Is now a good time to expand a micro business?
In 2011 I started a carpet cleaning business. Before that I was a displaced worker who had a good job from 1982 until about 2005 I photo finishing. I spent 2006-10 as a carpet cleaner. I sort of liked it. I started my own carpet cleaning business September 2011. Moonlighting until March 2012 when I averaged about $1,000 a week in sales and $600 in profit.
Between 2012 and 2018 that doubled. 2019 was flatline. 2020 started flat and COVID hurt badly.
I want to expand into fine handmade rug cleaning. I have to rent warehouse space and expand with about $15k in equipment. I have spent $15k 2011-2018 on equipment. Nothing in 2019 and 2020. I have a marketing olan ready to go. I am doing exactly what a successful place about 500 miles away did around 2000. My best weeks are about $2,500 in sales. That is a terrible week for my 000inspiration. He averages about $5,000-6,000 per week. I want that. I will not have that immediately, certainly not with this equipment, but it is a step. Am I taking too much risk? I do about 10 percent of my work this high end now. I'd like to see it be 30 percent in 2022. I'd be happy to hit 50 percent in 2029 when I am 65. Then I promote a manager and still do a little, but begin to retire.
- DevorealLv 61 month agoFavourite answer
You need to PLEASE sit down with a CPA and work out a multi year plan. NOW. Most of the answers you will get here will be "Oh, and you think it is smart to ask a bunch of random people on Yahoo that question? And they will be correct. A SMART person who plans to make MONEY with their business would sit down with a CPA or other financial professional and plan it out and NOT be on Yahoo.
- davidLv 41 month ago
It depends on how organic is your growth. Rent facilities, don't buy. pay out of pocket, don't borrow. Use the interest off of what you've already saved, and not the principle. I wouldn't worry too much about slogans and marketing/advertising. If you're doing a thing and your doing it right, the customers will flock to you.