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Did Productivity Go Up When You Got A Office?

 
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Old 08-03-2008, 06:08 PM   #1
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Did Productivity Go Up When You Got A Office?


I am just curious if when you stopped working from home, if your productivity went up in the office?


When I first started to lift weights I tried to work out from home. I never really got a good work out in. When I joined a gym I immediatly got alot more serious about working out and started to get alot more lifting done.

Will I see similar results with renting a office?

And no I do not have time to work out anymore.
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Old 08-03-2008, 06:19 PM   #2
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Re: Did Productivity Go Up When You Got A Office?


Quote:
Originally Posted by ruskent View Post
I am just curious if when you stopped working from home, if your productivity went up in the office?


When I first started to lift weights I tried to work out from home. I never really got a good work out in. When I joined a gym I immediately got alot more serious about working out and started to get alot more lifting done.

Will I see similar results with renting a office?

And no I do not have time to work out anymore.
It depends on alot of things. When I got my office it was the beginning stages on my plan for expansion. I got office manager, then project manger, then salesman. It also was a sign to potential clients that I was moving in a more professional image.

I gradually started to raise my prices to cover the up coming overhead I had raise pricing 15% six months prior to moving to my office to cover the cost.

My office staff handled calls, accounting and marketing, My sales man handle the extra sales calls I could not get to and started to work with the office manager to drum up more business and help her with marketing. If it is planned out right it can be a plus if it is not it will be more headache than it is worth. It has to be plan and executed right.

I think you also have to be at 1mil+ in sales consistantly for it to be worth the extra overhead

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Old 08-03-2008, 06:34 PM   #3
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Re: Did Productivity Go Up When You Got A Office?


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Originally Posted by rbsremodeling View Post
It depends on alot of things. When I got my office it was the beginning stages on my plan for expansion. I got office manager, then project manger, then salesman. It also was a sign to potential clients that I was moving in a more professional image.

I gradually started to raise my prices to cover the up coming overhead I had raise pricing 15% six months prior to moving to my office to cover the cost.

My office staff handled calls, accounting and marketing, My sales man handle the extra sales calls I could not get to and started to work with the office manager to drum up more business and help her with marketing. If it is planned out right it can be a plus if it is not it will be more headache than it is work. It has to be plan and executed right.

I think you also have to be at 1mil+ in sales consistantly for it to be worth the extra overhead
We are shooting for 1.5m in 2009. I just do not see how I can do that without getting some kind of secertary. And for that I need a office.
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Old 08-03-2008, 07:20 PM   #4
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Re: Did Productivity Go Up When You Got A Office?


I just got both. I never thought she would have that much to do but she does. And if you are getting good money for jobs and are not the cheap guy they want to talk to a live person.
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Old 08-03-2008, 09:16 PM   #5
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Re: Did Productivity Go Up When You Got A Office?


Profits went up for us after I took my tools off. Not after getting an office. When you're the one banging nails you are working in the company and don't have much time to work ON the company. I took off my tools in 1999.
That year we did $385K. In 2000 we grew to $985K but with a net loss. We then re-grouped, adjusted prices accordingly and grew to $1,400,000 in 2001.
From 2002 through 2006 we did over $3,000,000
We are now faseing it back a bit.
2007 we did 1,800,000 and this year our goal is to do $1,750,000
We are on track to make our goal and maybe just a bit more. We have scaled all the way back to just me and my business partner. He takes care of 75% of the sales and I take care of 75% of the production. We help each other out with the other 25%. I handle 95% of the marketing and both of our wives help out in the office.
We have been fortunate enough to have subs that have been with us since 1999. We pay them better than most and they are very loyal. They do perform work for themselves and other contractors as well because that's what subs do. When we call though the put us in front of the line. The line for most of them has been very short the last couple of years.
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Old 08-03-2008, 09:24 PM   #6
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Re: Did Productivity Go Up When You Got A Office?


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Originally Posted by marc View Post
Profits went up for us after I took my tools off. Not after getting an office. When you're the one banging nails you are working in the company and don't have much time to work ON the company. I took off my tools in 1999.
That year we did $385K. In 2000 we grew to $985K but with a net loss. We then re-grouped, adjusted prices accordingly and grew to $1,400,000 in 2001.
From 2002 through 2006 we did over $3,000,000
We are now faseing it back a bit.
2007 we did 1,800,000 and this year our goal is to do $1,750,000
We are on track to make our goal and maybe just a bit more. We have scaled all the way back to just me and my business partner. He takes care of 75% of the sales and I take care of 75% of the production. We help each other out with the other 25%. I handle 95% of the marketing and both of our wives help out in the office.
We have been fortunate enough to have subs that have been with us since 1999. We pay them better than most and they are very loyal. They do perform work for themselves and other contractors as well because that's what subs do. When we call though the put us in front of the line. The line for most of them has been very short the last couple of years.
Its always interesting to see how other companies grow and when the owner stepped out of the feild. Right now I am in the feild 100% of the time. We should do somewhere a little under a million this year if I can keep the working coming in through the fall. Basically, I have been growing 250 -300% every year. And this year should be no different. But I feel its mostly because of luck. Now going 1mil-3mil is a huge jump. But I think if I was not in the feild at all I could do that next year.


Now what is the reason you have decided to scale bag? Are profits up? Do you have more money personally now?
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Old 08-03-2008, 10:09 PM   #7
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Re: Did Productivity Go Up When You Got A Office?


Very meaningful topic. I understand how on one hand officespace is needed to #1- Have a more professional image for business, and #2- To handle the necessary clerical work that must be tended to in order to keep things running effeciently, but until you reach the $1million mark, what were the ways in which you guys kept things organized, marketed the business & carried the load of the labor all at once? Maybe going about this the wrong way & obtaining office space too early is just another liabilty & another reason why startups fail. Great topic, I am just curious.

