...and handed in to Patrick tonight.
I have just returned from presenting Patrick with half a rain forest's worth of papers and notes.
My PDP 5 / PDP 6 "Business Plan" is now finito!!!!
Have fun, Patrick!
Thursday 15 January 2009
Sunday 11 January 2009
Future Plans: 4.) Funding...
Financial assistance to expand the business, other than through traditional avenues (bank loans / overdrafts / private finance) is becoming increasingly difficult. The majority of what little funding is available usually only offered is to businesses in the rural enterprise areas and socially deprived areas and KDS Ltd does not fall within the required postcodes or does not meet the stipulated criteria.
However organizations such as the Business Enterprise Fund can offer a wealth of information to both new and existing companies such as financial forecasts and Business Plans to present to financial institutions. During the current difficult financial situation even business overdrafts are limited.
Once the economic climate improve, we are considering diversifying into Europe – vehicles are not just cars and vans - and we have recently investigated the shipping and airline industries. This may involve new suppliers and would very likely affect our cash flow until a business relationship is established where we are granted credit terms. This would have an impact on our day to day running of KDS Ltd but would be achievable.
Once the economic climate improve, we are considering diversifying into Europe – vehicles are not just cars and vans - and we have recently investigated the shipping and airline industries. This may involve new suppliers and would very likely affect our cash flow until a business relationship is established where we are granted credit terms. This would have an impact on our day to day running of KDS Ltd but would be achievable.
We also need to look at our own client’s payment terms – cash flow is a big issue for small companies and can restrict our expansion. We have had some recent problems in getting some invoices for very small amounts paid - these problems affect our thinking concerning our client's who have larger invoices outstanding.
Future Plans: 3.) Training...
Existing staff have been trained already and will broaden their knowledge base in the near future by attending the following training courses:
Health and Safety (IOSH)
Employment Law
How To Stay On Top Of Debt And Keep Cash Flowing
How To Turn Your Website Into A Customer Magnet
Time Management – how to stop others stealing your time
Double Sales From Your Brochures, Flyers, Ads, E-shots And Website
Online Social Networks – reaching out to new customers
Presentation Skills Masterclass
Other possibilities include www.traintogain.gov.uk and local colleges.
Health and Safety (IOSH)
First Aid In The Workplace
Employment Law
Business Link (Yorkshire) courses - these are already booked for us for the months of January, February and March 2009.
Be Inspired - motivational presentation
How To Stay On Top Of Debt And Keep Cash Flowing
How To Turn Your Website Into A Customer Magnet
Time Management – how to stop others stealing your time
Double Sales From Your Brochures, Flyers, Ads, E-shots And Website
Online Social Networks – reaching out to new customers
Presentation Skills Masterclass
We have also looked into additional training from The Enhancement Fund
The Enhancement Fund will donate 40% of the cost of training courses up to a maximum of £20,000.
It's A Wrap...!!!
We are currently looking into the possibility of expanding our business into the area of vehicle wrapping - where the complete vehicle is covered in a digitally printed image. The training courses are costly, about £600 plus VAT per attendee, and are quite scarce - usually offered by larger sign firms or sign material suppliers.
Future Plans: 2) Staff...
Normally we are able to manage our work flow adequately with the two of us. There are always 24 hours in a day and 7 days a week!
Sometimes we need to get in a third party to help and we pay them on an hourly basis.
Occasionally, we sub-contract to specialist firms for tasks such as sign fitting - we either get our client to pay them direct or we pass on the sub-contractors fees to them. We do not add on any additional costs.
Requirements:
Office/admin manager to deal with financial side of business and customer care.
Vehicle/sign technician
We currently are not in a position - in terms of sufficient work load, time and resources - to employ someone.
It is a bit of a "Catch 22" situation at the moment - without premises we are unable to handle enough jobs to afford or warrant taking someone on and if we took premises we would be unable to afford to employ someone in the initial stages. Until suitable, and affordable, premises are located we are unable to sustain any increase in staff.
Additionally, our original business aims were to provide a quality service to clients in which they benefit from direct contact with me - I am responsible for each of the projects I undertake and know what each client expects. Would this suffer if someone else came in?
We also want to remain independent and self controlled. We want to be able to work as late as we want (or need!) and them take a day off when we feel like it. This would be difficult with any employees to consider.
Considerations:
Aspects of employment law would need to be researched and implemented correctly.
