Started my own business... business is good. ...too good?
 

So, this year my wife basically told me now is the time to do what I've always wanted to do and start my own firearms business. We recently moved to Reno, NV and the timing was right to start my own business as the wife landed a sweet job and we don't need two incomes to be comfortable.

So, I formed an LLC, applied for my 07 FFL and even hopped for the 02 SOT (insert evil grin) and now I'm actively advertising my build services and am honestly surprised at the reaction I'm getting. I'm very quickly reaching a scary level of response and while a month ago I was worried about struggling to find customers now I'm trying to figure out how I'm going to keep up with demand.

Basically, I offer high quality build services for several fighting rifle platforms but the bulk of the work revolve around Kalashnikov style rifles: Saiga/Vepr conversions and complete AK builds.

I mean, it's a good feeling to get such a response from people and to have lots of work coming in... but I've seen this happen to people before where they get so swamped with work that either their product quality begins to decline or their delivery times begin to really suffer... causing a negative reaction with their customers. I'm trying to figure out how to keep these things from happening to me.

Thoughts???

Easy. Raise your prices.




...and send me 5% :cool:

I'm not an expert, don't own a gun, etc

But doesn't demand for this type of work/goods spike just before an election? Aren't they driven (somewhat) by fears that they will be banned?

If so, it's wise to play it conservatively, keep quality up, and be selective in anticipation of slightly relaxed demand post-election.

Again, I'm asking for people who know more about it to weigh in on whether that's accurate

cool!!

congrats..maybe hire someone?

What's the long-term plan?

Go big, and hire employees, or a one-man custom shop?

If you want to stay small and insure nothing but top quality, then Island is right- Raise the prices, and limit new work. Schedule projects so wait times are reasonable, do not schedule more work than you can handle.

If you want to build something bigger than yourself, you will churn through lots of employees. When you get a truely good one, pay them exceptionally well, and you will have their loyalty.

Cheaper to pay well than continually train new faces.

Actually this is very sound advice and one I learned quickly when I started my own law practice. Most people equate quality with higher prices. Make sure you deliver on that. You will do less work for the same total income. Your reputation goes up because you do quality work. How many times have you heard people brag that they are on a waiting list to get what ever widget made by some well known artisan? Become that person.

A combination:

- Raise prices
- Hire at least part time help for some of the simple stuff. (shipping / receiving, keeping shop clean, preventative maintenance). Maybe a student or a retired person. You need to value your expert time. Swiping floors and packing for shipment are not good use of your time.
- Do good project planning and do not accept work that can't be completed in 3 months or less. It will be less harmful to turn customers down than to take their work and not return it for a year.

What do you think?

G

Yup.

You see this a lot with tattoo artists.

There is only so much work that one person is capable of doing, it's purely a function of time.

People who want the best will wait months for an appointment and pay top dollar.

Do you give an SCWDP discount? :D

I'll be sure to send you your 5% of my 5%. ;)

Subscribe to every thread Fastfred starts and do the opposite of what he does.;)

Seriously, his posts are a perfect example of a talented guy with lots of work getting bogged down in stuff he doesn't specialize in - cust. relations, paperwork, shipping and delivery stuff.

Hire someone to do the stuff you shouldn't be wasting your time on that allows you to dedicate your time and talen to stuff that you can bill for.

Can you get me a deal on a full-auto drop-in sear like the $200 ones the ATF advertised in their Shotgun News stings?

The vast majority of businsses that fail, do so because they are under-capitalized. Great product, great customer service and great intentions do not equal success in business. If you believe your businss volume is sustainable (at a minimum), you'd best consider investment in the infrastructure necessary to turn out consistently high quality in a timely fashion, regardless of the model you chose (as in previous posts).

You'll quickly reach a cross-road based on your description (or perhaps you already have). If so, invest wisely.

Lee - wait until a bit after the November election, the recount and the court battle to make any expansion decisions. Until then, work azz off and make everything you can. (no political statement or opine implied)

BTW - I'm in the market for an accurated up Polytech or Mak-90 with wood furniture, no thumbhole - can you hook me up?

maybe you are selling yourself short. how much do you pay yourself? minus health insurance? retirement savings?

other side of the coin. how much is the work WORTH on the market? business can be about selling the product at a % above cost margin, but it can also be selling the product at a discount off market VALUE.

