Are you successful?

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ishium 80439

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If this has been done before please forgive me. I did a quick search and didn't find anything similiar in the first three pages of posts I looked at.

If you are a contractor are do you consider your self successful? There are many ways to define success: a certain amount of gross sales, a particular salary, how many people you employ, finally being able to afford that Corvette that you've wanted since high school, having your significant other being able to not hold a job etc etc. My question is are any of you at a point where you consider yourself there? How long did it take? What did it take to get there? how do you stay on top of your game now? What are some of the pitfalls you've either avoided or recovered from? Are there any other tips/ thoughts you have on the subject?

A little personal background on why I'm interested. I went out on my own about 3 1/2 years ago with little to no business experience. I had a partner who was supposed to handle that end of things but he got cold feet within six months and jumped ship leaving me holding the bag. Since then I have heard and read from various sources that 5 years is kind of a magic number, that is to say that is the point where you can start to breathe a bit easier. I am beginning to see a small speck of light at the end of the tunnel in terms of referrals, word of mouth and being able to shake off the dodgy contractors I was forced to deal with when I had no other work. I have had a journeyman working for me for about 2 years and just picked up a 1st year apprentice. Things are looking OK right now but I want to plan for long term health of the company and was looking to pick the brains of some of you who have been there.

Thanks for reading.
 
Not me, but a close friend.

Worked like a dog for 8 years (2 jobs) one for an EC 7-3 and evenings and weekends doing his own work to build word of mouth and his business. 8 years into his effort he felt comfortable enough to quit his first job and work entirely on his own and does fantastic to this day.

His advice would be.... don't slack and never give your wife the business checkbook.:D
 
The first thing I did was run it like a business and that started with getting it out of my garage and into a building my first"office" was !0 X 20 and was located next to the DMV so everyone had to walk past me at least once a year.I had my truck lettered and placed a 24x24 sign by my door.I drove alot stopping at anything that looked like a construction site dropped off cards to businesses and posted them on buliten boards.I looked at my market and listened to customers and found my nich in the "small job" area.I always joked that my first year I did 365 one day jobs but it helped to get me established as the #1 service company.I spend on advertising as wiord of mouth is good a radio spot is better.I found early that I needed to put away my tools and focus on growing the business I went through several employees to find the keepers.This morning I opened the doors gave thanks to the Arcitect Of The Universe and watched the trucks roll out at 7,today I am a success.
 
Someone on this forum made this statement. It's one I have not followed well in the past, but I believe it now.

"Even when work is good continue to market your business."

When things get slow all the marketing will pay off. It's also very beneficial for finding the niche or customer base you want. Then you can just concentrate on that niche.

I will find the forum member that said that when I have time and give them credit.
 
(2 jobs)
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I found NOTHING made me work harder than only having one job MY BUSINESS.

For several years my employees made more than I did, after 3-4 years we matched after that there seemed to be some gravy. I have never slacked off, though after a heart attack last year I did cut from 80 hours weeks to 50-60 hours a week and hired an assistant to do the things I dis-like about the business.

I Like/Love most aspects of my job.
I support a family.
I drive a pick-up (work truck).
I do not believe I could work for anybody else again (SPEAKING EMPLOYEER's NOT CUSTOMER's).
No plans on retiring anytime soon.
 
Ishium- I have been in business for 41/2 years. It hasn't been easy. I live in Orange County California and one of the biggest mistakes I have made in the business aspect was not charging enough. I wish I would have found this site four years ago. After four years in business I find myself in debt around $200,000.00 had I charged only $25.00 per hour more on my rates I would have made money and not be in debt. Make sure you are charging enough on labor and marking up your material.
Every year I am making more but I have yet seen a substantial profit.

"Being in business and not making money, is like eating soup with a fork. You work and work and never feel full."
 
been retired for three years now after a business run of twenty five years. actually was set up to enter the business on "our" own ten years prior but my partner backed out--said we needed "additional sources of business income"---my idea was "dedicate all efforts to the electrical end"!!! then ten years later we (same partner) entered the business and were sucessful for about two years when he decided he wanted to be "on his own". we were into the commercial office "nitch" and had a good client base and building!! we split the business 50-50! he tried to re-enter this same "nitch" and captured only one major client which was not enough to be sucessful, and under bid and common job between our companies. after a year, he was broke and in the middle of a nasty divorce!!

i remained in this same commercial office "nitch" and built up a crew of 23 people. although we had plenty of work, i felt unsure of where we were and where we were going. i liked the feeling when we were a seven or eight man shop and could oversee the full operation and know that my customers were happy!! at this point, we were working for large general contractors and dealing with large contracts--- and continually being strung out on draws...

after reading an article in the "electrical contracting" magazine, i decided to cut back my entire operation. i stopped bidding for any general contractors and began concentrating my efforts to working directly for building owners. this caused a couple of years of conflict -- mainly from general contractors upset that we would not bid their work --- at first we actually did many jobs that the building owners insisted we do the work---but we soon found out it was not the way to go---and we had a reputation to maintain. we were constantly being hassled by the g.c.. so we stopped any new construction work and got into work that other contractors didn't do. power quality--metering--infrared scanning--and entered the printing industry work... i soon found out that this was an area of our industry that not only payed good but also "on time"!!! we remained in this "nitch" for the last fifteen years --- it was a good run!!!! am i a millionaire??? no!! thanks to mike holt -- i am debt free and have a very good retirement income with a backup savings plan that i haven't touched.

if i had it to do again---i would never have a partner ---- i would select an area of our trade that has no "middle man" or that you deal directly with the owner. re-invest your profits into services that make you "more valuable" to your customer base. and always treat your customers like you would want to be treated --- this will maintain a good reputation.......... my $.02
 
I have had a partner for 23 years and this is one honest, hard working individual, between my knowledge of the electrical end and his OJT business end we have made it work. THOUGH it has not been easy at times, one needs to be willing to give.
 
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