Small Electrical Contractor Needs Some Advice

[Polarcat]

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) Pounding the pavement. if your looking at doing commercial work, you need to set up face to face time with the local GC's, also a good idea to get in good with some of the Architects in your area (they can give you heads up on projects, and make suggestions to the GC'c for subs), see if you can talk to some of the development companies in your area.

2) Bid! Bid! Bid! You may need to take a project at cost or just above. Prove yourself you only get one shot in many cases.

In commercial work, Pamphlets, ads, phone book are kind of useless. They will not search for a sub that way.

Don’t seem too eager to take a project they will smell blood in the water.

3) I do all my estimates on an excel form I made, I do all my take offs long hand (write on the drawings, that way I never lose the information). I know it sound like it takes a lot of time but once your used to it Its just as fast as the systems available.

Just a note last year I did 2mil in volume booked sales, (I can only imagine at what volume I had to bid to get that), with one estimator (me!)

4) Knowledge, experience, and good working relationships are pivotal in this industry. I always try to leave a situation/problem/argument on a good note! If at all possible. You don’t want to run out of clients (don’t be a hot head).

Watch your overhead costs they are company Killers

I just found a web site that is geared exclusively for Subcontractors/owners (of all trades). subcontractorscorner.com, It’s about all business related items and issues, along with the possibility of future national accounts for discounts, it’s a brand new site, (I was one of the first members), but the concept of it intrigues me. The more that get into this the better for us all as a community of Business owners that are tired of being abused.

 

[AmpedInPortland]

I just found a web site that is geared exclusively for Subcontractors/owners (of all trades). subcontractorscorner.com, It?s about all business related items and issues, along with the possibility of future national accounts for discounts, it?s a brand new site, (I was one of the first members), but the concept of it intrigues me. The more that get into this the better for us all as a community of Business owners that are tired of being abused.

Hmm, I find it unlikely a website where you have to pay to read the forums will be very successful, when you can read forums on an already established website for free. The homepage is a simple advertisement for a book, that there is no direct link to. I, for one, am not jumping out of my chair to join that site.

I just started reading threads at this site, and I'm quite impressed so far. The community is very forthcoming about their methods in a competitive industry. I like it. Seems to be a lot of good, and honest people here.

 

[Polarcat]

I have to agree with you on this site. I love this website. Where else can you go to get the best advice on code issues, and I buy Mike Holt's products, too. The individuals here are very informative and respectful, but this is a rare forum in that respect (that' s why I am still here). However, this being an open forum , there are some things that can not be discussed. I think the closed forum will draw more established business owners, like myself, and people that are serious about looking for help in starting a business, or else why would they pay to join? I seems to be a bunch of business owners discussing issues and how to correct them on a national level. I feel sometimes that it's we subcontractors against GCs and other "big guys" in the industry, so a closed forum, for certain discussions, is a great alternative. Also, the classifieds section is good for me (save a buck, make a buck). And I figure for $10 a month, why not give it a shot. That' s less than I throw in my ashtray in change in a month. It's very new and not much going on there yet, but IMO its a good idea and hopefully it will grow in members. I'll give it a couple of months . If it doesn't pan into something, I didn't lose much.

Joe

 

[AmpedInPortland]

I have to agree with you on this site. I love this website. Where else can you go to get the best advice on code issues, and I buy Mike Holt's products, too. The individuals here are very informative and respectful, but this is a rare forum in that respect (that' s why I am still here). However, this being an open forum , there are some things that can not be discussed. I think the closed forum will draw more established business owners, like myself, and people that are serious about looking for help in starting a business, or else why would they pay to join? I seems to be a bunch of business owners discussing issues and how to correct them on a national level. I feel sometimes that it's we subcontractors against GCs and other "big guys" in the industry, so a closed forum, for certain discussions, is a great alternative. Also, the classifieds section is good for me (save a buck, make a buck). And I figure for $10 a month, why not give it a shot. That' s less than I throw in my ashtray in change in a month. It's very new and not much going on there yet, but IMO its a good idea and hopefully it will grow in members. I'll give it a couple of months . If it doesn't pan into something, I didn't lose much.

Joe

An interesting point. I hadn't thought of it that way. I hope it works out.

 

[Greg Swartz]

E-Myth

E-Myth

Ok, got my copy of E-Myth, and I'm actually reading it!

This book is scary... It describes me to a T. (Where does that saying come from anyway?)

In one of the chapters, it talks about the technician (thats us) that goes into business for himself (thats us again), and then freaks out at all the work necessary to run a business (that's me right now!).

He talks about us a being quite good at what we do, and how the resentment sets in...

He even uses real world examples....

I encourage everyone to get this book. And I'm not even done with it yet!

Thanks to whomever recommended it!

 

[macmikeman]

You should listen to the audio version for a really good scare.

 

[Brady Electric]

Oakley, that is good advice. That's how I run my bussiness. I think it just takes time to learn the ropes and no one call tell another what to charge since all of us live in different area's and our overhead is different. I have learned over the years that I am worth as much as big companies so my prices are as high. I think I am smarter because I have less overhead and sell my bussiness on doing good work and like Oakley comunicate well with my customers. I do like everyone's opinion, and I think you can take a little out of everyone's advice and adapt it to your bussiness no matter how big or small you are. I also have found that I make more as a small bussiness than I did as a six man company. Now its just me and two helpers. Semper Fi. Buddy

 

[RAL61]

Greg, it's sounds like you're off to a good start. I have only one bit of advice which I learned from a plumber who's been a big help to me and my business: Track the origin of each lead (yellow book, newspaper, customer, saw your truck on the road, etc.) on an excel sheet. Keep track of the amount you pay for each form of advertisement and how many calls and cash it generates. Over time you will know where your money is best spent.

 

[Greg Swartz]

Greg, it's sounds like you're off to a good start. I have only one bit of advice which I learned from a plumber who's been a big help to me and my business: Track the origin of each lead (yellow book, newspaper, customer, saw your truck on the road, etc.) on an excel sheet. Keep track of the amount you pay for each form of advertisement and how many calls and cash it generates. Over time you will know where your money is best spent.

That is a very good idea.
I've started a very minor version of that. When people call me out of the blue, I ask them where they got my information.

Thank you

 

[Greg Swartz]

Bni

Bni

Bikeindy and a couple of others out there suggested I check out BNI.
I went to my first meeting on Wednesday. The group of people are pretty rowdy there! (It's good to see people on the same level as me!)

Anyway, I traded business cards with several professionals and got a lot of ideas. Everyone there knew that they were there for the sole purpose of NETWORKING!

It was neat. Even as a visitor, I had to get up in front of the group and give a 30-60 second jingle for my business.

I was frantically taking notes the entire time. (One lady even ended her jingle singing. And she had a beautiful voice. It got the desired effect!)

So, I will be attending again next week and let you all know what's up.

 

[iaov]

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.

I'm lucky. My sister in law who runs her own business gave me two copies of The E-myth.