Tuesday, October 8, 2013

Business is Business

WARNING: I’m going to get on my soapbox now.

I have written many times in local publications about business – particularly small business, and what it takes to start up and stay in business. Although it’s impossible to get through the day without transacting some kind business with someone, many folks simply don’t realize that all business ventures are not operated on the same scale. Those in the work force are more likely to work for someone else than to own their own companies, making it difficult for them to truly appreciate the struggles and obstacles that the small business owner must overcome to stay afloat, pay their bills and feed their family. As a small business owner myself, I face a new challenge every day in meeting profit goals so that I can adequately pay my crews (and myself), pay the basic expenses for the company, fulfill my tax obligations to state and federal government, and have enough operating capital left over to cover unexpected budget busters like a flat tire, a busted piece of equipment or an increase in materials. While I won’t really go into all the things that go into making a business run on a budget, I am going to blow off a little steam.

business 2

Our company is a FOR PROFIT venture. This means that when we provide products and services, we will charge a fair price that will help us to cover ALL of our business expenses including the materials used, labor, gas and truck maintenance, office space, electricity, phone, taxes, advertising, etc. After all of those expenses are covered, we want to have a little bit left over. This is known as profit. Profits are used in a variety of ways: re-investing in the company to buy better equipment so we can provide better services, incentive bonuses for our technicians when they do a superior job, educational seminars for the crew, saving for leaner times, or even making donations to charities that we believe in – just to name a few. At NightScenes, we think all of these are reasonable and justified as we conduct our business with integrity.

business 1

We also support other small businesses and try to engage with local companies as often as possible. We share many of the same struggles, and it’s just a good practice to do business with your neighbors. But I know that these companies are also FOR PROFIT businesses facing many of the same expenses and trials that I battle. So it tries my patience a little when a fellow local business owner asks for a “favor” or expects me to work for free while he’s trying to save a buck. It just seems disrespectful. Don’t get me wrong – I love to work with these folks, and will cut a deal to minimize my own profit occasionally; and I even enjoy a good barter relationship. But if I do cut another business a great deal, it is insulting to me and my company to be asked for something more for FREE. This is really taking advantage of my good nature and neighborly good will. Any honest business that agrees to work a deal with little or no profit, is investing in that relationship. Asking for more is expecting that accommodating businessperson to reach into his/her own pocket and pay for the privilege of working. Not really a square deal, huh? Any additional work that was not included in the original agreed price is EXTRA -- and therefore, needs to be billed separately in order to avoid a loss to the business providing the service.

Business 3

We all know that today’s economy has caused most businesses – even in Texas – to be cautious with their spending, and careful with whom they do business with. This is why it is becoming difficult to do “favors” for fellow entrepreneurs. These are the people we hoped would KNOW BETTER since they are also in the same boat. Unfortunately, some of these unscrupulous folks may only stay in business because they have been successful in getting others to work for them for little or nothing - and they take advantage of this generosity. While we’d like to believe we can be neighborly, it may just be too expensive. This is what the saying “no good deed goes unpunished” means, right?

It used to be that this sort of unfair or lopsided relationship was a rare thing. But, sadly, it happens far too often these days, forcing some of us to always keep our guard up, protecting ourselves and our companies against costly situations like this. Unfortunately, in one case, I’m afraid I’ve done my last “favor” for a local business.

It can be a hard lesson, but you know what they say: Business is business.   Thank you for letting me vent, now back to lighting.

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