Way forward at present:
In an attempt to increase turnover/profit, existing part time staff increase hours and additional (paid) temporary work given to friends and family as a temporary measure.
Current financial down turn means that this has worked well at present for KDS Ltd. However, once the economic climate improves the only way to increase profits is to expand the business and take on the risks that this would then present.
Current financial down turn means that this has worked well at present for KDS Ltd. However, once the economic climate improves the only way to increase profits is to expand the business and take on the risks that this would then present.
Future Plans: 1) Premises...
The subject of expansion and if we should get premises is never far away and we regularly think about the need for moving into premises.
Requirements:
Must be able to accommodate a vehicle (or 2!) to be worked on
Have a clean area where graphics can be produced and stored
Have a design area for the PC and Apple Macs
Have an area for clients to be seen
Toilets
Secure
Location:
Brighouse - at most, 1-2 miles away
Roadside position - visible to potential customers driving
We have registered with two local estate agents, Walker Singleton and Daniel & Hirst,but neither have been able to provide details of such premises currently available. The few, two to date in over 6 months, that have been suggested have been incredibly wide of the specified details.
Requirements:
Must be able to accommodate a vehicle (or 2!) to be worked on
Have a clean area where graphics can be produced and stored
Have a design area for the PC and Apple Macs
Have an area for clients to be seen
Toilets
Secure
Location:
Brighouse - at most, 1-2 miles away
Roadside position - visible to potential customers driving
We have registered with two local estate agents, Walker Singleton and Daniel & Hirst,but neither have been able to provide details of such premises currently available. The few, two to date in over 6 months, that have been suggested have been incredibly wide of the specified details.
Possibilities so far:
Unit 1). In September 2008, we viewed a unit on a recently built industrial park near Elland. The unit in next door to one of our existing clients and we have previously used it to letter that clients vehicles in. The previous occupant, a joiner, rented it to us on a daily rate during February 2008 whilst we completed a fleet of vehicles.
The unit met most of the requirements but was located towards the end of the industrial park and was not visible to passing motorists. Additionally, my client has experienced repeated break ins and thefts owing to the secluded location of the units. Finally, the landlord wanted a 5 year lease signing and the terms offered were not affordable to us.
Unit 1). In September 2008, we viewed a unit on a recently built industrial park near Elland. The unit in next door to one of our existing clients and we have previously used it to letter that clients vehicles in. The previous occupant, a joiner, rented it to us on a daily rate during February 2008 whilst we completed a fleet of vehicles.
The unit met most of the requirements but was located towards the end of the industrial park and was not visible to passing motorists. Additionally, my client has experienced repeated break ins and thefts owing to the secluded location of the units. Finally, the landlord wanted a 5 year lease signing and the terms offered were not affordable to us.
Decision: NOT FEASIBLE OR AFFORDABLE
Unit 2.) In November 2008, another client offered to us the use of one of his premises. It does not have separate offices in which to undertake our design work or client meetings, but it would enable us to get vehicles undercover whilst we work on them.
Unit 2.) In November 2008, another client offered to us the use of one of his premises. It does not have separate offices in which to undertake our design work or client meetings, but it would enable us to get vehicles undercover whilst we work on them.
He is currently paying £150 per week for the premises. As they are currently not needed by his business, he would be happy to receive £75.00 from us to use them. He would be looking for a tenant that he trusts and would be happy for us to use them on an "ad-hoc" basis.
Decision: HAS POTENTIAL. AFFORDABLE FOR THOSE PROJECTS WHEN A SHORT TERM SOLUTION IS REQUIRED
Unit 3.) In late December 2008, yet another client offered us the use of areas of his new premises. His engineering firm has relocated from just outside Brighouse town centre to an industrial park about 1.5 miles away. He has two area of these premises that he has no immediate use for and is keen to ensure he gets some revenue from them if possible.
3a.) The first area is an old "Anderson shelter' style unit - this would be inadequate as the doors are not wide enough for a vehicle and it would be freezing! Decision: NOT AT ALL FEASIBLE
3b.) The second area is just off from his his main workshop and it has a large sliding door. The area is simply a large square room into which vehicles could be driven. Decision: POSSIBLE
3c.) My client also suggested a room overlooking his workshop which we could use in addition to either of the previously mentioned areas. Decision: QUITE HANDY
However, his premises are tucked away at the far end of the industrial park and any passing trade would find it hard to locate us. The site board at the entrance to the park only has sufficient space for signs to advertise the main firms on site, and we would not be able to advertise our location. Decision: NO PASSING TRADE
UPDATE: With the current economic climate and with fewer jobs available from each client, we have decided (actually, the decision was made back in September/October 2008) to not get premises at this stage.
