What would be your top five tips! - Page 2 - Electrician Talk - Professional Electrical Contractors Forum

rewire · 11-06-2009, 08:30 PM

Quote:

Originally Posted by 480sparky

Yea, but we 'don't count' because we are one-man bands.

You seem to be here a lot. Apparently you are a pasty-faced 14 year old that can't get a date on friday night either.

Oh, wait. Maybe you not 14 years old, but forty.

Never mind. Same thing.

But it seems the rest of us aren't the master of the universe.

I sense some hostility

480sparky · 11-06-2009, 08:31 PM

Quote:

Originally Posted by rewire

I sense some hostility

Can't be. Rats don't have emotions.

NolaTigaBait · 11-06-2009, 08:37 PM

No emotion here.

rewire · 11-06-2009, 08:47 PM

Quote:

Originally Posted by Paelectrican

I know what you are saying, however i am going to maintain my current employment during this time also! Which is not in the electrical form. Was just trying to get idea's of some things to consider as i am working on starting this venture.

I would not recommend trying to start this as a part time business wait until you are prepared to go full time.Under capitalization is going to be your biggest hurdel make sure you have cash and a good line of credit.Most supply houses will cap your credit very low to start so make those payments quickly and your limit will go up.The first thing you will find when you go into business is people are already their.This is something you need to address in your business plan,can your area support another one man show?I started out five years ago and building was booming condos were going up all over the lake and million dollar homes were going in by the dozens.I saw that the area could easily support another electrical contractor but when I looked closely at the market I saw an area that was under developed and that was the service end.Eveyone was so focused on condos that nobody wanted to hang granmas ceiling fan.I was getting calls from people(put an add in the phone book) who just wanted a small job done so I started to build on this.My first year I did 365 one day jobs. The biggest reason we are surviving today is because we are well established in that market and all the condos and new houses have stopped.

rewire · 11-06-2009, 08:48 PM

Quote:

Originally Posted by 480sparky

Can't be. Rats don't have emotions.

True

nolabama · 11-06-2009, 08:50 PM

near android in the emotion game here

Paelectrican · 11-06-2009, 08:54 PM

Quote:

Originally Posted by rewire

I would not recommend trying to start this as a part time business wait until you are prepared to go full time.Under capitalization is going to be your biggest hurdel make sure you have cash and a good line of credit.Most supply houses will cap your credit very low to start so make those payments quickly and your limit will go up.The first thing you will find when you go into business is people are already their.This is something you need to address in your business plan,can your area support another one man show?I started out five years ago and building was booming condos were going up all over the lake and million dollar homes were going in by the dozens.I saw that the area could easily support another electrical contractor but when I looked closely at the market I saw an area that was under developed and that was the service end.Eveyone was so focused on condos that nobody wanted to hang granmas ceiling fan.I was getting calls from people(put an add in the phone book) who just wanted a small job done so I started to build on this.My first year I did 365 one day jobs. The biggest reason we are surviving today is because we are well established in that market and all the condos and new houses have stopped.

Thank you, very sound advice. I do plan on doing this full time as soon as i get everything in hand. Something i noticed in my area is that everyone wants the big jobs! So the normal people can not get their work done or they are paying such inflated rates that they can not afford the work.

rewire · 11-06-2009, 09:06 PM

Quote:

Originally Posted by Paelectrican

Thank you, very sound advice. I do plan on doing this full time as soon as i get everything in hand. Something i noticed in my area is that everyone wants the big jobs! So the normal people can not get their work done or they are paying such inflated rates that they can not afford the work.

Doing small jobs means good cash flow and no matter what get as much cash up front as you can be prepared for bad checks sob stories and Ill pay you on the first.

RIVETER · 11-06-2009, 09:49 PM

If you are going in business, one that you love...first protect yourself.
#1 If they are a real customer...make a contract to be signed.
#2 List all work you intend to do, and get them to sign,
even friends.
#3 Do the intended work in a professional manner, no need to become friends.
#4 Prepare a professional billing, including a 3% to 6% penalty after 30 days. It has to be on the FIRST invoice.
#5 Retain a lawyer who will write a letter for $50.00 or so.
#6 Know where to originate a contractor's lien..It is very simple and really works on a non-paying customer.

MF Dagger · 11-06-2009, 09:57 PM

Quote:

Originally Posted by nitro71

If you do free safety checks you better be a good salesman or you are going to burn up a lot of gas driving around checking out peoples wiring that don't have any money.

Sorry, I should have clarified that the free safety check was a perk for calling you for a service call. Once you get your foot in the door you might as well make the most of it. A ten minute safety check can easily lead to a lot more extras.

Also I'd like to state that I am not in business for myself. I'd like to be it's just not my time yet. Watching and learning everything I can still. My dad is an electrical contractor and has been my whole life and while I don't work for him anymore it helped greatly to understand the owner perspective.

Paelectrican · 11-06-2009, 10:04 PM

Quote:

Originally Posted by rewire

Doing small jobs means good cash flow and no matter what get as much cash up front as you can be prepared for bad checks sob stories and Ill pay you on the first.

I intend to require at least 50% up front and the rest at completion. also think i will include this advice from another poster:

Prepare a professional billing, including a 3% to 6% penalty after 30 days. It has to be on the FIRST invoice.

Paelectrican · 11-06-2009, 10:06 PM

Also does anyone know where i could get a good contract template?

BuzzKill · 11-06-2009, 10:07 PM

Quote:

Originally Posted by 480sparky

Yea, but we 'don't count' because we are one-man bands.

...and we don't have any employees.

BuzzKill · 11-06-2009, 10:08 PM

Quote:

Originally Posted by Paelectrican

Also does anyone know where i could get a good contract template?

Google it.

MF Dagger · 11-06-2009, 10:08 PM

Quote:

Originally Posted by Paelectrican

Also does anyone know where i could get a good contract template?

If I remember right Contractortalk.com usually has a lot of contract forms and various other forms and programs available.

BuzzKill · 11-06-2009, 10:10 PM

Quote:

Originally Posted by rewire

I would not recommend trying to start this as a part time business wait until you are prepared to go full time..

Baloney.
I had been doing side swork for years before I went solo. Charged decent prices too, so I wasn't undercutting guys like me now. That's how you get your name out, meet people, start networking...start fresh with ZERO customers and connections and that's really asking for trouble.

Paelectrican · 11-06-2009, 10:11 PM

One more question, if i am only a one man operation am i required to still carry workman comp? or only if i employ someone?

nolabama · 11-06-2009, 10:15 PM

Quote:

Originally Posted by Paelectrican

I intend to require at least 50% up front and the rest at completion. also think i will include this advice from another poster:

Prepare a professional billing, including a 3% to 6% penalty after 30 days. It has to be on the FIRST invoice.

Good luck with that 50% down payment policy. You would starve to death here doing that. But we have a bunch o crooks here also, but generally they go by names like - Mayor, Governor, Judge, Police.... so on and so forth

480sparky · 11-06-2009, 10:18 PM

Quote:

Originally Posted by Paelectrican

I intend to require at least 50% up front and the rest at completion. ..............

That may well be illegal. This is why you need a lawyer.

RIVETER · 11-06-2009, 10:20 PM

Quote:

Originally Posted by Paelectrican

One more question, if i am only a one man operation am i required to still carry workman comp? or only if i employ someone?

As far as I know, if you're all alone, you do not have to have workman's comp. But, you have to be optimistic, if you are as good as you think, you will need others to help. At least check into it and get figures. You will need the figures in order to bid the BIG ONE.Good luck.