ECN Forum
Posted By: macwire Contractor Business-solo or no? - 12/30/02 12:55 PM
(Getting WAY ahead of myself with this question-I'll be applying for my apprenticeship in April) [Linked Image]

You sparkys who are contractors, how many of you are one-man shops? If you are, are you planning to expand? And for you ECs with employees, how do you deal with employee issues and other demands of running a growing enterprise?

I've always thought that if I do become an EC years down the line, that I'd like to stay a one-man shop. That way I avoid the hassles of having employees, keep overhead low, have more personal control over my work and my interactions with customers, and avoid the demands of running a larger enterprise. In many ways, a one-man shop is simpler.

However, I can see the downsides of a one-man shop-can only take on so much work which limits income potential, if injured or taken ill your business is on hiatus until (unless) you recover, must wear many hats (marketer, bookkeeper, etc).

Still, I think keeping my future business small would be the best course for me. Comments?

The MacWire
Posted By: HotLine1 Re: Contractor Business-solo or no? - 12/31/02 02:02 AM
Macwire:
I started as a "1 man shop", and quickly got 1 employee. Then I added another, and another...
Got to six & all was well.
Yes, you can "lone ranger it"; it's a good way to start unless you have a big bankroll, and work lined up first.
Yes, payroll, paperwork, insurance, taxes, etc., etc. are a pain, but ya gotta do what ya gotta do.

John
Posted By: Electric Eagle Re: Contractor Business-solo or no? - 12/31/02 02:23 AM
I also started as a one man shop, but soon learned that it wasn't the route I wanted to go.

1. The demands from my customers were more than 1 man could handle. I was working 60-80 hours a week which leaves no time for me, not to mention a family.

2. Alot of jobs are much harder with one man than 2. (Fishing wires from a basement to the attic) I can't count the numer of times I've gone up and down stairs to find a wire when a helper could've cut out hours.

3. I made pretty good money by myself working 60-80 hours a week, but I make a lot more working 50 hours.

I think you'll do better with some helpers, but don't rush it. You have to build a customer base and you don't want to have workers getting upset because you can't pay or don't have enough work. Be patient.
Posted By: Bjarney Re: Contractor Business-solo or no? - 12/31/02 03:08 AM
For me, the hardest thing to learn was when to say no to prospective [or newer] customers. Early on, you don’t want to turn down jobs, but you can only work so many hours in a day.
Posted By: harold endean Re: Contractor Business-solo or no? - 12/31/02 03:15 AM
I started out as a 1 man shop, then 2, 3, etc. til I had 4 trucks and 5 people in the field. (also 2 part timers in the office.) Then I went from 5 to 4 to 3 then back to myself. Within a period of 7 months. Then I was hired as an inspector and gave up the business.
Posted By: macwire Re: Contractor Business-solo or no? - 12/31/02 04:45 AM
Electric Eagle:
"I also started as a one man shop, but soon learned that it wasn't the route I wanted to go.
1. The demands from my customers were more than 1 man could handle. I was working 60-80 hours a week which leaves no time for me, not to mention a family."

Eagle, how come you didn't take the route of turning down customers and raising prices on your existing customers? That may have cut down on customer demands. Is the nature of electrical work really such that most jobs are more difficult to do alone?

harold, what caused you to reduce your business so drastically in a few months time? Not enough business or a voluntary move on your part?

I really appreciate your comments, please keep them coming.

MacWire
Posted By: lwinter31 Re: Contractor Business-solo or no? - 12/31/02 07:51 AM
Mac
I think what Eagle meant is there is a limit to how far one can stretch himself hour-wise.

Example; Thurs I was trying to complete a rough-in (by myself) that I started Mon.

GC calls- Got Two (new homes) need finished out by Mon. want POCO to heat 'em up Tues. Can you do it?

I say ok. (even though i have another rough-in planned for the next week)

Fri. Rough-in done, AHJ - Nice Green Tag. then off to pick up materials so I can now work all week end.

Sat./Sun. I and helper (my little bro. off on wkend from local POCO) finish out the two houses inside and out.

