Are things looking a little rough at your shop?
If you are reading this blog then chances are good that you own or run a small sign shop. If you DO run your own shop then you probably have been paying a little more attention to the news lately. If you HAVE been listening, reading or watching the news then you might just be a little concerned about how our great American economy is going right now…
Well, I’m here to tell you that, even if things are looking a little rough at your shop, life is still good and you still have an immense amount of control over your business. But wait, you might say, I just lost two great clients who went bankrupt and have a serious amount in Accounts Receivables that I might never collect on…
First, even though you don’t want to hear it, I assure you that there are plenty of other sign company’s that are in the same boat as you. A lot of businesses are starting to feel a pinch and many are beginning to get worried, but it’s OK. Remember, you started your sign shop and built it by using your talents, a lot of hard work, creative marketing and good business sense. Like I said before, you do have control over your sign shop and you can use that control to weather any storm you might be going thru to come out safe and sound.
Perhaps you have started to experience some of these issues…
- Sales are down (not many walk-ins or phone calls lately).
- Your Accounts Receivables are starting to back up and you are owed some serious money from historically reliable and good clients (big warning sign).
- You have lost good customers who have gone out of business.
- You are starting to get behind with your own suppliers.
- You are getting a little worried about meeting the next payroll (or paying yourself)
Just don’t panic. Despite these problems, there are some things you can do to keep things together. Just like you built your business with some blood, sweat & tears, you can also fortify and make your sign business even stronger in the current economic situation. If you are able to look at these types of issues as opportunities to improve your business then you are halfway there…
- Sales: Increase your marketing activities and be pro-active in generating sales opportunities. While other sign shops in your area are getting scared and cutting their marketing and advertising to save money, you can take the opportunity to earn a larger share of the market. Freshen up your sign, change the wrap on your truck, get more involved in your networking groups etc. By dedicating some time and effort to pumping up your sales volume you can more than make up for potential revenue losses.
- Past Due Projects: Do not, I repeat… DO NOT, just let your Receivables slip by in the hope that you will eventually get paid. Again, be proactive here and stay on top of any late or overdue payments from your clients. Last year I wrote an article titled “Are You A Sign Company or A Bank?” which should serve as a reminder that your cash flow is critical to the survival of your sign shop. Take a good hard look at your cash flow and get that money moving. If you don’t absolutely have to extend credit… then don’t. Call your customers who are behind on payments and gently remind them that terms you agreed to are not being kept. Encourage them to get caught up right away and, if necessary, offer a 1% discount if they pay that day. Be creative but get paid.
- Firing Clients: Review your clients and consider eliminating those who are more trouble than profit. If you have clients that require constant hand-holding, are always trying to rush last minute projects thru production, are never happy despite signing the final design proof… I could go on & on here… then give serious consideration to cutting them loose. By culling the time & money leeches, you can refocus your efforts on working with profitable and worthwhile clients. Just like that you can be working less hours, doing more profitable projects and having a heck of a lot more fun in the process.
- Creative Staffing: Take a good hard look at your existing staff and their hours. With a little bit of effort you can come up with some creative staffing solutions that can save your company significant money and keep the books much healthier. Consider putting some staff on 4 – 10 hour days to get more done in a shorter time frame (and everyone likes 3 day weekends). How about utilizing part-timers only when you need them rather than keeping 70% useful full-timers on staff? Can you outsource some of your popular products and sell more of them? Now you can enjoy higher sales but no increase in labor costs…
Be encouraged and get to work. Things are not that bad and there is a world of opportunity out there for a sign pro to stay strong and continue growing even in rough times.