Starting a new business

[tony-a]

Over the last ten years I have run a consumer electronic service business. Last year I started reading everything I could on residential electrical. I'm now studing for my contractors license and I'm wonder if someone would give me some tips on starting a new business? Thank you for your time.

Tony

[bphgravity]

I would start by doing some reserch on competition within the community. Find out the average rates, wait times, number of employees, etc. I would then put together a small brochure or flyer describing yourself and the company and distribute to local businesses you are interested in getting work with. If you plan on doing new construction, put together a general "house package" showing the type of materials and fixtures you use and the expertise you plan on providing. Do some heavy advertising for the first few months to get your name out, and try a promotional deal that makes you stand out like a senior discount or $10 off first servcie call gimick. Good luck! :)

[luke warmwater]

Hire someone with experience. No offense, but your experience in residential electric is very limited. There is more to residential wiring than people like to believe.
I have 3 licensed electricians on payroll. Sometimes people don't want the responsibility of owning a company, and they are happy to work for a good rate.
Try to stick with the same salesman at your supply house. If he is good, it will benefit you immensely.
Buy in advance whenever possible. Most supply houses will have price breaks for ordering case lots of devices, plates, etc. Learn where the cut-off is for items and take advantage of any monthly specials that are given on items that you use frequently.

[tony-a]

No offense taken Luke! I've run a sucessful business for the last ten years but not as an electrician. Thank you for taking the time to help me.

[bennie]

I had a California C-10 license when I was 26 years old.

I never was a contractor, but was the RME for a few.

The most successful contractor was an accountant, and knew nothing about wiring a switch.

Electrical contractors have a high failure rate.
Only second to restaurants. Many electrical contractors take the money from a first draw and buy a restaurant.

Good luck: Bennie

[tony-a]

Bennie thanks for the info. I earned my degree in accounting/finance in 1992 from San Jose State University. Does that mean I stand a better chance?

Tony

[bennie]

You can hire and trust good electricians. It is very hard to hire and trust someone to count your money.

I worked for one contractor, who was bankrupt for five years before he realized it. You have the advantage of detecting it quicker :D

Just joking, I hope: Bennie

[definitive]

I think the best way to go about starting a company in your situation or any, is to work for someone else through your apprenticeship. Im not sure how many hours you need in your state for a residential journeyman card, but in my state its only 2 years.
That way you can kinda get a grip on how things are done in the field.

[charlie tuna]

when you talk "residential wiring" your talking the lowest branch of the electrical industry - this also means it is the most competitive branch! you are competing with others entering the contracting field which is good and bad!! some time their prices are good and sometimes they aren't. it's an area that might take advertising to be sucessful depending on the area? if you have the ability to work for someone else in this area-- it's the best way to go - that way you learn while being payed by others!!!!

[jxofaltrds]

Charlie

"when you talk "residential wiring" your talking the lowest branch of the electrical industry"

I know what you mean. I did have to take that EverReady off my shoulder first.

Residential IS the most important but the least paid.

The problem here (in Ohio) is that I could, holding a state license, hire 1000 (people,helpers,masters) employees and wire everything I could get my hands on.

That is why I made that outrageous statement in a previous topic.

I am working on a report for a client regarding a home inspection. I will start a new topic for this.

As I have stated earier "I am not that smart". I am tired of so called professionals HARMING the general public.

Sorry that, I have been celebrating my birthday (maybe a few to may "pops"), I have digressed.

Mike P.

[tony-a]

I'm still running my consumer electronic service business and honestly I've never worked for someone. I have a family to support so my intentions are to run both business' until I build the new business. Most of the residential companies are running two page phone book ads which average $5000 per month. Can you tell me how to find a good parts distributor in San Jose, California? Thank you for your time!

God Bless,
Tony

[definitive]

when you talk "residential wiring" your talking the lowest branch of the electrical industry Im not sure I agree with this statement. I agree its different, but not "lower" than commercial or industrial. But with all the systems available in homes today, Im not sure you can say its the lowest branch. I do both, and Ive done some large custom homes that rival any of complexities of my commercial, or industrial experiences. Sorry, this probably wasnt the right place to post that, but I wanted to respond.

[luke warmwater]

definitive, I agree. Read my 3rd sentence in above post. But it's hard to tell what the intention of the statement was.

tony-a, that's alot of scratch for a phone book ad. We don't advertise in the phone book anymore. We did it once, but it was not worth it for us. The amount of calls that we received didn't pay for the ad. We are so busy that we really don't need the ad anyway.
I would suggest that if you do a yellow page ad, get another phone number that is only published in that ad. It makes it easier to track the calls and you can easily see if the ad is paying off.

[tony-a]

Luke
What type of advertisement do you use? How do you let people know you're out there?

Thanks,
Tony

[luke warmwater]

Tony, there is a local circular paper that we will advertise in once or twice a year for service upgrades, etc... We will go after contractor business directly via fax, mail, or phone. All other business is from word of mouth. We really don't cater to homeowner type of service work. We will do it but it's not our main goal. There are other companies that specialize in that type of work. We also get referralls from builders to other builders.
Also lettering on vans and sometimes we will put signs on jobsites.

[tony-a]

Thanks Luke! That's the information I'm looking for. I can never understand why some people give such off the wall information to simple questions.