Mon. I finished the second storage bldg. on the second house, whew -- all ready for POCO to heat up. Pick up supplies for Tues. rough-in.

I do plan on takeing off early for New Years, But as you can see work will be waiting, more 10-15 hr days to make up for the Holiday.

Same GC says two more frame ups in 30 days.

Somtimes you just got to have help to get it all done. Nobody wants to loose work from the GC's that provide regular $$$$$$$$$$$$$

Larry
Posted By: macwire Re: Contractor Business-solo or no? - 12/31/02 09:13 AM
Do you charge extra for weekend rush jobs like these? Just out of curiosity.

MacWire
Posted By: Scotts Re: Contractor Business-solo or no? - 12/31/02 03:32 PM
Iwinter,

I have always said that when you work for yourself you would rather be busy than not.

Scott
Posted By: Electric Eagle Re: Contractor Business-solo or no? - 12/31/02 10:22 PM
MacWire, I guess I could turn work away, but once you do that those customers will find someone who can help them on demand. Don't get me wrong, I do turn away some work, mainly if it's too far to drive for the size job or if I'm not comfortable with the customer or the job isn't quite up our alley. Also, if I worked 40 hours a week by myself, I wouldn't make nearly enough money to live the lifestyle I want to live. I could go on and on, but 1 man shop just wasn't for me.
Posted By: sparky Re: Contractor Business-solo or no? - 12/31/02 10:54 PM
I'm on my 5th year as a 'Lone Ranger' here.

how do i sum it up? well i guess it depends if you subscribe to the service call end of things , the contractual arena, or a combination.....

If service work is your game, then a stocked truck, pager & box of scooby snacks (with appologies to E-Scott) is all you need, and off you go....this is the 'kibbles & bits' end of the trade, not as lucrative, yet less a gamble due to the diversity of customer base.

Should you wish to try your hand at making GC's happy then find yourself 2 or 3 good ones , but prepare to blow off the serv calls proportional to what you take on here.
This can be the land of crap shooters, win big, loose big. Time constraints are always going to be a juggeling act, one must always think ahead for parts, plans, payments, etc.

In either case, know your resources....
Posted By: AMP Re: Contractor Business-solo or no? - 01/01/03 05:28 AM
Newbie here [Linked Image]
Did you all take the test and then say I am now my own boss or did you work for someone else first?

I plan on taking the test...working 3rd shift in a factory and work days as my own boss. Is this a dumb idea?
I need some input from the veterans here.
Thank you [Linked Image]
Posted By: ga.sparky56 Re: Contractor Business-solo or no? - 01/01/03 06:03 AM
Amp,Ithink lots of sparkys start that way.
Posted By: lwinter31 Re: Contractor Business-solo or no? - 01/01/03 09:29 AM
Rush jobs? Yes a little more $, but don't price yourself out the door. This BTW is a GC I've been working for years even when I worked as apprtc. under another EC. He has never questioned my bills just bottom line and cuts me a check. "You know" the "hand shake guy" that you can always bank on. I work in a small local area where everybody knows everybody, you land a builder like this you do your very best to keep 'em.
Posted By: Scott35 Re: Contractor Business-solo or no? - 01/05/03 08:44 AM
My story;

Majority of work over the years has been with my Father (he is licensed EC). Work done by no more than 6 persons at any time (includes me and papa!). Normal work staff was three people, four if the "Push" calls for it.

Worked for a bunch of other ECs - with crews ranging from 4 persons upto 40 persons.

Last company I worked with (which was a GC with inhouse elect.), had around 15 or so field electricians. I was bouncing between P.M. work, surveys, designing things, Installing, and broom pushing (I push a mean 'ol broom!).
There were about 6 Electricians that I would consider "Journeyman" level, 2 others that I would consider "Foreman" position. The rest were just pulled in from the construction side to do cabling jobs, and have very little knowledge of the electrical trade.

Not working for this company anymore (Thank Goodness!!! One of the most recent LOOOOONNNNNGGGGG stories!).

