Starting my own business!

[megawatt87]

Hey guys,

I'm a master electrician planning to start my own business. I'm trying to figure out a name for the business, looking to stay away from using my own name. Any ideas? I plan to work alone or hire a helper when needed. I already have a fulltime job with the local utility and just want to start off doing small jobs on the weekend or evening. I plan to get insurance and the business license to become fully legal. What do contractors charge per hour for an electrician in Richmond, VA? I've heard $60 per hour? How about the intial service charge? $120? Just looking for some idea as to how much. I plan to do a sole proprietorship instead of LLC. For insurance I plan to have a million dollars worth and add a million dollar blanket. Is that a good enough? Also, does anyone know of a package that contains all the business documents one needs for electrical contracting. I looked in Office Max and Staples, no luck.

Thanks

 

[Pierre C Belarge]

Ahhh, if it was only that easy.

You may want to speak with your licensing board, they will have a lot of answers to the questions you posted.

See if there is a contractor association where you are located. In my experience, they are very good for your business, especially a new business.
There is nothing as good for a new business as networking.

 

[satcom]

Ahhh, if it was only that easy.

You may want to speak with your licensing board, they will have a lot of answers to the questions you posted.

See if there is a contractor association where you are located. In my experience, they are very good for your business, especially a new business.
There is nothing as good for a new business as networking.

Running it part time, will most like cost you money, not make you any. In my area we have new guys try the part time gig every year, and in a short time the give it up. when they discover all the costs to run an electrical contracting business, even the guys that take the full time route, give up unless they have plenty of money to keep them going until they get established.

 

[electricmanscott]

Most guys start out flying by the seat of their pants. I did and it worked out fine, others crash and burn. I would bet that most start as I did and you plan to. Small jobs nights and weekends making little money but learning the ins and outs of the game. Believe me, it is a game.

Some of the guys here will try to scare the hell out of you with all kinds of mumbo jumbo. lawyers, bankers, business plans, acountants, and so on. Some of it is real, some is overdramatizing and some should just be ignored.

Standing by for the two page list of expenses that always gets posted in these topics......

 

[iwire]

Some of the guys here will try to scare the hell out of you with all kinds of mumbo jumbo. lawyers, bankers, business plans, acountants, and so on. Some of it is real, some is overdramatizing and some should just be ignored.

If satcom ever made a positive, 'the sky is not falling' post I would fall off my chair.:grin:

 

[Kdog76]

Standing by for the two page list of expenses that always gets posted in these topics......

Only 2 pages worth? :grin:

Anyway I've got 2 1/2 years of running my own show, this on top of almost 10 years electrical experience. (I know, I'm still green :grin.

I'll I can say is you may think it will be a part-time job starting out, but good luck keeping it that way, esp. when you add in what will be your ever increasing office time / run around time / calling people back & checking on leads time / ... you get the point. Remember even with a job well done there can still be call-backs... OR repeat work...

I tried the part-time thing and was hoping for more. Careful what you hope for. 1 year later I got one more guy working for me. This coming year I figure I will be the busiest ever. Keeping it part time will be a challenge because the more you get known the more people depend on you to be there, during normal working hours. If they can wait, great, but many (if not most) will not. They want service ASAP.

Keep overhead low, don't worry about your business name. Don't be afraid to go with your name, I did. Just keep it simple. You WILL (and should) have a LOT more to worry about then just picking a name. (e.g. how about picking a market? ) Written business plan is good, but any plan is better then nothing, and try to keep in mind what your going to be getting into. Good luck!

 

[480sparky]

..........Standing by for the two page list of expenses that always gets posted in these topics......

Only 2 pages worth? .........:grin:

Gee. Who would do such a thing?











Business Cost List
Building
Building
Warehouse Space
Trash Removal
Lawn Care
Snow removal
Upkeep & Repairs
Office Expenses
Computers
Stationary
Copy machine
Fax machine
Forms
Printing
Software
Office Equipment
Computer maintenance
Files
Postage
Office Supplies
IT
Internet service
Email accounts
Web site
-Initial creation
-Updating
-Maintenance
GPS services
Benefits
Vacation Pay
Holiday Pay
Uniforms
Uniform Maintenance
Unemployment
Bonuses
Incentives
Retirement Plan
Christmas Party
Taxes
Property Taxes
Tangible Taxes
Pay Roll Taxes
Income Taxes
Sales Tax
Training
Management Training
Office Training
In-House Training
Tech Training
Mfg. Training
Training Equipment
Safety Training
Update classes
License testing
Insurance
Building Insurance
Liability Insurance
Employee Insurance
Life Insurance
Business Insurance
Workers Comp.
Utilities
Gas
Electricity
Telephone / Fax lines
Internet Service
Toll Calls
Telephones
Pagers/Cell Phones
Radio Maintenance
Vehicles
Vehicle Maintenance
Ladder Racks
Interior bins
Fuel
Truck Signs / lettering / vinyl
Tires
Financial
Accounting
Loans
Tax Preparation
Interest
30+ Day Receivables
Bank Charges
Travel
Hotel
Meals
Airline / vehicle
Unique to the electrical trade
Permits
Licenses
Bonds
Inspections
Trade Association
Subscriptions
Memberships
Dues
Retainers
Safety PPE
-Lock-out/Tag-out kits
-Fall prevention harness
-Arc-flash clothing
-Hard hats
-Safety glasses
-Hearing protection
Tools
Company Tools
Safety Equipment
Ladders
2-way Radios
Test Equipment
Replacement Parts
Parts Storage
Damages
Tool Replacement
Job site storage
Misc.
Trips to Supply House
Theft
Uncollected Money
Collection fees
Unbillable Hours
Commissions
Call Backs / Warranty work
Shortages
Bad Checks
Delivery
Credit Card Sales
Drug Testing
Legal
Legal advice
Law Suits
Incorporation / LLC fees
Advertising
Marketing
Business cards
Signs
Radio / TV
Newspaper
Flyers / brochures
Material Purchases
Inventory
Labor
Wages
Salaries
Dispatcher
Answering Service

 

[wawireguy]

You should start with your state licenses. Business, electrical. Required bonds, insurance. Meet all the state requirements. Should be a website or a licensing agency there that can point you in the right direction.

