What to do, what to do...?

[Bitter Jeweler]

I dunno how much input you folks can give, but I am sure things will be said that will make me think.

I am in an interesting spot with my business. I hired a "secretary", but I don't think that is the answer to my problem. Sure I have only had her for 2 weeks, but I think it's enough for evaluation purposes.

I am tired of working 70-90 hours a week. I am thinking that I should maybe hire another jeweler, and lose the secretary. This won't be a rash quick decision, cuz to do so, I'll have to buy some more tools and stuff, so I will have to do that over time.

The hurdles I have that are kinda holding me back are my loan, and what I owe to the lawyer. I won't have either paid off for at least a year and a half. That's a big chunk of chump change, that could effectively be a large portion of a jewelers salary. There are additional costs to factor in as well, taxes, increase in insurance rates, whether or not I can pay benefits such as medical insurance, and bringing some things up to OSHA standards, such as "proper" ventilation.

A simple answer is to get a few more regular accounts (customers, remember I am a wholesale shop doing work for retail stores). That may be easier said than done. Right now all my accounts come to me, and to find more, I might have to offer pick up and delivery, which either I could do, or have the employee do. That also adds to insurance costs for carrying jewelery off premises.

Another possibility, to get more customers, is to start advertising to the public. This would allow me to charge retail prices for repairs and custom work, which would mean moar monies! The only problem with this idea, besides advertising costs, and exactly where to advertise, is that I am downtown and you would have to pay for parking, which is one reason downtown businesses struggle, at least in my mind. It's not as convenient.

Another avenue that another jeweler could open up, is to put my jewelery line into production, and get it out into the retail stores. I've already been asked by 3 of my retail customers about it (it's in my display case), but I just don't have the time to make product. It is also not gauranteed sales, so it more money out, waiting for a return.

Then I fear I could get myself into the same position I am now, where the business builds up, work increases, and I am still working 70-90 hours a week. Of course I don't want to pay anyone overtime.

I am thinking about all this, because there is somebody working for eXboss, that is unhappy. The latest report is that she hates him. I have some ins to find out what she is making, so I can run figures with my accountant. I do fear retalliation from eXboss, if I hire her away from him. I worked with this person at my very first jewelery job, and she has work for years for one of my retail customers (small world). I don't think he can legally do anything to me unless she has a noncompete agreement, which I doubt. Even so, I don't think he could do anything to me, but he could sue her. I'll have to talk to my lawyer about that to be sure.

This is crazy! I can't believe I am at this point already! Aurghhhhhh!

[littlelolligagged]

I'm going to have to think about this one for awhile; however, I feel this thread is just begging for me to say something.

Spoiler:

I so fucking told you so

[Loki]

Given the current state of the economy, could you not hire a second jeweler on a provisional basis (for say 6 months), and not provide much in the way of benefits during that time frame? If everything is going well, you can give them some benefits, and promise more benefits and a higher salary if they stick around for another year. By that time, your loans should be paid off, and you shouldn't have difficulty paying the extra money. Plus if the person lasts a year and a half, chances are their work would be of at least satisfactory quality

[Bitter Jeweler]

I am looking at the possibility of hiring a specific person, as I stated in the last paragraph. I know she wouldn't make the move from her current job if she were hired on a term or trial basis. If she is getting health insurance now, I know if it were me, she would want to maintain that. The quality of her work is known. The issue is the ramifications of hiring her away from eXboss. My hubby told me not to do it. "You just finished with one mess, why would you entertain the idea of possibly creating another one" he said. My reasoning is about hiring somebody I already know is trusted. I've worked with her before, and I know who she has worked for. I know we'd getvalong and I know her quality level. I will not be advertising for this position, and I don't want to hire an unknown entity. Good jewelers are hard to find.

[Nessus]

For what it's worth: I don't think you'll ever get out of working 70 hours per week given the choice you've made. Even if you bring in other people there'll be general boss stuff to manage, you'll have to herd your people around and what if I just tried it this way and Christ is it 9 at night already? There's an aspect to a person starting their own business like this that is nuts about the work itself, and I don't see you losing that, nor do I think you can trust the people you hire to a degree that you'd let them be. At least not for a year or two.

On the face of that, I do think it's a splendid idea that you hire another jeweler. Even if you have to baby-sit them (and that's a big if), you'll have another pair of hands in the place and you're already pretty steady financially. The benefits thing is an ugly aspect but I won't drag that out further so as not to start another huge flame-fest; exploit people if you can, but it's not nice.

