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03-03-2012, 11:58 PM
I've got a friend named Bob. Bob started a small company about six years ago when he was ejected from his last full-time job. Bob's company manufactures widgets used in a small niche market. But the market hasn't grown very much. After six years and numerous small side jobs to pay the bills, Bob is starting to wonder if this company thing is such a good idea. The company has never generated enough of a profit to support him, but it at least stays profitable. Since Bob isn't getting any younger, he's starting to wonder if he should just sell the company and do something else. Something else that pays a decent salary.
What should Bob do?
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03-04-2012, 06:53 AM
More info needed.
How much money does he make, per hour of time he spends on it?
What liability/invested cash does he have in the business?
Would he make the money back by selling?
What would he give up by working for someone full time?
And most importantly of all:
Is he doing it right? Can he improve the model at all?
Those are the questions Bob needs to answer, then he'll probably intuit what to do from there.
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03-04-2012, 08:26 AM
How much money does he make, per hour of time he spends on it?
-Last month was the best he's had in close to a year and I think Bob made all of $2.00/HR. Some months he only makes $1.00?HR.
What liability/invested cash does he have in the business?
-I think he only put $5000.00 into it at the start. His principle investor is VISA.
Would he make the money back by selling?
-Probably. He's just started looking into it.
What would he give up by working for someone full time?
-Not a whole lot since he's been forced to take-up full time work to pay the bills.
Is he doing it right? Can he improve the model at all?
-He nearly burnt himself out trying to find customers for the first four years. These days he takes it a little easier, following leads when he can find them. But he's always trying to find a better way to run the biz.
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03-04-2012, 08:55 AM
After six years and very little growth, I'd say Bob needs to consider expanding his product line, his market or just trying something different.
