Is it too risky to start in electrical contracting

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Electrogrunt

Member
Location
Oakland,CA
Hi, I would like to know what electricians active in contracting have for advice, to others who may try this business. What is your advice? Thanks for any comments.
 
Location
NE (9.06 miles @5.9 Degrees from Winged Horses)
Occupation
EC - retired
This has been covered several times but here is a few.

Take a Business class. Our Community Colleges offer night classes or used to.
Join area associations and participate. Electrical or otherwise.
Charge enough to make enough.
You won't get all the jobs...you don't want them all anyway.
Pay your bills.
Expect to work more hours than an employee, but realize that as you grow you cannot be all or do all so hire those that can help.
 

electricblue

Senior Member
Location
Largo, Florida
Occupation
EC
This has been covered several times but here is a few.

Take a Business class. Our Community Colleges offer night classes or used to.
Join area associations and participate. Electrical or otherwise.
Charge enough to make enough.
You won't get all the jobs...you don't want them all anyway.
Pay your bills.
Expect to work more hours than an employee, but realize that as you grow you cannot be all or do all so hire those that can help.


Well said. I suggest reading Ellen Rohr's stuff. Barebonesbiz.com. I didn't start making money till I got pissed off and read this.
 

Fulthrotl

~Autocorrect is My Worst Enema.~
Hi, I would like to know what electricians active in contracting have for advice, to others who may try this business. What is your advice? Thanks for any comments.

you are in calif. in 2008, i had my worst
income of any year since i started working.

it's still pretty hit or miss in so calif.... this year
i'm finally back where i was in 2006~2007 as
far as busy. the work i'm doing is profitable,
but it's taken a while to get here. a lot of the
folks i know in the industry have hung it up,
and moved elsewhere, or gone to work in
utilities or county positions.

ellen rohr's stuff is excellent. get the weekend
bare bones business plan, and do it before you
do anything else. it'll cost you $10.

in a nutshell:

have 90 days cash reserves, minimum. 6 months would be better.
have a biz plan
know your costs
learn how to flat rate price work.
have an excellent working relationship with a wholesale house.

now, you need to find customers. what do you do well?
what niches would you be able to fill?

where can you be of service, and make a contribution?

this morning, in half an hour, i got four purchase orders,
that should keep me working for the rest of the year.
hooray.

in 2008, my net taxable income didn't have a comma in it.
boo.

you have to be able to go thru both of those and survive it.

good luck.
 

Daja7

Senior Member
Hi, I would like to know what electricians active in contracting have for advice, to others who may try this business. What is your advice? Thanks for any comments.

Life is a risk you just try to minimiize the risk with knowlage and preparedness.
Going into business is always risky but if risks aren't taken it is tough to advance. can you handle the risk and pressure then go for it. if not, don't cause it ain't as glamorous as it may seem. Any good business person can run an electrical company with little to no knowledge about electrical but an excellent electrician will find it dificult if not impossible to run one with no business knowledge.
 

Fishspark

Member
Location
Wisconsin
Occupation
Electrician
I find that people want to hire and help, and want you to be there for them ? and also, they want the value for the money they spend. Electrical Contracting is really a Life Style more than a job ? You?ll always think about work in the background of your mind ?If you want to start up.. do it because its fun and start there. Along with other good points posted here excel or another = is very important to know.
And there?ll be some brush fires along the way too. Be safe - Good luck to you !
 

bradleyelectric

Senior Member
Location
forest hill, md
Don't start a business because it is or you may want to have fun being your own boss. Start it as if you plan on mkaing money as a business owner. Find out how to be a successful business owner. You need to drop almost everything you learned as an employee and look at what will make you money. Don't think emotionally. I'm not saying don't excede your customers expectations.
 

Rewire

Senior Member
Stepping out your front door is a risk. What you do is try and do everything you can to limit your risk. A good solid business plan is a great place to start. Knowing your obstacles and how you will approach them will go a long way towards making your endeavor a success . I don't think you can ever have to much planning.
 

petersonra

Senior Member
Location
Northern illinois
Occupation
engineer
I would say this. All new businesses are risky. Only a few survive a year, and very few make it to 5 years. Even in good times.

Stack the deck in your favor as much as you can by preparing for it ahead of time.

Expect to work 80 hours a week for 40 hours pay for a few years. Some weeks or months your 80 hours will be for 0 hours of pay.
 

Rewire

Senior Member
I would say this. All new businesses are risky. Only a few survive a year, and very few make it to 5 years. Even in good times.

Stack the deck in your favor as much as you can by preparing for it ahead of time.

Expect to work 80 hours a week for 40 hours pay for a few years. Some weeks or months your 80 hours will be for 0 hours of pay.

The 80 hours is true but going without pay is poor planning. Part of the business plan is your compensation and how it will be met.
 

220/221

Senior Member
Location
AZ
If you have to ask about it being risky, I don't think you will be comfortable.

Starting any small business is risky but generally, you have to do it. A lot of people risk their homes, marriages and their children's education funds. I can't count the number of times in the early years that I felt I was on the brink of disaster.

Then, once things were stabilized and running smoothly for a few years, the bottom dropped out of the entire economy in 07 and it was almost like starting over at a 50% reduced salary....which is still in effect. :rant:

It's not for the faint of heart. In my case, youthful stupidity translated into fearlessness and I somehow got by.
 

LEO2854

Esteemed Member
Location
Ma
Hi, I would like to know what electricians active in contracting have for advice, to others who may try this business. What is your advice? Thanks for any comments.


Each day running your own show is part of your greatest challenge you will ever undertake , but it beats working for the man.

Read as many as these business threads as you can so you can come up with your own way of doing it,No business is the same,so just create your own,get the proper insurance to protect your own assets .

It is a big risk for sure but so is getting out of bed in the morning,learn all you can and jump right in the game you will do much better than you ever thought possible .,,,,GOOD LUCK...:thumbsup::thumbsup:
 
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