And as your husband says, you probably don't want to drag your old dramas into your own business. I don't know what the fuck was up everyone's ass at your old avenue but those people were nuts. You don't want crazy in your jewelry.

[Bitter Jeweler]

For what it's worth: I don't think you'll ever get out of working 70 hours per week given the choice you've made. Even if you bring in other people there'll be general boss stuff to manage, you'll have to herd your people around and what if I just tried it this way and Christ is it 9 at night already? There's an aspect to a person starting their own business like this that is nuts about the work itself, and I don't see you losing that, nor do I think you can trust the people you hire to a degree that you'd let them be. At least not for a year or two.

I can handle 60-70 hours, but 90 hours is killing me. Anytime I take time off for friends or family, and family tends to pick the most inconvenient times for me, it kills me. I need that wiggle room. Thats my other fear too, that I hire someone, take on more work, and wind up in the same position. Then it doesn't solve anything.

On the face of that, I do think it's a splendid idea that you hire another jeweler. Even if you have to baby-sit them (and that's a big if), you'll have another pair of hands in the place and you're already pretty steady financially. The benefits thing is an ugly aspect but I won't drag that out further so as not to start another huge flame-fest; exploit people if you can, but it's not nice.

Yeah, it's interesting being on the other side of the coin now.

And as your husband says, you probably don't want to drag your old dramas into your own business. I don't know what the fuck was up everyone's ass at your old avenue but those people were nuts. You don't want crazy in your jewelry.

It wasn't everyone at the old place, just the boss. And thats the other thing though, is bringing anybody on creates new concerns. I dunno. While I am happy with my little empire, and in complete control of my environment, and quality, I am not sure how to strike a balance.

[littlelolligagged]

You strike a balance by saying no, sunshine.

I still haven't made it to my answer to your dilemma yet - but you should pay very close attention to Nessie.

[Dreadnaught]

A few thoughts:

- Given how litigious your ex boss is, I'm not sure hiring someone from your old job is a good idea. After all, you're already in debt to your lawyer, right? Hiring someone else will only make sense if it gives you flexibility without costing you a ton of anguish and money and legal fees.

- What are the insurance rates for delivery? Just wondering if you have looked into it and really shopped around. Maybe my car insurance experience is unique, but I was surprised at how each quote I got was less than I had expected when I started. This is a recession and insurance companies are hungry for business after all.

- As for advertising, have you considered online advertising? EG with search advertising, you could bid to appear in sponsored links section of a Google/Yahoo/Bing search whenever someone searched for "jewelry repair" in just your geographic area. You would only pay if someone clicked. The budgeting is flexible; there's very little start-up cost; and no real cost commitment, so if it's not working after a few months you can turn it off. Most online advertising is done by small/medium sized businesses. The trick is simply knowing what you're doing, which I imagine we could help you with.

- If you had to cut a few clients to prioritize more lucrative businesses (telling them you're just too busy to take on new work at the moment), would they never come back to you?

- Not sure what the terms are of your loan, but maybe it can be refinanced?

***

Yeah, we all knew you might reach this point someday. But remember: you've already built something great, and all on your own. You run your own life now, and whatever stresses are happening now, you're now just Stressed Jeweler instead of Bitter Jeweler. Or at least that's the sense I'm getting.

[Bitter Jeweler]

A few thoughts:

- Given how litigious your ex boss is, I'm not sure hiring someone from your old job is a good idea. After all, you're already in debt to your lawyer, right? Hiring someone else will only make sense if it gives you flexibility without costing you a ton of anguish and money and legal fees.

Yeah, I will find out if there could be any legal issues. I really don't think so. He could sue his former employee, though, if she had a non-compete agreement. My thoughts were, because I know this person, and knowing someone, trusting them, and their work is a huge thing, that I could give her a signing bonus, to not work for a month, then start with me. This way, she could quit, and have time to "look for a job" if you catch my drift.

- What are the insurance rates for delivery? Just wondering if you have looked into it and really shopped around. Maybe my car insurance experience is unique, but I was surprised at how each quote I got was less than I had expected when I started. This is a recession and insurance companies are hungry for business after all.

It's not car insurance, it's insurance to carry jewelery off premises, it would be an additional premium to my business insurance. There are VERY few insurance companies that insure jewelery operations, so it's a cornered market.

