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Posted By: JFLS41 Startup Hardships,Failures, Successes - 04/15/05 11:35 AM
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

[This message has been edited by JFLS41 (edited 04-15-2005).]
Posted By: Dave55 Re: Startup Hardships,Failures, Successes - 04/15/05 01:30 PM
Hang in there, Jeff. The first few years are the hardest. I have less business sense than most, and after my first 6 months my wife asked, "When are you going to get a real job?".

Don't give up on advertising even though it seems that you're burning money you don't have. Carry business cards and hand them out to anyone with a pulse. Talk to your friends, people at church, join groups, etc.

Until you get established, think about doing anything to survive. Sometimes the little old lady will ask you to hang a shelf. I used to tell people "I do windows".

Dave
Posted By: JFLS41 Re: Startup Hardships,Failures, Successes - 04/15/05 01:53 PM
Dave, thank you for the encouragement. One of the things that is discouraging is opening up the local swap paper and seeing a bunch of classifieds saying they do electrical work and they are "Cheapest in town" or something to that effect. It makes me wonder how much work is really out there and if the handymen are getting it because they work for peanuts and do all the other stuff like carpentry, etc... In my area, as we discussed once, their is no lic requirements (except for City of Pittsburgh) and my town I live in doesn't even issue permits. The only time an inspector is called out is for new construction and commercial. I am seeing that alot of slipshod workmanship went into wiring jobs around here because hardly anyone is held accountable. When I talk to potential customers I think I might be overpricing myself because doing things to code and not taking shortcuts costs more. I guess I will have them sign Release of Liability if I do a job and its not according to code. Is this what it will take to be competitive and get work, do shortcut work and take low payed jobs just to get work?

I saw an ad in local classified paper, "Electrician" "Nobody can beat my prices!" etc... I have to wonder, how does he know what I charge to be able to make that claim? Hopefully someone like that won't last long or will work his tail off a few times and find out he has just enough money to pay his materials. So having said that and seeing all those ads in the local papers I am starting to get the picture it might be a real rocky road trying to establish a viable business thats going to be around in 2 years. As for my wife, she works and is carrying the burden for us, and believe me this is a real point of contention at times but right now is going ok. She has said a few times I don't have a business yet and I told her I do have a business but no work.

Thanks for letting me vent...


[This message has been edited by JFLS41 (edited 04-15-2005).]
Posted By: Dnkldorf Re: Startup Hardships,Failures, Successes - 04/15/05 02:49 PM
JFLS41,
The first thing I'm going to advise you on is this:

Define Yourself?

By this I mean:
Who are you?
What type of work do you do?
What type of work do you want to do?
What seperates you from them?

Most, and I use the word "most" loosely, say they are "Residential, Commercial Industrial" electricains. Most are not.
Most want to be.

I say this, because this is one of the keys that I worked by. I hate resi work. But when I started I needed it for quick cash to buy materials, tools and advertizing.
I always wanted to be a Commercial, Industrial guy. But to compete in this type market takes alot of money, and companies pay very slow.
By defining yourself early, you have a starting point, something to work at.
Finding a niche is the best thing to do.

Best advertizing is "Word of Mouth". Best way to get it, is to do the very best work you can and be the very best person for customers to deal with.

Unfortunately, you may have to start out competing against hackers, just don't stoop to their levels.

One other thing, you better like what your doing. Alot......

Dnk........
Posted By: Dnkldorf Re: Startup Hardships,Failures, Successes - 04/15/05 02:53 PM
One more tip:

If you come across some who says, "If you do this little job for me, and your price is real good, I have alot more work to throw you".

Walk away, the guy is looking for someone to screw. Or get his money up front...


Dnk.....
Posted By: JFLS41 Re: Startup Hardships,Failures, Successes - 04/15/05 03:00 PM
Why is that an indicator someone wants to screw you? I take it that you found out the hard way?

