Author Topic: am I really alone ?  (Read 10703 times)

Offline IntegrityShirts

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Re: am I really alone ?
« Reply #15 on: October 27, 2014, 08:46:30 AM »
I have no problems with the idea of financing a press, but right now I'm pretty sure I wouldn't qualify.  It is probably for a different thread, but how does one make the leap from manual to auto without stellar personal credit to back up the financing.  Mine really isn't great for this reason and that (nothing terrible, just nothing great like a car loan or home loan and few credit cards).  I feel like I have more than enough work to take advantage of an auto, and the time savings on some jobs would be astronomical, which would actually let me catch up and go make sales, but right now I feel like I am maxed out with what I can produce in the time I have, and I am making enough for me, but just don't see how adding another person would double my revenue.  It would gain me maybe 25-30% more in time and revenue based on what I see when I do bring in help.

Always looking for the elusive cheap auto, but that just doesn't look like a reality any time soon.

Save up 20% of the amount you want to finance and go to LOCAL banks and talk to a real person. I tried the big name bank route and they all shot me down or had horrendous rates and requirements. I ended up getting a loan from the bank 1 block from my shop from one of the nicest bankers you've ever met. Down to earth local banks often take risks to drive their local economy.

Oh, and I am a 1 person shop, 10 color auto, giant dryer. It maximizes my time to take orders, do art, clean screens, etc. I'd do it exactly the same if I had to do it all over, but I'm not going to rule out LUCK along the way haha.


Offline mimosatexas

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Re: am I really alone ?
« Reply #16 on: October 27, 2014, 09:36:36 AM »
I honestly dont know how any shop could support multiple people without an auto. I barely make enough right now to take care of my bills and my family and i work my ass off.

When I first started, I was the first hire, had no previous t-shirt experience, but had printed with flatbed presses, and made screens and worked in a darkroom, so I wasn't a complete noob. We had one Vastex manual and a homemade one color press. 5 people and one part-timer. This with slow production. Then we had a new hire who had worked in a large, large shop, who showed us what the speed table was for. So for one color printing, there was a printer, a loader, and an unloader on the press, plus a catcher. 300 per hour easy. Holy Spit! Multi color job, 2 people because the unloader had time to load as well. Went a whole summer like that, made some good money that way. By the time we got our first auto, we were already flying fairly high. I think my friend, that you aren't spending enough time printing. If  you're not printing, you're losing money; think of how all of your variable and fixed costs are still there when there is no printing; rent, phone, insurance, yada yada yada... If you had 5 more hours printing a week, how would that help your bottom line? You can make the move, it's been done many times...

Steve

I appreciate the advice, and it's something I see echoed a lot in threads, but the reality is I am printing as much as possible at the moment.  I currently work around 50 hours a week, and easily half of those are spent communicating with clients, doing art, cleaning, sorting, handling screens, mixing inks, dealing with financials and other admin stuff, building and upgrading equipment, etc.  I would love to work longer hours and get more done, but I have a 7 month old and my wife works 60+ hours a week as a teacher as well.  It just isn't possible right now.  Keeping the press spinning is great when you have other people handling all the peripheral tasks associated with a business, but it isn't realistic when you are a single person handling those as well.

Offline Sbrem

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Re: am I really alone ?
« Reply #17 on: October 27, 2014, 09:56:35 AM »
This is exactly why you need an employee to help with the work load. The truth is that you can't do it all yourself and grow, unless growing more tired and poor is what you're looking for. (and I really don't think that is) It is a difficult decision, no two ways about it. What if you had to make more sales calls? Do more art, make more screens? What happens to the work then? If there is no printing happening, you don't get paid. Help makes you money to pay them, make a profit, and grow... best of luck my friend.

Steve
I made a mistake once; I thought I was wrong about something; I wasn't

Offline mimosatexas

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Re: am I really alone ?
« Reply #18 on: October 27, 2014, 10:29:00 AM »
I'll start looking into it, possibly a part timer at first to help with some of the low skilled stuff.  I was really hoping to automate before hiring anyone honestly, but getting the auto is proving more difficult than I had hoped.  My current shop doesnt really have the proper electrical, which means moving, which means all those expenses and time.  I'm going to give it another 6-8 months and see where I am and probably move and hire a part timer and hopefully by that time either be able to afford an auto or have found a great deal on a used one as a stop gap.

Offline Prosperi-Tees

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Re: am I really alone ?
« Reply #19 on: October 27, 2014, 11:13:04 AM »
I'll start looking into it, possibly a part timer at first to help with some of the low skilled stuff.  I was really hoping to automate before hiring anyone honestly, but getting the auto is proving more difficult than I had hoped.  My current shop doesnt really have the proper electrical, which means moving, which means all those expenses and time.  I'm going to give it another 6-8 months and see where I am and probably move and hire a part timer and hopefully by that time either be able to afford an auto or have found a great deal on a used one as a stop gap.
A couple years ago when I got our first auto we were just like you. In a small 800 sq ft shop with 100 amp electrical service. I didn't think we could do it but it worked. Ended up finding a used Javelin on Digitsmith, a compressor off eBay fairly locally, had an electrician friend do the wiring and we were off and running. All in we spent under 6k. You can do it.

Offline Gilligan

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Re: am I really alone ?
« Reply #20 on: October 27, 2014, 11:14:24 AM »
What sort of electrical don't you have that you will need?  There are non-3 phase options out there.  I'm not sure I could recommend any right now until I see how things are going in the next week or so.

