When do you know enough?

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JoeNorm

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I'd eventually like to run my own one-man show. Mostly residential I think.

My question to others is this: when you started out on your own did you feel confident you'd be able handle any situation thrown at you?

Or is there always going to be inherent doubt in one own abilities, and you just sort of figure everything out after you jump all in?

Curious how you all got past this little hump of putting yourself all out there and going into business?

thanks
 
Most new small businesses don't fail because people don't know their craft. They fail because:

1. Under-capitalization. Folks WAY underestimate the cost of running a business. They commit too little money, or take on not enough debt (yes, not enough) and don't have the reserves to ride out a string of slow months or the largish customer who defaults.

2. Lack of business savvy. This is all the back-office stuff you need to stay afloat; accounts payable, accounts receivable, payroll, contracts, inventory control, estimating...you get the idea.

A couple of guys here will chime in about a service offered to help you develop a business plan and swear by the results. Taking a bunch of small business courses at your local community college can be a big help as well.
 
gadfly56 said:
Most new small businesses don't fail because people don't know their craft. They fail because:...
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Man, that advice was spot on.

I've been on my own for way longer than I was a union wireman. And I see run across stuff I haven't seen before and have to figure it out. I was even way under the curve because residential was just NORMALLY done so much different than the methods I was taught and used throughout my time in the commercial union world.

I suggest ALREADY knowing what your client base is going to come from.
 
I was a union commercial and industrial electrician for 10 years when I started my business. I expected to be doing a lot of residential work but had no experience doing residential. Residential is very different than commercial or industrial. There are no ceiling tiles that pop open. All the walls and some of the ceilings are sealed. You have to fish wires. You can't make a mistake and mess up walls or paint jobs.

The first year was very tough. I was nervous going to every job, not knowing what to expect or if I would be able to figure out how to do the job. I drove over and looked at every job before I accepted it. Sometimes I would decline a job because it looked too hard and I was afraid I would fail.

Luckily, I had as a mentor. He was much younger than me and had recently joined the union as an apprentice, but had years of non-union residential service truck experience. Every time I was stuck or confused, I would call for advice. He would walk me through how to do the job. Eventually I was experienced enough that I didn't need his help anymore. Eventually I didn't need to look at most jobs anymore, I just knew what questions to ask over the phone. Things are going very well now. I could probably be a millionaire if I could find some decent service truck employees.
 
To me, anything can be learned. As a one-man show, the hardest part is doing work alone that really needs a helper. It's not easy being at both ends of a difficult fish or pull; it brings out the McGuyver in you.
 
JoeNorm said:
I'd eventually like to run my own one-man show. Mostly residential I think.

My question to others is this: when you started out on your own did you feel confident you'd be able handle any situation thrown at you?

Or is there always going to be inherent doubt in one own abilities, and you just sort of figure everything out after you jump all in?

Curious how you all got past this little hump of putting yourself all out there and going into business?

thanks
Click to expand...

Never.
It is a moving target.
 
Thanks.

I think I am seeing now there is no perfect time to start out, it will always feel a little risky, and it will be inevitable that you just have to keep learning, playing "Mcguyver" at times, and just figuring out what comes your way.

And obviously the admin side of things (bills, bookkeeping, etc) are probably even more important than the above.

Still curious to hear others experience

Thanks
 
I can't tell you how many times I took two hours to fix something, and then when he asked how much, I'd say: "Well, that should have only taken an hour, so you owe XXX."
 
In another life I owned a business specializing in automotive electrical repair. I loved the work but hated being a businessman. Trying to wear both hats was nearly impossible for me.

Being in business is not for everyone and as others have mentioned it isn't about how much you know about your trade. Sometimes you just have to try it to see if it's for you or not. At least if you fail in your business and go back 'to the tools' you will have learned a valuable lesson and will appreciate being a tradesman a little bit more.
 
By the way being a one man band starting out new you do know you will be putting in ~168hrs/wk?
Payments 30, 60, 90, never.
Get some fibre fish sticks that screw together, noise making 120v device (radio), at each job do all the work you can before running out to get that last switch, drive time is a killer, you will be back any how. Make a list of materials you will not remember.
Did I say do all the work you can at each location before leaving, put that 12th hour in if that finishes the job. If not drive home 1/2hr. Drive back next day 1/2 hr.
Production is moving your hands not your feet.
Good luck!
 
There's an old saying, "Don't get above your raising".

