Adventures with Lyrical: Buying a Business (REPOST)

Shonuff

Mr. Poopybutthole
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My demographic includes landowners who have over 40 acres of land. This generally includes baby-boomers, those who have inherited land, or young wealthy entrepreneurs who have recently purchased land (ages 35-90). So, part of my demographic has grown up around land (babyboomers) and generally "think" they know more about timber management, while the younger demographic tends to do more research on the topic, which is good for us.

We connect landowners with timber companies within our network, so I don't have to spend any money to get timber companies involved, since the people that keep them in business are coming to me.
So the landowners sell to the companies? If so, is there a way to target people that own large pieces of land through the mail? I've toyed around with doing mailers to everyone in my area with a house worth more than 400k. That might work better than doing blanket mass advertising. I can do radio and billboard because everyone in my area has lots of trees. Everyone needs it here, unless they are in college.
 

Tmac

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So the landowners sell to the companies? If so, is there a way to target people that own large pieces of land through the mail? I've toyed around with doing mailers to everyone in my area with a house worth more than 400k. That might work better than doing blanket mass advertising. I can do radio and billboard because everyone in my area has lots of trees. Everyone needs it here, unless they are in college.
Currently I reach individuals via cold-callers and generally send a letter after the first call/contact has been made. That way they're receiving multiple touches/media from us. The last county we called had about 1,500 landowners we called out of a population of 26k. Sending out an infographic/ad to 1,000 people would cost $986 if I did it through FedEx Office, so radio would reach a lot more people for a lot less.

We already have people making phone calls and we also send letters, so I'm wanting to diversify the touches we get. I've never done a direct mailer infographic/ad, so I'm a little skeptical of spending the money when we're already sending them letters after we call them.
 

Shonuff

Mr. Poopybutthole
5,538
790
Currently I reach individuals via cold-callers and generally send a letter after the first call/contact has been made. That way they're receiving multiple touches/media from us. The last county we called had about 1,500 landowners we called out of a population of 26k. Sending out an infographic/ad to 1,000 people would cost $986 if I did it through FedEx Office, so radio would reach a lot more people for a lot less.

We already have people making phone calls and we also send letters, so I'm wanting to diversify the touches we get. I've never done a direct mailer infographic/ad, so I'm a little skeptical of spending the money when we're already sending them letters after we call them.
In smaller towns, you might get more results by doing newspaper ads in the local paper. Radio might also work, as long as it's the same geography, and you might find it's not so expensive. Radio has as good a reach in my market in my niche as TV, but it is 1/6 the price. You could target the stations with the higher demo's (talk radio, classic country or rock, or the oldies). I'm not sure if you compete with the local sawmills or not (in some cases, probably not) so you might call them for some prospects. Hell, you could even call local tree companies. I have some days where I haul off five tons of wood to the dump.
 

Tmac

Adventurer
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In smaller towns, you might get more results by doing newspaper ads in the local paper. Radio might also work, as long as it's the same geography, and you might find it's not so expensive. Radio has as good a reach in my market in my niche as TV, but it is 1/6 the price. You could target the stations with the higher demo's (talk radio, classic country or rock, or the oldies). I'm not sure if you compete with the local sawmills or not (in some cases, probably not) so you might call them for some prospects. Hell, you could even call local tree companies. I have some days where I haul off five tons of wood to the dump.
I don't compete with sawmills or timber companies. My service is the first and only of its kind in my niche. As long as I can attract landowners to my service, which is mostly educational, timber companies directly benefit. So, my biggest problem is getting landowners.

Currently 25% of our leads turn into sales, which is good, however 6% of our contacts turn into leads. Sites like Lending Tree have conversion rates of around 15%, so my goal is to move that 6% to at least 15% and even 20%. So, if we contact 1,000 people in County B (this doesn't mean we actually speak to them; that number is probably more like 300), 60 of those are going to turn into leads and 15 are going to turn into sales. I'm working to turn that 60 into 150.
 

Shonuff

Mr. Poopybutthole
5,538
790
Are you willing to share your transcript?
Here is a rough proof of the radio commercial I'm running (company name edited out). I'm keying in on people that have waited to do their work all year, and what they tell me. We are getting less calls, but the average ticket is higher. My average ticket is $762, but it doubles this time of year from people that are worried about big storms and potential emergency work. All I need is 20 customers to sign up at 2k a month right now, which we are getting. I just counted up our work total, and we are backlogged until the 3rd week in January already. As I said, we've been growing at a 15% annual clip over each of the last three years after the recession hit, I want to grow 25-30% next year, so I'm going to do a lot more radio (200 spots a week on this one station) and I'm thinking about TV.

