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randyt

randyt

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I don't know if I have mentioned it but I've been in business since 1988. There have been lots of ups and downs, the worse was the obama years. Those years were crushing. That is when I learned that hard work means nothing. Before the obama years I had believed hard work could carry a body through just about anything. Of course if you step on a "landmine" then all bets are off.

2007 was the best year I had ever had, worked hard and long but it had paid off. Not big money payoff but at least union pipe fitter wage payoff. Then after that it was up and down, deep peaks and valleys. The job finished one day was used to pay the job done yesterday. There would be a up tick and it was like, finally things are getting back to somewhat normal. Then wham, a deep valley. There was times I would call my office just to make sure the phone was still working. I was cutting expenses as much as I could. Had to keep phone, electric, water and insurance along with many others. Thought about putting a wood stove in and having the gas shut off. There was a time I trapped muskrats and worked in the woods to make a little extra money. worked nearly 7 days a week most of the time. Sometimes I would make a 100 dollars cash on a sunday and would use that in the business to pay bills.

It got so bad that I used a inheritance to prop the business up, thinking gosh it has to get better, it didn't. The inheritance evaporated 15, 20, 25 thousand at a time until it was gone. Just about then 2016 came along.

2016 came along and after about a year things started to change. Hard work started to pay off. I was able to pay my bills in full. Nobody was calling asking for payment. I was able to make enough to replace wore out equipment and tools. I was able to pay down some debt. Life was fun again.

I'm thinking now I should dissolve the corporation, shut off all utilities, winterize my shop, lay everyone off. Use my cell phone for a business phone and just cherry pick jobs. I don't want to buckle down, just to be slapped down. Hard work will not pay now.

I'm not going to wait long. What happens loser jobs come in and then it's like a snowball rolling down hill. Jobs get chased just to bring in a couple dollars with no profit. It will be better to cut it off now.

Anyhoo that's what I've been thinking about lately. I have to wonder who else is thinking the same thing.

Please don't think all small business owners are rich. Looking back I would have taken the other fork in the road and went to the pipe fitters or sheetmetal union. I would have made the same money and had trapping season off. Too late for that now.
 
I had my own Tech Service business for 25 years. Finally just got burned out , and bad health ...retired. Best thing I ever done.

I can tell you that with what may , probably, most likely is coming down the pike.....I would not invest in anything now (except beans and rice).
I would walk away from my own business quickly in this environment.

Just me.

Jim
 
We opened up a private preschool in 2003. Used our savings, bought one and a third acres on a corner commercial lot, and had a 3000 sq ft building. We did well. Employed a dz people, most times we were maxed out on 61 students. Some would leave at 3:00 p.m, and then I was able to put in after schoolers elementary age till 6pm. We were on a roll. 2008 came and slam! Was lucky if I could get 30 students. Had half staff. My salary was cut in half. By 2012, I was just taking a small amt of salary. And working 40 to 50 hr weeks. We sold last July (2019). Someone wanted the building to use for a day center for young adults who had developmental issues. Thank God we sold then. Took the money and paid off our house there, and farm in KS. Then a year later, sold our house there and moved to the farm. Husband retired from his job. Life is good.
 
@randyt We are in a similar situation and uncertain as to what to do. Unlike you, we were otherwise employed through the obama years and are just heading into year 3. Business has done well the last couple years but we fear what is to come and are thinking about and discussing options. We don’t want to jump ship too soon but at the same time the hard work needs to pay for itself.
 
randyt said:
it can be disheartening when hard work does not pay. It's bad when hard work won't even allow a business to break even. I have seen it.
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This might sound quirky but I’ve done an extreme amount of research on essentially “penny pinching” and ways not to part with my dollars so even though obama cost us between $15-20k in healthcare alone we were able to save enough to open the business. I’ve been stocking up on things (like many here) and working on not needing things. The fewer my needs the better. We’ve gone without paychecks and are “okay.” But that can’t go on for very long before something has to change. I guess that’s what we are trying to hedge against.
 
LadyLocust said:
@randyt We are in a similar situation and uncertain as to what to do. Unlike you, we were otherwise employed through the obama years and are just heading into year 3. Business has done well the last couple years but we fear what is to come and are thinking about and discussing options. We don’t want to jump ship too soon but at the same time the hard work needs to pay for itself.
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you have a few things going for you in my opinion. You're not burned out trying to do business during the obama years. That can make someone real tired. I developed IBS, I think it was from the stress from those years. I'm tired now. Perhaps your area is better for business. I'm in a rural area, my town has a 600 population and the county is not very populated. I always figured if I could make a living here it was worth it. I could have done better in a bigger town. Maybe you have less employees, I have 8 currently. It costs a lot to have employees.

good luck
 
Having your debt under control is a good feeling. I've got about 4000 dollars of debt left. I'm just paying it down on schedule to continue building my credit. I'm stacking cash now, and if I don't get laid off this winter I should be able to buy a brand new truck with cash next summer or fall. My debt was marriage related and I'll never allow anyone to put me in the hole again.

