I have to lay off all my employees

Originally posted by FX44rice
reply to post by Skyfloating

 

As an outsider and business owner I would say if he was able to run the operation by himself as he plans, his original operation employing 7 people was not efficient to begin with. That is "if" he can manage it with any less than 7, he should have.

i'm not sure that's a fair statement? downsizing his company to run on less man power most likely coincides with the lack of work to do. less gross sales equals less needed help. i'd be willing to bet he had 7 employees because he had 7 times more sales.

jz

Look at this in a positive light. It's not the end of the world, people loose and find new jobs all the time. And, it's not like they are loosing a great life-time career they had invested years in. They'll find other work if they are dedicated hard workers. And if not, hey, maybe one or all of them will use the experience they gained and open their own car wash or other business and cut the boss of out of their daily take home pay. When one looses a job, there's two directions to select from: up or down. Being students and young, they'll probably choose UP. I know I've been grateful after being let go, it forced me to find something better. Tell them they are now over qualified and that you are promoting them by allowing them to find a better job. It's all in how you want to look at it.

Ok some of you don't get it.

I am the only full time employee.

All my employees are part time working between 3-15 hours a week.

Customer service will suffer.

If I close 2 locations, I'm screwed.

I can do the work my self, I will probably have to give up on my other jobs.

I was making a lot of money until about July 08, now I am losing money.

A couple more months of losing money means I lose everything.

Originally posted by downtown436
Ok some of you don't get it.

I am the only full time employee.

All my employees are part time working between 3-15 hours a week.

Customer service will suffer.

If I close 2 locations, I'm screwed.

I can do the work my self, I will probably have to give up on my other jobs.

I was making a lot of money until about July 08, now I am losing money.

A couple more months of losing money means I lose everything.

Sorry to here that i would suggest if your losing money you probably should close it up and try something else the needs of the people are changing and if it comes down to buying milk or washing a car they will have a dirty car.

Originally posted by downtown436
A couple more months of losing money means I lose everything.

Yeah, there's a lot of that going on all around us now. Yet, how can you loose what is already yours? If the bank owns it, remember, it's not really yours, yet.

You may have to put all this in a positive light if you want to retain your sanity and not drive yourself nuts with worry. It's only "stuff," right? You still have your good health, right? "Lots of money" isn't that important, is it?

Decide what you can hold onto come hell and high water and concentrate on saving that. There's not much you can really do when a clean car becomes a lower priority for most folks in the same situation as you now during these difficult times.

A year and a half ago I saw all this coming and made numerous drastic changes to avoid being caught with my pants down. Sold my home before I became upside down in it and moved into a one bedroom appt. Paid off all remaining debt while I could after unloading that home. Reduced all my living expenses to the bare minimum (no DirectTV, no landline phone, no RV any more, no new car payments, etc.).

Slash all non-critical expenses. Sell every non-essential asset. Make a survival plan and take it to the bank and renegotiate any loans.

Drastic times require drastic measures.

Best of luck, but keep your priorities straight, or all this will drive you nuts with worry over something we can't control or change. "Stuff" is not that important. A smart captain doesn't go down with his ship, he swims to safety so he can sail once again some day. Luck be with you. We're all in this together. Think of it as an adventurous challenge that you will survive!

I feel for you man. You've worked hard to build up businesses, only to see them slipping away through no fault of your own.

Here's my humble advice.

The recession and upcoming depression are going to severely slam down on pure service businesses. Only vital and logistics functions will continue. Vital sectors may even grow. Hence what I would do is rationalise your endevours. Working 3 jobs may seem like a winning strategy, but in the end it will doom you because you won't be able to excel at any one.

1. Before you fire your carwash employees, figure out what your overheads are to run the business. Instead of firing all of them, offer the best employee the chance to become a partner in the business. Bring him in and make him pay for 50% of the overheads; and give him 50% of the profits. Let him manage the carwash station however he wants. If things dont work out, close down the station. Repeat this strategy at all your carwash stations.

2. Ramp up your delivery business by fierce undercutting of rivals and creating a brand for your company. Could your company be the fastest to do something, or could it be the most reliable to do something? I would focus the bulk of your efforts on this endevour, since it would be quasi-vital.

3. Work out how much income you get from landscaping. Could your time be better utilized focused on the delivery business? Alternatively you could run the delivery business remotely via a mobile phone while you are landscaping. Get one of your employees to do the physical delivery work.

