Business planning and the election

[tmiklethun]

I not starting this post to discuss the election. What is done is done. However I am wondering if anyone is making any changes to their model based on what probably will happen do to the election.

In 2008 I was on a job having the best week of companies history and McCain came on TV saying he was suspending his campaign to deal with economic collapse. I had no idea what he was talking about, but two months later my business dropped 40%. I almost lost the business and I did lose my house. I don't want to be caught with my pant down, so to speak, again.

How will Obamacare truly effect our business?

Will the further destruction of the coal industry add demand to the fossil fuel industry and our refusal to drill cause gas to go up? How high?

I believe we will see cost of doing business go up fairly significantly over the next months or year. If I am right as a business owner we must either increase prices or decrease expenses in another area. One we may price ourselves out the market or two we may lower the quality of our service.

Has anyone made any type of plans on changes to their business model to deal with these issues?

Thanks

 

[jcooper]

By 2014, employers with the equivalent of at least 50 or more full-time workers will be required to provide health care for those who work 30 or more hours a week. If they don’t, they’ll have to pay a $2,000 penalty per employee after the first 30 workers.

http://www.suntimes.com/16262946-418/with-obamacare-now-a-reality-employers-choose-strategies.html


Only time will tell how it will affect us.

 

[Newman]

By 2014, employers with the equivalent of at least 50 or more full-time workers will be required to provide health care for those who work 30 or more hours a week. If they don’t, they’ll have to pay a $2,000 penalty per employee after the first 30 workers.

The fine is way cheaper than paying for health care...

 

[Ken Snow]

Shame on any employer with 50+ workers for not providing access to health care already. Can't imagine attracting quality people without it.

 

[hogjowl]

Personally, I am going to be forced to change my business strategy this time around. I survived The Great Recession by hunkering down. I don't have any more fat that I can cut out of my business. This time around I am going to have to find a way to increase revenue, while staying conservative regarding spending. I have already begun making changes and have a few more things left to coordinate before beginning. If I am going to die, I might as well die fighting instead of withering on the vine.

 

[Steve Toburen]

This time around I am going to have to find a way to increase revenue, while staying conservative regarding spending.

Well, there you go! That's a good prescription for success in any economic climate. No one likes a recession (much less a "Great Recession") but they do winnow out the weak sisters and make the strong stronger.

Steve Toburen
www.SFS.JonDon.com

PS Marty, re: your laudable goal of increasing revenue here is a Cliff's Notes version of my Top Ten Ways to Make More Money presentation. There may be a few nuggets for you there and best wishes.

 

[SMRBAP]

Shame on any employer with 50+ workers for not providing access to health care already. Can't imagine attracting quality people without it.

Ken, I very much appreciate the sentiment, in a perfect world I agree too. But the facts remain there are many businesses with 50+ employees that simply can not provide benefits. Their business simply does not have the net to support it.

There are several lawncare firms in my area that are well into that range, I personally know one of the owners, and it's something he'd love to be able to incorporate, but with the razor thin margins he makes, he simply can't provide benny's company wide.

There are 101 other businesses I could list that employ (in majority) people less even a single year of college, or even a HS diploma armed only with a GED, where the costs to provide benefits aren't in the available net margins of the firm.

And we are not even considering the fact that there are thousands of businesses breaking even each year at best, or in the red, where this could be the nail in the coffin for them.




To get back to topic, I don't think Obamacare "en masse" directly hits our industry, but I believe those of us that are primarily commercial cleaning firms will feel a hit indirectly.

If Obama goes on another "at all costs" green push, he has already made it clear through actions and even words directly, verbatim: "under my plan energy prices would necessarily skyrocket". Out of politician speak, for his plan to work, energy prices would have to skyrocket. Basically, starve people to force the alternative to be fast tracked, produced, and consumed. I'm bracing for less discretionary spending on the b2c side in the near term.

His yes man, our energy secretary, Steven Chu has exactly the same ideology, and it has come out of his mouth directly - he wants European gas prices.

With Obama in a position of 2nd term, nothing to lose, to effect his ideologies - I'm not exactly comfy all around.

 

[Ken Snow]

I appreciate what you are saying Anthony, but I wonder if they could in fact offer benefits that are minimally employer contributed i.e. 150.00 a month or so to those that need it. Many will decline as they likely have coverage from a spouse but those that take it will also likely really appreciate and he may find he gets more productivity as he can attract a better caliber worker.

I am not sure what level of education specifically has to do with it. Out of the 100+ men and women in our cleaning related businesses I would bet less than 10% have any college and can only think of 2 that have degrees. This is not a college educated industry for the most part, except for maybe IT & Acct Mgr functions.

 

[Mikey P]

please define "Hunkering Down"..

 

[hogjowl]

Selling that stupid Vortex you talked me into buying.

 

[tmiklethun]

I was thinking more along the lines of adding a low moisture cleaning option to our options. Saves on fuels cost.

Add new revenue sources like offering the Bridgepoint Home Pro cleaning product lines. Or setting up a relationship with a vacuum to recommend vacuum or hoover floormate ect to our clients.

Actual way to reduce expenses or add profitability. Anyone have any other ideas or implemented either of the ideas I suggested above.

 

[Shane Deubell]

No changes for us, we have always been about targeting though. Have to say seo has been become a real pain in ass over the last 3 months, been very hit/miss lately.

 

[FredC]

ain't that the truth.......... Still mostly hit but the time involved has at least doubled .....and the last update seems to have no rhyme or reason to it...

 

[Hoody]

Have to say seo has been become a real pain in ass over the last 3 months, been very hit/miss lately.

No kidding, although with two of my clients we had a big jump UP in rankings. But seems like with the two others doesn't matter what I do, they don't move, but still ranking well in top 3, i'd prefer top 2 though.

 

[SMRBAP]

I appreciate what you are saying Anthony, but I wonder if they could in fact offer benefits that are minimally employer contributed i.e. 150.00 a month or so to those that need it. Many will decline as they likely have coverage from a spouse but those that take it will also likely really appreciate and he may find he gets more productivity as he can attract a better caliber worker.

I am not sure what level of education specifically has to do with it. Out of the 100+ men and women in our cleaning related businesses I would bet less than 10% have any college and can only think of 2 that have degrees. This is not a college educated industry for the most part, except for maybe IT & Acct Mgr functions.

He does offer benny's to managers and certain admin staff. My plans are the same. At my co, it truly takes a guy at minimum 2 years to be an all arounder training wise, and just on the cleaning / repair side. Factor in the resty side, water, fire, contents, mold, you can add another 2 years - to be a lead tech anyway. Just on average, some are faster, some are slower.

I'll have those perks for those in more management roles. It's a ladder built on purpose to incent the drive I seek in staff.

I have put it in front of my staff over the years, and it's typically a 90%/10% have a bigger paycheck, than desire for benny's. That's what I have stuck with to date.

 

[steve_64]

i got rid of over $10,000 a year in child support last month!!! but then she blew the motor in her car. so much for this months savings.

roughly half my business is apartments and property managers or owners. its very repeat and steady with no effort other than cleaning.

i use a bane, all electric so my costs are steady.

i could change nothing and i will probably be in decent shape. if i ever put an effort into this again which is coming, i should set some record highs pretty easily when i get off my ass.