As for your business - I'm the last one who would be qualified to give advice, but it sounds to me like running your own shop is what you really want to do. If it were me, I'd get a job but continue doing side work for the business. Keep your name out there. Maybe that's not possible for one reason or another, but that's what I'd do. Whatever you decide, good luck to you!
 
Our problem started in 08 when many people lost their jobs. Our business relied on parents working so that they could pay for a private school for childcare. The state would offer to pay for low income children's tuition, but they only paid roughly half of our normal tuition rate. It was take it or leave it.
 
Randyt: I don't envy your position. We survived the Carter years, but we were young and early in our careers. We were also hopeful that everything would bounce back, and it did. Obummer was the worst President ever. He was clueless when it came to the economy. We struggled, but made it through. Now I am in the twilight of my career. I can't survive another economic downturn. I would not expect this President, if it comes to pass, to be any different than Obummer. He is a bureaucrat with no clue how the private sector works.

Can you position yourself or the business so that you can shut it down quickly, and not get hurt? I might take a wait and see attitude. Just like we always do, plan for the worst, and hope for the best. My gut says the economy will tank again. If there is another shut down it will have severe consequences. You might not pull the plug just yet, but I would be ready to do so.
 
I had my own gunsmithing business. It was really what I always wanted to do. First just part-time then after a few years I went full-time. And I made a living. But I wanted more for my family so I quit totally and got a full-time real job. I then made some good money and was able to mostly retire at 52. I knew with the gunsmithing the government could end my business with a stroke of the pen at any time. I could have built my business up some because I had a couple of gun dealers who really wanted me to handle all their needs. But there was just not enough time in a day to make a bunch of money no matter how hard I worked.
So what I did worked out for me.
Now I am just a lazy retired guy. :)
 
randyt said:
the worse was the obama years. Those years were crushing.
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I can relate. I had a business that was in it's 6th year, I started the business because I had been laid off. I worked my tail off, the first year I did about 27,000 in business by myself. By the time the second year rolled around I needed help so I started hiring. Fast forward to my 6th year I did just shy of 500,000 in business, things were going fantastic and I had as many as a half dozen people working on any given day.

Then along comes obama, about one year into his presidency I had to close my doors. we had a net loss of small business in this country under his presidency than anytime in recent history. So, I was forced back into professional driving as that is something I know and can do.
 
Morgan101 said:
Randyt: I don't envy your position. We survived the Carter years, but we were young and early in our careers. We were also hopeful that everything would bounce back, and it did. Obummer was the worst President ever. He was clueless when it came to the economy.
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Very few remember the Carter years. I do.
10% inflation reduced your purchasing power (think pay cut) every year. You could do nothing about it.
Having the president go on national TV telling America to wear heavy clothes in their house and turn down their thermostats to survive the winter was an admission of abject failure.
Those who do not remember history, are doomed to repeat it.
Doesn't this just give you a warm feeling all over?


Got firewood?
 
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Supervisor42 said:
Very few remember the Carter years. I do.
10% inflation reduced your purchasing power (think pay cut) every year. You could do nothing about it.
Having the president go on national TV telling America to wear heavy clothes in their house and turn down their thermostats to survive the winter was an admission of abject failure.
Those who do not remember history, are doomed to repeat it.
Doesn't this just give you a warm feeling all over?


Got firewood?
Click to expand...

He called it stag-flation.

I was working for banks back then because only the military banks and universities could afford computers back then. This included the fed reserve bank.
I remember looking at the rate of 17% return on treasury bills and dreaming how much I could make and how early I could retire. But like most I didn't have money to invest.

Ben
 
Remember the Misery Index? Carter's invention combining Unemployment and Inflation. He used that to tell the country how bad everything was. Played a big part in getting him elected. Kind of backfired when the number increased significantly during his administration.
 
Neb said:
He called it stag-flation.

I was working for banks back then because only the military banks and universities could afford computers back then. This included the fed reserve bank.
I remember looking at the rate of 17% return on treasury bills and dreaming how much I could make and how early I could retire. But like most I didn't have money to invest.

Ben
Click to expand...

I remember those years, I got lucky and had a few extra bucks from selling a couple of vehicles, the bank had a chalk board where they posted the interest rate, I went in to cash a check at lunch time and saw those really high interest rates on CDs, so I pull all the cash I could spare and bought in. Went back to work afterwards and told my boss what I had done, he went there the next day and the rate had dropped 5%.

Then again, back then you could live on $10K per year.... Then again back then all we were ENTITLED to was what we earned...

Lord, I've turned into Archie Bunker... Longing for the days when everybody pulled their weight...
 
Neb said:
He called it stag-flation.
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When the economy grinds to a halt and nobody has any money; and when they fight over the dwindling supplies left and drive prices thru the roof, you can call the result whatever you want.
It sux and I call it failure of leadership.
@Morgan101 , misery index was a very accurate term.
Yes, this really happened before.
This is what happens when we elect stupid people.
On topic: Fortunately I get to sit this one out. Rock solid for the next 10 years.
I'm in Hiwall's boat :thumbs: :
hiwall said:
...
Now I am just a lazy retired guy. :)
Click to expand...
 
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