Estimates & Quotes

Very important topic, because it makes all the difference when you make an estimate bearing in mind all the factors that will cause the business to stay operating or go belly up.

I met a cleaning business operator one business meeting to pass a small subcontract to him so he can run it under our supervision. I took the guy for a tour in the premises need to be regularly serviced, and before we get to the end of the tour, and without asking the appropriate questions, I was surprised by him giving me a figure.

There were few reasons why I was astonished:

The guy didn’t have a piece of paper or anything to record any of the details mentioned, ok.. ok.. some people have photographic memory, but how would that look like when you travel with new client. The figure I was given, proves the whole thing; “the guy doesn’t know what he is about to place himself in”. The above reason was enough to get him out of the deal straightway but I took him one step further, just to satisfy my research in to how some people operates their business and why they fail. So I asked him about the number of the staff he employs, and he said; “It’s him, his wife and another Mohammedan if he needs a day off”.

Now you might ask what’s wrong with family operating business?

And I tell you it’s build upon reasons that will make it change in time. Now let’s take this case scenario;

X mortal starts a “convenient store” as family business, and operates the business himself and 1 or 2 others of the family members. In this case the business owner will not need to place in place any proper administration system that will be used to make the business operation run on “Auto Pilot”. Simply because all the staff that operates the business, knows the business plan and procedures (as part of the family). Now let’s take one step further, and the business was successful, and you open branches as many as the family members, using the same methodology. Yes it might rum smooth. But what after that is completely different level of administration and different level of business mentality.

I had a friend that had 3 shops selling stationary and books, one run by himself, second by his wife, and third by staff employed by him. My friend use to complain about the third shop being not making profit in spite of all the security equipment he used.

I think what my friend was absent is not a superior security surveillance system, but an over-all new level of administration system and business mentality.

Why do I mention “business mentality” all the time? It’s the secret word to the entire problem. Starting small family business is build upon “Trust” that all policies and procedures are done voluntarily, while on the other hand a plan for a huge business is build upon a system that will insure that the policies and procedures are met at all times.

Now let go back to our small operators, and let’s ask this easy question without going too deep into administration system.

Dose a small business operator place in his quote administration fees?

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Estimates & Quotes

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