Signs of the Times - September 2013 - (Page 18)

VINYL APPS Don’t get me wrong, such jobs can be great moneymakers for shops set up to fabricate them. However, we specialize in large-scale fabrication, and we can’t move our focus from our core business. Of course, once we’ve created a relationship with a client, we want them to consider us their one-stop sign company. We’ll create any signs that meet their needs – as long as they support our profit margin. For example, if you create vehicle wraps, don’t take on channel-letter fabrication unless your shop can profitably support it. Always play to your strengths. You may choose to expand into different markets; just make sure your core work doesn’t suffer as a result. Q. How and when do you operate lines of credit, and how much do you pay back each month? “ Sam reminded me [the printer] would require a $200,000 investment. Moreover, he said, when we start selling more than 35,000 sq. ft. per month, buying one will be ﬁnancially justiﬁed.” A. Most business owners I know insist on having open lines of credit. Many are adamant that successful businesses need access to credit lines. It can help to have access to additional monies outside of your revenue stream, but most companies misuse these funds. Use credit lines for two reasons only: 1) Temporary emergencies (such as a building flood, when you must halt operations for two weeks, and you don’t have the cash reserves to cover payroll and overhead), and 2) Future growth based on a proven track record. If you start selling 50,000 sq. ft. of digital graphics per month, but don’t have the cash to buy a new printer, you need it to keep up with demand. Lines of credit are not for CREATIVE CUSTOMIZATION. EXCEPTIONAL ENDURANCE. Gemini offers a broad range of dimensional letters and logos for use on free-standing monument signs. If you can dream it, we can make it. Guaranteed for life. DIMENSIONAL LETTERS & LOGOS 1-800-538-8377 signletters.com 18 SIGNS OF THE TIMES / SEPTEMBER 2013 / www.signweb.com buying a new “sales vehicle” for your wife! However, if you access a credit line, you should pay it back as quickly as possible. If you sit on borrowed money, you incur interest charges that further drain your profits. Q. In the last column, you discussed 25-30% net profit as a target. What are target percentages for other types of expenses? A. Whatever bookkeeping program your accountant uses includes an option to add a percentage column to the ledger. As discussed in the last article, percentages of profit and expenses should be the focus, not a sheer dollar figure. Make sure your percentages stay consistent every week, month, quarter http://www.signletters.com http://www.signletters.com http://www.signweb.com

Table of Contents for the Digital Edition of Signs of the Times - September 2013

Signs of the Times - September 2013
Contents
ST Update
Technology Update
Who Uses the Phone Book?
Vinyl Apps
Strictly Commercial
Lighting Techniques
The Moving Message
Technology Review - DGS 3D POP store system
Technology Review - KIP C7800 poster printer
Design Matters
New Products
When the Cheering Starts
Enter the ST Intl. Sign Contest!
Starting at the Bottom
LED Lamps for Box/Cabinet Signs
The Aria’s 260-ft. Pylon Sign
Industry News
Advertising index
Editorially speaking

Signs of the Times - September 2013