My very first customer was a friend of my wifes who I gave a cheap rate to in exchange for her husband who is a graphics guy to do me a logo, company name, he gave me one lousy logo that looked like a 13 year could have come up with. I waited and waited for him to come up with something else but it never transpired. If they ask me to do more work I will be charging full price.

Can anyone tell me how they advertise and what to say and not to say?
Posted By: pdh Re: Startup Hardships,Failures, Successes - 04/15/05 05:43 PM
As I understand it, PA is a "no licensed required for electricians" state. That makes it easier for anyone to get into the business, good or bad. But it makes it hard for the good guys because of so much low-end competition and the pressure to do minimal and even sub-code work (because the bad guys do).
Posted By: Active 1 Re: Startup Hardships,Failures, Successes - 04/15/05 11:02 PM
Around here you have to have a licence just to go fishing.

Put your ad right next to Mr Cheapest in Town and say "Best Service in Town, All work garanteed and insured". Or "Need electrical work done... Call an Electrician." Try to provide the best service not cheapest.

Maybe new construction and small comercial might be for you because around you they are inspected.

As for some kind ow waiver for work not done to code sounds like it would not hold up in a court. Worse yet he has proof on paper that you knew your work was not done right.

I feel you pain with advertising. It's easy to tell someone elce to spend $$$ on it. But when it's you cash and money not cominging in like you need it's hard spend on it.

I also avoid trading labor. I seen too many problems.

You did not say what type of customers you have. Poor, working class, or filthy rich. A customers income leval can affect their perception of prices.

Tom
Posted By: trollog Re: Startup Hardships,Failures, Successes - 04/16/05 01:13 AM
Building a book of business takes time time time. My experience has been that its not what you know (or what your prices are..) but who you know.. who you know that can & will funnel business your way. The first few years are going to be really tough unless you are an extremely patient type who isn't rattled or daunted by "big mountains to climb" so to speak, or you are just lucky real quick. Good customers will lead to other good customers, but finding the good ones is the hard part that takes so much time. And in between there are lots of quickie one-time service calls etc.. In california homes have to undergo an inspection before they get sold and these inspections often uncover problems in all the systems in a house, often including the electrical systems. I try to cozy up to realtors, property management companies and other types of business that deal in houses and have a chronic need for electrical repairs. I try and make that my bread and butter. These are non technical types (paper pushers) who don't understand electricity or building codes, yet they bear the executive responsibility for the condition of the houses they have in their hands and they need "mechanics" to get in and remedy whatever problem is holding them up (or holding up escrow closing.. which means their paycheck is being held up too.. nothing better than a "motivated" agent). It certainly isn't the most glamorous of work- no complex industrial motor control or anything- most often is small simple little things, but I get a chance to get into a place and look it over for other problems in the house, which is like having a crack at your own personal closed bid job, because you are already on scene doing the work. I don't want to knock joe & josephine homeowner who need their kitchen remodelled- god knows that pays too, but I would search out and advertise among people at in businesses that deal with houses as their business. The real estate/prop-mgmgt community has been a good friend to me and repairs lead to recommendations and passing your card on to others who "wondered if you know any good electricians..". Most of the stuff I get is t&m too.. although it has made me get lazy and out of shape when it comes to good bidding- buts thats another story [Linked Image] Something I have found though is that realtors and other assorted paper pushing types have a real need for "connections" in the trades. They don't really understand the trades or what we do but they know they need em from time to time, and once they find a good tradesman of any kind they will pass your card around because, at least out here there are lots of RE agents who are all in the exact same boat. Hope the ideas help... [Linked Image]
Jeff,
Here are some ideas.
1. Canvas neighborhoods and put out door hangers or flyers. Have a call to action in your ad to make the customer want or need to call you.

2. find some direct mailing. There are some of these that can be reasonable.

3. Place an ad in church bulletins. Again, pretty cheap and somewhat effective.

4. If you want to get into the commercial or industrial service then I suggest you go door to door, handing out cards and flyers.

