BroadviewElec

I have been doing electrical work for about 10-12 years now. Started out in res/comm wiring and for the past 5 years have been in an industrial setting. I am thinking about starting a business on the side because I have really good hours at my current job that allow ample time for side work. The business would be residential and light commercial. I would start out with small home improvement type projects and things like that. I know electrical but I am a business newbie. I am in NY and I know it varies state to state but I just want to make sure I'm on the right track. I have my insurance quotes, information on getting my DBA, all the applications for my certificate of authority and EIC. Does that cover just about everything? From all the research I've done, that seems to be about it. Is OSHA not involved in any way?

480sparky

My first thought is what your current employer feels about their employees doing side work. Some don't care, others take a hard line. You may want to find out before risking your current job.

Oh, and welcome to the forum!

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In winter, why do we try to keep the house as warm as it was in summer when we complained about the heat?

BroadviewElec

Thanks for the welcome! Good point, I have thought about what they would think and I really don't think it would matter to them but I should probably find out. Before its too late! Thanks

480sparky

Another thing might be your licensing. Not that you're unknowledgable about it, but you still need a license. Journey-level licenses generally aren't enough. Is your license good enough to pull permits and allow you to legally advertise your services?

You also may need a business or contractors license, and other such goodies.

Hopefully, you've got a lawyer you can talk to to make sure your ducks are in a row. It's well worth the dollars to make a list of questions and sit in his/her office for a couple hours.

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In winter, why do we try to keep the house as warm as it was in summer when we complained about the heat?

caveman

I recommend you determine how much you would need to charge to operate your business full time without your current job backing you up.

I would recommend charging this amount now instead of a lower rate just because you can with your current job backing you up.

This way you'll know if you can sell jobs at the price you'll need to when you operate the business full time.

It's easy to get lots of work selling jobs at a low rate because you're only doing it as side work but then you quit, go at it full time, have to raise your rates, loose some customers and find out it's more difficult than you thought to get work with the higher prices you need to get to operate the business full time.

user5941

What will you do when you are at your other job and can't leave and the drywaller calls to let you know they are starting to drywall a few days early and you are not finished with the ruff in?

480sparky

To help you out, here's a list of typical EC expenses. Not all will apply to you, but there's in there nonetheless.

Business Cost List
Building
Building
Warehouse Space
Trash Removal
Lawn Care
Snow removal
Upkeep & Repairs
Office Expenses
Computers
Stationary
Copy machine
Fax machine
Forms
Printing
Software
Office Equipment
Computer maintenance
Files
Postage
Office Supplies
IT
Internet service
Email accounts
Web site
Initial creation
Updating
Maintenance
GPS services
Benefits
Vacation Pay
Holiday Pay
Uniforms
Uniform Maintenance
Unemployment
Bonuses
Incentives
Retirement Plan
Christmas Party
Taxes
Property Taxes
Tangible Taxes
Pay Roll Taxes
Income Taxes
Sales Tax
Training
Management Training
Office Training
In-House Training
Tech Training
Mfg. Training
Training Equipment
Safety Training
Update classes
License testing
Insurance
Building Insurance
Liability Insurance
Employee Insurance
Life Insurance
Business Insurance
Workers Comp.
Utilities
Gas
Electricity
Telephone / Fax lines
Internet Service
Toll Calls
Telephones
Pagers/Cell Phones
Radio Maintenance
Vehicles
Vehicle Maintenance
Ladder Racks
Interior bins
Fuel
Truck Signs / lettering / vinyl
Tires
Financial
Accounting
Loans
Tax Preparation
Interest
30+ Day Receivables
Bank Charges
Travel
Hotel
Meals
Airline / vehicle
Unique to the electrical trade
Licenses
Bonds
Inspections
Trade Association
Subscriptions
Memberships
Dues
Retainers
Safety PPE
Lock-out/Tag-out kits
Fall prevention harness
Arc-flash clothing
Hard hats
Safety glasses
Hearing protection
Tools
Company Tools
Safety Equipment
Ladders
2-way Radios
Test Equipment
Replacement Parts
Parts Storage
Damages
Tool Replacement
Job site storage
Misc.
Trips to Supply House
Theft
Uncollected Money
Collection fees
Unbillable Hours
Commissions
Call Backs / Warranty work
Shortages
Bad Checks
Delivery
Credit Card Sales
Drug Testing
Legal
Legal advice
Law Suits
Incorporation / LLC fees
Advertising
Marketing
Business cards
Signs
Radio / TV
Newspaper
Flyers / brochures
Material Purchases
Inventory
Labor
Wages
Salaries
Dispatcher
Answering Service

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In winter, why do we try to keep the house as warm as it was in summer when we complained about the heat?

user5941

pared it down a little these will give you a good guide

480sparky

Truth be told, the list is most likely incomplete.

