How James made $7,000 last month

 My son James came to me a few months ago wanting help starting a little business in order to make some extra money. He wanted a business with a low start up cost. Easy to do part time. And fast cash. Years before he had helped me when I was selling car ports, screen rooms, patio covers, decks and garages. Would I help him get started?

 I did three things. First I offered encouragement. Second I sold him for $99 my How-To Manual on how to start and run a homeimprovement sales and instalation business. Third I fronted the cost of the first ad.

 My son is a smart man, he is a hard worker and willing to try anything that is logical. He is not a salesmen and he does not like to talk on the telephone. Knowing this, he had a professional salesman already picked out who would work on a percent of the profits. What he did not want to do was take a long time getting to profitability, waste his limited advertizing dollars trying to find sales leads. He also needed to know where to buy the products he would be selling, and how to calculate the prices he would charge the customers.

 James's new little company would operate from the kitchen table, they used their existing cell phones. They filed an assumed name certificate and set up a bank account. They ran a ¼ page color ad in a mailed out home improvement advertizing flier. The cost was $500 a month for four months, payable monthly. They contacted the suppliers to set up wholesale accounts and to get product hand samples and product brochures. They used www.homeimprovementkits.com as a training ground for the salesman.

 The advertizing hit the first week of July (summer is the slow selling season). They had six calls the first week, four the second week. They sold $32,000 dollars worth of product the first month for a gross profit of $7,000 (profit after, cost of goods, labor to install, and shipping cost). This profit is divided up as follows, 1/3 for the salesman when the job is complete, 1/3 for the business owner (James), and 1/3 stays in the business for expenses and future advertizing cost. The key to this was a good salesman who closes the sale.

 In less then 90 days they started a business, started making money and put some money in the bank for more advertizing to keep the ball rolling. I warned these two men that they where lucky to start out so well, so fast. They said they just wanted to make a grand or two a piece each month. Any amount over that they will save to make real estate investments, so that one day they won't have to work. Sounds good to me, having a plan and getting started is the most important part.

 Anyone interested in the home improvement business manual, e-mail me jglasgow@patiostore.com

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