Looking for any advice possible regarding starting your own business....PLEASE help.

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threephase

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Here's my situation.....

I've been employed with a company now for over 15 years doing primarily industrial related electrcial work. Everything from motors, PLCS, AC/DC drives, etc. It's a large plant with 6 in house electricians on staff. The pay and benefits are above average for the area in which I work. Lastly, it's possible a promotion looms ahead in the coming months (within a year). To better my position I went thru the classes and toke the exam for the Masters. I got my results back and I passed. At first I was just going to be a qualifier for my company but I'm thinking long and hard about branching out on my own only as a SIDE JOB. I have no aspirations at least within the next few years of quitting my day job. One last bonus, I work 4 10hr days freeing me up for side work.

My goal is.....

Work out of my truck, get some toolboxs installed, ladder rack, etc. Do some minor marketing efforts and mostly rely on word of mouth. Between getting insured, bonded, license fees, advertising (small), I'll have at least $2,000 out of pocket. I want to do service work (comm/resi.), and hopefully get into the generator market (which i realize is seasonal and could dry up with no hurricanes the next couple years).

My questions are......

Is it worth the hassles/ financial outlay to just be a one man show for just 3-4 jobs per month? (if doing generator work, the profits should be enough to substantiate it).

Have you found as a one man outfit, that you've been successful handling all your own taxes, bookkeeping efforts?

Because the scope of my jobs will be erratic at best, I'm assuming my estimates will primarily be based on expected time on the job?

If anyone can offer ANY advice whatsoever with starting a small company, it's certainly appreciated. This will be my first company and although I have a certain direction in mind, there's so many up front costs that I'm not sure the financial gains/headaches will pay off in the end.

THANKS so much in advance to any posters.

Threephase
 
Are you doing this because you want to test the waters or because you want the money? Or both?

Personally, I would be inclined to find a hobby or hobbies to occupy my free time rather than a side job unless I really needed the money, like to support a hobby.:roll:
 
The only downfall I could see is that you can't take on any projects that would require completion by a certain schedule, unless you know you could complete the work Fri, Sat, and Sunday. Service work could be a possibility, but then again your availability is limited and emergencies, have no schedule.

I could see how you might be able to make a little on the side, but it would be tough to call it a business, because of limited schedule. Based on that I would put as little up front money in as possible, until you test the waters.

When people need someone, they want them there now, not next Friday.
 
Excellent advice guys.

Yeah I'm doing it to text the waters and to make an extra buck.

But as you stated, I'm only available when away from the other job which certainly leaves me out of any 'deadline' related work.

I guess I need to continue thinking of this entire deal before proceeding any further.

THanks again.
 
Threephase, do you only have to work the four ten hour shifts or are you on call the rest of the time?
If you have the time I think this is a great idea. What other business can you get into with only a few thousand dollars investment?

Nothing wrong with testing the water. Since you are going to do everything nice and legal like, I say go for it. If you can't recover your investment then something is wrong.

I don't know if you will make any money but you will gain a world of experience ( the type you can't get in a class room ). No one ever learned to swim on dry land.
 
I agree with everything Growler said. As long as you are doing it legit, what do you have to lose? A couple thousand dollars, which you know some will be justified from the generator work.
 
Might want to make up some business cards on your computer and hand them out to your family, friends, and neighbors and when people call tell them you can do that on an hourly basis @ $85 an hour and see how it goes. You may not need more than hand tools license, and insurance to start that way. I bought more tools and trucks as revenue increased, but basically started that way. Was to cheap on my pricing to start. No one blinks an eye at $85, and sometimes I get $105. on hourly jobs. Small bid jobs we get more.
 
A friend/coworker is doing exactly this, and has done fairly well. Until October, he made the same amount of $ from his personal business as his regular 40 hr/week job. (he has recently slowed up a bit) However, he has 2 friends who are GC's (additions, small houses) so he doesn't have problems getting work. He also was working an additional 25+ hrs a week when he was busy. Yes, he is legal, insured, bonded.
 
If you don't do it you'll never know.I did the exact same thing,work a job while starting my own contracting business.While only advertising by putting up cards in the post office and some stores and word of mouth.Within 6 to 8 months I told my wife not to put any more cards up,as I had got so busy I did not want any extra business.I get all my business by word of mouth and have done very well.If you do good work and your honest the work will come.
 
