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#19390 Growth!

Posted by AkaReaper on 20 June 2006 - 04:46 AM

Worth reading. Grab some coffee.

I have a feeling this is going to be a long post. But, it seems like one I need to make after watching quite a few people in this business expand and grow. This can be done in the wrong way, and there are some things you need to keep in check or failure is a sure result.

A business plan is the best thing you can have. I don't mean a general idea of what you want to do, or how you would like to grow, but an actual written plan outlining all of your purchases, expenses, marketing plans, projected revenue and yearly expected growth. This should encompass at least 3 years, and preferably 5. Consider inflation, losses, equipment replacement and cash reserves. Stick to it. Leave room for both CONTROLLED expansion and REDUCTION. Yes, sometimes you have to reduce the size of your business.

Cash or credit? The easiest way to buy gear is to whip out the plastic and expect to pay for it later. Its our nature and we do it to self satisfy our desire to "Have it now". We expect to pay it off after we earn the money but thats the lure into the trap. It is too easy to spend that money, make the minimum payment and eventually realize you are stuck with a big bill. For a small start up, maybe 3-5 thousand tops, it might be ok, beyond that I think its trouble.

So, cash is great. But where do you get it? A lot of guys I know don't have it. But, they have a few toys laying around the house. This is yet another trap. Its nice to have the cash to spend, but where did that cash come from? If you sell a car that you owned, for lets say 10 grand, and buy 10 grand worth of stuff, you can say your equipmewnt is all paid for. In some respect that is true, but you only have the equipment now instead of having the car AND the equipment. It was only a trade off. Nothing more. it does not put you ahead of the game. Our goal as business owners is to generate revenue AND keep our stuff, LOL. Avoid selling anything to pay for equipment if you have too. I know start ups are slightly different, but control how big you start and you will be ok.

Earnings well spent! This in my opinion is the best way to do it. Resist the urge to treat yourself or take the money and run. Don't do it. Pay for only those expenses that are incurred during business operations. I mean, grab some lunch once in awhile, or some pop, just don't run out and start buying 'Wants", purchase only "needs". With this money in the bank, as you grow with your business plan, you have the capital to purchase expansion equipment, pay your taxes, take care of equipment repairs that pop up and all teh important aspects of a successful business. Purchasing equipment with only the money you have earned gives you peace of mind and you don't owe anybody anything.

Taxes. Working for yourself costs a fortune. Taxes for us is outrageous. Make 20 grand, buy 20 grand in equipment and its not the total wash we think it is. We still have to pay federal and state income tax to an extent on that money earned, and if you spend it all, you may find yourself in deep trouble. I get audited all the time. This is by far my least favorite experience. These people are well trained. They know how to work the numbers better than every single one of us. They will look into every dime you have coming and going, and dig deeper and deeper if they find ANY discrepancy. So watch yourself in that aspect. I'll buy this, buy that and write it off. Its a tad more complex than that.

Insurance. If you have a policy that covers you for 50 thousand in gross revenue, make sure you add insurance if you earn more than that. I'll only report this much, and save myself. Let an insurance company audit your books, drop you for not disclosing true numbers, and then try and find another company to cover you. I made this, I made that, and your agent is watching what you made saying hmmnnnn. Thats more than what he is insured for. Do it right all the time.

June. Busiest month around for us. Probably the same for most in this area, maybe everywhere. We all hate to refuse business, and it seems like we could make a killing by soaking it all up. Another pitfall. Does it make sense to pay extra insurance, purchase gear, and use it for one month? Turn this away. Chances are it will sit most of the time. Only so many units can be handled by one company, andstriving to buy more just to cover grad season will lead to late deliveries, cancelled deliveries, upset customers and a bad name and reputation. All for what? One busy month? Rethink it folks.

This just touches on a few issues. I'm seeing too many people want to be like so and so, do what so and so is doing, buy what this company has, and you need to develop your own plan and use input to help guide you, nothing more. What works for some, does not work for everyone. I do not disclose all of our business ops for a reason. It isures our success in our market. So trying to do what someone else does can lead to trouble because you may not have all the info. Just be careful is all. I want to see everyone enjoy and succeed in this business.
  • Brian S., vidmagas, Roxborough Bounce and 18 others like this


#48374 Drivers, Employee's & Some Basics

Posted by AkaReaper on 31 August 2008 - 04:27 AM

Ok, before you send me nasty grams or anything I just want to say that I really do not care how you pay your employees, drivers, hired help, or whatever you call them. People will do what they want to do regardless. Just like unlicensed panels, units, etc., I suggest, but I don't care if you have them or not. I'm not the Moonwalk Police.

