Starting a new business

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tony-a

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Over the last ten years I have run a consumer electronic service business. Last year I started reading everything I could on residential electrical. I'm now studing for my contractors license and I'm wonder if someone would give me some tips on starting a new business? Thank you for your time.

Tony
 
Re: Starting a new business

I would start by doing some reserch on competition within the community. Find out the average rates, wait times, number of employees, etc. I would then put together a small brochure or flyer describing yourself and the company and distribute to local businesses you are interested in getting work with. If you plan on doing new construction, put together a general "house package" showing the type of materials and fixtures you use and the expertise you plan on providing. Do some heavy advertising for the first few months to get your name out, and try a promotional deal that makes you stand out like a senior discount or $10 off first servcie call gimick. Good luck! :)
 
Re: Starting a new business

Hire someone with experience. No offense, but your experience in residential electric is very limited. There is more to residential wiring than people like to believe.
I have 3 licensed electricians on payroll. Sometimes people don't want the responsibility of owning a company, and they are happy to work for a good rate.
Try to stick with the same salesman at your supply house. If he is good, it will benefit you immensely.
Buy in advance whenever possible. Most supply houses will have price breaks for ordering case lots of devices, plates, etc. Learn where the cut-off is for items and take advantage of any monthly specials that are given on items that you use frequently.
 
Re: Starting a new business

No offense taken Luke! I've run a sucessful business for the last ten years but not as an electrician. Thank you for taking the time to help me.
 
Re: Starting a new business

I had a California C-10 license when I was 26 years old.

I never was a contractor, but was the RME for a few.

The most successful contractor was an accountant, and knew nothing about wiring a switch.

Electrical contractors have a high failure rate.
Only second to restaurants. Many electrical contractors take the money from a first draw and buy a restaurant.

Good luck: Bennie
 
Re: Starting a new business

Bennie thanks for the info. I earned my degree in accounting/finance in 1992 from San Jose State University. Does that mean I stand a better chance?

Tony
 
Re: Starting a new business

You can hire and trust good electricians. It is very hard to hire and trust someone to count your money.

I worked for one contractor, who was bankrupt for five years before he realized it. You have the advantage of detecting it quicker :D

Just joking, I hope: Bennie
 
Re: Starting a new business

I think the best way to go about starting a company in your situation or any, is to work for someone else through your apprenticeship. Im not sure how many hours you need in your state for a residential journeyman card, but in my state its only 2 years.
That way you can kinda get a grip on how things are done in the field.
 
Re: Starting a new business

when you talk "residential wiring" your talking the lowest branch of the electrical industry - this also means it is the most competitive branch! you are competing with others entering the contracting field which is good and bad!! some time their prices are good and sometimes they aren't. it's an area that might take advertising to be sucessful depending on the area? if you have the ability to work for someone else in this area-- it's the best way to go - that way you learn while being payed by others!!!!
 
Re: Starting a new business

Charlie

"when you talk "residential wiring" your talking the lowest branch of the electrical industry"

I know what you mean. I did have to take that EverReady off my shoulder first.

Residential IS the most important but the least paid.

The problem here (in Ohio) is that I could, holding a state license, hire 1000 (people,helpers,masters) employees and wire everything I could get my hands on.

That is why I made that outrageous statement in a previous topic.

I am working on a report for a client regarding a home inspection. I will start a new topic for this.

As I have stated earier "I am not that smart". I am tired of so called professionals HARMING the general public.

Sorry that, I have been celebrating my birthday (maybe a few to may "pops"), I have digressed.

Mike P.
 
Re: Starting a new business

I'm still running my consumer electronic service business and honestly I've never worked for someone. I have a family to support so my intentions are to run both business' until I build the new business. Most of the residential companies are running two page phone book ads which average $5000 per month. Can you tell me how to find a good parts distributor in San Jose, California? Thank you for your time!

God Bless,
Tony
 
Re: Starting a new business

when you talk "residential wiring" your talking the lowest branch of the electrical industry
Click to expand...
Im not sure I agree with this statement. I agree its different, but not "lower" than commercial or industrial. But with all the systems available in homes today, Im not sure you can say its the lowest branch. I do both, and Ive done some large custom homes that rival any of complexities of my commercial, or industrial experiences. Sorry, this probably wasnt the right place to post that, but I wanted to respond.
 
Re: Starting a new business

definitive, I agree. Read my 3rd sentence in above post. But it's hard to tell what the intention of the statement was.

tony-a, that's alot of scratch for a phone book ad. We don't advertise in the phone book anymore. We did it once, but it was not worth it for us. The amount of calls that we received didn't pay for the ad. We are so busy that we really don't need the ad anyway.
I would suggest that if you do a yellow page ad, get another phone number that is only published in that ad. It makes it easier to track the calls and you can easily see if the ad is paying off.
 
Re: Starting a new business

Tony, there is a local circular paper that we will advertise in once or twice a year for service upgrades, etc... We will go after contractor business directly via fax, mail, or phone. All other business is from word of mouth. We really don't cater to homeowner type of service work. We will do it but it's not our main goal. There are other companies that specialize in that type of work. We also get referralls from builders to other builders.
Also lettering on vans and sometimes we will put signs on jobsites.
 
Re: Starting a new business

Thanks Luke! That's the information I'm looking for. I can never understand why some people give such off the wall information to simple questions.

Have a great day!
Tony
 
Re: Starting a new business

Tony try online advertising you wont pay to much and the results are not bad, most online advertising companies have different plans to suit your needs, of course most are yearly contracts. Also there are requirments you must meet in order to obtain your Journeymans or Master electricians card, Example: in Dallas Texas you must posses your Journeymans card for two years before you can obtain your Masters card, and to obtain your Journeymans card you must have 4 years of electrical experience, all this has to be verified by the City of Dallas, thru employer contacts and notary public.
 
Re: Starting a new business

Thanks Jro! I've run a successful service business for the last ten years and I never took the Certified Electronics Technician test. I grew up in this type of business. Some people might like putting CET after their name but most people are interested in the quality of your work and price. In California the state accepts a four year degree as two years experience and I've been doing electrical work for people over the last five years. This is enough experience to get my contractors license. I'm not required to have any other certifications to do electrical work as a business. Right?????

Tony
 
Re: Starting a new business

Your best bet is to go online or visit your local agency about contractors licensing requirments in your state, Texas doesn't have a state wide electrical license, it goes city by city with every city having different requirments, although you can recipricate city to city.But hey, I have a Master License and contractors license.I don't have to live in California, in order to obtain an electrical contractors license there. give me a shout, I'm willing to at least look into a branch office.
 
Well, if you've already run a business for 10 years, I'm sure you'll do well with all the planning stages, etc.

As for starting a business in something you haven't really worked in before, that's where networking comes in. I don't know if you really want to hire "employees" right away, but meeting with others who do something similar can never hurt.

Some good advice is to know who your "enemy" is. People have to want you ;)

Good luck!
 
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