- As for advertising, have you considered online advertising? EG with search advertising, you could bid to appear in sponsored links section of a Google/Yahoo/Bing search whenever someone searched for "jewelry repair" in just your geographic area. You would only pay if someone clicked. The budgeting is flexible; there's very little start-up cost; and no real cost commitment, so if it's not working after a few months you can turn it off. Most online advertising is done by small/medium sized businesses. The trick is simply knowing what you're doing, which I imagine we could help you with.

This sounds like a great idea!!!
I'll have to get my website in order.

- If you had to cut a few clients to prioritize more lucrative businesses (telling them you're just too busy to take on new work at the moment), would they never come back to you?

Well, they will find somebody else to do their work. And when they find somebody they are happy with, why would they want to come back, and risk being booted again. I hit my limit with the customers I have, and weened a couple PITA's out, and turned away a few more. I don't want to lose the good customers I have.

- Not sure what the terms are of your loan, but maybe it can be refinanced?

meh, the loan is flexible. It's a private loan through one of my customers. I am just trying to pay it off as fast as possible. I could probably tell them I will be paying half the amount, and they'd be cool with it, but then it'll just take twice as long. I am almost clear of personal debt (which is awesome), and I could funnel that money to the loan, or lawyer to pay either off faster as well. So there some flexibility there.
***

Yeah, we all knew you might reach this point someday. But remember: you've already built something great, and all on your own. You run your own life now, and whatever stresses are happening now, you're now just Stressed Jeweler instead of Bitter Jeweler. Or at least that's the sense I'm getting.

Yup, it's a little stressful, making everone happy, business and personal. I don't think The Stressed jeweler as the same ring as the Bitter Jeweler I never thought I would be where I am so soon. plenty of time to think about how to handle it though, and thats a good thing.


Thanks for the thought of search result advertising! I never thought of that, cuz I don't know how it works/costs.

[Dreadnaught]

Too bad the insurance market is cornered. I get your drift with the new employee thing -- it's not a bad idea. Though of course the wildcard is: if your old boss is that much of a sociopath, might he just sue you for the sake of suing you?

[GGT]

Sounds like your business is growing too fast. Congratulations. Time to re-prioritize.....by phases?

I'd say pay that loan off and the lawyer before buying advertising. Keep the secretary but consider pushing back deadlines for new commissions. That will lessen your workload a bit, and keep you from burn-out without losing profit. Avoid anyone from your old workplace, they have too much baggage.

Then you'll be in a debt-free phase with unlimited potential to advertise, increase clientele, maybe expand by hiring a second jeweler. Could even replace the secretary with a digital kind of "organizer" on the net or smart phone, or pay a web designer instead of the secretary?

[Being]

Why are you "paying" your lawyer? Didn't you win the case against you? If you did win, didn't you counter-sue for what it cost you to defend yourself?

[Lebanese Dragon]

Disclaimer: GGT brought a good point about the baggage, but you know them, take the below as thumbs up to hiring another trustworthy person.

I say hire the person you trust, worst case scenario you're still working 90 hours a week, but you'll have company during that time, and you'll be generating income from that company. Besides they may have some ideas or resources in breaking out into a larger audience, or how to get your product for online sales or whatever you plan to do with the line you're making. If you keep how you're going now you're garaunteed to stay in the same boat. If you hire someone, you can trust, you have the potential, that they learn how you do things, learn the schedule, that you might be able to cut back. In the beginning first couple months you'll be working the same but as they learn how you like things done, and if they're trust-worthy, you should be able to cut back substantially. After the first 3 weeks give them trial runs where you'll be out of the office for a 3 hours or so, and you let them work alone, then you come back and finish out the day with them. Eventually show them how to close, and perhaps if they are trustworthy, you can start ducking out early. Hell, hire your exBoss .

I see no problem with hiring your exBoss's employee, it'll piss him off, but if that person is doing it willingly, it's better for her, and better for you, then it's her choice, it's not like you're stealing her. It would be one thing if you're scaring off your ex-boss's employees and customers, that's dirty and unethical, in this case your legally in the right, and morally, she can switch to working for you because she wants to.

[termite]

Expanding your business does not = less hours, at least not initially. You have to employ very good people and pay them very well before you can stand back and enjoy the benefits. This could take a few years so try to manage those 90 hours well - all this counts for nothing if you're dead in 6 months!