---------------------------------------------------

ICE STORMS DO NOT HAVE A CONSCIENCE.. AND YOU CAN'T TALK TO A STORM OR REASON WITH IT.... YOU CAN'T MAKE IT UNDERSTAND, YOU DIDN'T TAKE TIME TO TRIM THOSE TREES... AND THAT'S NOT GOOD FOR YOU.. BUT THIS IS... ...(EST BED HERE) VISIT _____.com.. X's SAFELY REMOVES LIMBS THAT THREATEN HOMES, ROOFS AND YOUR FAMILY'S SAFETY.... AND THEY RECOMMEND TRIMMING NOW-BEFORE THE STORM... THEY'RE A ____ LANDMARK SINCE 19__, SO VISIT ______.com AND DISCOVER THE FAMILY OWNED AND OPERATED COMPANY WITH A CERTIFIED ARBORIST ON STAFF.... BEFORE THE STORM COMES TO TOWN, (tagline).... MEMBER OF T/C/I/A...CALL TODAY FOR A FREE ESTIMATE!
 

Tarrant

<Prior Amod>
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Wont that add be kinda worthless with you leaving out all your contact info from it?


rrr_img_4740.jpg


rrr_img_4740.jpg
 

checkyeah_sl

shitlord
70
0
Lyrical,

Explain a little bit more about the music, tone, etc that's going into this. As someone who listens to AM radio on 5 different stations each day, I am always remembering certain commercials over others. In this case it seems like there is too much filler dialog. Wouldn't it be better to address the issues promptly and provide your information?
 

Shonuff

Mr. Poopybutthole
5,538
790
Every bit of that dialog is why a customer picks me over a competitor, or the customer's attitude at this time of year. We've had two different types of commercials this year, a funny one, and one with some dire music behind it. I'm sure we'll be going with the latter.
 

Shonuff

Mr. Poopybutthole
5,538
790
One day, I'm going to start posting all of the screwed up email replies I get from guys looking for work.
 

Shonuff

Mr. Poopybutthole
5,538
790
The question is, why haven't you done so already?
I didn't think about it until an email I got just yesterday. Dude started complainingbefore he's even interviewedabout how the work is too hard. The last two guys I've talked to have done this.
 

Tarrant

<Prior Amod>
15,531
8,987
Rofl, that's awesome. I really enjoy (and appreciate) this thread and the updates you give, inserting some of the lulz from your emails and interviews would be pretty awesome.
smile.png
 

Eomer

Trakanon Raider
5,472
272
Heh, it's frequently amazing how entitled some people are. My PM fired a guy the other day because in the first 4-5 weeks of employment, he'd already missed half a dozen days. Not only that, but he was told repeatedly that he was to call the office to let either the receptionist or the PM for the project he was working on know. Instead he'd just send a text message to the foreman on the site he was working on. So again he doesn't show up for work for a couple days last week and only texts the foreman. PM calls him to tell him he's fired, and he complains about it not being fair that he's being fired.

Hey, jackass, you've missed 15-20% of your working days since you've been hired. If you want a job, show up for it. He's 19 or 20, so he's got some learning to do. Unfortunate since he seemed like a good kid when I hired him.
 
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OneofOne

Silver Baronet of the Realm
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8,019
Why not start a "bad employees and moronic applications" thread - I'm sure we have enough business owners and hiring managers to make it fun, and not pollute Lyrical's thread.
 

Shonuff

Mr. Poopybutthole
5,538
790
I am very pumped that Dec and January are typically the months we lose money, and we aren't going to this year. Sales are up 50% in December, and we've got almost as much work booked for January than we did all of last January. We are at breakeven in December (the last three years the company has lost 18k on average in December), and January should be better. I chalk it up to more advertising dollars (next month I'll be spending 7k versus 3k last January) and better sales practices. I'm constantly spending time training staff on sales. We did get to a point where it looked like we might run out of work, but everyone did what they were supposed to. So our work streak will probably continue to 36 months straight with no missed workdays (other than weather related). My competitors can't go three months straight without missing days, due to lack of work. They just can't make the phone ring.

2013 should be a banner year, as I'm expanding into two towns, heavier radio schedules, and potentially will run TV commercials. I really do believe that my industry is moving to three main players here in the area, and everyone else will get the scraps. All I can do is steer this so we continue to pick up share.

If I can break the cycle of losing my ass in the Winter, then I'll never lose money, and then I'll never have to layoff. Over the years, our average Winter month has gone from $12-15k in sales to 35-40k. It's moved up every year, as I've increased total budget, tweaked our total mix, expanded our service area and changed our message to customers in the Winter, all in a bid to try to increase demand.
 

Kiroy

Marine Biologist
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Figured I'd ask here. You guys want another thread like this, this time starting a retail business in California, the so called 'worst business climate' state?

