Breaking In

[joeyww12000]

I posted a thread about moving up and laying out jobs earlier this week and I appreciate the feedback. Upon reading your inputs I am curious how you guys as contractors are doing in todays current economy? As said earlier I have 5 years experience, 3 residential, 2 commercial. I did not mention I do have my restricted contractors license. Here in the state of GA you have two licenses, restricted and nonrestricted. Restricted being 200a and under, and nonrestricted 200a and above. We do not have Journeyman and Masters licenses anymore. I have had my restricted license for a year now and havent done one job yet, but this is do to economy and just breaking into the industry in a town or area with established contractors. Any suggestions on how to get started? I have to work my 40hr job and try to do this on the side. Just tired of having a license and it going to waste.

 

[Dennis Alwon]

I will tll you that it is a bad time evn for established contractors. This is not a good time to start unfortunately.

I can only speak for myself so-- When I worked with a contractor all the GC got to know my work and my dedication to doing the job correctly. I paid attention to details and kept the jobs running smoothly. The GC were the ones that pushed me to go on my own. They encouraged me til I got the nerve to make the plunge.

So I am saying do the best you can so everyone gets to see your work. Give it time --- when the time is right you will know.

 

[cschmid]

The economy is tight right now..I do sense an you are restless and that restlessness is double edged sword..just because you have a license and stuff unless you have some cash tucked away for the rainy season which is now contracting in a one man shop is an opening for bankrutcy..You could do more damage to your reputation then good..

I would never want to discourage your dreams if you think you can secure enough work to stay busy and make a profit..Go for it just remember this is not a bull market..But you might find less money when beginning then working for someone..so if that is the motivation check you Numbers and recheck them again..

 

[growler]

Here in the state of GA . Any suggestions on how to get started? I have to work my 40hr job and try to do this on the side. Just tired of having a license and it going to waste.

Here in Georgia you will also need a business license to pull a permit and maybe a bond (depends on where you are). It's a good idea to have insurance.

If you want to do some small jobs then you have to let people know that you are out there. Some people advertise in things like a church newspaper ( you want get lots of calls but it's cheap). Get business cards made and start leaving them around ( everywhere). Get yourself a business or commercial phone line and this will give you a line add in the yellow pages. Go to the office at apartments and give them your business card ( they are always looking for another sucker). If you live in a small town then take out and add in the local newspaper ( one job will more than pay for it ).

The economy is not good but this doesn't effect small jobs as much as construction type work. People still have problems that need repair.

Just having a license doesn't get you anything because not very many people are aware of the fact. You can't legally conduct business until you get a business license. You may want to look into getting a commercial checking account and start keeping records of your jobs.

You may as well get started when the economy is slow so you can be ready when things improve. It's takes time for people to learn that you are in business even in a good economy. You need to do a few jobs just so your customers will know that you can actually do the work.

Plan on keeping your day job for a least the first year until you see how thing are going to work out.

 

[mdshunk]

I think now is the perfect time. Keep doing what you're doing, that being your side work. Dabble in that for a few years till things get back to normal with the type of work you want to do, then make the plunge. You ought be be able to develop your own personal "network" during these lean times, so that when things straighten out a bit, you're all set to go. You'll have plenty of time to develop your company's "system" while you're still on someone else's payroll.

 

[nakulak]

I agree with everything that's been posted. my small addition is:

1) be prepared to go into business at a moment's notice (have all your necessary business licenses in order, as well as insurance. If you don't want to actually pay for the insurance, have it set up so you can activate it with a phone call. When I went into business for the first time it was only because I got laid off ( I had the perfect job), and it was only a fluke that I had all my licenses. An associate who found out I was available dropped a very large job in my lap, right out of the blue. It happens more than you might think.

2) see the economy as an opportunity, not as "bad". the actual opportunity will occur as we come out of the slow period. You will see people going out of business, etc, because they have not prepared for the slow period. If you are not prepared to take advantage of the work that will come when business gets booming again, you will lose a valuable opportunity to make money. (that being said, you will need to have guys available to come work for you, and possibly network with other small companies, in oder to actually do the work. so its a good idea to start networking now and get prepared to actually perform the work.

(jmsho)

 

[aline]

http://www.usatoday.com/money/smallbusiness/columnist/strauss/2003-03-03-start_x.htm

http://www.thestandard.com/news/2008/03/20/five-reasons-why-recession-good-time-start-company

 

[aline]

Any suggestions on how to get started? I have to work my 40hr job and try to do this on the side.

My suggestion would be to price your jobs as if you're already doing this full time and this is your only source of income. You might as well learn how to sell your jobs at the price you will need to when you are no longer doing this on the side.

If sell your jobs at a low price because you have a full time job to compensate for it you may get plenty of work. But will you still be able to sell these jobs and have plenty of work when you need to raise your prices to do contracting full time?

Base your pricing on where you want to be and not on where you're currently at. If you want to contract full time base your prices on what it would take to be able to do that now and learn to sell the jobs at that price now. Don't wait until you've quit your full time job to raise your prices and then hope you can sell the jobs.

What will your customers do when you have to raise your prices because you quit your full time job and are no longer doing contracting as a side job?

It's easy to sell jobs at a low price when you're doing this on the side and it's just extra money. It's not so easy to sell jobs at a low price when you're depending on this money to pay your bills and feed your family.

The hardest part isn't figuring out how much you need to charge. The hardest part is selling the jobs after you've figured out how much you need to charge.

If you've figured out how much you need to charge correctly you most likely won't be the lowest price.

 

[wawireguy]

I agree with MD.. And 2 years commercial isn't a excessive amount of experience to be doing larger jobs. You seem to be smart and have drive. Keep working for EC's so you can learn more. See different kinds of jobs. Then you'll have a better idea how to bid them in the future.