Final thought from me: Excellence and specialisation will ensure survival in this climate. Run your business in a way that means clients cannot afford to not use your service. People may decide to wash their cars at home, but could they landscape their garden as masterfully as you can, or could they deliver a package as efficiently and swiftly as you can?

I hope some portion of that was useful to you. Good luck my friend, we are all going to need it.

Same here with my business.
I depend on people having expendable cash for my sales. Much like the car wash, when money is tight the people dont spend.
I just layed off one person (out of the 6 working for me) to try and make ends meet. Running my business for over 20 years and this is the worst I have ever seen.

Originally posted by downtown436
Ok some of you don't get it.

I am the only full time employee.

All my employees are part time working between 3-15 hours a week.

Customer service will suffer.

If I close 2 locations, I'm screwed.

I can do the work my self, I will probably have to give up on my other jobs.

I was making a lot of money until about July 08, now I am losing money.

A couple more months of losing money means I lose everything.

Well originally you said you felt bad for your employees. I don't really get why.

They are working 3-15 hours a week. If you was paying them 10 dollars an hour then they would be making 300 before taxes. So lets just say they take home 250 every 2 weeks. Thats 500 a month, if you are paying 10 an hour, which to me seems to be over paying. Espeacially if they are part time.

Now if you are paying them minimum wage (7.25 here so I'm going to use that) then that would be 217.50 a month before taxes.

And that is if they work 15 hours a week.

Unless you are working a bunch of illegals then they must be either drawing welfare, you are paying cash and they are drawing unemployment or they have other jobs. Hopefully its the latter, if that is the case then I would imagine that they will survive.


I have to point this out.

Apparently your not all that busy if you are able to post on the Internet at 0830.

I'm just saying.

I work nights so don't throw what time I post back at me.

Like the OP stated, a car wash is a total luxury item. Why pay 5-10$ when you can wash it at home for free. The only buisness' that can overcome hard economic times are ones that produce nessecities to live, or provide something that can be addictive(like growing tobacco). Or cheap entertainment of some sort(like comic books or 10 cent movies).

reply to post by marg6043


Yea maybe he can help his brother in Kenya living in the mud hut and his Aunt living in the boston housing project too,dulce

Yup I work in a fundraising office here in Canada... and just by our country getting hit with massive layoffs, economic downfalls (ie. peoples investments dissappearing, stocks dwindling) we've had to cut major amounts of our staff... lost lots of hours for our prospects & found it harder then ever to meet our daily revenue goals...

But I fear by laying people off is only gonna make things worse, companys should take the hit and try to work through it, no use getting your panties in a knot over what may be just a small dip in the economy... (Keyword May, Im Sure None Of Us Are Mindreaders)

[edit on 5-12-2008 by Spock Shock]

Sad to hear downtown436, The company I used to work for made myself redundant along with a whole bunch of other staff. this happened 3 months ago, they apparently have just done another round of cuts this week.

The Sickening irony of it? As I type this, they are having a Christmas party on a party boat.

How can a company such as this, who are in financial strife, losing millions of dollars, sacking staff left right and centre, how can they throw a Christmas party?
Whats to celebrate?

I was sacked so these overpaid buffoons at the top can have their party.

Merry xmas

i would close the car wash and focus on the delivery business and continue to leave your options open with some odd jobs on the side.

people will cut back even further in the future on stuff they don't need

The service economy is falling of the edge of a cliff in some areas right now and the future will be worse, this is not a guess and consumer spending habits are changing. At least gas is becoming less expensive but consumer credit card lines are being cut and they will be cut SEVERELY in 09, this will balance out the benefit of cheaper gas prices.

Some areas are holding up well but most are not. one of the jobs i have is as a personal trainer and so far i have been lucky to be in one of the few markets (San Diego, NYC, and *Boca raton*-West palm beach area, that are still holding up in that industry)

those that are reading the BAD news posted online and viewing it as doom and gloom compared to the propoganda on the MSM will continue to be suprised and behind the curve. The unemployment now hurts more than in the past because more people are living pay check to pay check combine this with banks lending less and estimates that credit card lines of credit will be cut back 45% in 09 we can all add 2 plus 2 , even if we don't want to. And should anyone increase the taxes on the wealthiest which employ alot of people and also spend alot in the service sector things this will add speed to the snowball rolling down the hill. Get connected with folks in business that are consumer staples and or in some of the wealthiest markets in the u.s.a.