Do what you do and stick with it. If you want to be a one man shop don't be tempted by that big $100,000 commercial project that someone offers you. As a one man shop I would take the smallest jobs that were offered, adding a dryer receptacle will get you a new client, and ten of those will get you ten clients and one large job will get you one new client, maybe.

Know your limits and maybe find a couple of guys that you can call to help from time to time, when you do take that little bit bigger job. I could do an office TI by myself with no problem, but if I had to pull in a new service I would need help, so I had a call list of guys that worked for other companies that could always use a couple of extra bucks on the side.
 
cowboyjwc said:
There's an old saying, "Don't get above your raising".

Do what you do and stick with it. If you want to be a one man shop don't be tempted by that big $100,000 commercial project that someone offers you. As a one man shop I would take the smallest jobs that were offered, adding a dryer receptacle will get you a new client, and ten of those will get you ten clients and one large job will get you one new client, maybe.

Know your limits and maybe find a couple of guys that you can call to help from time to time, when you do take that little bit bigger job. I could do an office TI by myself with no problem, but if I had to pull in a new service I would need help, so I had a call list of guys that worked for other companies that could always use a couple of extra bucks on the side.
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Exactly my thoughts! I was hoping someone would bring that up. I know a guy that will take on any job because he sees $$$$. :dunce: Fortunately with the big jobs the people looking at the bids see that he is not a responsible bidder.

-Hal
 
As far as the business side is concerned, the very best thing that could happen to you is to have a talented "Mom" for your Mom & Pop business. Having a significant other you can trust to handle all the paperwork related stuff is a tremendous help. If things get tough, you don't have to worry about how many hours you can afford to have her work. She will be there to help no matter what. Even if she just answers the phone, sends out invoices, makes deposits, and takes receipts to the bookkeeper, she will be a fantastic asset. It can even be a part-time job. An hour a day will solve most issues when you are starting out.
 
JoeNorm said:
I'd eventually like to run my own one-man show. Mostly residential I think.
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When you say "residential" you need to limit it a lot more than that.

If you are going to do residential "new construction" then a "one man show" isn't worth a darn.

If you do kitchens,baths, basements and addition then one man is often enough. Along with these you can add on service upgrades, panel swaps, lighting ( lots of recessed lights), ceiling fans and chandeliers, range and micro wave circuits, and the list goes on and on to include trouble-shooting and repair.

There are a lot more existing homes than new homes being built. When the housing bubble burst as it probably will and people vacate their home then the vandals come in and steal the wiring. But the is money to be make here to. Don't count on any one type of work and be flexible.

As John says, don't go for really big jobs that leave you waiting for money, do the smaller jobs and keep the cash flowing. Don't be afraid to ask for money upfront for materials and don't let anyone get into you pocket to much.
 
cowboyjwc said:
There's an old saying, "Don't get above your raising". Do what you do and stick with it.
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I'll disagree slightly. While you should be careful to not bite off more than you can chew, you should always be open to trying a new type of job if you can get enough information on how to do it properly and you feel it's within your skillset.

This allows you to stretch your business into new areas that may be profitable.

As far as the size of jobs you should take, small jobs will generally be more profitable per hour and less risky to your capital than large ones. Increase the size of the jobs you take on in small increments is my advice.
 
growler said:
When you say "residential" you need to limit it a lot more than that.

If you are going to do residential "new construction" then a "one man show" isn't worth a darn.

If you do kitchens,baths, basements and addition then one man is often enough. Along with these you can add on service upgrades, panel swaps, lighting ( lots of recessed lights), ceiling fans and chandeliers, range and micro wave circuits, and the list goes on and on to include trouble-shooting and repair.

There are a lot more existing homes than new homes being built. When the housing bubble burst as it probably will and people vacate their home then the vandals come in and steal the wiring. But the is money to be make here to. Don't count on any one type of work and be flexible.

As John says, don't go for really big jobs that leave you waiting for money, do the smaller jobs and keep the cash flowing. Don't be afraid to ask for money upfront for materials and don't let anyone get into you pocket to much.
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:thumbsup::thumbsup::thumbsup:

Avoid residential new construction. It's the lowest paying work.
 
MAC702 said:
Man, where were you guys with this great advice twenty years ago?
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learning what we just spewed out here.

as for me, i knew everything there was to know at 22 years old.

i've spent the rest of the time learning what parts of that were wrong,
and discarding those.

i'm almost done. i hope.

PS- do this first:

ellen rohr
bare bones business plan.
it costs $10. takes a weekend.

do it before you do anything else. at all.
 
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