Small Electrical Contractor Needs Some Advice

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Greg Swartz

Greg Swartz

Senior Member
Location
Colorado Springs, Colorado
I've been a contractor for just over a year now, and went solo 3 months ago.

I have 1 part time helper, but was curious from some of you seasoned guys out there...

1) Where do you get your leads?
2) What are some good selling techniques?
3) What type of bidding software do you use, if any?
4) Any other help you think a new / small company should have...

Thanks,
Greg
 
1.) Networking networking and more networking. Join a networking group in your area and this will help grow your business.

2.) Good work sells every time! when you are recommended by someone they are already sold if you did good work.

3.) I don't have any software for estimating, I should look into it.

4.) Buy the book E-myth NOW! Read it twice. Thank me later.
 
1) By taking on small jobs. Also, I won't undercut someone else for a builder's contract. Builders can sense a beginner and will take any advantage they can and will leave you bankrupt and just hop to the next poor soul. Homeowners pay well, income flow is the key.
2) When I arrive for an estimate I put on the most positive attitude I can muster up for the customer. I'll give them advice as to what I think but I'm always polite even if there idea is ridiculous. I'm also never late to arrive and hand them my business card right away.
3) I am small enough to do the pen and paper method ...and a patient walk through on the job with the customer. Today I sold 18 more devices and 12 additional recessed lights than on the print by doing this. It's not the best method in the forums but so far it works for me at this point
4) Get a good accountant. This almost sunk me from day one, trust me.
 
Bikeindy,
Just bought the E-myth books. One the regular one, one for contractors.

Where / how do you network. Word of mouth works great, it has gotten me quite a few jobs, and several are repeat customers, but it's not enough to stay steady.

QES,
Absolutely never even thought of posting on craigslist. I'll give it a shot.

Oakey,
I've heard this about builders.
Homeowners do pay well, but where do you go to find them (duh!), I'm not in the phone book yet...
I do the business card thing, arrive promptly or call ahead, or both, and try to look presentable.
 
Well bro Im new to the game as well, craigslist has been great. Make sure to sell your self in the ad. Also try a site called servicemagic.com, they are based in denver so its right up your alley. They charge you for leads but if your a decent salesman its great. I really cant help alot being new myself, its hit and miss sometimes, just keep your head up high, and remember even if your not,,, to the customer your always very very busy...

Good Luck:D :D
 
Greg, I am a member of BNI Business Networks International, it has worked great for me. here is a link to the site that has meetings in your area

http://www.bnicolorado.com/cgi-bin/...=Colorado+Springs&area_id=&day=&meeting_type=

Go to one of the meetings and you will find out much more, they also have info on other networking groups and methods.
Visit as many of the groups as you like before joining and take plenty of business cards with you.
 
) 1. Where do you get your leads?
Click to expand...

Most of my work came from companies I had worked with in the past..My business grew at a slow steady pace, this helped with several factors MOSTLY the business education.

) 2) What are some good selling techniques?
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When talking with customers, do not discuss your personal issues most folks just do not care, discuss things of interest to them, their kids family ect....

never discuss politics, religion or other argumentative subjects, if the conversation turns that way remain quite.

) 3) What type of bidding software do you use, if any?
Click to expand...

No bidding software...Always used my gut/brain

) 4) Any other help you think a new / small company should have...
Click to expand...


In order of importance:

Pay Uncle Sam ALWAYS

Pay your supplier ALWAYS

Pay your employees ALWAYS

AND IF YOU HAVE DONE EVERYTHING RIGHT

Hopfully there is money left to pay yourself.
 
1) Where do you get your leads?
2) What are some good selling techniques?
3) What type of bidding software do you use, if any?
4) Any other help you think a new / small company should have...

1) For small town area, phone book, newspaper ads, word of mouth, and keeping a good reputation by doing your work right and honestly.
2)I'm very uncomfortable with sales techniques, so I just try to show them that I have honesty and integrity and do my work right and that builds a good reputation.
3) I use vision infosoft.
4) If you want to grow and you are good at the sales and bookeeping end of things, get you a good journeyman and apprentice as soon as you can afford to and you focus on the business end of things. If you just want to keep yourself busy ignore that advise. Read everything you can on the trade, business publications, etc. Studying and researching could be a full time job in itself.
 
brian john said:
never discuss politics, religion or other argumentative subjects, if the conversation turns that way remain quite.
Click to expand...

I often discuss politics, religion, and other argumentative topics with my customers. I'm not meeting them out of the yellow pages, though.

