If you had (or have!) extra money-what to do with it?

Machinery_E · May 3, 2011

Let's say your shop is doing really good...you've got all the bills paid, got all the machinery and tools you need, and you still have money left over...what would you do with it?

I'm curious what you guys would do if your shop was (or is!) a legal money printing press.

bigalexe · May 3, 2011

I'm still a student but my lottery plan is all about machining & engineering.

If I got a few million dollars there would be 3 small local companies I would buy up to get their expertise for my own R&D pursuits. One is medical and does high precision work, one is medical and does prosthesis which means they have composite & polymer (plastic) capability and knowledge along with presumably a little robotics, and the third is a tiny shop but they do alot of splining and gearing so that's a good place to work on power transmission projects by which I mean mechanical.

HuFlungDung · May 3, 2011

You send what is left over to the tax man!

metalboy · May 3, 2011

Shit, we're still trying to figure out what to do with the cash from the 22,000lbs of 17-4 we sold last week. Sum total of good things to spend it on thus far have been... a new microwave. Well, that's $60 gone...

Toms Wheels · May 3, 2011

At the point where the bills are paid, money is building your retirement etc. You could follow your heart and give some to projects, tax deductable or not. For myself I often read a story in the paper about someone who is in deep need, kid needs surgery, house floated away etc. Send them something, volunteer fire, first aid, these guys are on my list. Rick Rowlands Museum is always needing $$ for his growing list of Old Iron Saves.

Always pay yourself first, but share with others as well.

Chip Chester · May 3, 2011

Folks that repair wheelchairs and other gear for the needy here in the states and in other disadvantaged countries could always use cash and possibly "in-kind" services or advice. Our physically disabled vets could benefit from the same.

Look for places to "leverage" your contributions, so that your help is magnified. Pay a visit and find out what is needed, and is a good fit for you. It's not always cash, though.

For example, in the wheelchair case, you may find they have a stash of wheelchairs where a certain part always breaks, and the factory replacements don't hold up. Re-designing and producing a better part can not only clear out their inventory, but also allow field repair -- which would be much cheaper than complete replacement.

Lately, it should be no trouble to look around and see who needs some help.

Chip

PS... Upon a little reflection, I guess the key for me is doing the most good. When volunteering, I tend to look over the tasks and go with what will have the most benefit to the organization. Doing things I have experience with, or guiding a team that can, in turn, guide others the next time around. However, if the task at hand is filling sandbags, then sandbags it is -- I'm certainly not above real, hard work. But if it's "We could totally prevent this flood if we could get the backhoe started..." then I'm going to at least take a look at the backhoe.

gorrilla · May 3, 2011

Toms Wheels said:
At the point where the bills are paid, money is building your retirement etc. You could follow your heart and give some to projects, tax deductable or not. For myself I often read a story in the paper about someone who is in deep need, kid needs surgery, house floated away etc. Send them something, volunteer fire, first aid, these guys are on my list. Rick Rowlands Museum is always needing $$ for his growing list of Old Iron Saves.

Always pay yourself first, but share with others as well.

I like that idea. We all leave this earth with the same we came in with. Absolutely nothin! So the best you can hope for as far as this life is concerned is to leave a good effect of you having been here. Best thing I can think of is having someone honestly say, "I'm better for him having been here." Biggest problem is finding the right project, be it human or a thing. Takes a lot of thought.

Steve@Reliance · May 3, 2011

Machinery_E said:
Let's say your shop is doing really good...you've got all the bills paid, got all the machinery and tools you need, and you still have money left over...what would you do with it?

Sitting here day dreaming, I'm curious what you guys would do if your shop was (or is!) a legal money printing press.

I'm sorry, I don't understand the question. Money left over???????

You should send me on a trip to Hawaii, or you could put it away for retierment, or use it to improve the shop.

Get a custom neon shop to build a sign of your company logo and hang it in the front office.

david n · May 3, 2011

I'll take it off your hands.

Solar71 · May 3, 2011

14 foot Ocean Kayak with Rudder/Foot Pedals about 1,500$.

Move my 40 inch TV to my bedroom, and buy a new 50 inch for the living room. 1,500$

Thats about it for stuff thats not TOO expensive.

Other then that... A second home, Nissan Leaf, Piper cub + flight training for single engine prop.

