When should one start a business?

abens · November 5, 2008, 8:38am

Hello to everyone,

Around three years ago i started renting a place to fix surfboards for local surfers, and try to start something in the surf industry. I have been working in the surf industry, repairing, glassing and sanding for the past 7 years.

Unfortuneately the surf here is very rare, which means that it goes flat here for weeks very often.

When there are waves, it rarely passes 3ft, and then goes flat for another couple of weeks. My point is that their isn’t much work in the surf industry here due to the small amount of surf.

As stupid as it may sound in term of business, im still renting my place to fix boards and practice shaping, even though i havent managed to cover cost for almost three years. My biggest problem is lack of time, so i can’t take on to much work.

Along with repairing surfboards, i work full time (9:00 - 18:00), sun -thurs, so working on surfboards is during the evenings and weekends.

The past three years i have been practicing shaping, and have sold a few boards, and received positive feedback, even though some of them can rip surfing on a door, they motivate me to continue shaping.

The reason im doing this post is, because im starting to get exausted working fulltime around the clock and not being able to go forward with my surfboards, at the moment i cant call it a business and would like to know if anyone has advice on what steps i should take to continue.

In order to make a living from surfboards, i would be looking at needing at least to make 15 -20 board a month, and at the moment i dont see how i make that happen. I dont see a problem in the production, however to be able to sell that many boards i need to be an amazing marketer and not shaper.

At the moment im working on EPS surfboards that i do from start to finish, hotwire-shape-glass-sand-fins. and it takes alot of effort and time, i dont feel like giving up, but find it hard to see how i should progress.

I hope that someone here can give me some advice as to where and how i should continue.

I really love working with my hands, and im not trying to give myself credit, but i know i do good work.

well hope to hear from you.

Thanks

otis · November 5, 2008, 7:41pm

Well I am hardly an expert, but have some common sense

from time to time. Here is what I would do:

Make lots of boards for yourself.

Sell your used boards, dont sell your bad boards, or

at least let them go cheap.

Ideally, you should be able to sell your used boards at

or near cost with your shaping and outsourced professional glassing. Keep in touch with the people

who have bought your used boards.

Build a small following.

Promote yourself smartly through an Israel specific forum,

your website, etc. Have a logo that gives a website, ph#, etc. Each of these boards is your business card and advertising banner. You dont go fulltime to the shaping

business unless their is real demand.

Time will tell.

In California with surf allowing, you can probably average

10-12 boards/yr, 1 board a month throughout the year, building, riding, and testing before selling. In Israel, this is a much different matter.

Get the idea, its a snowball rolling downhill if it works!

Little capital investment and you get to learn and refine your skills along the way without hampering your reputation.

abens · November 5, 2008, 8:26pm

Hi Otis,

Thanks for your reply,

To tell you the truth that is what i have been trying to do for the past two years.

Every board that i made i surfed with first and then sold them, luckily i managed to

sell them for good prices and they are all friends so im always on too hear what they think.

My problem is that i have been doing pretty much what you suggest, but i feel that i reached

a point where i want to pick up the pace and start making more boards. and to make more boards

i would need to quit my full time job.

maybe im just missing patience and i havent given the chance for snowball effect to come in place.

hopefully this batch will bring some momentum for the snowball

i do all of my glassing and its done at professional standards, ive been glassing for the past 5 years

for surf companies here.

well thanks for your advice.

deanbonkovich · November 5, 2008, 8:27pm

Sounds like your only chance might be exporting? Or you might want to look at doing some distribution as well. Not surfboards but accessories and the like. But some demand first and foremost. If you haven’t got the demand then you’re probably not going to get very far. Try a small amount of advertising, team riders etc. Spend your own money as well. Unless you want to go bankrupt of course. Surfboard manufacturing is more of a summer thing too in my experience. Stuff like wetsuits and clothes are not. Throw in the state of the economy and you’ve probably got some nice part time income on the side at the moment. Repairs take bugger all room and material cost as well. That’s about all I could think of.

otis · November 5, 2008, 8:54pm

If capital investment is involved, like quitting your real job

and/or investing serious money, then a good student of history

and business knows about the business cycle. Ride the business

cycle up and not smart to start a business on the down trough. I dont know how much in synch the retail business/business cycle in Israel are in synch with the US.

Most likely you guys are in synch with Europe which has been somewhat decoupled from the US as to peaks and valleys. But now is not a good time to be sticking your neck out anywhere. Maybe a 1-2 years out here in the US.

Stock Markets tend to recover and flourish approximately 6 months in advance of an economic recovery.

Nels · November 5, 2008, 10:05pm

Quote:

I have been working in the surf industry, repairing, glassing and sanding for the past 7 years…My point is that their isn’t much work in the surf industry here due to the small amount of surf…Along with repairing surfboards, i work full time (9:00 - 18:00), sun -thurs, so working on surfboards is during the evenings and weekends…

So you have a regular full-time job, and also a part-time job glassing and repairing surfboards. Nights and weekends you make your own boards. There isn’t a lot of work within the local surf industry now.

Quote:

In order to make a living from surfboards, i would be looking at needing at least to make 15 -20 board a month, and at the moment i dont see how i make that happen. I dont see a problem in the production, however to be able to sell that many boards i need to be an amazing marketer and not shaper.

