Is now the time to go into business?

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JohnME

Senior Member
Is now the time to go into business? I have been thinking of going on my own for years now, my desire goes in cycles. Right now, nothing would make me happier then to go out tomorrow and hand out business cards/flyers.

I know the economy is tight, but if someone is ambitious, can one still make a livable wage on their own? My first move is to talk to my CPA, unless I get a lot of doom and gloom from you guys :)
 
mdshunk

mdshunk

Senior Member
Location
Right here.
Some random thoughts:

If you can make it with present market conditions, you're going to be good forever.

Unless people quit using electricity, people will always need electricians.

Your overhead will necessarily be lower at first, so you can legitimately compete on price to establish a presence in the marketplace.

The work will not come to you. If you don't have a call to go on, your job becomes drumming up more work. Getting plenty of work is hard work.

You make your own success. If you fail, that's your fault too. Blame or credit no one but yourself for your failures and successes.
 
S

sgr1

Senior Member
I started in July of this year it has been slow to start. I'm doing stuff I really don't like doing but I'm hanging in there. You need to have some money to back up your start-up or(and) some real good credit. Good Luck Steve
 
S

sgr1

Senior Member
P.S. To that I might add to get a bunch of cards printed up and pass them out every chance you get when your not doing anything you need to be meeting people and giving them out. Go and visit with all of the GC's in your area and then go and see them again and again. Let them know you are not going anywhere. it has seemed to work for me. Steve
 
mdshunk

mdshunk

Senior Member
Location
Right here.
Hot marketing tip... with the housing situation, rentals are going like gangbusters. Market your services to large property management companies, apartment complexes, and high rise apartment building managers.
 
peter d

peter d

Senior Member
Location
New England
mdshunk said:
Hot marketing tip... with the housing situation, rentals are going like gangbusters. Market your services to large property management companies, apartment complexes, and high rise apartment building managers.
Click to expand...

Good advice.

At least around here that work is generally done by the "jack of all trades, master of none" property management companies.
 
mdshunk

mdshunk

Senior Member
Location
Right here.
peter d said:
Good advice.

At least around here that work is generally done by the "jack of all trades, master of none" property management companies.
Click to expand...
True, but I get a good bit of work from these types. Stuff the handy-hack can't or won't do, stuff the handy hack screwed up, stuff that's been on the company's "wish list" for years and they now have the money to do it, etc. The cash is flowing in the residential rental sector.
 
J

JohnME

Senior Member
Great advice guys keep it coming, I have 1000 business cards on the desk, printed them 2 years ago, guess its time to hand them out.
 
Fulthrotl

Fulthrotl

~Autocorrect is My Worst Enema.~
Location
HB, CA (19 Hrs. 22 Min. from Winged Horses)
Occupation
E
JohnME said:
Great advice guys keep it coming, I have 1000 business cards on the desk, printed them 2 years ago, guess its time to hand them out.
Click to expand...

print another 2,500 of those cards, and hand out the ones you have
this next month.... 2,500 is a decent size order, your costs per card
go down a lot versus 1,000 an order.

if you haven't quit your day job.... see what you can do to
generate some work before you pull the plug.....

right now, it seems pretty slow for most people... however,
it isn't like you are gonna have to keep a 10 man shop busy,
right out of the box.

how much work do you need to stay busy? truth be told, i'd
listen to what marc said... his advice makes pretty good sense.

property management people are funny tho.... but that's another
story...

randy
 
mdshunk

mdshunk

Senior Member
Location
Right here.
Every email you send should have your vCard attached.

Design a nice fax cover sheet using your business card as a major component of it.
 
tonyou812

tonyou812

Senior Member
Location
North New Jersey
mdshunk said:
Some random thoughts:

If you can make it with present market conditions, you're going to be good forever.

Unless people quit using electricity, people will always need electricians.

Your overhead will necessarily be lower at first, so you can legitimately compete on price to establish a presence in the marketplace.

The work will not come to you. If you don't have a call to go on, your job becomes drumming up more work. Getting plenty of work is hard work.

You make your own success. If you fail, that's your fault too. Blame or credit no one but yourself for your failures and successes.
Click to expand...
Took the words right out of my mouth. You really have to be proactive in seeking work at first untill you are well established. I am a stickler when it comes to that. Almost everywhere I go Im handing out one of my cards or leaving them on a table or counter. I always try to sell my self. You would be surprised how things work out. One time while doing some sub work for another EC I struck up a conversation with a plumber while we were working in the same room. We talked for a few hours and I guess he liked my attitude and work so he referred me to some other builders. Now those builders give me about 50 percent of my work.