If you want to base short-term goals on the election results, I'd focus on things that are likely to be put in the crosshairs of a worst-case scenario new gun legislation package, since they'll always be grandfathered in any new ban. I'd consider the enhanced guideline-making powers ATF could get (or take) in order to bypass Congress. So that'd be commbloc-style rifles, anything .338 or above, especially .50 cal. and doodads like flash suppressors, hi-cap mags, mag extenders, folding stocks, grips. Seems to me the class III stuff is usually left alone, since it's already relatively rare in the general public and you probably won't do much business in the states that already ban that stuff at the state level.

"Easy. Raise your prices."

Good advise.

Take your time. Do good work. They will wait and pay the price for it.

There is some very good advice in this thread, thanks. I really don't think the rush of people contacting me has anything to do with the election. It's just that there aren't many people in this line of work putting out quality/detail oriented firearms. The ones that do have up to a 3 year waiting list (ala Tromix).

I'm trying to be that guy who can do good work relatively quick. But I see a backlog piling up. I'm also in no way ready or able to move into a large commercial space, purchase machinery and hire employees. I'm just a one man show for the foreseeable future.

Thanks again for the input fellas.
Lee

Best of luck Leland!

With how quickly you've tackled your FJ project, I'm sure you'll have no trouble keeping up!

I work on firearms during the day and the FJ at night. It's proven to be an awful lot of friggin' work.

So , I guess , my advice will not go far here.

And hire a hot young 20-something babe to answer the phone/run a desk;)

If you are as talented with guns as you are with plywood aerodynamic devices, I see a very bright future for you indeed.

The secret to any business success is your ability to delegate. You farm out what you cannot do or you employ people who can. All successful businesses have the right people in the right positions put there by someone who knows how to delegate. You must also have the ability to let them go if they are not working out. The parts of my business that I don't know enough about, I employ people who do. After 20+ years I'm still going.

This. Same as the airlines do. If demand is too high, adjust it by changing the price. Less business, more money, same result with less stress and same quality.

Are there any steps In the process that a 1099/cash employee could do that is not critical?

Tear down, parts cleaning or cleaning after reassembly. Even packaging for shipping. Lots of no value added tasks I'd bet.

Catalog your process informally and see where a good hand could help.

Seriously, there's a lot of good advice in this thread. I love it. Even my wife read it and said there's some awfully good insight posted here. I really appreciate it, guys.

Great advice indeed. The only thing I can think about adding is being upfront with your customers and prospective customers. Let them know your backlog situation and make sure they know it's because the quality of work is causing it. That sort of thing can also serve as a bit of advertisement. Those who have friends wanting the same thing will tell them to get on the ball if they don't want to be faced with a potentially long wait.

Two rules I have always lived by in sales:

If you're willing to pay it, I'm willing to charge it.

Underpromise and overdeliver.

As others said, do not compromise the quality of your product. Very good advise and I hope I have your problem when I start out after college.

As a small business owner I can this. Don't grow to fast, I see lots of guys move into larger shops and hire people as soon as business picks up. Without a stable base you die quickly

this is all good advice. I myself am a one man shop, and it can be a bit overwhelming. I have found that if I get too busy the quality of my work goes down because I rush, That is bad because that where your reputation lies and that IS the essence of your biz. Hiring somebody to help me is just silly, and I end up doing the work over again anyway and pay somebody for the trouble. I know my rates are stupid cheap and I should raise them. People actually expect to pay more for what I do. However this area is pretty depressed and I try to stay with what the local market will bear. Ido an occasional moratorium on full out restorations, like I'm doing now because of over load, catch up, and now I have hunting season coming, then the holidays. I have found that people are only too willing to wait if you are reasonably priced and do good work you stand behind.. Good luck with whatever you do.

There is fear of an Obama 2ND term out there. What wil he do next? Then there is the fear that things are going to he11 in a hand basket. So people want those tricked out AK's There is a guy here in LV that tricks out Assualt weapons, and has now opened a Gun Store as well that his wife runs...and it seems to be doing very well.

The market for Spoons since the end of 2008 has been strong to very strong. Spoons are a commodity that can be used if things detoriate and as such have the cache of being a hedge against inflation much like Gold and Silver. So I would not expect much of a slow down at your level. Of course this business is a bit seasonal...much like the whole collector market in general.

remember this from my sales life selling mill-yon dollar tooling packages thruout the SW, for aerospaced CNC's....................... or anybody who had a mill or a lathe.

1) YOU CANNOT SELL out of a empty wagon.

2) the customer is always right. even when said customer isnt right, you make him fell right.

3) being the most expensive means YOU better do it right the 1st time.

4) saving the customer TIME is HUGE!

5) saving the customer hassle is huge.

6) people buy from their FRIENDS not their ENEMIES!

