I've been in the industry since November 1996. Worked for my brother for about 9 years until his business folded. He went from a 4 man non union shop not including himself to a 50+ union shop. I thought he had the world by the *alls.
At this time the market was exploding. Blueprints were arriving daily with instructions to just do the work, we can't find anyone else. This lasted a while and then the market slowed, he scaled back.
During this time he moved into a bigger rental space. The rent was 7k/month. Along the way he had some bad employees, less than efficient superintendants, bad customers.
The business started having cash flow problems. He personally guaranteed loans to the bank to try and keep the business going. When his largest debtor declated Chapter 11 the bank shut down the business, auctioned off the assets and my brother was left owing the bank over 100K.
I knew none of this until the end. I was there watching people dismantle the shelving, buying all of the equipment, etc. Heartbreaking. He had worked so long and so hard to build his business.
Since he had been with the same bank since the beginning the bank worked with him regarding the loan paybacks. The bank could have taken the house, cars, etc. but because my brother was up front the whole time they didn't.
After he closed I went to work for someone else for about 8 months and decided to go out on my own. My wife and I just had our first child. I didn't know anything about running a business, let alone any customers. Sounds like the perfect way to start a business !
It's been over four years now. I've learned a lot along the way. I've worked some LONG hours, made mistakes, etc. but I try and learn from the mistakes.
I hired my first employee about 7 months ago. I'm tired of trying to do everything myself. I'd like to find another employee but the responses I've gotten have been mostly comical. My wife has started working in the office part time to help with the paperwork. The business has gotten to a point that I can't cover everything. I've dropped the ball too much lately because I have too much to do.
I'd like to build the business iand become one of the largest EC's in the area. This will not happen unless I go union. That's just the way the market is around here. Not saying anything negative about unions so no need to lock the tread or delete this post. One day I hope to be big enough to tackle the large electrical projects.
In the beginning I though working T&M was the only safe way to operate. No way I could lose money. Took me a little while to realize flat rate was the better way IMO to operate. No surprises for the customer or myself. Yes, I blew the number on many jobs but I learned. I had customers say, "How much do you charge per hour ?" Unless you are in the construction industry telling someone, "I charge $85/hr.) did not sit well with the customer. I just say, "We charge by the project. This way you know up front how much you will be paying."
I've had customers say, "I will only pay by the hour." I say, "Ok, if you can't find anyone please do not hesitate to call me back."
I've ignored my retirement investments for the past 4 years. The company profits I've left in the company to keep the company running. I do make a profit each year and I could take the money but I invest the money in the company. Soon I will start contributing to my retirement again. I'm 37 and sometimes I feel that I am aging like a dog does. I'm taking on bigger projects. Never got into track homes in subdivisions (thank God) because that market collapsed leaving many EC's looking for work. I'm pursuing more industrial/commercial customers.
Anyway, if you are still reading to this point you really should get a hobby ! j/k. I've learned a lot from reading the posts on this website. I realize people have different ideas as to how a business should operate. Some will succed, some fail.
It's Saturday and I'm on my way to the office to estimate some prints from a perspective new customer. Wish me well.