on 1-1-13 how does 2013 look to you? better or worse than 2012?

[huggytree]

2012 was my best year in business...2011 was my worst(but still decent)

standing here on 1-1-13 my work outlook for Jan is horrible....worst ever(this is my 6th year in business)

my guess is ill struggle to even get 30 hours the whole month

i havent been bidding much in a while and all my jobs are done awaiting final payments...my folder shelf is empty




lets hear about your outlook for 2013?

[billbenson]

I'm taking on a partner (a friend of 20 years). There is plenty of money for both of us. I'm looking forward to a very good 2013.

I know you shouldn't take on partners with friends, but I have programming skills that he doesn't have so he needs me. He's a good salesman and picking up my processes rapidly. He also loves the work because I don't ask for weekly activity reports or micromanage. Also he can see the $$$. I will actually be able to take time off. I can easily see doubling sales with him. And I don't care if he makes more than I do. And he see's it as the best job he's had in 20 years. Win win!

So I'm jazzed going into the new year.

[Wozcreative]

Last year I had over 100 projects (first year it was 150 projects), this year, I hope to have less projects but charge more and go after substantial ones. I honestly work FAR TOO MUCH. I work on weekends, holidays, and late nights, early mornings. I need more free time and focus on myself, not 12 clients at a time!

[huggytree]

Last year I had over 100 projects (first year it was 150 projects), this year, I hope to have less projects but charge more and go after substantial ones. I honestly work FAR TOO MUCH. I work on weekends, holidays, and late nights, early mornings. I need more free time and focus on myself, not 12 clients at a time!

very smart way to look at it

better to make larger profits on 50 jobs than small profit on 100

thats how ive always looked at it.....i use small jobs as filler

[huggytree]

I'm taking on a partner (a friend of 20 years). There is plenty of money for both of us. I'm looking forward to a very good 2013.

I know you shouldn't take on partners with friends, but I have programming skills that he doesn't have so he needs me. He's a good salesman and picking up my processes rapidly. He also loves the work because I don't ask for weekly activity reports or micromanage. Also he can see the $$$. I will actually be able to take time off. I can easily see doubling sales with him. And I don't care if he makes more than I do. And he see's it as the best job he's had in 20 years. Win win!

So I'm jazzed going into the new year.

good luck with the partnership.....another one of my customers just broke off his partnership.....he is now struggling because of the payout from it

i wouldnt do it, but you may be less competitive than i am....the only ones i see working is where BOTH partners are extremely easy going and not competitive with each other...for me it wouldnt work...if i thought i was working harder id want more reward....my whole getting into business is all about working hard, but being rewarded heavily for it

[Pack-Secure]

We are very optimistic for 2013 :)

[billbenson]

good luck with the partnership.....another one of my customers just broke off his partnership.....he is now struggling because of the payout from it

i wouldnt do it, but you may be less competitive than i am....the only ones i see working is where BOTH partners are extremely easy going and not competitive with each other...for me it wouldnt work...if i thought i was working harder id want more reward....my whole getting into business is all about working hard, but being rewarded heavily for it

That shouldn't be an issue. You bring a thriving business and leads to the party. Let's say your prospect partner is a very good plumber. But he can't find work because it takes time to build up the marking / customers. Let's also say that you have more jobs than you can handle. You feed him leads and he quotes and does the jobs he closes.

You have him close and do the jobs he closes. He makes a large commission on the jobs he closes and completes. Have him invoice you for the jobs he completes. It's win win. He can't get the jobs at least initially that you can provide him. He can leave at any time and it doesn't affect you. You don't even need a contract - just be fair so he makes money and wants to stay.

I believe Evan made a post that eventually this type of arrangement, if he's working full time for you, may over time require that you make him an employee for the IRS. I need to check on that.

[machine]

If I were still looking at construction for my livelihood I'd say the outlook for 2013 was depressing, not a good place to be at 48 years of age. But last fall I decided to go to the local community college for drafting and after this spring semester I should be up to speed enough to call myself a drafter, hopefully. There is a fair amount of work out there so I feel optimistic. Depending on how things go this summer will decide how many classes for next fall. I have decided that in this apparently permanent general economic malaise I need to be proactive and less reactionary.

[huggytree]

construction is just such a roller coaster

it may be dead now, but in 2 months i could have more than i can handle and most likely will

spending $50k-150k on your home to do a major remodel is an emotional thing....people have to feel good about the economy...they seem to feel good for 2-3 months and then bad for 4-5 and then back again for 2-3......its never steady...either my phone doesnt ring at all for weeks or it rings 10x+ a day

last year started out the best ive ever seen it....this year is starting out the WORST

[billbenson]

If I were still looking at construction for my livelihood I'd say the outlook for 2013 was depressing, not a good place to be at 48 years of age. But last fall I decided to go to the local community college for drafting and after this spring semester I should be up to speed enough to call myself a drafter, hopefully. There is a fair amount of work out there so I feel optimistic. Depending on how things go this summer will decide how many classes for next fall. I have decided that in this apparently permanent general economic malaise I need to be proactive and less reactionary.

It's always good to have a backup plan even if things turn aroung and you decide to go back into construction.