7) the ONLY DAMN THING ANYBODY HAS IS THEIR WORD! doesnt matter the product, the price,the warranty, there are no monopolys on ANYTHING!

8) if you dont have it , find it asap.

9) if customer asks for a catalog/part/widget/screw/bolt/etc...................ya better get it for him. they DO REMEMBER THIS!

10) dont just focus on one spoon group, not all of us LIKE commblock stuff. and if things go bad..............whats the 1st thing thats going down the pooper?????????? yep ANYTHING IMPORTED! which if i was a u.s. mfg. WOULD LOVE! cuz it narrows the playing field.

11) FOCUS ON 1 JOB AT A TIME! multi tasking is bullcrap, proven harmful to yer health, and all ya get in the end is a bunch of monkeyfeeked product.

12) keep yer "t's" crossed and "i's" dotted for the ATF! ask me how i know after all this bullcrap with "fast and furious" here and my friends with their FFL's licenses.

13) anchor yer safes to the ground. buy fireproof ONLY!

14) place anti vehicle barriers in front sides back of building for smash and grabs. its happened here a few times already being close to the border.

15) have a video camera in building.

16) be just like ANY JEWELERY STORE OWNER.................ARMED WITH (1) IN PIPE AT ALL TIMES! remember YOU are NOW a TARGET!

17) always vary yer routine making deposits/withdrawls etc.

18) attend all trade shows ya can, its a write off, good source of info, meet new people, possibly have show booth, always hand out catalogs or flyers or biz cards. always have something stoopid with yer logo on it. t-shirts hats beer can openers whatevars.

19) make yer website EASY! not some damn cluster feek to get through to place an order.

20) the number 1 fail of all small biz is accts payable/receivables. if ya aint getting paid.................ya aint paying the bills. cash/visa/amex baby. screw the checks/screw the promises....................CASH ON THE BARREL HEAD!

21) one off parts on mill and lathe= BIG BUCKS! make 100 or more parts=price comes down. invest in any/all latest greatest tooling. faster ya make it..........the more profitable ya are.

22) people like to talk...................if after a few minutes the conversation isnt leading to a sale............tell customer you are busy and have to get back to work. TIME=MONEY$$$$$


23) GOOD LUCK!

Thanks again everyone for the positive words and sound advice. Here are some photos of some work I've recently completed to give you an idea of the type of guns I build.

This is a Saiga 12 ver. Exp. 030 which is the export version of the high;y coveted Izhmash 12 SK-K combat shotgun. They are imported in a bastardized configuration to get around restrictions imposted by the GCA. Once they are here, enterprising individuals such as myself convert them using authentic parts to put them back to a way god intended.

Before:
http://i371.photobucket.com/albums/o...7at80637PM.png

After:
http://i371.photobucket.com/albums/o..._2549Large.jpg

http://i371.photobucket.com/albums/o..._2572Large.jpg

Here's a Title II SBR AKS-74U I built on a Nodak receiver:

http://i371.photobucket.com/albums/o..._2577Large.jpg

Love it!

I see an SBR in my future.

i just looked at Saiga Rifles for Sale By Legion USA!. i think i am going to get one from you when i sell my browning HiPo.

cheers,

d.

This is very important advice. If you do decide to expand, you'll be exposing yourself to the greatest danger, which is cash flow. You can have customers up the yingyang and skyrocketing sales, and go bankrupt because the capital is not there to support the too-rapid growth. Even as a one man show, you're likely to 'grow' your 'plant assets,' which could outstrip revenues at times.

You're going to have to raise your prices. To slow, and finance, growth.

only thing i learned from business school is that this strategy is called "prestige pricing"..

and vanilla bicycles has a stupid 5-year wait list..what an exclusive club that must be!!

good luck Leland!! next time i am up that way..love to check out the operation.

Hey Fred,

I think Rick meant his comment to be in GREEN - but I'll let him confirm that if he wants.

As a small business owner myself.....I haven't seen anything in your posts to denote anything out of the ordinary from what all business's experience throughout their normal operations.

In fact - your posts/threads only demonstrate how engaged you are with the successful management of your business.

I think most of us who own business's can resonate with the various scenarios we run into whether it concerns customer relations, material handling, bookkeeping, labor, etc. etc.

I've never seen any business that didn't have daily challenges - and those challenges certainly are not an indicator of failed operations. They are more indicative of a thriving operation.

Carry on and keep posting - we can relate! ;)

I've wanted a Saiga-12 shorty for years. Just not interested in paying Uncle Sam $200 + an anal probe for the privilege.