One of your big problems in any economy is that you will be competing with whoever is currently in the existing surf industry - taking business away from them. That almost certainly means they will take away your glassing and repair business if you directly compete with them on boards.

You can factor that in: keep the full-time job and use the repair/glassing time for your own boards…add that to nights and weekends you already use. Would that be enough? It doesn’t sound like your area has enough business to allow you to quit the full-time job either way.

The global economy is slowing, but that isn’t always bad for recreation. It might be bad for recreation business for a while though.

As you have already found during the past three years, in business you either make money or spend it. There isn’t an option for halfway. It usually takes up about the same amount of time.

If you want to make it full-time, maybe you can buy out one of the existing shops or builders…that might be attractive to them if the economy is hurting. You might expand to things like SUPs and regular paddleboards, which aren’t dependant on surf and have accessories like paddles.

Quote:

The reason im doing this post is, because im starting to get exausted working fulltime around the clock and not being able to go forward with my surfboards, at the moment i cant call it a business and would like to know if anyone has advice on what steps i should take to continue.

The way I see it is you currently have 3 jobs. My experience is that you have to let one job go to protect your health and sanity. You have to consider income to protect your health and sanity also. My advice would be to keep the full-time job, then see what you can do to combine the other two (current part-time industry work and your own business). Maybe you could let go of your rented space and use an established manufacturer’s work area. Sell them on the idea that instead of them losing your work as you concentrate on your own business they would have you around for sure. They could maybe sell some of your boards as well. Any reasonable businessperson understands your current schedule leads to burnout. Get any such agreement in writing and before you make any final changes in other places. I’ve known 2 aerospace businesses in the U.S. that hit hard times and went to work for former customers on the basis of keeping their own businesses - with the provision they get the new employer’s work done first.

Above all else, figure out the numbers before you make a change or invest more money. Don’t laugh: make the 2 year/3 year/5 year plan, figure out what you want to be doing at work and at play. If you don’t treat it like a real business you will be worse off than just working the one “real” non-surf job and enjoying the rest of your time.

Nels

abens · November 5, 2008, 10:17pm

hi nel and thanks for the advice,

Quote

I have been working in the surf industry, repairing, glassing and sanding for the past 7 years…My point is that their isn’t much work in the surf industry here due to the small amount of surf…Along with repairing surfboards, i work full time (9:00 - 18:00), sun -thurs, so working on surfboards is during the evenings and weekends…

Quote:

So you have a regular full-time job, and also a part-time job glassing and repairing surfboards. Nights and weekends you make your own boards. There isn’t a lot of work within the local surf industry now.

ok well no there isnt much work in our local surf industry, and it is very small. my fulltime job is in an office. and the surfboard repair is something i do at the place i rent so competitors cant really take that away, people who i repair their boards, i assume are very loyal, as long as i take care of them there good. glassing is done for other surfboard maufacturer mainly in the summer when demand starts to pick up.

i guess i should do some more homework on the business side. find out a bit more on how my business plan should look like.

Nels · November 6, 2008, 12:33am

Quote:

and the surfboard repair is something i do at the place i rent so competitors cant really take that away, people who i repair their boards, i assume are very loyal, as long as i take care of them there good. glassing is done for other surfboard maufacturer mainly in the summer when demand starts to pick up.

So you have a part time repair business, and do some or all glassing for another manufacturer when their demand picks up?

Something to look at is how many manufacturers are there in your area? In Israel? How many boards do they make? How many boards are imported for sale? Very important to know your competition!

Maybe they only makes boards because they want to have their own label; there could be an opportunity for you to make all their boards, take the manufacturing trouble off their hands. You would have to have the time, the money for materials, and the ability to deliver good quality competitive products on time for them.

Another thing would be to figure out a non-competing product line that complements what you are already doing. Again, the only thing I can think of easy here are SUPs. Or maybe just focus on the repairs, figure out some side goods like t-shirts that you could market to bump up income, then maybe in the off season make up boards to sell during your peak surf time.

Search the archives here for Doc’s surf shop business thread, probably the best economic education ever written about small scale surf business. I’m guessing now that the point of expanding your operation is perhaps to one day be full-time in the surf thing? That would probably require a retail store for you in an area where actual surfing is seasonal.

Sounds like a fun challenge.

Nels

abens · November 6, 2008, 7:24am

hey Nels,

Well i think your advice is great, and will have a look at the surf shop thread after work.

About producing for other labels, that would be extremly difficult because most of the

competitors and importing form china, thailand, and i dont think i can come close to

what they are paying, it has become cheaper to import with your own label, than to make them yourself.

I pretty much know the market here, and who my competitors are, i guess it is a matter of

time till people get to know me and try out my boards, which will take time.

I will have a look at the SUP’s, they sound interesting, considering the fact that you can go out for

a paddle even if it flat and still have a good time. ill search up the threads for more info about SUP,

i’m in love with this website, its like a dream come true, an encyclopedia of surf.

i guess there is still alot of homework to do, before i can turn this in to my full time occupation.

hope to get there soon.

surfding · November 6, 2008, 12:52pm