Keeping Your Small Rigging Business Afloat, Part 1 of 2
Oh-key, you have launched your rigging business and things are going pretty good. However, you're worried that you may encounter some rough waters ahead. What's the best way to navigate around possible bad weather? Answer: Learn some of the reasons why small businesses often fail. In no particular order, some of these are:
Is your rigging equipment on par, or better than current industry standards? For instance, do you use the state-of-the-art, latest version unified jacking systems routinely? Many businesses fail simply because the owner is unwilling to make the monetary investment in capital equipment necessary to keep pace with technology.
Have you explored your local and regional business landscape. How many competitors do you currently have? Can you expect more? Too many people carving up the same pie means that individual pieces can get mighty small; so small that you cannot stay afloat. Should you consider a broader coverage area?
Are your rates competitive with other rigging companies for similar work? Successful companies establish price points based on prevailing market demand. Have you 'shopped' your competitors in order to find out the going rate for various projects? Potential customers don't always associate cost with quality. If necessary, take extra effort to explain why your rates are different.
Too Big Too Fast
Have you given thought to the maximum size company you are willing to manage? Do you really know the limiting organizational size that is right for your temperament, and business ability? If you feel that you are limitless, have you allowed for business expansion? Have you developed optional expansion plans taking into consideration possibly varying future time frames? Should you expand your services to areas beyond rigging? Ironically, many businesses fail based on their success.
Are you capable of doing your own job costing, and profit and loss determinations? Can you keep abreast of changing tax laws? In short, is it best for you to perform in-house bookkeeping and accounting, or should these important business activities be outsourced? And if you do outsource accounting services, don't assume that all things financial concerning your rigging business are being managed. You are ultimately still responsible for your company's overall financial well being.
Do you possess the personality suitable for sales and marketing? Nothing irritates a customer quicker than a broken promise regarding job performance. Way too many contractors want to appear as 'Mr. Nice Guy' rather than state the obvious. Perpetually overstating the ability to complete a project on a certain schedule, knowing full well that it is an impossibility, has resulted in substantial loss of custom base for many businesses.