How to grow as a 1 man band

C

clemver

Member
Location
PA
Occupation
Electrician
Recently started my own electrical business after 16years in the trade. Less than a year in right now. Had a decent nest egg that I used for startup costs. Bought a van cash, operate out of my home, I'm the only employee.

Im focusing on residential right now and jobs are coming in. But I can't afford to hire someone let alone have 40hrs a week to keep them occupied. But there's jobs where I physically need a 2nd person, sometimes experienced so a service upgrade doesn't take 2 days.

I'm starting to get calls from GCs for things like remodels and additions. Things I would need ideally 2 more guys to keep the job on schedule for the GC. So I'm in this conundrum of needing bigger work so I can get employees but needing employees to get the jobs done.

I have a few friends, some experienced, that are willing and able to help out when they can. But then I run into issues, especially jobsites with GCs, that there's guys there that arent insured god forbid an accident happens. No idea how to navigate this and I feel myself giving up.
 
clemver said:
Recently started my own electrical business after 16years in the trade. Less than a year in right now. Had a decent nest egg that I used for startup costs. Bought a van cash, operate out of my home, I'm the only employee.

Im focusing on residential right now and jobs are coming in. But I can't afford to hire someone let alone have 40hrs a week to keep them occupied. But there's jobs where I physically need a 2nd person, sometimes experienced so a service upgrade doesn't take 2 days.

I'm starting to get calls from GCs for things like remodels and additions. Things I would need ideally 2 more guys to keep the job on schedule for the GC. So I'm in this conundrum of needing bigger work so I can get employees but needing employees to get the jobs done.

I have a few friends, some experienced, that are willing and able to help out when they can. But then I run into issues, especially jobsites with GCs, that there's guys there that arent insured god forbid an accident happens. No idea how to navigate this and I feel myself giving up.
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Join the IEC use guys as you need them.
 
clemver said:
Recently started my own electrical business after 16years in the trade. Less than a year in right now. Had a decent nest egg that I used for startup costs. Bought a van cash, operate out of my home, I'm the only employee.

Im focusing on residential right now and jobs are coming in. But I can't afford to hire someone let alone have 40hrs a week to keep them occupied. But there's jobs where I physically need a 2nd person, sometimes experienced so a service upgrade doesn't take 2 days.

I'm starting to get calls from GCs for things like remodels and additions. Things I would need ideally 2 more guys to keep the job on schedule for the GC. So I'm in this conundrum of needing bigger work so I can get employees but needing employees to get the jobs done.

I have a few friends, some experienced, that are willing and able to help out when they can. But then I run into issues, especially jobsites with GCs, that there's guys there that arent insured god forbid an accident happens. No idea how to navigate this and I feel myself giving up.
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how much are you pulling in?
 
There's a couple of guys here that are in a similar situation as you're in, they each are licensed and insured on their own and primarily work alone, but occasionally they help each other out. I don't know the details, but they have a standing agreement where they will pay each other the same hourly rate, they settle up once a month and often they balance out, or close to it. They said the biggest thing was planning ahead so there wasn't any last minute scrambling.
 
Pinnie said:
how much are you pulling in?
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Well I'm above water financially but I've yet to turn a profit, expected to hit break even this month. Jobs started picking up a good bit the last month or 2, but even if it platueas as is roughly 4 to 6k a month
 
Joe.B said:
There's a couple of guys here that are in a similar situation as you're in, they each are licensed and insured on their own and primarily work alone, but occasionally they help each other out. I don't know the details, but they have a standing agreement where they will pay each other the same hourly rate, they settle up once a month and often they balance out, or close to it. They said the biggest thing was planning ahead so there wasn't any last minute scrambling.
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Here's my issue with that, I get a decent job with a GC who pulls the permits. Around here at least they need proof of workmans comp. I tell him I don't have it, no employees. Then I show up to his jobsite with 2 guys that he now knows aren't covered by any insurance. Anything happens to them it's falling on the GC and he knows that.
 
clemver said:
Here's my issue with that, I get a decent job with a GC who pulls the permits. Around here at least they need proof of workmans comp. I tell him I don't have it, no employees. Then I show up to his jobsite with 2 guys that he now knows aren't covered by any insurance. Anything happens to them it's falling on the GC and he knows that.
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Like I said, try the IEC. There are also temp agencies for skilled trades where you can use a guy for a day or two. It costs more per hour than a hired guy, but it's temporary so figure it in to the job cost.
 
clemver said:
Here's my issue with that, I get a decent job with a GC who pulls the permits. Around here at least they need proof of workmans comp. I tell him I don't have it, no employees. Then I show up to his jobsite with 2 guys that he now knows aren't covered by any insurance. Anything happens to them it's falling on the GC and he knows that.
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Yeah, I don't know the details. I suspect they "subcontract" to each other. GC subs out most of his work, what's to say a one-man EC can't sub out some of his work to another licensed EC? The other guy shows up in his own company truck with his own license number on the door, I think that should be pretty clear, but this might be a very rare arrangement. Next time I see one of them I'll ask how things are going and try to get some more details.
 
clemver said:
. But then I run into issues, especially jobsites with GCs, that there's guys there that arent insured god forbid an accident happens.
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clemver said:
Here's my issue with that, I get a decent job with a GC who pulls the permits. Around here at least they need proof of workmans comp.
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Not sure of the specifics of your area, but one option might be to form an LLC and just make anyone who helps you a member, then you don't have employees and none of them will require workers comp. That's what pretty much everyone does here in Central New York. It also makes payroll easier for you, because there really is no payroll. As far as your liability insurance, that should be no problem just tell them it's you and two other people or whatever and everyone should be covered.
 
