Business Model

Discussion in 'Wealth Creation & Management' started by REDBACK, Dec 21, 2012.

  1. renovator

    renovator Well-Known Member

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    Yep ive employed dozens of workers whilst ive been here & they have a different mindset .Theres the usual loafer as anywhere but most feel its their "duty" to do their work & ive rewarded the good ones accordingly . Paying them above the going rate + bonuses & sending them home early on saturdays . (six days a week is the norm here )
     
  2. Bargain Hunter

    Bargain Hunter Member

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    Rennovator you sound like a very fair boss. Can I come work for you? :p
     
  3. renovator

    renovator Well-Known Member

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    Yeah sure the weekly wage here for six days is equivalent to $55AUD for a tradesperson or just over $40 for a labourer. Feel free to pm me when you will be here :lol: since your a good bloke & willing to work you can only work 5 days for the same pay :p:
     
  4. Shaddam IV

    Shaddam IV Well-Known Member Silver Stacker

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    I remember working on a project in Jakarta and a section of floor was sub-standard, I called one of the tradies over to fix it and he had 3 power tools - a drill, a circular sat and a jigsaw. His problem was that he only had 1 mains plug, so depending upon which tool he needed to use he carried a screw driver and removed the plug from one tool and put it onto another so at any time he had a tool that he could plug into a power outlet and two others with 3 bare wires on the end of their cords.
     
  5. renovator

    renovator Well-Known Member

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    Power tools ? your joking here you have to supply blocklayers shovels here . Now ive got about 8 shovels that i have no use for (i had nearly twenty but gave them all to the workers) Along with the paint buckets .The 15litre paint/gypsum putty buckets are like gold here everyone wants them as soon as they were empty they would be stashing them to take them home i had to take control & ration them out so everybody got one

    I bought a heap of power tools & a lot of the guys had never used them . The look on the carpenters face when he first used a power saw was priceless He was wrapped .A power drill was about the only tool some knew how to use & others were trying to drill holes in cement without putting it on the hammer function it was hilarious at times .

    They didnt have enough power leads at some stages & i would turn up &they had cut the long leads & spliced the others onto them mid lead hahahah it was fkn dangerous at times .

    Definately an experience to remember
     
  6. renovator

    renovator Well-Known Member

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    [​IMG]

    Its ok we dig it out later :lol: :lol: hahahaha
     
  7. REDBACK

    REDBACK Well-Known Member Silver Stacker

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    Don't get me started on cleaning tools after the job is finished.thats like an instruction in Chinese!
     
  8. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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  9. Sargeant Argent

    Sargeant Argent New Member

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    Getting tired of trdeswork myself. Lookingat getting into importing products from Asia. I have family there and can qrite off surf trips.
     
  10. GiLa

    GiLa New Member

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    Thanks Redback for the topic and usually at this time of the year I do reflect back on the year that has passed.

    Because my business is based upon providing my clients with services using technology, my business relies heavily on the success of other businesses, so it has always been in my best interest to ensure the success of my clients.

    Since the GFC I have endeavoured to maintain the core of the business of providing hardware support, but like electronics technicians, it will be a dying breed as the cost of replacing devices will become cheaper than replacing components.

    I have also been in your boat Redback as being a NICE employer which leaves yourself open to abuse, as I paid for their lunches, smokes, petrol and cars to ensure that there was no excuse to not serve clients. Well I had to terminate everyone's employment last month as the standards of service to clients were below standards. I do not mind rewarding those that make me money hence why I look after my employees but when clients complain to me directly thats it end of story.

    In summary I am back on my own with my book keeper.
     
  11. REDBACK

    REDBACK Well-Known Member Silver Stacker

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    Update

    Ok its a few weeks into the New year and the New business Model is coming along better than i thought.
    I have not worked this hard(On the tools) for quite a few years however i have not had such a stress free period for at least 7 years.
    All jobs are done the way they should be done with care and due diligence.
    Lunches consist of Scotch fillet BBQ on site,both satisfying and cheap.
    No complaints,no groaning,all profits go straight into my account.
    Customers are happy,developers are happy,builders are happy.
    I have never felt more motivated and have my fingers in a number of pies.
    I have touched base with friends that i had neglected due to being time stressed and focus poor.
    My family life has never been more content and happier.
    I actually forgot why i was the Boss at some stage in the last 10 years and have come to re realise that my mental discipline,motivation,problem solving skills and get the job done attitude was lost somewhere in those Employee centric years.
    It seemed a hard thing to do to break free from my past business model,however it revealed it self to be positive on so many levels that the short condensed version above just touches the ice berg.
    Take care al
     
  12. renovator

    renovator Well-Known Member

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    Good onya im happy its all working out for the better...being on the tools is a good thing it keeps your mind active & keeps you in shape . The best part is having a laugh with the other tradies on site . ....theres some characters :)
     
  13. nonrecourse

    nonrecourse Well-Known Member

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    Yes am into our third year now of no employees other than our kids working part time tweaking our IT and helping out with the accounting and book-keepig/Bas's.

    Same with the properties no agents fee's other than when like last month a tenant did not take up his option and within two weeks we had another blue chip tenant that has leased the property paying 10% more than the previous. What is even better they want to spend serious money using our trades people to renovate to replicate the mirror image building next door which we also lease out to a blue chip tenant.

    13 years ago both of these buildings that we owned were in a pretty poor state of repair. We used one for our business and the other was "managed" by an agent. We had a procession of drop kick tenants who the agent didn't think was necessary to have a security bond.

    We sacked the R.E. guy about 10 years ago and started the process of attracting better tenants with us first spending some money on the buildings and then choosing tenants that were prepared to spend more plus put in place significant bonds, directors guarantees. By directly managing our properties our rental yields have improved out of sight and we no longer have the problems we had with agents telling us what the tenants rights are.

    When we first started in business we had a landlord like us who manged it himself and if money needed to be spent we paid or if it was too much we approached the landlord to fund it and he then increased our rent to recover the cost plus interest over 5 years.

    Have another building that we work from that I now want to lease out as we wish to stop using two premises and just work from the one that we live above as we have another new business venture that will dominate most of our time.

    The building we wish to lease out as of last week now has had a 3 phase power upgrade.

    Our goal this year is to increase our rental income to the point where our gross business incomes are matched by our rental incomes so that the next three years we can dedicate those rental increases to stack more bullion in each of our entities so we have continue to fill our equity moats that we have set up for each property.

    Our ten year goal is to get rid of the banksters so that all our families increasing property acquistions are funded by a trust we contol that provides the mortgage funding and the interest and principle flows back to that entity.

    Kind Regards
    non recourse
     
  14. Jislizard

    Jislizard Well-Known Member Silver Stacker

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    there's always fruit picking...
     

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