Six Milestones Achieved by Ad Crucem So Far in 2024
Ad Crucem continues to step through the traditional small business growth phases
Depending on your perspective, Ad Crucem has endured or enjoyed a speedy start to the new year. Let’s work through the six milestones we have checked off so far, which are not necessarily in order.
1. A decade in business
On April 18, 2024, Ad Crucem celebrated ten years since it started selling online. We previously detailed some founding business and personal start-up decisions at this link.
2. Renovation by a thousand cuts
We started the year with an intensive renovation of our shop/office/workshop, which had probably not been updated much since the facility was built in 1980. It was a mildly grueling affair since the family did all the work and had to navigate with all the machinery, inventory, and office fixtures—not ideal but unavoidable in the circumstances.
It involved renovating the walls, floors, ceilings, lights, networking, and everything in between, but we are well pleased with the outcome. We were obliged to move into the original space without any upgrades to economize resources, so it was rather ugly and ill-fitting.
It took over a month to complete everything because of staggered deliveries and sequencing of different installations.
The refurbished footprint has provided much-needed space for everything and everyone. Indeed, we were getting so crammed by December that we almost purchased the office next door to join with our unit! Having consistent decor and fixtures rather than the chaos of second-hand fixtures we moved in with is also helpful.
3. Staying in place
After moving three times in two years, it feels like Ad Crucem has set a record for stability. More than a year later, we’re still in the same space! With the office renovation completed, we have no reason to move (famous last words…).
One impending challenge is reconfiguring the workshop space where the CNC router is located in our home garage. A new high-capacity industrial CNC Router/Engraver is headed our way, which will take up much more space and probably necessitate permanently moving one of the vehicles outside.
The new machine has a production capacity that is 3.5 times faster and has finer tolerances than our existing semi-professional CNC router. Adding the engraving option will enable Ad Crucem to offer new services to the sign-making world. We hope to make some inroads in providing high-quality, large-format dimensional signage for our churches, schools, universities, and other institutions. We will also be able to automate braille signage, which was previously too labor-intensive.
Let us know if you want to buy a second-hand but perfectly good CNC router. Be prepared to lift and move 350 pounds, but it does break down into small units.
4. Publishing
Ad Crucem has published two significant books in half a year: Rev. Dr. Adam Koontz’s Family Bible Commentary and Prof. David P. Scaer’s magnificent Without the Shedding of Blood, the latest offering. Prof. Scaer’s book sold over 250 units on its first day, which is a remarkable pace for release day.
The books have been produced in hardcover, softcover, and reflowable e-book formats, achieving the quality Ad Crucem desires for its customers.
Both books had to be produced on somewhat compressed timelines and constrained resources. However, the results have been very pleasing and satisfy our additional goal of being able to retail the books at attractive prices.
Additional book projects are in the works, which we hope to announce soon.
5. Real Businesses…
A small-business rule-of-thumb is that “real” businesses do more than ten daily orders.
For the first time, Ad Crucem has averaged more than ten daily orders in months not dependent on the Christmas season. Indeed, the first quarter of this year has been a barnstormer despite the relative inattention during January’s renovations.
The most recent quarter saw a 46% surge in online sessions (similar to foot traffic for a physical store). Total sessions in 2024 are expected to reach around 150,000, with 10,000 unique lifetime customers. The numbers are still minimal, which is very encouraging for Ad Crucem’s continued growth prospects.
6. First employees
The accelerating growth of the business means the family can no longer do it all. It’s a massive milestone for any family business to add its first employees, and that day arrived on May 1.
Joseph is a young man who attends our home congregation, Trinity Lutheran Church. He was hired as a Technical Associate to run the printers, laser engraver, and CNC router and has commenced training. Laura is an acquaintance from Front Range Christian School in Littleton who was hired as Ad Crucem’s “pick, pack, and ship” specialist.
We look forward to the day when production, picking, packing, and shipping can continue in our absence, such as when we can finally take a vacation after skipping too many years.
Readers have enjoyed learning about what we have gone through to develop the business, and taking on employees is worth sharing some details with those on a similar path.
Taking on employees can be daunting because the tax and regulatory environment is not employer-friendly. Good employees are necessary assets but can also become liabilities in some circumstances.
Start-up employment costs are not trivial, and you can expect to spend a chunk of change that only becomes truly effective on a unitized basis across dozens of employees. May it be so one day!
Talk to your accountant and attorney to harmonize payroll and legal requirements.
Select a payroll service provider. Ad Crucem uses QuickBooks online to manage its accounts, so adding its payroll module was straightforward, although not necessarily the least expensive.
Prepare an employee handbook. Crafting a handbook that fits your business is laborious and time-consuming because it ultimately has legal significance in the relationship. Many handbook templates are available online, but be very careful about doing a find-and-replace exercise.
Prepare a job description specific to the talent you want to add to the business. The more specific it is, the more likely you will find the right individual for a long-term relationship. High employee turnover is a nightmare because of the time required to train each new person.
Prepare a job offer letter that spells out the primary terms and conditions, and have the employee understand and acknowledge without hesitation.
Develop Standard Operating Procedures (SOPs) in excruciating detail. This is the most detailed hiring process but is usually a once-and-done item. SOPs are crucial for training new employees, keeping them current, and imposing consistent standards and processes across all operations.
Secure worker’s compensation insurance. Don’t skip or skimp; it’s not worth the risk.
Secure employer practices insurance because employees, like renters, are a heavily favored class in our society. Consequently, buying and transferring some employment risk to an insurer is sensible, even if it is costly. The risk varies by state, but Colorado is a California mini-me proud of its petty hostility toward employers. It also has a good-for-me-but-not-for-thee attitude. For example, local governments can opt out of the state’s FAMLI leave laws, and the federal government escapes them entirely.
Prepare to accrue employee paid time off (PTO) as a liability on the balance sheet. Colorado has outlawed use-it-or-lose-it applications for PTO. Employees can accrue unlimited PTO, which must be paid at the total value upon separation.
Secure a simple or SEP IRA plan and establish rules for when and how employees may participate and the terms of employer matching contributions.
Be ready for a new slew of tax obligations and quarterly withholding reporting (Form 941), and pay the employer’s portion of Social Security or Medicare taxes.
Post all mandated employment posters and notices where they are visible to employees and keep them current.
Have employees complete and return Form W4 to correctly implement their payroll deductions.
What’s next?
We are undertaking an extensive website redevelopment, and many exciting new features will soon debut. Some preliminary changes have already improved the site’s speed for end users, but we are incredibly excited about new tools for product customization visualization and approval.
Ad Crucem will exhibit at two events this year: Luther Classical College’s Christian Culture Conference this June in Casper, WY, and The Bugenhagen Conference in Racine, WI, at the end of July.
Please stop by to say hello if you’re attending the events!