Kramers Designs & Signs Ltd...
In June 2008 we met with our accountants, Sleigh & Story, to discuss ways to move our business forward.
Considerations:
1.) The first thing to consider was wether we should change from a "partnership" and become a limited company. Peter Sleigh outlined the advantages in terms of financial liability and the additional costs this would incur. We decided that it was beneficial and became Kramers Designs & Signs Limited on July 1st 2008.
2.) Renting suitable premises - office space with adjacent garaging for vehicles.
3.) Employing additional staff.
How we calculate the cost of vehicle lettering...
Our formula to calculate the cost of lettering a vehicle is simple:
Hourly Rate x Time + Materials + Misc Costs = £ Cost To Customer
This is calculated as follows:
Time: design + preparation (cutting/weeding/covering of vinyl graphics) + travel (time to site) + applying (to vehicle)
Materials: vinyl graphics (in metres) x £ per metre + delivery costs
Misc Costs: cost of special materials (eg. digitally printed images) + delivery/production costs
Hourly rate - is charged at £25.00 per hour - we feel this is sufficient to cover our running costs (lighting, heating, insurances, consumables, telephone/internet/mobiles etc, vehicle).
Materials and Misc Costs - quality materials are sourced from reliable suppliers. We add a "mark up" to the costs we pay for them.
Our profits are taken from these.
___________________________________________________________
Hourly Rate x Time + Materials + Misc Costs = £ Cost To Customer
This is calculated as follows:
Time: design + preparation (cutting/weeding/covering of vinyl graphics) + travel (time to site) + applying (to vehicle)
Materials: vinyl graphics (in metres) x £ per metre + delivery costs
Misc Costs: cost of special materials (eg. digitally printed images) + delivery/production costs
Hourly rate - is charged at £25.00 per hour - we feel this is sufficient to cover our running costs (lighting, heating, insurances, consumables, telephone/internet/mobiles etc, vehicle).
Materials and Misc Costs - quality materials are sourced from reliable suppliers. We add a "mark up" to the costs we pay for them.
Our profits are taken from these.
___________________________________________________________
Example 1:
A medium sized vehicle (eg. Ford Transit) with an average coverage of vinyl graphics - both sides, rear doors and bonnet - but without any prints and at a local site might calculate as follows:
Time = £212.50
2.5 hrs (discuss & design) + 2.5 hrs (preparation) + 3.5 hrs (travel & apply) = 8.5 hours @ £25.00 per hour
Materials = £100.00
10 metres of vinyl @ £8.50 (average charge p/m - some cost more, others less) + £15.00 (delivery from supplier)
Misc Costs = £0.00
Cost To Customer = £312.50 plus VAT
___________________________________________________________
Example 2:
A small van (eg. Citroen Berlingo) might require less material, but the time for designing, preparation and applying would not be significantly reduced:
Time = £175.00
2.5 hrs (discuss & design) + 2.5 hrs (preparation) + 2 hrs (travel & apply) = 7 hours @ £25.00 per hour
Materials = £66.00
6 metres of vinyl @ £8.50 (average charge p/m - some cost more, others less) + £15.00 (delivery from supplier)
Misc Costs = £0.00
Cost To Customer = £241.00 plus VAT
___________________________________________________________
Recent job:
We recently did a large van (a Fiat Ducato XLWB, High Roof) that had only a modest amount of vinyl graphics but which required some large prints. Additionally, a portion of the vinyl was to be in a reflective grade, which is more expensive. The time to complete the application of the graphics was longer than usual as great care was needed when trimming & positioning the prints.
Time = £250.00
3 hrs (discuss & design) + 3 hrs (preparation) + 4 hrs (travel & apply) = 10 hours @ £25.00 per hour
Materials = £91.50
9 metres of vinyl @ £8.50 (average charge p/m - some cost more, others less) + £15.00 (delivery from supplier)
Misc Costs = £158.50
x6 digital prints (700mm x 1300mm) with clear laminate to face + reflective material
Cost To Customer = £500.00 plus VAT
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