But think about how much you will pay an employee and then calculate does that number equal payments on an auto and other expenses related to getting an auto?  Labor ain't cheap, that's for sure!

Offline mimosatexas

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Re: am I really alone ?
« Reply #21 on: October 27, 2014, 11:27:16 AM »
I have 130 total amps for my section of the building, and only one single phase 50 amp 220, which being used for my dryer.  I originally had access to 2 more 50 amp 220 circuits, but both are being used by my landlord currently.  I'm sure I still could grab one from him if I asked nicely :D

Honestly though, I need to find a bigger and cleaner space, preferably with plenty of electrical and natural gas.  My current shop is borderline ghetto due to the age of the building.

Offline bulldog

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Re: am I really alone ?
« Reply #22 on: October 27, 2014, 11:47:34 AM »
I'm struggling with the hiring vs automating thing now too.

I've got about as much equipment as I can fit in my garage now. So an auto would mean moving...which I definitely like the convenience of working out of my garage and the rent is cheap. =)

I set out with the idea of never hiring anyone but I'm starting to realize that might be my downfall. Cleaning screens right now is my biggest bottleneck and some part time help would do me wonders.


Offline Sbrem

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Re: am I really alone ?
« Reply #23 on: October 27, 2014, 12:09:01 PM »
to reiterate what you can do on a manual, way back in '78, the Pope came to Boston, we had about 8 different 1 color designs, all printed at an average of 300 per hour with 3 people on the press, and one catcher. Suppose we were getting $5.00 per shirt back then (which sold for $15 - $20) that's $1500 per hour gross... that will make you some money. Now I realize that you're not going to have that kind of business all day, every day, but it's for illustration purposes. The point is to increase your output without increasing your costs, or at least with as little increase to cost as necessary. And if you get some low end employees to get started, they can be cross trained to do more work while you do the sales that will drive your operation.

Steve
I made a mistake once; I thought I was wrong about something; I wasn't

Offline royster13

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Re: am I really alone ?
« Reply #24 on: October 27, 2014, 12:43:28 PM »
And if you get some low end employees to get started, they can be cross trained to do more work while you do the sales that will drive your operation.

Steve

Just make sure you do the math on this.....For some this idea turns out making them "poorer" because at the end of the day they were paying wages instead paying for equipment.....

Offline Get Shirts

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Re: am I really alone ?
« Reply #25 on: October 27, 2014, 02:23:02 PM »
An auto won't call in sick. 

Have you considered outsourcing any of this overload work that you're experiencing?  That might be the alternative to hiring while you build the business and stack cash.  I guess it depends on how large you want to grow the company, but at some point you (or someone) will need to spend a good portion of every day maintaining the backend of the company, managing clients, and growing.

Send me a pm if you're interested in exploring that option.

Good luck!

Offline mimosatexas

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Re: am I really alone ?
« Reply #26 on: October 27, 2014, 02:43:33 PM »
I have been thinking about sending certain jobs out more and more.  I am increasingly getting higher color count 200+ orders, and those take freaking forever to print in house compared to the one color stuff I can bust out at 150 an hour.

Offline Gilligan

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Re: am I really alone ?
« Reply #27 on: October 27, 2014, 04:27:14 PM »
Not like you don't have a kick-ass print shop around the corner.  I'd definitely send it out to give you breathing room.  It's like temp labor that never calls in sick and does ALL the production for the job.

I definitely think you should get an auto first.

I went the other route, but I have my irons in too many fires.  I do know that if my guy quits or something I could more easily take over now that we have the auto vs trying to do it manually.  Hell no, I wouldn't want to do his job manual!

Offline Sbrem

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Re: am I really alone ?
« Reply #28 on: October 27, 2014, 05:49:01 PM »
And if you get some low end employees to get started, they can be cross trained to do more work while you do the sales that will drive your operation.

Steve

Just make sure you do the math on this.....For some this idea turns out making them "poorer" because at the end of the day they were paying wages instead paying for equipment.....

Yes, always be careful, do the math, and do it again, then ask someone else to check. If you get an auto, be prepared to get a bunch of frames that fit it, your present manual frames may not work out, depending on the press. Will your dryer handle the output from an auto? Will your exposure unit hold an auto frame (typically 23 x 31)? Mentally walk through the process looking for trouble, not to dissuade you, but to be prepared for what would be coming. I still think the most important thing for you is more production in the same time frame, though an employee will run you more money, he/she will make more for you than you have to spend on them (don't forget about labor burden,  such as matching their SS, insurances and other things), if done right. And though I know some prefer getting the auto, which I applaud and also recommend, I know that in our shop in the beginning we knocked out 9000 white t's with a 2 color front on 2 manuals over a weekend, without having an auto payment hanging over our heads. Our first auto was used, which we got for $12,500 and worked to death. It helped us get the higher volume work, get a better reputation, and of course, get another auto and more employees. If you have an accountant, find the time to sit and chat about what you want to do. If you want to spend time with the family, you need to have it all under control so you can do that. You can do this, no matter what route you take

Steve
I made a mistake once; I thought I was wrong about something; I wasn't

Offline mimosatexas

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Re: am I really alone ?
« Reply #29 on: October 27, 2014, 07:20:07 PM »
All of my frames are already 23x31 (minus the huge stuff I use for flatstock/flags/all over prints) and I actually have an exposure unit that could in theory do 4 up at a time, though my light source really isnt ideal for it so I just use my standard MH unit. I've done all the research when it comes to this kind of stuff and been preparing for a long while toward getting the auto.

Definitely a lot of other factors to think about though.