WOW, Ken. I'm trying to imagine a Strategies seminar with Mikey in attendance. Well, we would definitely have to mind our P's and Q's or be held accountable.
Seriously, Mike, Ken brings up the down side of the owner/operator business model. (Of course, there are many advantages to running solo too!) For anyone who makes the decision to continue long term running the truck without adding employees I would implore you to:
1. Buy good health and
disability insurance. Health insurance alone isn't enough. You also need the cash flow to keep on coming in. Good insurance like this is not cheap and is just an overhead cost of staying small. Look into high deductible insurance combined with a HSA account.
2. Keep at least three months of business and personal expenses on hand in a liquid investment such as a money market fund.
3. If you aren't doing so now start "sweeping" 10% of your business gross into a personal investment plan. If you can't do this with your current cost/fee structure then raise your prices. Your clients should understand that having the owner on every job will cost them a premium.
4. I would look into investing in rental properties. They can be a pain in the neck but also extremely lucrative over the long term.
5. Develop one or more "strategic partnerships" with other local carpet cleaners. Even if you have good disability insurance your business could be destroyed (or at least severely damaged) if you could not serve your customers for an extended period of time. But with a "partner" you both agree to care for the other's customers as your own AND "return" them.
6. Most importantly, take really good care of your health. And drive defensively!
Ken, I hope your boys are all primed and ready for the Spring cleaning season.
Steve Toburen CR
Director of Training
Jon-Don's
Strategies for Success
PS On the bright side of Mikey's attending we might get that slacker Yeadon to actually put on a good show on marketing!
PPS One addition to Ken's endorsement (which I prize greatly) is that
SFS is not just for small operators who want to "get big". We've had a lot of owner-operators who want to stay that way become
SFS members and they have greatly benefited from the program. In some ways if you are going to stay small it is even more important to "do it right".