10.22.2008

If only...

Big changes are happening in the company I work for, and, unfortunately, they're not too great. Where to start...

As I may have explained before, the owner owns two companies: Recreation Idaho and Sunshine Recreation. Both companies in the same business, just separated territories: Sunshine in Utah and, well, guess where Recreation Idaho covers. I was hired for Utah's office work and have never been employed by the Idaho division. However, since the owners' health has decreased dramatically over the past year, I have had a significant hand in the office work of both companies.

The market in Utah is very... "different" from that of anywhere else in the country. The people there care very little of quality and everything of price. Which means that a company that sells quality products and service like ours hasn't ever competed very well. My personal belief is that the teachings of "thrift" to the general population in Utah goes a little bit too far. We got the feeling that the idea of business down there is, "If you can't give it to me for little or no profit, you should give it to me at a loss." I know this is stereotypical, but if the shoe fits...

I would be lying if I said that was the only reason the Utah company failed. I place most of the blame for Sunshine's failure on the messenger of our companies profits and values. The salesman in Utah based everything on discounting to make people happy, rather than being firm on if you want it good and want it to last, buy from us. He has single-handily cause the company no success where so much potential lies.

So, now the owner is closing the Utah operation. It's stayed in the red-ink far too long and it's just not feasible to keep the company open while employing 5 employees. Lucky for me, my integral part in the operations of Idaho leaves me still with a job, although the pay increase I received a few months ago will be limited again. Looks like another hard Winter ahead of us.

However, there is one opportunity to all this that presents itself to us. What if... I became the new dealership in Utah? The possibility presents itself to be self-employed in a very profitable business from now until retirement. All the while presenting a good company name that can last beyond the 2-5 year stints that have fated previous operations in Utah. It's the perfect opportunity. The product is an excellent one, it speaks for itself and is the leader in Playground development, quality, and service. There is little difficulty in targeting your market and advertising to your customers, because they're already looking for you.

So, how could I make a difference where others could not in the past? Well, I won't bore you with the details (although the details is what gets me excited). However, I have to present a plan to the regional manager of Playworld and the owner of our company.

we also have an advantage of being able to go wherever we want to. Boise is not a bad place, but there isn't anything we can think of that ties us down here. It's just a community that we've never really bonded well with. It's not fun having no friends, but it is a good feeling knowing that we can up and leave if ever we needed to.

But then, there is also a reality. As much as opportunities like these rarely EVER present itself to anyone in their lifetimes, the timing is not good right now. Typical Playworld dealers need to front $20k in contract as a dealer. We would also need a minimum of $15k for start up business costs... kind of. You really don't need much money for start up costs, but it would be good if we had 1- several months of living expenses while we get things started up and 2- an operating line for those un-paying or delinquent customers. All I would need is a loan-- oh, yeah. Most banks are freezing loans. Well, maybe I can get one against the assets I own-- oh, yeah. What assets?

Were we in the position to make the step, we would do so. But as it stands now, the step is more of a hurdle. We simply don't have the means to do what we want. I'll keep looking for this opportunity again, and more importantly, planning for it when it presents it's beautiful head again. In the meantime, I'm still going to present my plan to the big guys, just to get some feedback and know what is expected in the future.

5 comments:

Samara said...

hey mike i just heard on NPR that banks are loosening thier loaning procedures from the overreacting clamp they put on some of them, with a solid business plan I bet you could do it. I am cheering for you!

Hil said...

Good luck.

Jill Crooks said...

Everything is in the timing and we all know about the economy right now.

Pure Golding said...

Times are harder now, that's for sure. If you can find someone who can back you financially, you're a lucky man!
We love you and pray everything works out for you!

Haddorkus said...

I can't believe how crazy everything has gotten. Sometimes it easy to become insulated in our military life. Dan really lost touch out there and while he was home was kind of shocked by watching the news.

I really hope things will be alright for you guys.