Need Help From Business Owners On Feasibility Study - Off Topic - DIY Chatroom Home Improvement Forum


Go Back   DIY Chatroom Home Improvement Forum > The Break Room > Off Topic

CLICK HERE AND JOIN OUR COMMUNITY TODAY...IT'S FREE!

Reply
 
Thread Tools Display Modes
Old 01-08-2012, 08:45 PM   #1
CNMDESIGN.COM
 
Join Date: May 2009
Location: OHIO
Posts: 82
Rewards Points: 75
Question

Need help from business owners on feasibility study


  • One electronic product.
  • 13 components.
  • Assembly requires hand tools only.
  • One work cell for each employee.
  • Each employee assembles complete product from start to finish in his own work cell.
  • Have manufactured 4,000 units in last 5 years.
  • Looking to manufacture 5,000 in the next year.
  • Present building is small 1500sq/ft.
  • Would like to turn present building into office/training/shipping & receiving.
Idea:
  • Let each employee assemble units at home, providing their own tools, heat, electric and all of the other overhead.
  • Will provide each with kits and at same time pick up assembled kits.
  • Will pay by the unit.
  • Employees will not be sub contractors, just employees that work at home.
Yes, No, Maybe?

Thanks
Craig

Advertisement

CNM Design is offline   Reply With Quote
Old 01-08-2012, 09:24 PM   #2
Member
 
Join Date: Mar 2011
Location: Western suburbs, Chicago, Il.
Posts: 2,688
Rewards Points: 2,054
Default

Need help from business owners on feasibility study


More info!?

RF

Advertisement

rossfingal is offline   Reply With Quote
Old 01-08-2012, 09:27 PM   #3
Member
 
Join Date: Mar 2011
Location: Western suburbs, Chicago, Il.
Posts: 2,688
Rewards Points: 2,054
Default

Need help from business owners on feasibility study


Are you going to cover "SS" - deal with Income Tax -
Do they get 1042's or 1099's?

RF
rossfingal is offline   Reply With Quote
The Following User Says Thank You to rossfingal For This Useful Post:
CNM Design (01-08-2012)
Old 01-08-2012, 09:43 PM   #4
CNMDESIGN.COM
 
Join Date: May 2009
Location: OHIO
Posts: 82
Rewards Points: 75
Default

Need help from business owners on feasibility study


Thank you for your reply

We handle all tax and SS issues. Everything is above board.

Mostly looking for ideas on employees working at home in stead of building a larger facility, then maybe next year not needing it.

Thanks
CNM Design is offline   Reply With Quote
Old 01-08-2012, 10:08 PM   #5
Member
 
Join Date: Apr 2008
Posts: 78
Rewards Points: 75
Default

Need help from business owners on feasibility study


Sounds like a bad idea to me. Unsupervised assembly will be slower.
UFoPilot is offline   Reply With Quote
The Following User Says Thank You to UFoPilot For This Useful Post:
CNM Design (01-08-2012)
Old 01-08-2012, 10:13 PM   #6
CNMDESIGN.COM
 
Join Date: May 2009
Location: OHIO
Posts: 82
Rewards Points: 75
Default

Need help from business owners on feasibility study


No finished kits, no pay,
If we get the order, it will be for 5000
If you can make 30 kits in one week, you get paid for 30. If you make 6, you get paid for six. There will be a min.
CNM Design is offline   Reply With Quote
Old 01-08-2012, 10:36 PM   #7
Member
 
Ironlight's Avatar
 
Join Date: Apr 2011
Location: Washington DC
Posts: 701
Rewards Points: 500
Default

Need help from business owners on feasibility study


Some concerns I might have:
  • Quality control
  • Liability using their tools/location
  • Productivity forecasting
If they are subs or contractors I don't think you'd have the same liability issues.