Machinery_E · May 3, 2011

I better be more clear, this is sort of a hypothetical question FOR ME...for you it may not be.

Steve, I said left over as it seems as soon as any money is made it goes to paying expenses. So I guess that's what a business is supposed to do, make money for the owner to spend on something else beside the business!

Seekins · May 3, 2011

Machinery_E said:
make money for the owner to spend on something else beside the business!

Finally, A employee that gets it !!

SND · May 3, 2011

Pile it until the day comes when no more money is coming in and by some sort of magic the bills still are...

Boris · May 3, 2011

How about sharing amongst the employees ? :eek:

I'm sure they'd all appreciate some extra $$$ on their pay cheques :cheers:

Or do what my boss does "hey lads we had a good month last month, so I bought my self a new sportscar............ lads... where you going? lads ... come back...... we got parts to make" :bawling:

Boris

'and this time when we go on strike , we're gonna make sure the pubs are open first'

metalboy · May 3, 2011

Gordon B. Clarke said:
That's got to be the daftest question I've seen in a long time. Why does something have to be done with the money? The whole purpose of running a business is to make a profit yet you make it sound like a problem. Now might be good times but nothing lasts forever. Save for "a rainy day". If it bothers you having a surplus of money then share it among the employees who were a large part of the success. I'm sure though they'd rather have job security if or when bad times come.

That's sort of how we handle it. Our scrap money goes in the box, the box buys coffee, kolaches/donuts/tacos etc for everybody. It works out pretty well. Until you scrap 22,000lbs of 17-4 and don't have a box big enough! Time to upgrade the creature comforts around here

Bonusing out the money would also be an option, but it's good to have a reserve.

The guys are in for a surprise this summer though when we give them 500 or maybe 1000lbs of Inco 718 to scrap, each. Buy your kids something nice, fellas!

Ox · May 3, 2011

Machinery_E said:
Let's say your shop is doing really good...you've got all the bills paid, got all the machinery and tools you need, and you still have money left over...what would you do with it?

I'm curious what you guys would do if your shop was (or is!) a legal money printing press.

1) Touch a match to the house and start over.

2) Build a 12K' Building next to this one, with a hook in the middle bay.

3) Tear down ratt trap (storage building) now that new building is up.

4) Add another 8 axis lathe

5) add another 4 axis lathe as well.

6) Buy a new sled, but a used one would be OK too...

7) May need a new truck before some of that tho.

8) Hire some help and git some sleep. (restfull sleep that is...)

9) AK cruise

10) Pinch myself...

------------------

Think Snow Eh!
Ox

JB @ C and L Machine · May 3, 2011

metalboy said:
Shit, we're still trying to figure out what to do with the cash from the 22,000lbs of 17-4 we sold last week. Sum total of good things to spend it on thus far have been... a new microwave. Well, that's $60 gone...

Is that taxable???? Or handled thru a check :stirthepot:

metalboy · May 3, 2011

JB @ C and L Machine said:
Is that taxable???? Or handled thru a check

Both? It's technically taxable but I really don't expect to see any IRS forms from the scrapper that bought it? But it's a check addressed to the company so we'll play nice and record it. Usually alloy scrap sales are handled in cash, and the guys get a nice little unofficial cash bonus. But 22k was a bit hefty for my truck, and I didn't have time to make that many trips. The extra income will probably go to creature comforts and profitsharing at the end of the year. Oh, and hiring a lawn guy.

Seekins · May 3, 2011

In no particular order we do:

Profit sharing
keep food in fridge and gas in the grill
paid vacation
personalized stuff (like custom ear plugs)
make sure savings account is where it needs to be
save some for new shop
save some for taxes
buy fun toys (for everyone)
retirement
education plans
invest in your business and let a investor play with some
upgrade machines

cnctoolcat · May 3, 2011

I always say diversify.

Use the extra money to max out 401K's and IRA's every year. Invest even more directly into conservative, big name mutual funds. Don't listen to the naysayers about investing. Over time the value will increase, and when you retire you will have a very nice nest egg.

Invest in a good life insurance policy. If done right, it is tax deductible.

Way too many shop owners (including myself :crazy:

) continue to re-invest in their own shop, buying more machines and stuff they really don't need. When retirement time rolls around, the machinery only brings pennies on the dollar.

The auction fliers always amaze me as to how many of the same types of machines a shop will have!

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