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Old 08-04-2008, 12:06 AM   #8
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Re: Did Productivity Go Up When You Got A Office?


We'll be under a mil this year, and probably right at a mil next year.

That being said, we've operated out of my house up until now. We're busting at the seams, and are currently looking at properties.

A few things come to mind:
With more space, we will have the ability to spread out, and maintain a more efficient and organized shop.
With more office space, I will be able to keep everyone separated, and allow us to have our own desks. THis keeps the paperwork in order better.
With more room, we'll have the flexibility to grow.
Let's face it, I'm gonna market this baby! I've got a good relationship with the local country radio station, and I'm thinking of doing an "open house" in the Spring, if all goes well. Free hot dogs, drawings, get to meet the company, etc. Oh, and we'll do a live radio broadcast to remind people that we're here to stay, and still growing.
Radius mailings around the shop to home owners letting them know about us & our services...
More respect from our guys, since it's at a separate location, not attached to my house.
Personally, I'll gain like, 25% more house! This WILL save me money, since I won't have to move or add on with the new baby coming.

Ah, yes, but there's a cost. For us, we're looking to partner with a bank, and do a bit of reorganizing. This will allow us the access to the capital (hopefully), and reduce our overall monthly expenses (efficiency & lower interest rates), and get us that important "room to geeks is to see if we can meet that, and if we can make it return more than that.

HTH,
~Matt
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Old 08-04-2008, 02:14 AM   #9
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Re: Did Productivity Go Up When You Got A Office?


What kind of money are you netting to be grossing 1.5 m? I don't really know how the gross correlates immediately with wether you need an office or not. We are hoping to gross over 200k this year but we hardly use any subs at all besides our own work. Its still a bitch keeping evcerything together, but it seems like highering and office staff and having to increase prices would put too much strain on bidding and still be hard to keep in line in the end. Like maybe your gross isn't being reflected in you net, does that make sense?
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Old 08-04-2008, 03:01 AM   #10
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Re: Did Productivity Go Up When You Got A Office?


When I look over 600 aluminum companies in Florida from our small association I would say most have an office/warehouse. Most do have an office girl and most have a field supervisior and a salesperson.

The owner does some sales to and runs the company overall. Alot of them have a small retail store also selling parts and pieces. Most of these type of operation sales are under 2-3 million.

Most of these companies all have employees not subs. We also have some that are one man bands where the owner does it all and he will be under 500,000 in sales.

Then you have about 1/3 that have large companies.

So size and when to move up just really begins with you. Always stay in your comfort zone and always make a sizeable profit. To me this is the most important. If you are going to work your ass off have something to show for it at the end of everyday,week,month and year.
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Old 08-04-2008, 06:05 AM   #11
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Re: Did Productivity Go Up When You Got A Office?


Quote:
Originally Posted by ruskent View Post

Now what is the reason you have decided to scale bag? Are profits up? Do you have more money personally now?


It is a lot of work dealing with so much business. At one point I was running 8 siding crews, 2 window crews and 2 sunroom crews.

Now I run 2 siding crews, 1 window crew and 1 sunroom crew and my salary has remained the same. Our payroll has dropped from over $15,000 per week to under $15,000 per month. I work about 15 hours less then I used to.
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Old 08-04-2008, 08:20 AM   #12
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Re: Did Productivity Go Up When You Got A Office?


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Originally Posted by marc View Post
It is a lot of work dealing with so much business. At one point I was running 8 siding crews, 2 window crews and 2 sunroom crews.

Now I run 2 siding crews, 1 window crew and 1 sunroom crew and my salary has remained the same. Our payroll has dropped from over $15,000 per week to under $15,000 per month. I work about 15 hours less then I used to.
Priceless see this is how to come to Florida 2-3 times a year. Sunshine
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Old 08-04-2008, 01:30 PM   #13
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Re: Did Productivity Go Up When You Got A Office?


Quote:
Originally Posted by marc View Post
It is a lot of work dealing with so much business. At one point I was running 8 siding crews, 2 window crews and 2 sunroom crews.

Now I run 2 siding crews, 1 window crew and 1 sunroom crew and my salary has remained the same. Our payroll has dropped from over $15,000 per week to under $15,000 per month. I work about 15 hours less then I used to.


You have 2 siding crews, 1 window crew, and 1 sunroom crew and still have a monthly payroll under $15,000?!?!?

If each crew has at least 2 people in it (8 people total) then each is making less than $2000.00/month. Not including employer taxes. Please explain the math behind that???
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Old 08-04-2008, 01:35 PM   #14
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Re: Did Productivity Go Up When You Got A Office?


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Originally Posted by RizzoMaryland View Post
You have 2 siding crews, 1 window crew, and 1 sunroom crew and still have a monthly payroll under $15,000?!?!?

If each crew has at least 2 people in it (8 people total) then each is making less than $2000.00/month. Not including employer taxes. Please explain the math behind that???
I'm guessing it's seasonal work.
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Old 08-04-2008, 01:37 PM   #15
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Re: Did Productivity Go Up When You Got A Office?


Quote:
Originally Posted by RizzoMaryland View Post
You have 2 siding crews, 1 window crew, and 1 sunroom crew and still have a monthly payroll under $15,000?!?!?

If each crew has at least 2 people in it (8 people total) then each is making less than $2000.00/month. Not including employer taxes. Please explain the math behind that???

All of our crews are subs with their own liability and workers comp ins.
We will pay our subs approx. $425,000 this year.
(But they are not on the payroll)

The beauty of running this way is that I know my profit margin the day I sell the job. It doesn't matter to me if the sub take 1 day or 1 week.......They get paid the same.

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