But, we always seem to get a lot of questions about drivers and hired help. So, I wanted to list some basics that you should know.

1. You can not pay them as independent contractors. The IRS does not recognize this in our industry. This has been seen first hand by myself, Edjewcollins, magicguy and many many others. So, just be prepared to pay the piper if you get caught. Upset employees who are fired may just dime you out.

2. Unemployment insurance. This varies from state to state, however in Michigan you must pay unemployment insurance. They do not consider it a seasonal business. That sucks, but thats their ruling. Check with your state. Better to pay now than later.

3. Workmans Compensation Insurance. Again, this is federally recognized so make sure you have something in place. Certain family members are exempt but if there is no relationship you must carry it. Watch your contracts with schools, churches etc. They may require it and can sue you for damages if your employee sues them for getting hurt on the job while on their property. Nice huh?

4. Taxes. Gotta pay them. Social security, state, federal, make it easy, use a pay check service if you must. No way around this. No, you can't 1099 them, remeber tip #1.

5. Car insurance. If they are using their own vehicle for work, you can still be held liable for any accident they incurr while working for you. Check to make sure your/their insurance will cover these mishaps. Its a wise idea to place commercial coverage on your vehicle and have them drive a company vehicle. Also make sure they have clean driving records. An insurance may cover an accident form someone not listed on the policy as a driver, but come renewal time they might not be so forgiving.

6. Overtime. Again, the NLRB, National Labor Relations Board will hammer you if you do not abide by overtime compensation rules. If you do not have a union contract or workers contract outlining overtime payment you are asking for trouble. Some states require anything over 8 hours in a day to be paid at an overtime rate, and some require it be paid for any time over 40 hours in a work week. You could try to consider them salary, but if they run to Uncle Sam you will probably lose.
  • speegosmums, onemoretime, infl8ogirl and 14 others like this


#190417 How To Compete -- And Win -- When Rivals Cut Prices

Posted by Amanzi on 03 September 2012 - 04:08 PM

This is worth a read: http://www.entrepren...article/222519# by BRAD SUGARS

If there’s one piece of advice I’d offer to any entrepreneur starting out, it’s this: Never
discount—no matter how much you may be tempted to— always look instead to add value.
Many seasoned entrepreneurs discount as a way of doing business, without ever really looking at their numbers or the real costs of cutting their prices. They’ll point to “discount” success stories like Wal-Mart or complain that the competitive landscape forces them to cut prices. While Wal-Mart, one of the great retail success stories of all time, has built its brand on low prices, most business owners don’t see the very real distinction between “low price” and “discount.”
Related: Death by Coupon

First off, a company like Wal-Mart knows every margin to the “nth” degree and can deliver low prices because it has created scalability based on the huge volume of products it sells. But very few companies have such pricing power. Unless you do, there are better ways to play the retail game than looking to compete against Wal-Mart.
If you don’t really know your margins or have any scalability on the cost side, straight discounts are a ticket to disaster, not only in terms of finances but also in people costs. In a discount environment, you are essentially setting your team up to work more for less money.

Here’s how …

Let’s say you’re selling a widget for $10 a unit, and your net cost is $7. Your net profit on each widget sold would be $3. If you sold 10 widgets at full price, your net profit would be $30.
Now let’s say you decide to have a sale with a 10% discount offer. After selling 10 widgets at $9, you have revenue of $90. The net cost for widgets remains constant at $70, but your net profit has decreased to $20.
That doesn’t seem too bad. Until we realize we need to sell 50% more widgets just to keep our profit dollars even, at $30.
Take a look: 15 units X $9 = $135
$135 - $105 = $30 profit
The numbers look worse the more we discount. At a 15% discount, we’d have to sell 100% moreunits (a total of 20 widgets) to keep our profits at $30:
Example:
20 units X $8.50 = $170
$170 - $140 = $30 profit
Would you really want to run a company where the pressure is on day-to-day to sell 100% more units just to stay even?
Now you can start to see why failure rates of businesses that continually discount are so high and why the burnout rates of their owners are equally bad.
Playing the discount game means you’re literally going into your company everyday to price yourself right out of business.

