In Your Opinion...

[prh1700]

I have to agree with most of the replies. Keep the nest egg, get rid of the partner. A lawyer and accountant can get you set up a lot cheaper and with no hassles and heartaches. Your buddy sounds like he wants to go straight to eating steak.

 

[Sparky555]

My first lawyer was a very friendly & likable guy. In our first meeting he got very serious & said "If you ever want to get a partner, I'll draw up the agreement. Partnerships are like marriages & the divorce papers have to be drawn up in the beginning".

 

[Minuteman]

G & G, as most of us have said, spend your money wisely and be careful with partnerships. It maybe that you are the owner and he is a hired hand that you hold in high regard. That's okay. Calling somebody "partner" in Texas ain't the same as calling them "partner" in business. If that's not the case, than you ought to get a lawyer to look at your business plan and to help you set up yourself for success, not failure.

Welcome to the forum and stick around. There is a great bunch of people here, and a plethora of knowledge at your fingertips. :smile:

 

[growler]

we have no income from our company as of yet. What do you guys/girls think?

Figure out where you are going to make money before you do anything. A business plan. What type of work is going strong in your area?

You really need to know what type of work that you are going after before you come up with a plan to go after it. If you are going after construction work then the yellow pages are not going to do much good. If you are going after service work then this may get the phone to ring.

What types of jobs do you have a lot of experience in? If you have lots of experience with certain types of work this will give a better idea of labor cost. If you get out of your field of experience it can get difficult, then you not only have to learn the business side but the hands on as well.

 

[slect]

If your going after new construction and remodeling the you better start shaking hands and kissing babies... network and network some more. If you after service, which is where the real money is, model some of the big boys that know how to do it right. Ace electric in FL ... Mister Sparky in Atlanta.. to name a couple.... New construction and service are 2 completely different business models. Different pricing, marketing, look, everything..
Sounds like your not ready to quit your day job. I mean that respectfully. I have seen some of the best plumbers, master electricians, painters etc.. the best you would ever want to work in your own home, fail miserably when going on their own. Be carefull.

 

[MarkyMarkNC]

My first lawyer was a very friendly & likable guy. In our first meeting he got very serious & said "If you ever want to get a partner, I'll draw up the agreement. Partnerships are like marriages & the divorce papers have to be drawn up in the beginning".

This is the very same advice I neglected the first time I went into business with TWO other partners. They were both really good guys, and friends of mine (still), but it was a mistake a will never repeat again.

I would take the money for the paint job and spend it on some other marketing while you are waiting on the yellow pages - website, direct mail, postcards, craigslist etc.

 

[220/221]

50/50 partnerships don't work.

50/50 partnerships don't usually work.

I'm going to go against the grain here. In service work, your truck is your most important tool. Customers DO look at your vehicle. You need to have proper stock to do jobs properly and efficiently. You need to look professional.

That said, I wouldn't spent the cash to buy the truck, I'd finance it. If your partner knows about finance, taxes, depreciation and is capable of doing this end of the buisness, he may not be the moron some people think.

If he wants to take half of your working capital/cash and spend it on a truck, I think he lacks common business sense.


I have one of those rare 50% partnerships that works and my partner makes all the financial and administrative decisions. Our second truck (first bucket truck) was used, but after that everthing was new, financed and payed off well ahead of schedule.


The answer to your question lies within the details.

 

[Curtis4President]

I agree with most of the posts. We have been a company for almost two years, its very difficult. I too thought of myself as a go getter non stop elctrician. In the Bis side its very different. I have a partner, but like above poster said somebody has to be the boss. Financial decisions, marketing, hell even type of work. Dont be afraid to start small, you have to. But stay motivated, dont rush into anything, and trust nobody. Always, always, always
get it in writing and collect your deposits.


TC

 

[satcom]

Don't even paint it--$1200.00 is wasting money on paint--your customers don't care what your van looks like!

If a truck needs painting, it may be ready for the bone yard, the customers with the money, do care what your truck looks like, how you truck is kept, gives some insite to the customer, is the truck clean and everything inside neat and orderly, or is it dirty and rusted, and the inside looks like a junk pile stored, that usually indicates a a person with no order, or pride. not someone you would want working in or on your home. You would be supprised how many customers comment on some trade comming to their home, and was a mess, or had a truck that was a mess, they don't want them in their home.

