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Are you thinking about investing or doing anything new?
As work isn’t great due to Covid and all else at the moment. I am wondering what everyone else is thinking or considering at the moment?
Should we be looking to expand on what we can do to gain new business or sitting tight and see how things pan-out?I must admit, I am getting edgy just sitting watching the news while thinking. “should I be making a move or doing something more while others appear not to be?”
Sunday night here and I am normally planning my week, spilling onto the following week. not what I am doing tomorrow and maybe the following day.
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13 Replies
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We did. All things we were going to do at some point though. We took an embroidery machine for happy and application table from mounters mate, along with a keencut.
Embroidery was a safe bet for us though (touch wood). The rest was about speeding up production.
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This reply was modified 3 years, 8 months ago by Chris Wilson.
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This reply was modified 3 years, 8 months ago by
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We were looking a getting a new plotter, but it’s now turned into a new printer and laminator as well. Our JV33 is getting on, so it will improve our production speed.
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I’m just about to order an A3 flatbed UV printer…….looked at them for years at Sign UK so decided to go ahead with it.
Another new toy with a learning curve
john
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I’ve always fancied one of these.
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We’re hunkered down, and sitting tight.
We don’t need any new machinery. I’m not going out getting new machines on a bit of a whim in the hope it’ll generate more business.
We’ve been concentrating more on how to generate more business, and identifying the kind of customer we want.
Not saying any of the members here have, but I suspect a few people will have gone splashing the cash from their grants and loans, for it to bite them on their backside in the coming year.
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Luckily, we’ve been planning our purchases for a while, so no grants etc involved. I suspect you may be correct though.
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Looking at machinery which will make what we already sell more profitable in terms of efficiency and production volumes.
If that doesnt go to plan then Ill buy a sponge and a bucket and start up as a window cleaner. Fingers crossed plan a works.
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These comments aren’t helping me!
some have me thinking sitting tight may be the way to go. Others having me thinking, “oh yeh, having one of those would be great!
I do not know if I would get into something totally new, like embroidery. as I just don’t have the customer base nor someone dedicated to selling it. which I think no matter what “completely new” area you get into, would require if the outlay was significant.
I would love a mounting table, but costly, a lot of space required, but would really help production-wise. I would love a flatbed printer too!
Thankfully, grants are not what would be paying this. I’ve been setting aside money for a rainy day.
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Only you will know.
@Steff Davison is correct, if you’ve already work rolling in, and investing will make you more efficient, more profitable it makes sense, provided you’re confident of future sustainability.
There’s loads of toys I’d like, but it just doesn’t make business sense, and we’re as well outsourcing it.
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Karen, I followed the sales numbers. I started in a spare bedroom at home with a 10 year old summa. I concentrated on selling what the Summa could make,I didnt have any other choice.
As volumes grew I bought another Summa, moved into a 1200 sq ft unit, took on staff etc etc.
Invested all my profit back into my firm. I wanted a printer, so I waited until I had enough money from cutting vinyl to buy one for cash….. then got one on finance. The profits from my vinyl cutters easily paid the finance and I had the cash still to fund sales growth. If I didnt have enough free cash from cutting vinyl to easily cover the finance costs I would still be cutting vinyl. If the printer hadnt worked out I wouldnt have lost the farm the way I did it, I suppose Ive been lucky, helped by working 14 hour days 7 days a week.
I suppose the long and short of it is, invest where the money (sales numbers) tell you, and speculate with the profits your existing set up makes.
Good luck,
Steff
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Good question Karen – we’re just waiting to see how it all pans out. No plans to invest in new equipment at the moment as we are unsure what the future holds. There are bound to be opportunities in amongst all the uncertainty, but one thing’s for sure, we are entering a recession and who knows how long it will last. Hopefully the economy will bounce back as quickly as it shut down but it all depends how the virus situation develops. I’m not expecting there to be much clarity until next year so at the moment just sitting tight
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Hi Karen. Money is cheap at the moment…even free for 12 months if you take out a government Covid loan. So I would keep the monies that you have saved and either treat yourself or invest and take out a loan.
If you are confident in what you want eg expand the business then look at what your good at and what you enjoy also! Don’t look at new equipment as ‘toys’ but what they can they can do for you to expand and make money.
I can remember the 2008 recession and it wasn’t all bad as companies spent money trying to promote themselves more. Same goes for Covid (wish it didn’t exist) negative issues can lead to positive ones for others.
If your down our way (Hereford) anytime, pop in and will gladly show you around if that might help. Don’t profess to do/have everything right but we are always very busy (and make a profit).
John
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Borrowing is cheap at the moment, but needs repaying in 12 months.
Fine if you’re upgrading, and confident it will pay off, but some people investing on a whim because they can, may find it backfires.
Nobody knows if there will be a 2nd wave/lockdown?
There’s some good advice here, but ultimately you know your business best, and what is best for you.
Interesting reading different opinions. Another option if you’ve machinery already financed is to pay it off using the loan, and enjoy 12months free, and possibly a lower rate of interest.
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