If you think that you are going to start up by taking out an ad in the local papers or on line ads you fooling yourself. Getting work takes a lot of work and I mean a lot of work at first. Looking back at all the money I spent of advertising I wish I could take it all back. Referrals and my 1/4 page ad in the phone book is really starting to pay off now.

And I really believe that to succeed in any buissness venture you "really" got to want it. It has to be a passion of yours and not just a thought.
 
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Greg Swartz

Greg Swartz

Senior Member
Location
Colorado Springs, Colorado
Definately some good information out there:

Business cards: like stated above, 2500 costs about 30% more than 1000... that's a no brainer. you can ususlly find good QUALITY 14pt stock glossy cards for about $100 for 2500... use both sides... my front side has everything needed to get ahold of me, and the company logo. Back side lists general types of work we perform... customize the card how you want it to look, but good use of color goes very far.

V-card: Good point. My e-mail always attaches a vard. Lets anyone using outlook or Gmail know your contact information.

Professional letterhead: I had professional letterhead made up right away. Everyone liked it. It made the company seem bigger that it actually was (this can be a detriment.)

Contractors: They are your friend. Talk to them... talk to them again... and again... and again... Get to know them. Know the ones you WANT to deal with. I have 3 main small GCs that I constantly do business with. Do a good job for them, and keep them happy. My relationships are such that they ask for a bid... ONLY to get a firm price. They are not getting other quotes.

Website: I use the internet a lot... yesterday, we did a google search for colorado springs electrical contractors... I came up as #4 on page 1 (out of 1650 hits)... today, I was on page 2... get google to show your address, get a review, get your logo, hours of availability, etc... up on the internet... it can all be free advertising for you. Personally, I say to get a website going too. It can be simple, just a home page, but get it indexed on the search engines. I also use a professional e-mail: Greg@SwartzElectric.biz It looks more professional than Joe257392@aol.com... We get calls about internet searches all the time.

Retail stores: If you are good at hot tubs, go to the local hot tub places and get to know the sales people. Get a good rapport with them. Same with the local handyman places... they can only do so much... panel changeouts should make you good money, and a fair profit margin. Plus, there will come a time (should anyway) when you do not want to install ceiling fans... you can send that work to them...

Supply houses: Get your accounts opened up with at least one... then open others up 1 at a time... use the others as references for that application. After a while, start to negotiate on your price level... get it lower.

Insurance: You gotta have it... at least start with liability. Employees will require workmans comp. You don't. You may want it though.

Vehicle graphics: Get your logo on your vehicle... it may cost you $1500 to do so, but it will be the most effective and inexpensive advertising you will find. (Remember advertising works 2 ways: Drive smart... drive safe!) I get calls off the truck and van all the time. And, keep the vehicles clean. It creates an impression that you care.

Clothing: Do not come to the door of a HO with ripped jeans and steel toe boots showing the steel toe. Come neatly dressed... even if in jeans... even if you were just working in an attic for 8 hours... appearances....

Advertising: Phone books are expensive... there are more inexpensive methods all over the place... but, that's not to say that phone books are bad. But you gotta advertise somewhere.

Network: Get into leads groups: BNI, Brain, whatever it is, get networked. Having a network of like minded business owners is fantastic. Some are free. You have a network for your business, and you provide more value to your customers because you a have a referral for them for their next project / situation. AND, you get referrals too...

Professional membership affiliations: BBB, The Chambers, Remodeler's Association, whatever they are, go to meetings... even if you don't join, they have free or inexpensive networking events. The Chamber: Business After Hours events are always great.

Word of mouth: This is usually how it all starts... Do a good job for a decent price... do not lose out, do not settle for breaking even either. But don't gouge either. Do a good job for everyone.

Bidding: Sites like Blue Book can be free, you just need to talk to the representative. Bid Clerk, I2Ft, Check out local city / state websites for work too... the lowest bid gets the job...

This is only a partial list...
Well, time to go...
Have a great day,
Greg :cool:
 
electricmanscott

electricmanscott

Senior Member
Location
Boston, MA
JohnME said:
Great advice guys keep it coming, I have 1000 business cards on the desk, printed them 2 years ago, guess its time to hand them out.
Click to expand...

So what kind of business are you starting? :wink:

Dunkin Donuts always seems busy. :grin:

Anytime is a good time to go into business. Regardless of the economic situation the bottom line is, you have to find people that want you to work for them. They are out there, you just have to find them.
 
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