On this subject, I have been presented with a Kick-A## Career Proposal!!!
From another GC whom is involved with +95% Bank related work, this company wants to develope an In-House Electrical Division - much like the setup at the other GC mentioned before.
They would like me to run this new division!!!
Means a lot to me (duhh, huh??? [Linked Image]...)

I would like to post a new thread about this here, so I'll do so later this weekend.

As this forum has been a 100 fold increase in personal developement for me, I would like to hear from you all and get some opinions.

Also, as situations arise, it's nice to know that there is an area to ask questions and get good answers!

Scott s.e.t.
Posted By: harold endean Re: Contractor Business-solo or no? - 01/05/03 10:52 PM
Macwire,

The funny thing about my business was that I didn't want to give it up. I had 4 full time men working for me. Most of my employees had their own lic. and 1 even had an inspectors lic. What happened was that 1 man went back into his own business. The 2nd man went back to being an inspector. The helper left me because some one offered him $1 more an hour. ( With me he got a truck and gas. With the other EC he had to use his own truck.) My foreman had just got his lic. so he would go out and do "side" jobs. Well he worked for me a week. Left for a week, worked a week, left for 2 weeks, etc. We just parted as friends. As a matter of fact he bought my business out when I became the inspector. BTY the town asked me to become their inspector, I wasn't looking for the job. My friend who was the inspector died. So I filled in for him.
Posted By: macwire Re: Contractor Business-solo or no? - 01/06/03 11:39 AM
Last question for the ECs, present and former.

harold, I read your reply about how your business fizzled. Wow, I guess having most of your employees quit would put the kibosh on that venture huh? Well, anyway, what is it that kept/keeps you going despite all the extra hassles of being a business owner?

People tout freedom as being the main draw of owning your own business and give the impression that the business owner is able to come and go as they please, etc., etc. I've talked to enough business owners to know better. I know that in many ways, it's a hundred times more work than just being an employee.

So what keeps you ECs going even as the work piles up on you (and I mainly mean the PAPERwork [Linked Image] )

The MacWire
Posted By: Jim M Re: Contractor Business-solo or no? - 01/07/03 10:13 PM
I can only speak for myself, but here is one main reason why I continue to work for myself.

I was recently looking at new houses. The work I saw was not up to my standard, and probably not to many others of this board. Yes,it had passed inspection, but I would have failed it mainly for that all too subjective "workmanship". I want to be proud of knowing that I did the work to the best of my ability and to the intent of the Code.If I could find someone to work for with a similar attitude I will continue on my own.
Posted By: harold endean Re: Contractor Business-solo or no? - 01/08/03 01:00 AM
Macwire,

The funny thing was that as my guys were leaving me one by one. I was going to stay in my own business. I was talking to my brother who worked for me and we were either going to have to get more help or take on less work. I got a friend of mine, who was also a contractor, was helping me. We would work together, when I had my crew, I would help him, when my crew left, he helped me. Like I was saying, I would have stayed in business, and I most likely would have gotten more help. Then my friend passed away. I was surprised that the towns actually asked me to be their inspector. The 1 construction official asked me for a resume. I said, that I was self employed for 15 years and I don't have a resume. He said, DUH! Make one one. Then he told me what the towns wanted to know. I was self employed, I worked with scouts, zoninbg board, etc., etc. After that, I was surprised to get hired. The biggest difference I have now being the AHJ and being self employed, is the freedom of my business. I could come and go almost at will when I was self employed. Now I have to watch the clock, and whose time I am on.
Posted By: straightedge Re: Contractor Business-solo or no? - 01/09/03 04:39 AM
I have been on my own for three years now. I was solo for about a year and a half. After reading more about being a businessman and learning how to make money, your interests change.

The goal now is to stay in the office (home) and do estimates and keep the company rolling smoothly.
Posted By: John Steinke Re: Contractor Business-solo or no? - 01/10/03 01:49 AM
It's never too soon! You will always have people asking you to do side jobs; some of them are less than ethical. Even if you intend to work full tome for a "real" contractor, get your own lisence to cover yourself! (It's probably easier if you call yourself a "property maintenance" operation).
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