Joe.B said:
Yeah, I don't know the details. I suspect they "subcontract" to each other. GC subs out most of his work, what's to say a one-man EC can't sub out some of his work to another licensed EC? The other guy shows up in his own company truck with his own license number on the door, I think that should be pretty clear, but this might be a very rare arrangement. Next time I see one of them I'll ask how things are going and try to get some more details.
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The GC still needs info on this sub to the sub as it is ultimately on him if any of them don't have their own coverage. Not saying it can't be done but don't tell him you have no employees and don't need WC and then show up with any helper other than maybe your spouse that would still likely qualify as not needing to have a WC policy on them.
 
clemver said:
Here's my issue with that, I get a decent job with a GC who pulls the permits. Around here at least they need proof of workmans comp. I tell him I don't have it, no employees. Then I show up to his jobsite with 2 guys that he now knows aren't covered by any insurance. Anything happens to them it's falling on the GC and he knows that.
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Just get WC, it's like $700/yr, at least that was what I got quoted recently (Farmers).
 
NoahsArc said:
Just get WC, it's like $700/yr, at least that was what I got quoted recently (Farmers).
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I been paying somewhere in that ball park for several years for a WC policy even though there hasn't been an employee covered for a long time. It doesn't cover me or my spouse as we are owners and not set up as employees. When I wanted to cancel it after my last employee left, I wasn't sure if I would hire someone else or not. Insurance agent said this type of policy can't be turned on and off like that. It is a year long policy and is audited after each year and most the time if you kept up with informing them of changes you are close on the audit but may owe some more or possibly get some refund.

I have found having the policy comes in handy with GC's , government contracts, etc. as if you give them a certificate when asked they are happy with that and usually ask no more detail about exactly who is covered by the policy or if they even need to be covered. I usually do get some refund after the audit, don't know why they can't charge an even lower premium if there is no employees to cover. Is always going to cost some to have the policy even if it doesn't really cover anything. I suppose to some extent they want some premium in case you hire someone without telling them and then end up needing to file a claim.
 
I started my company in CA as a one-man band as well. When I needed help, my wife would come to help, but she has a couple of years of experience working electrical. When I hired my first employee, it was with an understanding that I would try and get him at least three days of work a week, but some weeks might be slow and I would just communicate with him about those weeks. But he and I both had things keeping us busy outside of secular work that were more important, so it was a good relationship. Also, it took me a minute to figure out how to charge customers with an employee on payroll. Once I got that figured out, gross and net income increased.

I recently moved to New York and moved my business with me, and I am back to being a one-man show. Now, if I need help, I will get another contractor with their own insurance and just use them as a sub. I just try to factor that cost into my estimate or bid for the job.

I mainly do residential as well. I hope this helps you.
 
Archimedes1988 said:
I started my company in CA as a one-man band as well. When I needed help, my wife would come to help, but she has a couple of years of experience working electrical. When I hired my first employee, it was with an understanding that I would try and get him at least three days of work a week, but some weeks might be slow and I would just communicate with him about those weeks. But he and I both had things keeping us busy outside of secular work that were more important, so it was a good relationship. Also, it took me a minute to figure out how to charge customers with an employee on payroll. Once I got that figured out, gross and net income increased.

I recently moved to New York and moved my business with me, and I am back to being a one-man show. Now, if I need help, I will get another contractor with their own insurance and just use them as a sub. I just try to factor that cost into my estimate or bid for the job.

I mainly do residential as well. I hope this helps you.
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When doing mostly residential or light non residential you often can get help from the owner or an employee of the facility when all you need is a little muscle or someone to pull a rope when installing conductors. I even have builders or other tradesmen that I am good enough friends with that will help me with moving something heavy at times or I might even help them at times with such tasks.
 
NoahsArc said:
Just get WC, it's like $700/yr, at least that was what I got quoted recently (Farmers).
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Obviously you're not in New York state. Last coverage I had was Just myself, every sub that didn't have their own I had to cover as if they were an employee. Costs was over 9G for the year on 40G sub and owner pay. According to my agent the only coverage in the state is through the states insurance as underwriting considered electrical contracting a high risk work. Even when it was just me it was 3G as a minimum rate. For 700 a yr I would have kept the coverage just for the sake of making paperwork for permits easier.
 
clemver said:
Well I'm above water financially but I've yet to turn a profit, expected to hit break even this month. Jobs started picking up a good bit the last month or 2, but even if it platueas as is roughly 4 to 6k a month
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I hope you don't feel like I'm being snarky, but if that's your income you need to be looking to keep it all for yourself, as well as adding more work coming in.

I have a friend who's in the same boat. He doesn't work full-time and probably makes about that much money. He's always calling me and asking me will I come help him on a job. But when we get down to what the job entails, there's not really enough work for two guys.

The bottom line is he just doesn't want to work by himself.

I'm kinda that way, too. I'd rather have a second guy on the job with me. Especially if the GC doesn't know how to schedule. It's almost like having moral support just to have another guy there to bear some of the dysfunctional load.

If that's where you're at, I get it. But if you're not really busy enough to have two guys on the job, then you just need to put your head down and go do your work yourself. Even bigger remodels
 
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