Related: Groupon, Other Deal Sites Not a Good Deal for Small Businesses

So what’s the solution?

1. Know your numbers and margins and protect your margins at all “cost.”
This simply means you need to know your cost basis at every level of your company andlook to lower it where you can. Then, at least, if you decide to offer a price incentive, you’re not cutting your own throat to do it.


2. Add to your value proposition at every opportunity.
While you shouldn’t discount, you should always look to add value, both real and perceived. That could mean bundling options or packages, or it could mean a better customer service experience. People are more willing to pay for good service these days than ever before.

3. Develop a growth rather than discount mindset.
The reality for any business is that you won’t ever be able to cut your way to success. You can cut costs only so far before some aspect of the business suffers. Growth is really your only option. So start to think of ways you can leverage your current resources in new or innovative ways. Reposition products or services, for example, with a private label at a higher price point.

Whatever you do, think twice about the ramifications of running a 10% off sale, unless you got a really great deal on your inventory. Just remember that “small” 10% discount means someone in your organization has to work 50% harder to earn the company the same dollars. At least in the beginning, that person will most likely be you.
Don’t fall into the trap of thinking if you don’t give discounts, you’ll lose sales. Look to add value and deliver an incredible experience for your customers. You’ll discover new ways to increase profits, while others find themselves caught in the discount trap -- and soon out of business.
  • BigTop Bouncers, BABT, Fern and 12 others like this


#170523 Income Chart, The Trap

Posted by AkaReaper on 08 February 2012 - 12:26 PM

Personally I hate these things. Its easy to say 10 units each week at 100 bucks a unit is a thousand dollars a week, etc. but they fail to consider overhead expenses such as insurance, phone bills, advertising, vehicle costs and more. Still, we offer you a quick glance at some moderate numbers BEFORE expenses. There are no typical expenses and they vary from location to location.

Lower end rental rates:

1 Unit(s) X $75 per rental X 2 rentals per week X 52 weeks per year= $7,800
2 Unit(s) X $75 per rental X 2 rentals per week X 52 weeks per year= $15,600
3 Unit(s) X $75 per rental X 2 rentals per week X 52 weeks per year= $23,400
4 Unit(s) X $75 per rental X 2 rentals per week X 52 weeks per year= $31,200
5 Unit(s) X $75 per rental X 2 rentals per week X 52 weeks per year= $39,000


Higher end rental rates:

1 Unit(s) X $150 per rental X 2 rentals per week X 52 weeks per year= $15,600
2 Unit(s) X $150 per rental X 2 rentals per week X 52 weeks per year= $31,200
3 Unit(s) X $150 per rental X 2 rentals per week X 52 weeks per year= $46,800
4 Unit(s) X $150 per rental X 2 rentals per week X 52 weeks per year= $62,400
5 Unit(s) X $150 per rental X 2 rentals per week X 52 weeks per year= $78,000


So, are you ready to run out and buy some units? I would be remiss not to point out a few thing before you decide to go and spend your hard earned money, take out a loan, spend your kids college fund, or borrow from mom and dad. I said I HATE these things. I have to be brutally honest.


So, let me take the high end. $78,000 per year. Ok, if you live in a seasonal climate, take half of that. Now you have $39,000 right? Wrong. You can take a good $4,500 OR MORE, out for insurance. You have $34,500 left. Still not too bad huh? No, I'm not done yet. Phone bills, marketing, cleaning supplies, transportation, gas and well, I'll stop there. An easy $5,000 at least.


So, now you are making $29,500 per year. Not bad in some areas. Poverty in others. Is this worth working your week ends, finding help which is always difficult, losing family time and more? Wait, I don't want to scare you away, I haven't even mentioned paying taxes yet! Still here?


My point in the drama is to show you that income charts are not fool proof. Its nice to see the big numbers, but its all the little ones that break you down and suck up your earnings. Yes, you can make some money. No, you can't get rich quick. This business takes a lot of dedication, time, persistence, education, training, safety and more. All I want to say is this, take the time to thoroughly research every aspect of this business. Look into each and every expense. Look into your heart which is what drives this industry. Read, re-read, and read again everything in the forum you can. Then, make a fully informed decision.


