen looking for work. I have been told a few large sites are set to be shut down due to covid so inevitably these guys will be pricing jobs super low if they dont 'have any work.

Grumpy_chap

SPDH said:

Morning. I've had some more feedback this morning from potential customers which I have provided quotes for. A couple are basically holding fire to see if/when more covid restrictions will be enforced and 2 are concerned about the costs of the work despite us being quite competitive compared to the other quotes we have recieved.

2 quotes I did last night. One of them provided me the feedback that we were competitive with the costs but they are going to hold fire making any decisions.

This is actually a very big positive - at the beginning of the thread, you were taking a view that the cost was the issue and you were being undercut all the time.

With a bit of a favourable wind, either of these two quotes could be convertible. 
Maybe say to the customers that you'd like to pick up with them in the New Year when the COVID position is clearer, but if they are keen to go ahead before then, to call you before going elsewhere.
Then, straight off the bat in the New Year, get in touch with them and set out how you will take precautions in regard to the COVID situation (even if they are small measures, the message that you care may be important o the customer), then that you are keen to deliver the job for them, and what would they need to give the go-ahead?
At least, you have a small margin by which you can discount if that is what it takes.

SPDH said:

I have had another 2 enquiries since I last posted which is obviously pleasing but once again, I will now spend hours visiting the jobs, quoting and engaging during the evenings and weekends 

The second half of this sounds rather negative / defeatist.  I know this is really difficult to do, but the more positive you can spins everything, the more things will get positive results.  I have had something similar in my own business - I had a dominant customer but they were toxic so in July I made the decision to cease working with them and relaxing that stress had an uplift in everything else, so that gave positivity that just, well, simply flows.  It was very hard to do, but so relived now that I did.

SPDH said:

if no new projects are confirmed within the next 3 weeks then its inevitable that I enter into some kind of voluntary liquidation.
I have also recieved a few voicemail this morning from tradesmen looking for work. I have been told a few large sites are set to be shut down due to covid so inevitably these guys will be pricing jobs super low if they dont 'have any work.

In one of your other posts, you mentioned a full order book until end of January, so that gives you a little longer than 3 weeks.

I don't know what type of construction work, or where, you do that is closing down because of COVID - all the construction sites here are going busier than ever.  In fact, finding a contractor / staff is practically impossible.

Finally, I do have great admiration for your commitment to doing the right thing - you really deserve to succeed and I hope that these recently quoted jobs land for you.  Good luck.

SPDH

Thanks grumpy. There is some great advice there which I will be taking on board.
Have a merry Xmas mate 👍