My customers all come via referrals from other customers who enjoy having a former philosopher for an electrician. Because of the way my referral network has spread, I have a disproportionate share of university faculty among my new customers, and they usually know what they're getting before they hire me. I swear, sometimes I think they're more interested in arguing politics over coffee than they are in discussing the work that needs doing.

Fine with me, as long as they're paying for the coffee break. :)
 
any comment on "Thou shalt not covet thy neighbour's house, thou shalt not covet thy neighbour's wife".:)

I try no to do work near or in my neighborhood.
 
QES said:
any comment on "Thou shalt not covet thy neighbour's house, thou shalt not covet thy neighbour's wife".:)

I try no to do work near or in my neighborhood.
Click to expand...

I work at my neighbors house, but only because he mows my lawn all summer...:grin:
 
ceknight said:
..., sometimes I think they're more interested in arguing politics over coffee than they are in discussing the work that needs doing.
Click to expand...

I've worked for a couple of people like that. I really enjoyed it. You are a lucky guy, they are a lot of fun.
 
I often discuss politics, religion, and other argumentative topics with my customers
Click to expand...

When customers move beyond NEW customers the basic rules can change. But with new contacts I tread lightly.


When my neighbors what to know what I do I tell them, when they ask if I can do this or that, I tell them "Oh I am not that kind of electrician." or "Get back ceiling fans run off of electricity, well I'll be." The other question is "Do you do side work" answer "No it is my company I am the side."

Though I do help close friends and those in need.
 
QES said:
any comment on "Thou shalt not covet thy neighbour's house, thou shalt not covet thy neighbour's wife".:)
Click to expand...

correct, dont get your money and your honey from the same place:)
 
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Greg, I'm in the same situation as you buddy. I'm 24, married, have a kid, and scared to death I won't be able to provide for them like I want to. Basically, my leads come from "Hello Mr. (Contractor), I want to be your electrician. Let me show you what I can do." Also, my wife has really worked hard at getting my name out there. She works w/ contractors every day and always tries to talk w/ them about getting me to do their work. Some if it has paid off so far. I'm currently working on a small brochure that I can send to every GC in the phone book, and then plan to do a face-to-face follow-up with them. While I honesly feel that the quality of my work is better than 90% of the EC's around here, the reality is that no contractor is going to give you the job unless either A) you're cheaper, or B) you do much better work for the same price. My formula so far has been to take the first job at a lower price, and once they see the quality of my work, hope they'll use me again at my normal rate. Sometimes it works, sometimes it doesn't. Upselling for me has been extremely difficult except for recessed lights. People want them because they see them in everyone else's house. I have a million plans right now as to where i want this business to go. I'm not sure if i should focus on one segment or try to be a one-stop-shop. Part of me thinks if I can cover a broad range of work, I can more easily keep employees busy. Its going to be a LONG road, and I just hope I can make it. I always do the best work i possibly can, take NO shortcuts, and do whatever it takes to make the customer happy before I leave the job, no matter what. Oh, and I've just started using MS Excel for estimating, which hasn't been easy, but I've got something tuned to exactly what i need.


>> and I also got a flashy logo. i didn't want to APPEAR as someone who just went into business, but someone established with a lot of experience. maybe it'll help; i don't know. but i think it looks nice anyway.

MECINDEXLOGO2.jpg
 
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"and I also got a flashy logo. i didn't want to APPEAR as someone who just went into business, but someone established with a lot of experience. maybe it'll help; i don't know. but i think it looks nice anyway. "

That's an excellent logo. I think it does exactly what you said you wanted it to do for you. I think it will serve you well.
 
the company i do work for has everything from yellow page ads to adopt a highway signs. when stuff gets slow though, they send out little mailers like postcards. you would be surprised at how well they do.

just make sure your pricing is reflecting the additional advertising expenses, otherwise you wont need to advertise, youll be back working for someone else. good luck.
 
I second the E-myth, I would use Flat rate. most areas new construction permits are down. My brother in law is a contractor as a painter. He use to do new construction now he is scrabbling to find work. something I thought about for marketing getting those signs you see for elections made up with your business information on it. post those at entrances for sub divisions. I would accidentally drop off some business cards in the electrical department at HD, Lowes ect. you now some at the fancy light part, and some near the switches. Locate your local chamber of commerce and contact every contractor electrical builder, plumber, store ect. and send them a professional letter of your services. I would do this 3 times a year. If you read some of my past post you can tell I don't have my own business so you can take these sugestions and do with them as you like. These are just a few things I did come up with well researching electrical contracting. Good Luck. Oh get a domain now. go to godaddy and get one use your name such as www.johndoe.com then you get a professional email just ast John@johndoe.com then you can buy another domain with your business name. You can keep that email address forever it's yours. it's only 12 bucks a year for it.
 
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