Actually, the subjects for the two classes I’m teaching this year at The NBM Show are as much or more about the business of sign making as they are about the hands-on techniques of sign making. And, after working way too hard at this business since the mid-1970s, I can look back and see things maybe a little clearer than I did way back when. So, I would like to share some of what we cover in my seminars at this year’s shows here, and of course invite you to follow up on this discussion by joining us in Indianapolis or any of the other locations we’ll be at in 2011.

 

Of course, some of you are way ahead of me, and either by education or just innate talent are already past where I am businesswise, and can skip everything I’m about to mention. But, when I look around at other sign shops and graphics companies, the evidence would indicate that most of us are actually in the same boat. And, let me tell you, it can be a frustrating voyage.

 

Maybe one problem some of us have is that we enjoy the work of sign making to the point that it is almost a distraction to us (when we are young, anyway). We don’t force ourselves to focus on the business aspect of it as much as we should. In class, I pose the question, “Why is this business fun, and so darned hard to run?”

 

To me, it was always fun because of the diversity of things I am called to do. And it’s so darned hard to run because of the diversity of things I am called to do. And guess what the only solution is; not doing so darned many different things! We have to focus our business, our products and our marketing on our particular area, or areas, of the sign and graphics business, and exclude most everything else. 

 

One very important thing I have learned is that I cannot be productive enough by myself to make the living I need for my family and future. I have to have company, that is, employees and staff. And, though it is true that with enough years and experience, I can and have learned to do a thousand things, I cannot hire people or train them long enough to do all of them for me. So, I really believe that our company has to have a focus, and most every sign-related business, if they are to succeed and grow, has to focus, too.

 

The specifics of this will be different from sign business to sign business, and need to be. But, as I look around and from my own experience, the “shotgun approach” does not work, or at least does not usually lead to a growing and profitable business.

 

So, each year we work to expand in the directions we want to expand, and retreat from parts of the business that just don’t work for us. This is very important, and the more successful we are at it the better off we are, and the healthier a bottom line we will have.

 

If we are going to work as a team, even a small team, there are some very important things to mention about building that team. Finding employees with the right skills and experience is not really very important. I can have staff members with as much experience as I have, and more talent, and that still may not matter. What really matters to me is finding the right type of worker. Yes, the right type of worker is much more important to me than how much experience and skill they bring to the table.

 

What type of person is that? I need all my staff to be people who are production and productivity oriented—people who are bored when they are not getting anything done. Does everyone fit that description? Absolutely not. And if they don’t, all the coaching and coaxing I can do will not change that employee enough to matter. Being productive and needing to be, is not something I will teach them. That trait is there already… or not.

 

But, here’s an important side note: we are all human and human nature requires rules. 

One of the rules we have in our shop is that cell phones stay off or stay in the car. And our internet access is limited and is there for business only. Did I really say that? You bet I did, but only after trying to be Mr. Nice guy for years and failing miserably. 

 

The distractions of cell phones and internet access can cost a commercial sign shop from 10 percent to 40 percent of productivity. I can’t afford even the 10 percent, and neither can you. If you wish to share this information with your employees, be my guest. Having these rules is not punitive or unfair, it is small business life-and-death. Oh, did I mention that raises and bonuses and all good things can hinge on how well we deal with human nature along these lines?

 

There is another element of human nature that needs to be mentioned right here. It could be illustrated by asking my employees what their first job is? The answer: catching Rick’s mistakes (and everyone else’s). 

 

Mistakes are so expensive in this business, we have to make it Job One to catch them before they happen. And no one, myself included, is beyond making mistakes. They are also contagious. It seems we will go a month or two with no significant errors, and then let our guard down just a bit and they’ll come in multiples. We can’t afford them, and we all know it, so we try as hard as we can and actually do pretty well at “nipping them in the bud” as Barney Fife would say.

 

If we have the right staff, trained and productive, what other most important element is required to make this business run like a business, and show a profit like a business? We need repeat customers, and just as important, repeated jobs. The little illustration provided shows a very important formula that applies here. It says, the Profitability (P) of a (CS) commercial sign shop is directly proportional to the ratio of Repeat Customers (RC) to Total Customers (TC) it has. It also applies to repeated projects as well.

 

If all my customers were new customers, and all our jobs were one-of-a-kind, I could not make our sign business profitable, even if I worked 24 hours a day. The inverse is obviously true, that the more repeat clients and repeat jobs we have the more successful and profitable we will be.

 

We have to focus on types of work that keep coming back to be done again and again. This isn’t boring, it’s business. And we must make sure our customer service is so good that our clients keep bringing their work back to us. This means quality work, quality customer services and very few mistakes. 

 

If we find the right type of employees, treat them fair and keep them, focus on the right types of work, and do the work so well that our clients comes back to us and only us, we can run this crazy business like a business, which is no small task indeed. 

 

 

There is a lot more we could talk about when it comes to building a successful sign and graphics business, and hopefully we’ll have the opportunity to explore other important topics. But of the subjects we might discuss, none are more imperative than those we’ve looked at here. And, I know that my business will grow and succeed only to the level that I master these challenges and stay on track. And you can bet, I am diligently applying myself to the task. 

 

Good luck to you in reaching your goals. I will keep you posted on mine.