  • jumpersinc, funlight, Mandyzvi and 9 others like this


#170496 Inflatable Sales

Posted by AkaReaper on 08 February 2012 - 09:18 AM

http://www.ninjajump.com
http://www.einflatables.com
http://www.gamestogosales.net
http://www.inflatablegames.com
http://www.inflatable2000.com
http://www.jumpwithjoyusa.com
http://www.cuttingedgecreations.com/
http://www.magicjump.com
http://www.actionmoonwalks.com/
http://www.astarjumps.com/
http://www.bouncehouses.com/
http://www.funequipment.com/
http://www.inflatabledepot.com
http://www.inflatabledesigngroup.com/
http://www.advertisingballoons.com/
http://www.superbounce.com/
http://www.jumpions.com
http://www.happyjump.com
http://www.inflatablesuperstore.com
http://www.bouncemaxx.com
http://www.captainbounce.com
http://www.junglejumps.com
http://galaxyjump.com
http://www.moonwalkusa.com
http://www.moon-walker.com
http://www.junglejumps.com
http://www.uniquejumpers.com

http://www.jumperdeals.com

http://www.spacewalksales.com


  • the-novelty-man, Mandyzvi, Joryiktisp and 9 others like this


#201492 Hey Manufacturers...

Posted by bellasbouncies on 09 January 2013 - 03:24 PM

A long long long time ago when everyone exhibited at the BEST trade show, IAAPA, manufacturers seemed much more organized. I would receive an email with show prices, or a catalog in the mail with show prices. Now, all I get are a million emails about showing up at these inferior shows, AIR Show, and how I can get free VIP tickets valued at $125. How about sending out an actual catalog like you used to do? Or at least email me a catalog and price list. Or update your website with your new products the day the show starts? I shouldn’t have to look on Facebook to see people posting pictures of new products from the show floor.

I think the only exception to this is Ninja. They still mail out a catalog and price list, as well as, an email the day the show starts with a link to their catalog/pricing.

The rest of you need to step it up. You should want our business. We shouldn’t have to hunt you down because you chose to start some little regional show.
  • The Starz, weekend warrior, Sabrinas Party Rentals and 8 others like this


#170619 Trucks & Trailers

Posted by AkaReaper on 09 February 2012 - 03:49 PM

www.wellscargo.com
http://www.forestriverinc.com/uscargo
http://www.hhtrailer.com
http://www.trailers-r-less.com
http://www.wrighttrailers.com
http://www.deepsouthtrailers.com
http://www.trailersforless.com
http://www.internet-trailer.com
http://www.trailer-supercenter.com
www.etrailer.com
http://www.paceameri...com/#loaderdone
http://www.haulmark.com
www.trucktraderonline.com
http://www.used-trucks-central.org
http://www.usedtrucks.ryder.com
www.ebaymotors.com
  • Mandyzvi, Marynaaoe, sethav1 and 7 others like this


#206396 Made A Mistake On My Warehouse, Maybe....

Posted by bud on 28 February 2013 - 07:31 PM

I have a 300 pound mother in law and part of her weight loss program is to wear my tarps like a cape and run like hell around the neighborhood.
  • The Starz, weekend warrior, bellasbouncies and 6 others like this


#31551 Interesting and helpfull-advice for newbies

Posted by jump-o-leeen on 27 July 2007 - 09:28 PM

I thought this might be a interesting topic and be able to help people at the same time. If you would, give one and only one piece of advice to someone starting an inflatable buisness. Short and sweet...and to the point. No repeat answers please. Lets see where this takes us!
  • jamesenthan, Mandyzvi, Carnival Party Rentals and 5 others like this


#253360 Does Anyone Do Yard Cards As Part Of Your Business?

Posted by gardnergirl2 on 03 November 2017 - 09:35 AM

I had thought about adding it to my business. Just wanting opinions. thank you
  • Joryiktisp, BennivSnank, CharlesGaf and 5 others like this


#202806 New Combo Unit Leans To The Right - Is This An Issue?

