Starting New Company

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jumpinjohnny

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To all you guys who have gone this route and have been successful, I am looking for some advice.
I am going to attempt to go on my own, and would like to know things like how to keep my personal separate from business should some unfortunate events ever occur.
 
I havent been in business long, couple months, but one of the better things I have done, was to see an accountant before I went into business, they should answer all your questions and get you started on the right foot. If you do this now it willl save you money in the long run.
 
jumpinjohnny,

Rule #1 know your true costs

Rule #2 know your true costs

Rule #3 know your true costs

Rule #4 Price your services accordingly.

Rule #5 A wise man learns from his mistakes, a wiser man learns from others mistakes.

Realize the fact that you will have to learn another trade: Being a businessman.

Good Luck

Joe Villani
 
Knowledge vs Wisdom

Knowledge vs Wisdom

Knowledge is learning from your mistakes

Wisdom is learning from somebody elses

Truly remarkable how low the wise/knowledgeable ratio is
 
I agree with kmc. I posted before, that my best advice is to consult with an accountant. And possiby an attorney. Definitely keep the monies separate. Even for starting out, whatever money you need for startup you can just loan yourself, presuming you are starting small and out of pocket.

There's been a lot of questions like this, so search the forum. There was a recent one on whether or not to incorporate. ( I wouldn't right off the bat.)

And I also agree with Joe's rule # 4 above.

Good luck,

John
 
company

company

Jumpinjohnnie, as said by the wisdom of those in the above posts are right-on, the only other thing to remember being in business is not just doing your electrical work, for that's the easy part, you must....must make sure you bill out your jobs w/in 5 - 7 days after completion, also try to get yourself a line of credit. I had my own business for 25 years, its challenging and rewarding, but if your married and have children don't let the business come between them. (I'm speaking from experience) For what this information is worth. Good Luck:D
 
E myth revisited is a good source on running a business like a business. To seperate your personal liability from business liability you need to make your business a seperate entity. I'm an S corp.

steve
 
+1 on the E-myth series. I wish I would have read it before I started. Good to great is another good business book. Good luck.
 
Definitely form a corporation, if you're going to stay small, an S corp is probably the way to go.
Consult a CPA (not just an 'accountant', a certified one),a lawyer AND an independant insurance agent.
You didn't mention a busines plan. Write one, which will be real work.
Nolo Press (www.nolo.com) has guides on small business, and probably has one specifically for your state.

Good luck.
 
Definitely form a corporation, if you're going to stay small, an S corp is probably the way to go.
Consult a CPA (not just an 'accountant', a certified one),a lawyer AND an independant insurance agent.
You didn't mention a busines plan. Write one, which will be real work.
Nolo Press (www.nolo.com) has guides on small business, and probably has one specifically for your state.

Good luck.
 
There's an article in this months IAEI magazine called "Opening and Electrical Business? Don't give up financial security."

Four points they make are:

*Build and emergency fund
*Review your insurance coverage
*Set up a retirement plan
*Choose the correct ownership structure

You might be able to see it online at IAEI.org
 
Jumpinjohnny,

I'm reading a book entitled "Successful Electrical Contracting" by Paul A. Rosenberg who is a consulting editor for EC&M magazine. It seems to have alot of good advice for anyone starting or expanding an electrical contracting business. Maybe it can help you (and me) out.:roll:
I found it on Amazon.com
 
starting your own business ?

starting your own business ?

KMC hit it on the head see an ACCOUNTANT before you start your own business.

Also try to work with other contractor in your area, like plumbers, construction. If you can get a few companies working together and giving each other jobs and recommending each others services it will help out allot. And your first year of business is very important especially if you live in a small town. Your best advertising is happy costumiers so make sure you and your employees to a really good job and hire people with good attitudes and people skills.

This is one of my first posts and would like feedback
If anyone want to chat with me my MSN is...

Deleted contact info, please contact via PMs.
 
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I once said if I won the lottery I would keep doing electrical work until I used up all my winnings! Going into business for your self in the trades is a crapshoot at best these days. You have customers that won't pay you and suppliers that will cut you off if you don't pay them, you have unlicensed contractors that eat away at the profitable service call industry and licensed contractors who will prostitute themselves for pennies just to put food on their tables and gas in their service trucks.

Write a business plan, know who all of your competition is, including the unlicensed ones, know what the customers want and are willing to pay for. And most of all, know how long you can survive with no money coming in, and paying the maximum out for manpower, materials, taxes,and other overhead. Know your credit limit, know whether your family will support you working 16 hours a day, seven days a week, and know someone you can live with when it all gets taken away from you. Other than that, there is not too much to worry about.
 
A good Dr. that will write you lots of scripts for nerve pills. lol Cause some days I feel like I need the whole bottle.

A good business plan, accountant, and do your homework before hand. Be ready to spend time doing all the paperwork or have someone you can depend on to do it. And if you hire someone to do the office part of it make sure you check behind them and make sure your $$$$'s are going where they are supposed to be going.


ETA....Good Luck
 
ShockedOneinAZsun said:
I once said if I won the lottery I would keep doing electrical work until I used up all my winnings! Going into business for your self in the trades is a crapshoot at best these days. You have customers that won't pay you and suppliers that will cut you off if you don't pay them, you have unlicensed contractors that eat away at the profitable service call industry and licensed contractors who will prostitute themselves for pennies just to put food on their tables and gas in their service trucks.

Write a business plan, know who all of your competition is, including the unlicensed ones, know what the customers want and are willing to pay for. And most of all, know how long you can survive with no money coming in, and paying the maximum out for manpower, materials, taxes,and other overhead. Know your credit limit, know whether your family will support you working 16 hours a day, seven days a week, and know someone you can live with when it all gets taken away from you. Other than that, there is not too much to worry about.
Click to expand...

Wow, that is the best decription I have seen, of what real world electrical contracting is today.

"And most of all, know how long you can survive with no money coming in, and paying the maximum out for manpower, materials, taxes,and other overhead."

That one is usually the killer, if your credit line is maxed, your one step from, business failure, devorce, and nervous breakdown all at once.
 
[/QUOTE]Wow, that is the best decription I have seen, of what real world electrical contracting is today.

That one is usually the killer, if your credit line is maxed, your one step from, business failure, devorce, and nervous breakdown all at once.[/QUOTE]

Thank you. From the second statement, I can see that you have read my credit report, divorce court records, and psychiatric report. LOL.
 
lowryder88h said:
Jumpinjohnnie, as said by the wisdom of those in the above posts are right-on, the only other thing to remember being in business is not just doing your electrical work, for that's the easy part, you must....must make sure you bill out your jobs w/in 5 - 7 days after completion, also try to get yourself a line of credit. I had my own business for 25 years, its challenging and rewarding, but if your married and have children don't let the business come between them. (I'm speaking from experience) For what this information is worth. Good Luck:D
Click to expand...

As stated above doing the work is the easy part! Finding the time to do the quotes, contracts, purchasing, BILLING, advertising, oil changes, warrenty work and vacations is the hard part. To balance it all takes a lot but is well worth it when you figure it out (a few years) Have a meeting once or twice a year with a CPA. They can really help when figuring your true cost to run the business. Plus what your gross marign should be. Don't work for free and DON"T TAKE EVERY JOB ON! The worst thing you can do at the start is bury yourself and get the customers calling you to find out when your going to show up! Trust me on this.
My hats off to You!! Cheers.
 
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