 

[lbwireman]

I would go into buisness for myself, and hire your buddy as an employee...

Amen to that!! Unless, of course, he's the source of the $25K.... Which would certainly qualify as "business sense".:grin:

 

[G & G Electric]

Amen to that!! Unless, of course, he's the source of the $25K.... Which would certainly qualify as "business sense".:grin:

Well, yes, he is the source of the cash, and that's one reason why I brought him on. He is quite good with money, and has a mind for business, but I have to agree with the majority of the replies. I am the license holder in the shop, and I was on my own for awhile doing HVAC controls, but I wasn't in a position to nurture the business like I wanted to. I still do small contract jobs for Siemens and a couple of other energy mangement shops. It used to be the shops that specialized in controls bid on controls, but now there's more competition willing to do it for next to nothing (thanks Lowball Electric!). And I refuse to contract out for less than I feel as though I'm worth. Always better to not win the bid for being too high than to loose your ass for being too low, IMO. For you guys here in Texas, how do I remove my Masters license and myself from the EC license? Not to say I'm ready and willing right now to back out, but if in the future I want to get out, is it going to be an ordeal or is there a set of steps to follow? As always, the responses I get from ya'll are gold, and appreciated.

 

[ITO]

You need to pay special attention to the contracts we have to sign here especially the indemnity clauses, they mean something different here than in other states and you could find yourself in trouble...

 

[electricmanscott]

Don't even paint it--$1200.00 is wasting money on paint--your customers don't care what your van looks like!

Those are the customers you don't want. The ones you are looking for do care.

You roll up in a peice of crap, you look like a piece of crap. You can't take back a first impression.


It's hard enough to overcome the stigma of being blue collar workers, why give people even more of a reason to think of us as lowlifes.

 

[peter d]

It's hard enough to overcome the stigma of being blue collar workers, why give people even more of a reason to think of us as lowlifes.

Some of those stigmas associated with being a tradesman are well deserved in my opinion. You are absolutely correct with regard to appearance of your vehicle.

 

[electricmanscott]

Some of those stigmas associated with being a tradesman are well deserved in my opinion..

You are correct sir. All you need is five minutes in any electrical supply house at 7 am. Looks like a prison lineup!

 

[charlietuna]

Consider you/and or you and your partner need to hire your fist employee and just how much money your company will invest in this employee before the first dollar this employee earns is returned to your business's bank account. This is a EYE OPENER !

 

[charlietuna]

In my particular business - i really don't think my customers knew what my service truck looked like until it pulled up to their houses to do some PR work and at that point they were hoping it was a junker!

 

[ohm]

I knew a guy who started a business and immediately bought a $3,000 computer and software to track any income he might receive. I told him until he started making lots of money he could of used an empty coffee can to keep the $$ in, but he insisted in starting out with these types of luxuries.....he didn't get too far and went belly up.

Good advice! Also, if your not sure how to set up files..keep all your paperwork for awhile..it will become painfully evident what needs to be done.

Remember cash is king for a new company.

 

[ITO]

Those are the customers you don't want. The ones you are looking for do care.

You roll up in a peice of crap, you look like a piece of crap. You can't take back a first impression.


It's hard enough to overcome the stigma of being blue collar workers, why give people even more of a reason to think of us as lowlifes.

Well I guess that makes me a customer you would not want. It's too bad really, I pay well, on time, am greatfull for good service and tell all my friends when I find a good service.

There is a whole phone book full of guys in shinny new trucks that don't perform, that is why most people go by word of mouth.

 

[electricmanscott]

Well I guess that makes me a customer you would not want. It's too bad really, I pay well, on time, am greatfull for good service and tell all my friends when I find a good service.

There is a whole phone book full of guys in shinny new trucks that don't perform, that is why most people go by word of mouth.

Argue all you want but it is a fact that people judge people based on appearance.

If you don't care enough to show up looking halfway presentable there is no way I am going to trust you with my house. No way. Nor do I want your crap box leaving an oil puddle in my driveway.

That said I wouldn't use a shiny truck as a sole reason for letting you work in my house. I have a shiny truck. :wink: