Welcome to this week’s Premier Business Operations newsletter…

So the first month of 2011 is behind us…  is your business suffering a post-holiday seasons lull?  Looking for ways to jump start the sales?   The longer you wait to take action, the deeper hole you will find yourself standing in.  Before I get into this week’s newsletter, I just wanted to remind readers that previous editions can be found online at https://premierbusinessoperations.wordpress.com/ or alternatively by going to the Premier Business Operations website:  www.premier-business-operations.com.   I also wanted to thank everyone that has gone to our Facebook page and become a fan of Premier Business Operations.

During some of my numerous conversations during the past couple of weeks, I came across a very interesting business idea that three lifelong friends have come up with; it’s a work in progress so while I can loosely describe it, they haven’t worked through the business plan as of yet.  Remember, businesses rarely succeed without a sound and thoughtful business plan. 

Having grown up in the Chicago area, Johnny, Bruce and Mike have known each other since the 3rd grade, almost 35 years ago.  During the current economic recession, each has experienced either job loss or a decrease in their hours.  Faced with few options, they decided to take matters into their own hands.  Johnny has a lot of experience in home construction, mostly detailed trim work.  Mike is the “Norm Abrams” of the group and has a large workshop in his garage and has done woodworking as a hobby since high school.  Bruce while not really adept with his hands is willing to learn and do any grunt work required to put food on the table.

So here is their idea…  virtually every company that receives merchandise, does so on wooden pallets.  In some cases, the pallet companies actually retrieve their pallets but more often than not the pallet recipient is left disposing it.  Of course, this is typically tossed into a nearby dumpster and on occasion recycled.  For those of you not familiar with wooden pallets, these are often made of oak or some other hardwood.  In some instances depending on the region of pallet manufacture, pine is also used.

The trio’s idea is to visit several companies in the Chicago area and negotiate arrangements to collect their pallets on a weekly basis and recycle these pallets into assorted furniture, such as chairs, tables, chests, etc.  While I have to admire their tenacity, I do have some questions and concerns for the trio’s plan including:

  • Whenever I’ve looked at a pallet, there seems to be a ton of screws and nails holding it together; the amount of time and labor necessary to prepare the pallet wood for furniture use may be prohibitive.  And while the trio has two pickup trucks between them, is that enough?
  • How much usable wood per pallet is really there?
  • For anyone that has ever driven around Chicago, transporting pallets around Chicago can be very time intensive.
  • How are they going to go about marketing and selling their finished product once complete?
  • Even though Mike has a large workshop, what necessary tools will need to be acquired?
  • What’s the market for this type of niche furniture, especially with the current recession?

So what do you think?  I am planning on speaking with the trio sometime in the next week to discuss more of their business idea and help them formulate a business plan.  Premier Business Operations has the ability to help you analyze your business idea and develop a realistic scenario-based business plan.  To find out more about how Premier Business Operations can help you follow the road to success, please visit our website at www.premier-business-operations.com or contact us at information@premier-business-operations.com

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