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In winter, why do we try to keep the house as warm as it was in summer when we complained about the heat?

user5941

Alot of it is redundant, It lists stationary and files then office supplies. You have Safety PPE then Arc flash clothing I don't see a need to break down individual items.Thats like listing vehicle maintenance and them spark plugs.

Speedy Petey

Nope. In MANY areas none of the above.
Welcome to NY State.

The City and LI are a completely different story. Down there EVERYONE wants a piece of the pie. In fact, most want a whole pie to themselves.

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Time flies when you're goin' fast.

480sparky

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In winter, why do we try to keep the house as warm as it was in summer when we complained about the heat?

BroadviewElec

As far as me getting the call from the dry waller, at first I would not take on a job that would involve that possiblity. I would only be doing small jobs right away. Service upgrades, additions etc. Is the general consensus that this is a bad plan?

And no, like speedy said, no license is needed where I will be working. Work just needs to be inpected. I will however work on getting a license so I can cross the border into VT.

Like I said, this is in the early planing stages, all recomendations are welcome.

480sparky

Not saying it's a bad plan, but unless you've got a crystal ball that shows the future, you're still going to run into problems no matter what you do.

Say you take on a small addition. Will take you a day to rough it in. You tell the builder on Monday that you'll get it done Saturday. Wednesday rolls along, and the builder is waiting for you. His phone rings, and it's his drywaller. "Hey, Jim, it's Fred. Listen, I've got a couple guys without a job for the day. They're my best two guys, and I'd hate to send 'em home without pay, so they're headed over to that addition right now to start hanging rock.........."

Yea, so you say you'll burn the midnight oil and work weeknights to get it done instead. What about your son's soccer game, or your daughter's piano recital?

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In winter, why do we try to keep the house as warm as it was in summer when we complained about the heat?

BroadviewElec

Ok, you bring up a valid point. So what is the solution? Do you think the only way to do it is jump right in full time? What I am actually expecting, especially during this economy is to not really have the phone ringing off the wall. From what I've experienced in order for me to do this full time I would have to make a good contact with a builder or two and wire his houses. I'm not going to be looking for that yet. Does it not make any sense to start out really small? Wiring up a ceiling fan for the little old lady?

480sparky

The problem is, if you're only going to take on very small projects and not go after large ones like entire homes and such is that you're going to be in direct competition with every Tom, **** and Harry out there. Keep in mind that Tom, **** and Harry are currently unemployed, so they're willing to do the job dirt cheap and eat hot dogs and ramen noodles.

I'm not saying what you're wanting to do is a bad idea, and it won't work. I'm just saying don't expect too much of it, at least in the beginning.

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In winter, why do we try to keep the house as warm as it was in summer when we complained about the heat?

BroadviewElec

I think that's my mind set already. I am not going to expect much, until I get me feet wet, build up some more equipment, get a feel for the business, then if I think I might have a chance, then go after the big stuff. One of my main reasons for wanting to start like this is in this economy, I know how so many people are losing thier jobs, if I lost mine, I would have this. Another thing is I have quite a bit of tools and equip already and have set aside $ to buy more if I start this thing. But its not a huge investment. Yet. The way I see it, I don't have anything to lose starting it this way. It's not like I'm taking out this big loan that I have to pay.

artisanelec

Go for it, the worst that can happen is you fail.

Just do little jobs nothing too big.

Go for it...................

I am doing the same thing.

Myelectrician

I have been doing these smaller jobs for the last 16 years. You will surprize yourself and gain confidence within one month.
OH- Forget job over- lets say $4000.00 for now. Focus on the smaller $150,$250$500 and $1000 job size. The bigger jobs will slow you down and not allow you to service your other smaller customers.
You can do it.

BroadviewElec

Thanks for the vote of confidence. I am still planning, reading and figuring things out. I think I am definitely going to do it. I am going to plan it as eventually being full time because that is the goal. If anyone else has any more suggestions let em fly.

Thanks again to everyone.