My wife and I are going to be opening a small (1100 sq ft) retail boutique in a Sacramento suburb selling woman's cloths, gifts, small home items, candles ect. Think Anthropologie with a little lower price point. I'll be covering financials / inventory and helping with store design once we get in our space. Our lease is signed but we won't start working on our space until February because they still need to put up walls. We've got all our wholesalers picked out and are heading down to LA in Jan to one of the bigger trade shows to get hands on some of the inventory we want. Wife will obviously be working at the store full time (I'll keep my day job). We're self financed and based on our business plan have enough funds to stay open a year and pay all our business / personal bills assuming 0 sales. So pretty much, if within the first year we aren't netting about 3k a month (or about 8k gross sales), we're done.

If you want another thread I'll probably start it in Feb once we start work on the store. I will say, working with the bureaucrats in CA (getting licenses, sales/tax accounts, incorporating, questions answered) has surprisingly been a pleasure. Everyone I've worked with has been nice and goes out of there way to make sure I do shit right. I couldn't believe it at first.
 

Shonuff

Mr. Poopybutthole
5,538
790
Figured I'd ask here. You guys want another thread like this, this time starting a retail business in California, the so called 'worst business climate' state?

My wife and I are going to be opening a small (1100 sq ft) retail boutique in a Sacramento suburb selling woman's cloths, gifts, small home items, candles ect. Think Anthropologie with a little lower price point. I'll be covering financials / inventory and helping with store design once we get in our space. Our lease is signed but we won't start working on our space until February because they still need to put up walls. We've got all our wholesalers picked out and are heading down to LA in Jan to one of the bigger trade shows to get hands on some of the inventory we want. Wife will obviously be working at the store full time (I'll keep my day job). We're self financed and based on our business plan have enough funds to stay open a year and pay all our business / personal bills assuming 0 sales. So pretty much, if within the first year we aren't netting about 3k a month (or about 8k gross sales), we're done.

If you want another thread I'll probably start it in Feb once we start work on the store. I will say, working with the bureaucrats in CA (getting licenses, sales/tax accounts, incorporating, questions answered) has surprisingly been a pleasure. Everyone I've worked with has been nice and goes out of there way to make sure I do shit right. I couldn't believe it at first.
Why does everyone seem to be picking retail? I thought retail was trending downward? Also, what are the % chances of getting your stool pushed in by a big corp one day? I purposefully picked a boring industry, as I've read that the more mundane your business is, the less competition it attracts, so you have higher margins.

A friend of mine owns a retail store that carries trendy gear for urban teens. It's about the size store you are talking about doing. He makes almost six figures doing it, but has to manage the store seven days a week. And by manage, I mean he's running the cash register and waiting on people.

I'm thinking, Kirun, there's got to be an easier way to make a buck than in retailing.
 

Corndog

Lord Nagafen Raider
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Me picking retail was taking a very broad pet store and focusing one 1 element. Live Fish. Dry goods will be very limited.

I think the lure of retail happens when consumers see wholesale prices. Who couldn't make money when you buy an item for $1.00 and sell it for $3.00?! Or someone says why can I never buy this? I'm into it and so are my group of people. I could totally fill that niche. Problem is, there isn't that store because there isn't enough business to sustain it.

I chose my market, because people who have run a pet store for 20+ years are dropping like flies from not adapting. They're tied up with tons of dry goods and paying retail space on it. When amazon is selling it for their wholesale cost. There are many items in my industry that are sold on amazon for less than the cost than the average wholesaler unless you're buying 10k+ worth, which a local store wouldnt sell that many in 5 years.

And Kiroy, I say yes make your own thread. It can only help you. Plus it's always nice to read up on what people are doing and working/not working etc.
 

Tmac

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Figured I'd ask here. You guys want another thread like this, this time starting a retail business in California, the so called 'worst business climate' state?
I say yes, as long as you're willing to disclose the bits that make it interesting. Numbers, marketing strategy, successes, failures, rolls of the dice, etc. I've gotten the most out of Lyrical's post when he talks about numbers and the actual strategies/processes he's put into play (the boring stuff). These are the parts I really enjoy and can actually take something from.

I think retail fits a very nice niche. Especially local boutiques. Women love to see, touch, and feel their clothes. There's a reason they try on 20 different things and why they'll always prefer shopping in a store. Does Lyrical not understand women?
 

Shonuff

Mr. Poopybutthole
5,538
790
Does Lyrical not understand women?
Not even just a little bit, I wish women were more like men. No homo (keep the breasts and vagina). I'm just saying that with a wife and daughter, I don't understand their line of reasoning most of the time.

I'm not saying retail won't work, I just think that the next time I do a business, it will be another boring service company with very little competition.