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By tomatwark
#1267831
This is the remains of my business after we went under at the end of last month

https://www.sweeney-kincaid.com/Sales/S ... aleId=3535

I am not making anything out of this, the creditors will take it all, but there is quite a bit of small stuff that could be if interest to folks on here.
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By doctor Bob
#1267874
I'm really sorry to hear that.
I think unless you actually run a woodworking business people don't understand the overheads and running costs and the fine line we sometimes tread.
There is some excellent kit there.
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By Trevanion
#1267877
doctor Bob wrote:I think unless you actually run a woodworking business people don't understand the overheads and running costs and the fine line we sometimes tread.


I think one of the worst holes you can get yourself into is having a lot of machines on finance. I've seen quite a lot of fresh start-ups bring in a lot of Felder or SCM kit on finance without really having enough guaranteed work down the line or enough reputation to get work and end up going bust within a year because they couldn't keep up with the payments on the machines. I don't think it's a business you can hit the ground running with, it takes years to build up the reputation and workflow so it should take years to build up the kit necessary, not a 30-minute conversation over the phone with a Felder rep. I've seen quite a lot of these liquidation auctions and the one thing most of them have in common is all the kit is usually under 3 years old and looks barely used, which is a bad sign.

There's really not enough profit margin in the job to climb the ladder quickly, the ones I've seen go big quick usually come right back down just as quickly.
By phil.p
#1267878
doctor Bob wrote:I think unless you actually run a woodworking business people don't understand the overheads and running costs and the fine line we sometimes tread.

I suspect the same can be said for most businesses.
By tomatwark
#1267882
Trevanion wrote:
doctor Bob wrote:I think unless you actually run a woodworking business people don't understand the overheads and running costs and the fine line we sometimes tread.


I think one of the worst holes you can get yourself into is having a lot of machines on finance. I've seen quite a lot of fresh start-ups bring in a lot of Felder or SCM kit on finance without really having enough guaranteed work down the line or enough reputation to get work and end up going bust within a year because they couldn't keep up with the payments on the machines. I don't think it's a business you can hit the ground running with, it takes years to build up the reputation and workflow so it should take years to build up the kit necessary, not a 30-minute conversation over the phone with a Felder rep. I've seen quite a lot of these liquidation auctions and the one thing most of them have in common is all the kit is usually under 3 years old and looks barely used, which is a bad sign.

There's really not enough profit margin in the job to climb the ladder quickly, the ones I've seen go big quick usually come right back down just as quickly.


It is also bad business practice to run a business based on assumptions, I thought you were in business based on you other posts.

I have only been in business 13 years, not 3 as you said.
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By Trevanion
#1267887
tomatwark wrote:It is also bad business practice to run a business based on assumptions, I thought you were in business based on you other posts.

I have only been in business 13 years, not 3 as you said.


My apologies, I didn't mean yourself when I said 3 years :oops: . I was more referencing a local joiner who went from himself and 2 boys in a shed to a large factory environment with 12+ employees, CNC machines and all new kit on finance only to end up back down to himself and 2 boys in a shed after a couple of years, when I asked him about it he said he wasn't making any more money when he was a larger business than when he was running a smaller one and it wasn't worth all the stress and hassle and loss of reputation due to producing lower quality work because of low skilled employees.

I didn't mean to offend with my post!
By tomatwark
#1267891
Trevanion wrote:
tomatwark wrote:It is also bad business practice to run a business based on assumptions, I thought you were in business based on you other posts.

I have only been in business 13 years, not 3 as you said.


My apologies, I didn't mean yourself when I said 3 years :oops: . I was more referencing a local joiner who went from himself and 2 boys in a shed to a large factory environment with 12+ employees, CNC machines and all new kit on finance only to end up back down to himself and 2 boys in a shed after a couple of years, when I asked him about it he said he wasn't making any more money when he was a larger business than when he was running a smaller one and it wasn't worth all the stress and hassle and loss of reputation due to producing lower quality work because of low skilled employees.

I didn't mean to offend with my post!

That's OK things are a bit raw just now, I was a bit blunt .
Making the call was the hard bit, as I could of raised the money to carry on, but was not prepared to get in any deeper.
It is the 5 employees I feel for, although some have already got work.
By tomatwark
#1267893
doctor Bob wrote:I'm really sorry to hear that.
I think unless you actually run a woodworking business people don't understand the overheads and running costs and the fine line we sometimes tread.
There is some excellent kit there.


It is Brexit that has killed us, had lots of quotes well over £130k and work planned for the spring into early summer, but the next 3 months there was not going to be enough big stuff, so I decieded to make the call myself as we would not have been able to cover the overheads and I was not prepared to extend things further, and end up having the call made for me.

People are just not committing at the moment up here, it does not help with the SNP ranting on about another referendum either.
By tomatwark
#1267895
Stanleymonkey wrote:So sorry to hear about your business.

I hope you and your family are as well as can be in the situation. Best wishes for the future.


Thanks for yours and everyone else's good wishes, we will be fine, one of the upsides is that there is more time now to spend with my wife and daughter.