What is the workplace culture like for your company? Are people going to miss coming to work? Distributed companies like you're talking about can lead to depressed employees...no sense of community or camaraderie...and to higher turnover and lower productivity.
Ironlight is offline   Reply With Quote
The Following User Says Thank You to Ironlight For This Useful Post:
CNM Design (01-08-2012)
Old 01-08-2012, 11:45 PM   #8
Member
 
Join Date: Nov 2008
Location: West Michigan
Posts: 4,403
Rewards Points: 2,342
Default

Need help from business owners on feasibility study


I like the idea. You would want each employee to prove that they have a separate room in their house where they will be doing the work. A room with a door to keep children (sticky fingers touching clean components & spilled drinks) and pets (hair and dander getting on components) out.

A woman who brings her daughter to my daycare used to work in an office building handling insurance claims. I believe she works for Aetna. Last fall they told all of their employees that if they could set up a separate office in their house, away from noise, they could keep their jobs because they were closing down the building they had been using.

She and her husband walled-off a small room in their basement and Aetna sent someone over to set up the computer, internet and phone.

She loves working at home - no commute on icy roads, no traffic to deal with, doesn't have to buy nice clothes, no fuel costs for her van, etc. When she punches out for the day, she can have dinner on the stove a few minutes later.

I think that paying for the # of pieces finished gives good incentive to work faster for a bigger paycheck.
__________________

gma2rjc is offline   Reply With Quote
The Following 2 Users Say Thank You to gma2rjc For This Useful Post:
BigJim (01-09-2012), CNM Design (01-08-2012)
Old 01-09-2012, 06:08 AM   #9
Member
 
Join Date: Mar 2011
Location: As always..beside myself.
Posts: 4,226
Rewards Points: 2,000
Default

Need help from business owners on feasibility study


As long as everything is legit, it sounds like it could work. Gma2rjc makes some good points
creeper is offline   Reply With Quote
The Following User Says Thank You to creeper For This Useful Post:
CNM Design (01-09-2012)
Old 01-09-2012, 06:16 AM   #10
DIY staff

 
Join Date: Sep 2009
Location: Kane county,Illinois
Posts: 22,287
Rewards Points: 3,214
Default

Need help from business owners on feasibility study


I've known two different people who have done home electronic assembly---

Both were hard workers and liked the job---worked well for them---Might be a good deal for both parties.

You need to talk to your accountant---But I think you will find this to be a plan with real possibilities.
__________________
New members: Adding your location to your profile helps in many ways.--M--
oh'mike is offline   Reply With Quote
The Following 2 Users Say Thank You to oh'mike For This Useful Post:
BigJim (01-09-2012), CNM Design (01-09-2012)
Old 01-09-2012, 10:06 AM   #11
Ole Wood Worker

 
BigJim's Avatar
 
Join Date: Sep 2008
Location: Lookout Valley, Chattanooga, Tennessee
Posts: 7,856
Rewards Points: 2,806
Blog Entries: 1
Default

Need help from business owners on feasibility study


Quote:
Originally Posted by CNM Design View Post
No finished kits, no pay,
If we get the order, it will be for 5000
If you can make 30 kits in one week, you get paid for 30. If you make 6, you get paid for six. There will be a min.
This sounds more like subcontract/contract work which would be of less cost to you tax wise and insurance wise. The subs/contractors would need proof of liability and workman's comp and they would pay their own unemployment insurance, you just wouldn't have control over how, when or where the product is manufactured.

Advertisement

__________________
New members: Please consider adding your location to your profile.

If you aim at nothing, you will hit it every time!

Jim
BigJim is online now   Reply With Quote
The Following User Says Thank You to BigJim For This Useful Post:
CNM Design (01-09-2012)
Reply


Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Home owners plumbing test Painterabroad Plumbing 0 10-02-2011 08:48 AM
Starting a pest control business jhahn1234 Pest Control 1 09-30-2009 08:28 PM
Study books Stevepat66 Electrical 4 03-06-2009 09:35 PM




Top of Page | View New Posts