Business Tips/Advice Welcome

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I was told long ago 'a spark does not a biz man make' , but had to live it to realize it.

On a positive note , a good accountant has proven to be well worth the investment

I'd have been making little rocks outta big ones some time ago, for lack of one

~RJ~
 
Hey dude! I'm also a recently licensed master electrician in the state of WI (Milwaukee metro) who is considering starting my own business. I appreciate the questions you're asking as they are exactly what I came here to ask myself :LOL: . Good luck!
 
Thanks man, if you do decide to do your own thing we should exchange info. I am learning it is always good to have contacts and people to collaborate with when needed. I recently helped another small company with a 200 amp service upgrade, good to have contacts. Thanks for the advice on McCormick AC/DC, I'll check it out.
 
Seems most business tips only deal with how to set your prices. But there's a whole lot more to it.

The single biggest issue Ive experienced, and seen in others, is getting the job done.

Whether you're working for a remodeling company that keeps you busy 70% of the time, or have a solid customer base, remember that people who want you to do their work almost never consider that at some point you have to be on a job site swinging a hammer. Here's some stuff I've learned....

1) don't feel obligated to answer your phone every time it rings. Like my mom used to say - if it's important, they'll leave a message. Call back when it's more convenient for you. My phone greeting says "for a faster response, please text me". Even that doesn't guarantee an immediate resoinse. But you can quickly see if it's emergency level or not.

2) don't schedule walk-throughs (or estimates) at 10am, 2:30pm or such. People seem to have no concept of ruining a whole afternoon to load your stuff up an hour after lunch so you can drive 30 minutes to look at something. You'll find you're burning large chunks of your day.

3) if possible, give time windows for arrival, job completion time, etc. We're in a time when people want to schedule to the minute. But we don't know the future. Things happen. And nothing adds stress like telling someone you'll be done this afternoon, then something goes wrong. Also, when you're working for a remodeling company that has you busy, they're going to call you for surprise drop-ins to look at or fix something small.

4) know your capabilities as far as job size. If that large remodeling company likes you and your work, they'll start calling you for bigger, more important jobs. While that's great to have, it really REALLY sucks when it overloads you. If your average job is 3-5 days, and you're busy, you can't take a 4-week job. It's simply too much because you're still gonna get those other calls along the way.

And about the money....

5) don't live in constant fear of being taken advantage of. Trust God and trust people. In 20 years, I can count on one hand the number of times I got beat out of money. It will probably happen eventually, but not every day.
 
1. I’ve started to keep a small note book with me all the time to take notes. Weather it is to write down when someone calls, notes about a job, marketing ideas, or anything that I need for later.

2. Each job get a clear scope of work so there is no question about Anything. This will help the job run smoothly. Have the customer or contractor read and sign it. so when there is a change order there’s no question about the new charges. Have them sign each change order with the cost of it. I keep a binder at each job with this in it so nothing get forgotten when the final invoice is made. It also helps the customer see the progress you are making.

3. I take down 33% down to start a job, then collect the next 33% when half way done, and collect the final when the job is completed.

4. If you are doing a ton of service work track your leads know how your customers are finding you. This is very important so you know you are not wasting money on bad marketing.

5. Find a good niche if you can do something very well that others are not. This can be very lucrative.

6. make sure you know what it costs to do business every month. Make sure you are charging a 50% gross profit. It’s ok to go home tired, but don’t go home tired, broke and hungry.

7. I’ve started doing convenience scheduling. I hard schedule the first call today. The rest of the calls I will give them a 30 minute or an hour heads up that I am finishing a job that I will be heading their way. Then I give them a call to let them know I’m on the way. If I sell the rest of my day at a job I call the other customer or customers to reschedule them for the next day or another time.
 
Find your true cost of doing business from the start. Ellen Roar has some great books, as well as others. Charge more than you really think you should as that probably is still not enough. I learned a great electrician is not necessarily a great contractor. Find a great accountant and get them involved as they can help immensely. And look for other contractors either the same or differnt trades and business people that can help you grow. SCORE is a program in WI. that helps business.
 
James L said:
Seems most business tips only deal with how to set your prices. But there's a whole lot more to it.

The single biggest issue Ive experienced, and seen in others, is getting the job done.

Whether you're working for a remodeling company that keeps you busy 70% of the time, or have a solid customer base, remember that people who want you to do their work almost never consider that at some point you have to be on a job site swinging a hammer. Here's some stuff I've learned....

1) don't feel obligated to answer your phone every time it rings. Like my mom used to say - if it's important, they'll leave a message. Call back when it's more convenient for you. My phone greeting says "for a faster response, please text me". Even that doesn't guarantee an immediate resoinse. But you can quickly see if it's emergency level or not.

2) don't schedule walk-throughs (or estimates) at 10am, 2:30pm or such. People seem to have no concept of ruining a whole afternoon to load your stuff up an hour after lunch so you can drive 30 minutes to look at something. You'll find you're burning large chunks of your day.

3) if possible, give time windows for arrival, job completion time, etc. We're in a time when people want to schedule to the minute. But we don't know the future. Things happen. And nothing adds stress like telling someone you'll be done this afternoon, then something goes wrong. Also, when you're working for a remodeling company that has you busy, they're going to call you for surprise drop-ins to look at or fix something small.

4) know your capabilities as far as job size. If that large remodeling company likes you and your work, they'll start calling you for bigger, more important jobs. While that's great to have, it really REALLY sucks when it overloads you. If your average job is 3-5 days, and you're busy, you can't take a 4-week job. It's simply too much because you're still gonna get those other calls along the way.

And about the money....

5) don't live in constant fear of being taken advantage of. Trust God and trust people. In 20 years, I can count on one hand the number of times I got beat out of money. It will probably happen eventually, but not every day.
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That is solid advice. I always like your insights.
 
I am. The meeting went well. However, after the meeting, I ended up letting him know I would be unwilling to provide a master list of prices. I said, I would be willing to work on a T&M basis or I could provide an bid. He responded saying he pays his electricians $64 hourly. Needless to say, I let him know I am not willing to work for such a low hourly rate. It worked out for the better, as I am staying busy at my standard hourly rate. And have started to be used by a large restoration contractor in the area also, who is easy to work with, and has no problem paying my hourly rate and/or having me submit a bid.
 
Eli1211 said:
I am. The meeting went well. However, after the meeting, I ended up letting him know I would be unwilling to provide a master list of prices. I said, I would be willing to work on a T&M basis or I could provide an bid. He responded saying he pays his electricians $64 hourly. Needless to say, I let him know I am not willing to work for such a low hourly rate. It worked out for the better, as I am staying busy at my standard hourly rate. And have started to be used by a large restoration contractor in the area also, who is easy to work with, and has no problem paying my hourly rate and/or having me submit a bid.
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Glad to hear you had a conviction about your rate and held to it. Too many guys are willing to fold up when their rates are challenged.

Good stuff
 
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