 

[bradleyelectric]

Most guys start out flying by the seat of their pants. I did and it worked out fine, others crash and burn. I would bet that most start as I did and you plan to. Small jobs nights and weekends making little money but learning the ins and outs of the game. Believe me, it is a game.

Some of the guys here will try to scare the hell out of you with all kinds of mumbo jumbo. lawyers, bankers, business plans, acountants, and so on. Some of it is real, some is overdramatizing and some should just be ignored.

Standing by for the two page list of expenses that always gets posted in these topics......

It might be a good idea to start your business as if it's a business. That would mean taking care of the mumbo jumbo that just so happens to be the business end of being in business. You don't have to be scared. Just get good information from reliable sources and implement it.

Flying by the seat of your pants is what most do and that is why most electrical contracting businesses don't make it and most that do are actually costing themselves more money than they are making.

Not that I'm a business tycoon and scott may have a lot better electrical contracting business than I will ever have. Maybe not.

 

[Kdog76]

All I know is, I am going to learn to print & keep posted & keep handy a full print out of post #7. That will give me a little ammo when I hear them complain about my charge out rate.

 

[dduffee260]

You may be starting out in a good way. Keep your regular job for a while. That way you have steady income. Remember we are either in the middle or beginning of a major recession. Just keep in mind it is easy to get someone's business but hard to keep it. And never give up, no matter how bad it gets don't give up. Make sure you have a good solid business plan and run your business like a business instead of a charity. I wish you the best of luck.

 

[hardworkingstiff]

I would also like to wish you the best of luck.

I hope you know why your doing this. For me, I do it for money. Remember, it's OK to make money.

You may be suprised as to how much money you need to make while working with your tools to cover the time while working with your brain (estimating, paperwork, etc.).

 

[satcom]

If satcom ever made a positive, 'the sky is not falling' post I would fall off my chair.:grin:

I am positive, but I also understand what it takes to make keep a business alive, this post he is looking to work it part time, and that may get a bit expensive for him, he claims to have a utility job, and wants to add to his income.
The positive thinking is good, but getting a business to a level where it earns eniough to make a decent living, is a long and hard route, so the guys that offer caution are only tryong to help.

 

[jclint07]

As Electricmanscott stated, "flying by the seat of your pants", is exactly what I did. Know matter how many license or exams you can pass, school of hard knocks is the only degree that matters. I consider myself myself a competent electrician, but a mediocre electrical CONTRACTOR. So much about the business side of the trade I completely had to learn the hard way. Good Luck!

 

[CopperTone]

make sure you have a computer, buy Quick Books and learn how to use it or take a class on how to use it. - it will make your life so much easier.
Buy a fax machine too or combo laser printer.
As long as you are charging enough to pay yourself and all of your business expenses then you will be fine for now. very little overhead.

You will need a van - have it lettered with your company name and number.
advertise in your local phone book - not the yellow ones - the local one that comes out once a year and they deliver it free to everyones house in town - you will get work from that.

you will build a customer base if you are honest, do good work, and are reasonable in your pricing. reputations are build pretty fast - good and bad ones.
Show up when you say you will be there - nothing angers customers more than no shows or being very late without calling. Return your phone calls promply. Finally, make sure you collect the money for the jobs you do.

You can raise your prices as you go along - you will know if you are making enough. - eventually you will add in company profit and fully fund retirement funds - buy more tools as you make more money - add as you can afford to. Hire a helper when your work load is consistant and you are working too much

That should get you started off pretty well.

 

[bradleyelectric]

You can raise your prices as you go along - you will know if you are making enough. - eventually you will add in company profit and fully fund retirement funds - buy more tools as you make more money - add as you can afford to. Hire a helper when your work load is consistant and you are working too much

That should get you started off pretty well.

Why would you not price to make a profit and add in enough money to buy tools from the start?

 

[480sparky]

Why would you not price to make a profit and add in enough money to buy tools from the start?

I'll second that.

If the 'going rate' in your area, say is $75 an hour, then charge $75 an hour.

If you start out with low overhead and work for $30 and hour, you'll end up being nothing more then WalMart Electric. As soon as you realize you need to charge more, what customers you do have will disappear like roaches when the light is turned on.

 

[emahler]

As Electricmanscott stated, "flying by the seat of your pants", is exactly what I did. Know matter how many license or exams you can pass, school of hard knocks is the only degree that matters. I consider myself myself a competent electrician, but a mediocre electrical CONTRACTOR. So much about the business side of the trade I completely had to learn the hard way. Good Luck!

yeah, there is no way in the world to learn from other peoples mistakes...

 

[bradleyelectric]

I'd suggest not worrying about going rate. That rate would all depend on who you talk to and may not have any basis on costs and profit.

http://www.masterplumbers.com/utilities/costcalc/

Would be a better way of figuring out what to charge. Do it with the knowledge that if your not going to price based on what it costs you to do it and what it is you want out of your business, why do it?

Remember, everytime you decide someone deserves a price break, you just took that money from what it is you are working for and handed it to them. You are worth what it actually costs to accomplish what it is you are working towards, and good customers will happily pay what it costs. If someone doesn't want to pay what it costs, let your competition waist their time with unprofitable customers.

 

[iwire]

I am positive,

Can you point to a post where this positive side of you can be seen.