Affording that first employee

dentallabdentallab Posts: 2subscriber
edited November 2006 in Business Planning
Hello...I am new to SuN and have been reading through the 10 steps to grow your business.  My husband I run our own business.  He does all the production and I handle AP/AR, Taxes, etc.  I only work part time since I am also a Mom!   We can see a need from our existing customers but we are stuck at how to afford to add another person.  Our cash flow is not large enough to support the big cash outlay for equipment needed for another employee as well as workers comp, salary and benefits.  We have been trying to do everything debt free and carry only a small amount of credit card debt. 
I am revamping out Business Plan and am looking for advice on planning and affording an employee.  Short of getting a large loan any other ideas?
Thanks for any help you can give me.  CJ

Comments

  • keyconkeycon Posts: 34subscriber
    CJ - many companies face these same problems every day - you are not alone. I admire you for wanting to stay debt free - good idea both from a business as well as a personal standpoint - IMHO. Sometimes though, you got to spend a little money before you make some money. A couple of questions.
    It sounds from your post that business is good. How much more business is in the pipeline? Enough for another full-time person or maybe a part-time person?
    How many hours a week does your husband use the equipment? 40-60-80-100? Could you run another shift and max out the equipment better? If you trained another person, maybe they could work 4-6 hours at night - this way, you would be getting more use out of existing equipment before buying another full setup. There`s 24 hours in a day and many people love to work at night. Maybe a technician who is already trained working in another lab close by who could use the extra money.
    Max out your available resources - equipment and time - before investing in another full setup would be my suggestion based on the little info I know so far.
    Hope this helps.
    [email protected]
  • RichRich Las Vegas, NVPosts: 636administrator Site Admin
    my first question would be, what position (or responsibilities) are you looking to fill with a new employee?depending on your answer, i might have some good ideas you can put to work...rich
  • yourNAMEinDotComyourNAMEinDotCom Posts: 17subscriber
    Get an intern or a student who wants to learn more than he/she needs money.If it`s a big hire, you can also consider paying in equity.
  • dentallabdentallab Posts: 2subscriber
    Thanks for your initial suggestions.  Yes evaluating current time on equipment is a necessary step.
    I know there is business out there from our existing customers and from new customers.  Dental implants/bridges are a growing demand with the aging population.  We want to add one or two more full time technicians who can produce the product.  We need someone with some experience because our lab produces higher end custom restorations. 
    A new technicians basic set up would include a workstation (comes with special lighting, attachments etc., some handpieces, and a supply of consumables.  Approx $10,000 for everything.  Large equipment can be shared but small equipment and certain consumables are used all day long.
    Hope this helps you help me!  I can`t tell you how much I appreciate your suggestions.  We have been talking about breaking out of the sole proprietorship for some time and are spending the next quarter gathering info and analyzing financials, etc so we can revamp the business plan. 
    Thanks in advance for you help.  SuN podcasts are what really got me fired up to get this going.    CJ
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