kenaslan
Senior Member
- Location
- Billings MT
Every business that fails, does so for the same reason - undercapitalization
I learned that in a sales class
But for real, to the OP:
How much money you bring in, how much you spend, how long it takes to get paid, etc. all contribute to capital issues
Wiring houses up to 12,000 square feet isn't something a guy's gonna do in a few days and get paid by the end of the week.
You need some money stashed, good credit, and some solid business advice from a contractor's group or equivalent. And tax advice.
I think a lot of undercapitalization begins at tax time
What if the capitalization is a non issue, the bigger question is, is this a good time to start an EC company? I say this because I am thinking of restarting my EC/GC construction company. After 10 years I have gotten burned out of engineering. I miss being out in the field. Still have most of my tools, just need to dust them off, and have 2 years of operating capital. The economy I think is quite shaky, and frankly, I just don't believe the outlook the government is feeding us. As always they are trying to manipulate the upcoming election (but I digress). I live in a small town of 100,000 people so would need to have a 4 to 5 hour radius. When I lived in the San Fransisco bay area (San Jose), work was within arms distance.
The next question is, how many people would you think it would take so a company owner would not need to work "With The Tools On", and do the office work, estimating, supervising, ect... I was thinking 4 to 6 people. Any thoughts on that?