Posted by Unique Jumpers on 24 January 2013 - 03:29 PM

Hello, forum members. Many of you are probably waiting to see if and when Unique Jumpers would come in and speak regarding this issue. Well here we are.

When we received the email on Sunday, Sunday not being a regular business day we still went out of our way and made a phone call to our customer to discuss this issue. When we received the picture as a manufacturer the first thing we thought was what many of you mentioned the leveling of the ground. We know she has mentioned that it is due to the way the picture was taken that it looks that way but we have asked her to try and find a flat surface and she will be doing so I believe this weekend. We have also explained to her and too many of our customers that there is a slight tilt on all units tilting towards the inside (middle) and that all has to do with the safety and engineering part of the unit.

As one of you mentioned, and as many of you know we take a photo/video of every unit and email it before the unit is shipped out asking if there is anything that needs to be changed or if anything looks wrong with the unit. Following our routine we have done so with this unit and did receive the O.K. to ship out. And we are still willing to take care of this issue to keep our customer happy.

Quality and customer service comes first for us. We have pictures of this unit before it went out and don’t see anything wrong with the unit from the manufacturer’s point of view. Looking at our pictures of this unit and seeing nothing wrong with it we have offered this customer for us to sign off on a 5 year warranty covering the quality for this specific unit writing that we will cover anything that has to do with what she is mentioning at this time as a defect just to show that we stand behind the quality of our products and don’t want to leave any of our customers dissatisfied. We have also given her another option for her to send the unit back with shipping costs being covered by us and for us to get the unit back to her with the necessary changes.

We would like to thank all our customers and future customers for all the great advice and thank you for trying to help find a solution.
  • Jose', A Total Jump Inflatables, The Bounce House and 5 others like this


#196025 Mathematical Proof He Needs To Go.

Posted by BABT on 25 October 2012 - 01:42 PM

Sigh.

It's interesting that these videos are all of black people, as if they represent every Black person in America. The media, as we all know, goes for shock value so they put the dumbest people on camera. Case in point: when I was in college, the news came and asked people just walking down the street some question about who was President at the time. I stood there and watched several people answer correctly, but when I watched the news, I only saw the people with the dumb answers. And reality tv was born.

My husband is a teacher with 2 masters' degrees. He has not received a raise in 4 years, and probably will not for the foreseeable future; meanwhile, the cost of our benefits has increased while the options have been removed. Is this Obama's fault? No, it's our state legislature. The President has very little power, it is the legislators, both at the federal and state level, who control everything. They are the ones who most affect your everyday living.

I agree that young people today expect a handout. They have had it too easy. They do not appreciate all of the work that has been done for them because they weren't alive to see it and don't value it. They think it's just supposed to happen. And it's not just black or hispanic kids so please stop with that. Grow up already.
  • Jose', The Bounce House, Fern and 5 others like this


#170439 Trade Organizations

Posted by AkaReaper on 07 February 2012 - 06:04 PM

http://www.iaapa.org/ The International Association of Amusement Parks and Attractions
http://www.ararental.org/ The American Rental Association
http://www.naarso.com/ The National Association of Amusement Ride Safety Officials.
http://www.aimsintl.org/ Amusement Industry Manufacturers and Suppliers
http://www.astm.org/ American Society for Testing and Materials
http://www.cpsc.gov/ The Consumer Product Safety Committee
  • Mandyzvi, Joryiktisp, sethav1 and 5 others like this


#253661 Growing A Business Question

Posted by Kidcarnivals on 07 October 2018 - 08:44 PM

Hi! I started a small rental business this year with about 15 games and some carnival tents. I was hoping to target mostly schools and churches that put on private festivals and other events.  In the first season I've had two festival jobs, one decent-sized corporate event, and a dozen smaller birthdays or other events.  I have no idea if this is good or not, but it was what I had hoped would happen, so I'm happy with it.  However, even though I didn't make a large investment (only about 10K total, and that includes things like insurance and marketing), I am still way in the red.  I would need to double my current business just to keep up with the small overhead that I have.  My family is driving me nuts asking if I have a plan for how much money I will be making in a year, or two years, and how I will turn this into something where I am taking home at least 50K a year, preferably more.  They want to know how much money I will "eventually make."  We don't actually need any money, but they seem to feel I need to have a plan.  But I don't understand how someone can plan how much money they will be making - I have no idea!  I expected to make a few thousand this year, and I did, and I'm hoping to double that next year, and beyond that I really have no idea what is possible.  I would need to expand somehow, and as I'm just learning the business I'm not sure what I should expand to yet. Am I missing something here?  Am I really supposed to know how much money I will eventually make?  I'm totally new to business (I'm a college professor and still have my day job), and I'm having to learn as I go.  Any advice or ideas for the future, beyond next season?  Did you have a plan for how much money you would make when you first started?