Have a great day!
Tony

[jro]

Tony try online advertising you wont pay to much and the results are not bad, most online advertising companies have different plans to suit your needs, of course most are yearly contracts. Also there are requirments you must meet in order to obtain your Journeymans or Master electricians card, Example: in Dallas Texas you must posses your Journeymans card for two years before you can obtain your Masters card, and to obtain your Journeymans card you must have 4 years of electrical experience, all this has to be verified by the City of Dallas, thru employer contacts and notary public.

[tony-a]

Thanks Jro! I've run a successful service business for the last ten years and I never took the Certified Electronics Technician test. I grew up in this type of business. Some people might like putting CET after their name but most people are interested in the quality of your work and price. In California the state accepts a four year degree as two years experience and I've been doing electrical work for people over the last five years. This is enough experience to get my contractors license. I'm not required to have any other certifications to do electrical work as a business. Right?????

Tony

[jro]

Your best bet is to go online or visit your local agency about contractors licensing requirments in your state, Texas doesn't have a state wide electrical license, it goes city by city with every city having different requirments, although you can recipricate city to city.But hey, I have a Master License and contractors license.I don't have to live in California, in order to obtain an electrical contractors license there. give me a shout, I'm willing to at least look into a branch office.

[jgeorgie33]

Well, if you've already run a business for 10 years, I'm sure you'll do well with all the planning stages, etc.

As for starting a business in something you haven't really worked in before, that's where networking comes in. I don't know if you really want to hire "employees" right away, but meeting with others who do something similar can never hurt.

Some good advice is to know who your "enemy" is. People have to want you ;)

Good luck!

[ITO]

1) Keep your mouth shut, the less you say about your business to your employees, clients and supply houses, the less they have to spread around and distort.
2) Don’t do work without a contract and clearly defined scope.
3) Make a standard scope letter and continually update it with the “gotchas” you discover each job.
4) Read your contract, and be prepared to walk away from the deal if you can not negotiate a deal that will make you money.
5) Work smart and don’t take short cuts that endanger your employees or license.
6) Follow the construction process, do your submittals, RFIs and documentation for every contract job.
7) Always pay your employees and suppliers even if you don’t get paid.
8) Keep your word, don’t comp numbers, and don’t shop your quotes.
9) Make money; never forget that there are people counting on you for their living too. If you don’t make money then you are not doing it right and you will go out of business.
10) Don’t let your insurance lap, and make sure you have enough.
11) Don’t let your lien rights run out.
12) Never trust your bookkeeper, don’t tell them anything they don’t need to know, and make them sign a confidentiality agreement.
13) Crank out way more estimates than you can possibly do if you go them all, its only a problem if you get the all then it’s a good problem.
14) Keep your mouth shut, when you run a business the people around you tend to hang on every word you say and take them to mean things you never intended.
15) Use that college education and do a 5 year plan.
16) Take a look at small commercial work, it is by far much more profitable for me than residential.

[khixxx]

I started a business part time. I got tired of it fast. I am skilled in the industrial field. Why I did residential work is beyond me. I looked at MR. E and others. If I was to start a Residential and light commercial business it would be doing service work only and it would be with Nexstar. I am sure everyone has their opinion, This is mine.

[satcom]

I'm not required to have any other certifications to do electrical work as a business. Right?????

Tony

I would check on that, It would depend on your state, and local laws.

[brantmacga]

what's up w/ pulling out 3 yr old threads lately? check that, 4 yr old threads <<

[khixxx]

LOL I didn't notice that. I wonder how his business is doing.

[haskindm]

I don't know about California, but in Maryland you need to have seven years' experience "under the direct supervision of a Master Electrician" prior to sitting for the Master Electrician Exam. You must be a Master Electrician to contract work in Maryland (or be a company that employees a Master Electrican to represent you). A company may employ multiple Master Electricians, but a Master Electrician may only represent one company. In other words if I work for and represent ABC Electric as my employer, I can't do side work under XYZ Electric.

[romexking]

I don't know about California, but in Maryland you need to have seven years' experience "under the direct supervision of a Master Electrician" prior to sitting for the Master Electrician Exam. You must be a Master Electrician to contract work in Maryland (or be a company that employees a Master Electrican to represent you). A company may employ multiple Master Electricians, but a Master Electrician may only represent one company. In other words if I work for and represent ABC Electric as my employer, I can't do side work under XYZ Electric.

In Maryland, you may be given credit for up to 3 years of experience if you have completed an approved apprenctice program. That essentially lowers the requirement to 4 years.

[bradleyelectric]

In Maryland, you may be given credit for up to 3 years of experience if you have completed an approved apprenctice program. That essentially lowers the requirement to 4 years.

the length of an approved apprenticeship program

[romexking]

6–304.
(a) To qualify for a State license, an applicant shall be an individual who meets the requirements of this section.
(b) (1) Subject to paragraph (2) of this subsection, the applicant shall have been engaged or employed regularly and principally in providing electrical services for all types of electrical equipment and apparatus for at least 7 years while under the direction and supervision of:
(i) a master electrician; or
(ii) a similarly qualified employee of a governmental unit.
(2) The State Board may allow an applicant up to 3 years of credit toward the experience required under paragraph (1) of this subsection, if the State Board determines that the applicant has completed a formal course of study or professional training in electrical installation comparable to the required experience.(c) Except as otherwise provided in this subtitle, the applicant shall pass an examination given by the State Board under this subtitle.
(d) The State Board may investigate the qualifications of each applicant to determine whether the applicant meets the requirements of this section.