I'd say go for it, stick your foot out there... But beware, working for someone elese has benifits - not chasing payment, zero liability, etc. Either way it will be a learning experiance...
 
Not sure of others opinions but to me, small service work is the most profitable way to go.Quick in and out sheer profit due to minimal material costs.You get paid then and there.If you want to test the waters I would start that route.Going through GC`s has always been a pain billing waiting for the $$$

Gen set retros is a great way to go too.The homeowners can afford it in the first place.You can finish in the time you have stated you have.You reap the profits from the sale of the genset and the retro work too.Good luck :)
 
It is funny (sort of) how each of us make their money. Small service, couple of GC's, residential only, industrial only ect...And we all think that is the best way to make money. The absolute best way IMO is doing what you enjoy and know best.

A large percentage of my work is for electrical contractors (large and small) and engineering firms. One thing I have learned is; in rough numbers, 80% of my work is for 20% of my customers, other contractors tell me that is pretty much the same in their end of the business. Point is treat all your customers nice, you'll never know what percentage they may fall in, good customers are hard to keep and dump the bad ones (those that don't pay or are such a pain in the ass as to not be worth the effort). Some of my pain in the tushie?s pay well enough and fast enough to hold on too, but I have been tempted.
 
I originally planned to start out doing side jobs (legally), but three weeks after I got my EC license, I got laid off from my day job. So I was more or less forced into being a full-time EC. I managed to do OK, but I got tired of it after a while, so I changed focus and became a full-time electrical engineer at a consulting firm. I still have my EC business as a side gig. I've stopped all my advertising and only take on new customers from word-of-mouth or from Angie's List.

Whether it's worthwhile for you depends on things like how expensive your license, insurance, and bonding are. Those three things cost me roughly $700 per year. Beyond that, most expenses are optional. Buy tools only as you need them, and don't spend time on activities that aren't profitable (e.g., no free estimates). Since everything you do as an EC will essentially be overtime, you should demand to be compensated accordingly.
 
Threephase, I have the same backround that you have. I started up the same way too. In my case, it worked out great. Started doing services and weekend remodels, and it quickly got out of hand and now I've got an employee.

My recommendation would be to start preparing now for things like license and bond fees, insurance fees, etc. Read and re-read the rules for licensing and bonding in your area (license expiration dates, bonding amounts, insurance requirements, etc.)

Find an accountant who knows the contracting business. Find an insurer who has contractors as customers. Get all your ducks in a row.

THEN DO IT! If you do quality work, the word gets around.

When I first started, I told potential customers that I would not be able to get to them until xx weekend. The biggest hassle I had was having to arrange to be there for inspections, and having to get to the building depts to pull permits. But if you have fridays off, permits shouldn't be a problem. And you may be able to get someone to stand in for you for inspections (in other words, provide access to the property for the inspectors. Make sure you don't personally have to be there)

I'm still learning every day, and I can honestly say that I'm not sorry I left the company I worked for.

Actually, I'm sorry I waited so long to jump......I wish I had made the decision 15 years ago.

Best of luck to you!


John
 
flick said:
My recommendation would be to start preparing now for things like license and bond fees, insurance fees, etc. Read and re-read the rules for licensing and bonding in your area (license expiration dates, bonding amounts, insurance requirements, etc.)

Find an accountant who knows the contracting business. Find an insurer who has contractors as customers. Get all your ducks in a row.
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Excellent advice.
flick said:
When I first started, I told potential customers that I would not be able to get to them until xx weekend. The biggest hassle I had was having to arrange to be there for inspections, and having to get to the building depts to pull permits. But if you have fridays off, permits shouldn't be a problem. And you may be able to get someone to stand in for you for inspections (in other words, provide access to the property for the inspectors. Make sure you don't personally have to be there)
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Now that I'm a part-time EC, I no am no longer willing to work in jurisdictions where there's any hassle with regard to pulling permits or arranging inspections. If I have to go to the building department to personally pull the permit, or if I have to meet with the inspector, I pass on the job. I just don't have time for it.
 
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