  • Marcusliz, JosephGuith, CharlesGaf and 4 others like this


#253635 Adb Colored Ribbon System

Posted by ADB on 11 August 2018 - 05:41 AM

I thought I would share with you our ribbon system.  I know there is a company that uses tear-off cards for each step in the process, but they are consumable, ribbons are not.

 

We take about 18 inch strip of 2" ribbon and pull it through the rolled binding straps, so it just hangs there completely visible on the outside of the roll  (gosh I hope that makes sense.)

 

We had a color coded system. 

 

Blue = wet from water, either a wet water unit or dew.  (and it needs to be dried out ASAP, before it gets moldy, slimy, smelly.)

Red = do not use, needs repair (something wrong with it; we also tied these on the occasional blower)

Yellow = dirty from use, and needed to be cleaned before it gets rented out again.

Green = Cleaned and Ready to Go.

 

This worked well when having a few duplicate units and didn't know which one went out last (which one was clean and which one was dirty).

 

The place I found to have the least expensive ribbon by the spool was walmart, or check after Christmas sales by the wrapping paper.

 

I hung the rolls of ribbon on a horizontal dowel rod and cut off pieces as I needed them.  Usually ribbon pieces got reused, but they do get frayed or lost.


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#253573 How To Get First Customer?

Posted by gatorjumpco on 08 April 2018 - 07:04 PM

Hey guys, Im new to the forum but so thankful for the massive amount of info that Ive gotten from reading through old posts! So, thank you!

Ive just launched my small inflatable rental business and Ive done a few Facebook ad campaigns but after two weeks I still havent gotten my first customer.

Does anyone have any tips or suggestions? Or should I just ride it out?
  • Charleschard, CharlesGaf, LindsyVor and 4 others like this


#253554 Karoke System

Posted by allstarjumperspr on 02 April 2018 - 07:08 AM

Need feedback or advice. Considering buying a karaoke system and adding to our business. Nothing major seen one on ebay for 290. Is it worth adding more to my plate?


  • Joryiktisp, Charleschard, CharlesGaf and 4 others like this


#253550 Jumporange Liers

Posted by hemant02223 on 29 March 2018 - 04:02 PM

Called them 9 days ago to get price on two bouncers got the quote the manager Julio told me he will put aside those two units for me and ones I make payment after two weeks like we discussed he will ship the product was so professional and sounded promising during whole conversation told me he will send me pictures of units so I can start advertising on my website and I did so very attractive looking bouncers so I immediately got some interest and I confirmed my first two bookings for April 21 /22 now I just called Julio to make sure everything is still good he tells me he dont have those units in stock and I will have to wait until April 31st I said u told me u r going to put two aside for me and now u r telling me u dont have them and I already booked it for April 21/22 and he says he cant do anything about it very unprofessional and lie about product In stock when they dont have it . Not doing business with these guys ever again
  • hemant02223, Joryiktisp, Eugeneunoro and 4 others like this


#253506 How Do You Quickly Plan Efficient Delivery Routes?

Posted by Bounce House Austin on 18 February 2018 - 09:49 AM

Is there any good software for this? We deliver most parties a day before with a few needing to be delivered on time.
  • Joryiktisp, Marcusliz, Charleschard and 4 others like this


#248756 The Ride Is Coming To The End...

Posted by rockwall man on 15 November 2015 - 04:45 PM

Hey all
I know I haven't posted here in a long time but I just wanted everyone to know that I have won the battle and am still here. I am no longer doing any party stuff due to a bunch of limitations I have. Life has really changed a lot for me on the last 7 months but I am just glad to still be here.
Jason
I will post a update in the next day with everything that has happened.
  • kenmartin, Dk-Rents, kidzplay and 4 others like this