Startup Hardships, Failures, Successes

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jfls41

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I am going through "labor pains" if you will regarding getting my business going. I have everything in place, insurance, truck lettering, yellow pages ad coming out next month, studying codes, bookkeeping system in place, advertised in local papers with unsatisfactory response. Matter of fact when different newspapers call me I tell them straight out I am going to spend my advertising dollars elsewhere. And from what I am reading in other posts, the yellow pages ads aren't all that great either. I am new to my area so I have to rely on some type of advertising to get my name out there.

Can any of you elaborate on the hardships, successes, failures, struggles with spouse, etc. etc. when you were starting up your business?

Jeff
 
Re: Startup Hardships, Failures, Successes

What are you looking to get into? If it is commercial work there are a few ways to go about finding work to bid. We just recently started using a news service found here : CNS and have had good luck finding work to bid. There are a few drawbacks to this type of service-
1. There is alot of competion on these, being low bid probally means you missed something.
2. Alot of these require bid bonds which for some are free to get, other bonding companies charge for this service
3. Alot also require a performance bond which will cost you anywhere from 7-15 per thousand.

I hope some of this helps, I find that this board relates to residential on the most part and alot of the advise that is given leans towards that. I am a 95% commercial contractor so this advise may not pertain to alot here.
 
Re: Startup Hardships, Failures, Successes

Jeff. I am feeling your pain. I also went completely on my own. Tried cable TV ad, newspaper, called what seems 100 GC's to get on their bidding lists. Last week spent 2 days on a bid was low bidder with 5 GC'c the 6th got the bid. What I've learned though for every failure something good happens. Whether a better job comes or I learned something new. I always try to keep a positive attitude. No one is going to hire some one that looks beaten down. I'll just keep plugging away. Besides that fishing season is right around the corner here. Maybe God whats me to do more fishing this year, even though it hard to collect from a fish.
 
Re: Startup Hardships, Failures, Successes

The best advertisment is thru word of mouth.
Quality work at a fair price.
 
Re: Startup Hardships, Failures, Successes

Try to get setup with local air conditioning/heating contractors if possible. You will be amazed how much work they can send your way if you get the right ones. You are helping them get their contracts completed, and so therefor a quick and compentent response on your part is essential to maintain this good relationship .
 
Re: Startup Hardships, Failures, Successes

You can only invest as far as your capital will let you. Cash flow is everything. Your business must be viable to succeed. These clich?s are true in business.

Before you move to a new area you have to study the demographics and understand if it has room for your business, if you do not you accept the risk, which is most common. Start small and stay small until the demands of your service become overwhelming then only expand in slight small portions. Recap all your work to know your best markets and stay in your best market only. After some time your true safe niches will reveal themselves. Hang in there; it?s a wild ride.
:)
 
Re: Startup Hardships, Failures, Successes

Originally posted by jfls41:
struggles with spouse, etc. etc. when you were starting up your business?
Jeff
Click to expand...
In mine it never really was just mine in that my wife was always apart of the decision to self employ. As we grew she actually became our Controller and I steered our company through estimating and project management. My wife was also more suited for human resource type issues so again as we grew she handled this area.

I grew up in a family electrical contracting environment so I applied what I learned observing my dad and mom?s successes as well as their frustrations. Your wife may not want to have anything to do with the business but she will have a say in your income and investments so be very careful and forgiving here. If she is involved let her take on the portions she is best at and remember to apply her ideas along with yours. This will give her validation and truly so, because if she is involved it?s her business too, in other words she is self-employed as well.
 
Re: Startup Hardships, Failures, Successes

Jeff,

There are no easy ways to have a successful business. Success is measured differently by different people. I went through $20,000 of my money before I quit putting it out (that was in 1996). That was what I used to buy material, gas, insurance, food, etc. before the money actually started coming in at a rate faster than I was spending it.

You especially have a difficult task in that you are new to the area. If you are looking to be a "one man show", then I would suggest you leave the house at 8:00 AM and visit the realty companies. Tell them you can help them in any way possible (even non electrical). Then at night, drive around and see who has lights/signs out. Another source of work. You might have a coupon printed for a 10% or 15% off special. Have you tried the Home Depot, Lowe's, Sears route? Not big money, but possible leads to better work and a paycheck while you wait.

You will not do very well just putting an ad in the paper and waiting for the phone to ring. You must go out and sell yourself. If you have never been involved in sales, you might want to pick up a book at the library on basic sales techniques. This is not an easy task that you are undertaking. Most people have a network established prior to starting a business. If you don't have the capital to weather the start up storm, I suggest you work for someone else while you figure out how to get it.

Good luck,
HWS
 
Re: Startup Hardships, Failures, Successes

Best advise:

Had work and customer service. The balance of showing the customer you care and getting paid for it will be your hardest task to overcome and achieve.

In a nut shell, as an owner you will spend more 16 hr days getting 8hrs of pay than you hope for.
But your customers will always remember that you were there when they need you. Get enough of these and it will result in 8hrs work for 8hrs of income. By this time, you will have 2 trucks and a crew doing it for you.
 
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