These are things that I did when I first started out and it helped alot.

The other thing is don't let forget your existing customers. Always keep your name in front of them, even offer an incentive for referrals.

Hope it helps
Posted By: kinetic Re: Startup Hardships,Failures, Successes - 04/16/05 03:12 AM
I have always liked the 5 foot rule. If someone is within five feet of you they will have my card in their hand. I am a little shy about doing this at times but they have the choice of throwing it away. I don't pressure anyone but just use a simple comment like "if you need an electrician don't be afraid to call me." Works great when your standing in line waiting around doing nothing. If they are interested you will know right away and get some great face time. Even if it leads to absolutely nothing it is great practice on your people skills for the price of a business card. Plus it helps pass the time waiting in a line.
Quote
If you come across some who says, "If you do this little job for me, and your price is real good, I have alot more work to throw you".

Jeff, Dnkldorf speaks the truth here. There are lots of bottom feeders out there that promise you lots of future work just to get a good deal on their current project. Most of will pay for the current project, but you'll never get more work. Some will give you more work, but they always expect a really good deal. And others will use you on this project and good luck trying to ever get paid.

So when you hear a potential customer say "...I have alot more work to throw you..." Seller Beware!
As for ways to get business. I don't know what type of electrician you are (resi/comm), but this is how I got started.

I went to a store that sells ceiling fans and got them to recommend me to install the fans they sold. I didn't have to even give them commission, just excellent service for their customers and an occasional free service call for a DIY'er that screwed up their own install. Installed these fans pretty cheap, but I was fast and could make $300-$500 a day doing it. I always told the customer that I was a licensed electrician and could do other work for them. About 50% of the time this lead to more work. Even back then I gave flat rate pricing and the customers liked knowing exactly what the cost was and I liked trying to see how fast I could get the work done. I also gave exact appointment times and was very flexible on times, even working late at night or on weekends if the customer needed that. I could go on, but my main points are:

Often small projects lead to big projects.
Give appointment times and stick to them or call.
Be flexible.
Consider flat rate pricing.
Check in to hooking up with a lighting company or other retail outlet that sells things to be installed, maybe Jacuzzis.

Also, marketing is tough and most don't work. Be carefull in this area or you'll go broke trying to get work.
I would like to recomend a little paperback book here. The author- long deceased- pioneered a lot of today's advertising, and his opinions are worth considering (even if you daily see ads that ignore his advice)

The book, actually two small books bundled together under one cover, is "My Life in Advertising/Scientific Advertising". If your local bookstore doesn't have it, Amazon does (for about $12, I think).

The author made a career of trying different things, one at a time, and documenting the results. Ad size, artwork, typeface, coupons, etc.
Jeff, was telling you get into doing new homes so you have to deal with a inspector and he/she will point things out to you if you fail, most likly cost you a re-inspection fee but that would be good for some learning. Also to meet these builders, do you have any home and garden shows around you? hot tub installs not bad work, actually once I was talking to a hot tub dealer same time as he selling a tub to a GC as a matter of fact, bottom line I installed more hot tubs and that GC turned out to be a good contact, directed more work to me then I could do at the time. Where I'm at Elec. Cont. have yellow pages but none have to do flyers and stuff like that, but that where I'm at, different enconomy every where you go...
Jeff,
You've received some excellent advice -- I'll reinforce the "scatter business cards everywhere" theme and add a couple of points:

Get some decent pens printed up and provide them to wait staff at local restaurants, banks, any place where people fill out forms.

Also. . . this could be huge for you: Join a local BNI group (Business Networking International) or chamber of commerce networking group to swap leads. Most of these groups are crowded with real estate, insurance and other "white collar" professionals so when a "real" professional that actually does something shows up you'll be a celebrity.

I'll also agree with the advice about defining yourself. "Commercial/Residential" says nothing to differentiate yourself from anyone elese. Figure out why someone should call you then tell everyone to call you because of that.

Randall
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