Folks, I am humbled, very humbled. After a great 2015 it turns out 2016 was even better. I blew right past my goal for the year, sometime around August or September. We’re talking 44% net sales increase from 2015 to 2016. From a business standpoint this is phenomenal, absolutely phenomenal. Heck I even technically turned a profit after factoring in debt on interest. I’m not looking to shoot for the moon, my year to year goal is still 10%-20% improvement, which makes a year like 2016 so much more special.
So, I can share more good news!
I’ve been working hard to make my production more efficient and moving heavily into surface mount technology. This allows me to reduce component cost, reduce labor, and improve production speed. For this reason I don’t see ANY price increases ahead for the first half of 2017, and possibly not even for the 2nd half. The better profit margins are going to be invested into debt reduction and starting to save up for some significant capital projects. I’m eyeballing some basic benchtop surface mount machines that are so tantalizingly within my grasp. Cross your fingers and let’s see if I can pull it off. I don’t want to go further into debt to do it so it’s time to start saving up a larger operating fund.
The simple fact is that I’m mainly assembling everything by hand, and that limits how complex I can make my designs. If I can swing a couple critical machines I’ll be able to automate quite a lot of my processes, which will open up a lot of doors to newer and fancier products and improve my production rate on existing products. So if I can save some cash for new machines, make my production more efficient from a labor standpoint, and reduce costs …. then I can release more new products and keep prices low.
So 2015 was good, 2016 was great, what’s 2017 got coming? So far it’s shaping up to be another great one.