[billbenson]

construction is just such a roller coaster

it may be dead now, but in 2 months i could have more than i can handle and most likely will

spending $50k-150k on your home to do a major remodel is an emotional thing....people have to feel good about the economy...they seem to feel good for 2-3 months and then bad for 4-5 and then back again for 2-3......its never steady...either my phone doesnt ring at all for weeks or it rings 10x+ a day

last year started out the best ive ever seen it....this year is starting out the WORST

Huggy, have you ever done any commercial business such as hotel projects or high rise buildings. Those are a good part of my clients and I have seen very little effect on them by the economy.

[Steve B]

My fence business will hinge on the movement of real estate. One of these days, houses are bound to start selling. 2012 was my best year after three level years during the recession. Hopefully, things will keep going in the right direction. My pet food business probably depends more on the general economy since we sell a premium food. We started it during the recession, so it's hard to say what to expect.

[Business Attorney]

It is always difficult for me to project because the difference between a good year and a great year generally depends on picking up a few large commercial transactions during the course of a year. A couple of private offerings, business acquisitions, corporate restructurings or similar transactions make a big difference. Regular corporate work, like new business formations, contact negotiations and drafting, partnership and shareholder disputes, etc keep me busy and pay the bills, but major transactions typically mean longer hours, including nights and weekends.

I am reasonably hopeful that the economic activity will create the kinds of business transactions in 2013 that will make it potentially a very good year, but it is hard to predict whether I will personally have a great year since one or two projects can make it or break it.

[Harold Mansfield]

I feel good about 2013. The economy is growing. People are getting jobs. I think home based start ups will see a significant uptick again, as more people attempt to have something else going as a safety net.

If I had to say there was one good thing about the economic collapse of 2008 is that it took so many people by surprise that they are trying to diversify a little more as to not get caught with their pants totally down again.

Personally, 2013 will be the year that I move more into selling online and try to slowly go from just a service provider to a line of products.

[huggytree]

Huggy, have you ever done any commercial business such as hotel projects or high rise buildings. Those are a good part of my clients and I have seen very little effect on them by the economy.

no one would hire me for such large projects because im too small....ive even had some home builders refuse to hire me even though i can easily handle any size residential project by myself....

i did get into some commercial work for a bit(2 projects)....they were $15k projects each which puts them at around 80 hours each.....i hired a friend to help me and hired him as a subcontractor....i do not have enough knowledge by myself to do commercial.....just like a commercial plumber would have trouble doing a new home...its 2 different animals......the prime contractor on the projects was a @ss and even though he raved about my work and even ran across a parking lot to tell me how happy he was with me i decided i do not want to work for him again....he was a slow payer

i decided to stick with the type of work im best at...im a specialist..large remodels on houses(mansions) from the 1910s-1930's....there arent too many plumbers who specialize in that market...its my niche and im at a point where i am bidding on the same projects with multiple builders....its great because who ever wins in still the plumber

the good news on the home building front is the houses for sale are drying up....even in my neighborhood theres no houses for sale anymore....its typically 2-3 at all times.....when the houses for sale dry up more it will make house prices rise and make building a new home a better idea

right now building a new house is just stupid....the second its complete its worth $30-50k less than you paid for it.....10 years ago it was worth $10-20k more

loans are also a big issue with my industry.....ive had tons of projects ready to go and the homeowner couldnt get a loan.....the majority of my work over the past few years has been from wealthy homeowners who have $200,000 cash to pay for their projects....i dont know if the loan issue is getting better or not...i havent heard either way in a while

It does look like Feb. is going to be a decent month.....hopefully the spring will be good......right now(jan) it sure sucks for construction....the supply houses are empty and employees are going home early....its horrible right now

[Harold Mansfield]

the good news on the home building front is the houses for sale are drying up....even in my neighborhood theres no houses for sale anymore....its typically 2-3 at all times.....when the houses for sale dry up more it will make house prices rise and make building a new home a better idea

right now building a new house is just stupid....the second its complete its worth $30-50k less than you paid for it.....10 years ago it was worth $10-20k more

loans are also a big issue with my industry.....ive had tons of projects ready to go and the homeowner couldnt get a loan.....the majority of my work over the past few years has been from wealthy homeowners who have $200,000 cash to pay for their projects....i dont know if the loan issue is getting better or not...i havent heard either way in a while


If my state is any measure ( NV), after being the fastest growing economy and epicenter of the new housing explosion from the late 90's through 2007, and then being the epicenter of the crash and at the top for most foreclosures in the country and double digit unemployment from 2008-2011...is any indication, things are looking up.

Our housing sales have been growing steadily through late 2011 and 2012. We aren't #1 in foreclosures anymore. Tourism is up again. Housing values are rising and a lot of those construction projects that shut down abruptly at the crash, are starting back up again.

[machine]

It all depends where you are in the construction industry as to what this "uptick" (being generous using that word) means. If you are a laborer or trades employee I suppose you are even more grateful for a job that pays lower then it should and you don't know from week to week whether you still have it. If you are a trade subcontractor get used to more stress, more demands and thinner margins, alcohol is your friend. If you climbed the mountain and made jobsite supervisor with a major construction group like I did get ready for another rough climb, alcohol is your friend also. If you are a small-medim sized GC and have managed to weather it out it's probably mostly bad news. The little guys will survive and the big boys will.