I have talked to acouple of my friends who are EC's about the following oppertunity and both of them tell me to stay small and settle for a couple of thousand a week but I diddent get my licence to create a job for myself, I had a great job in the refinary and benies, but I did this to build a business and fell like my buddies are old guys who are sick and tired of construction. Let me say that I respect and apreciate my buddies for the business and electrical knolege theay have aquired when I was watching cartoons, that said the issua at hand is about going into a number of joint venture projects with a group of other trades all under the umbrella of a old frind's company (he is a developer) I would however keep my own business idenity, I am the only EC that would have any contractual ties to date in these join ventures, the umbrella corps. ceo has helped some of the sub contractors bank roll early jobs to get the wheels going for a reduced percentage of back end profits if the subs were not able to secure a traditional loan for construction, the jobs include grosses in the range of $75,000 and up (the developer says he has contracts totaling 125,000,000), today he invited me to dinner where I met with one of his archatects, one of his general contractors,and a plumer he has helped get licenced, during this meeting he was in the same resterant in another booth meeting with a engeneer who has designed a hygrogen plant and is looking to the group(the developers company) to build the project.
I am a new contractor and must confess I am a little intemidated by the size of some of theese jobs even thought my long time friend says he will help me flote my first few projects (for a percentage of my profits of course)which sounds good to me, houw ever I would rather start off with a couple of the new residential builds, starbucks and track homes he also has seeing that I have project management experence at that level ($15,000-$100,000).
Any feed back is greatly apreaciated.
Opportunity knocks seldom,analyze the risk talk to a lawyer and most importantly get as much background and history as possible onthis guy. Good luck!
Run away its a trap.
Remember the other side of partnering is getting “partnered”.
Do some small jobs, learn how to cash flow and PM them to success. Look for work in the 5k to 20k range and most GCs understand that new contractors need up front cash to start these jobs, so don’t be afraid to ask for 25% up front to start the job. Learn the ropes, and work your way up. Do enough of these and 150k wont look so intimidating, and you wont need a partner to do it.
One more thing if you are going to be a businessman, get a spell checker.
it's hard to say...some of the largest EC's in the NY/NJ area started the exact same way...
or, it could cost you everything...
how well do you know this guy?
Look at the proposal this way:
If you are dependent on one guy for your work, you are little different from an employee. Indeed, in some ways worse off then an employee. The guy feels no obligation to keep you busy, readily reminds you that you depend on him, and continues to work every angle to reduce his payments to you.
And that's when everything is on the up & up.
Secondly, you're tied to other contractors, without any say in the issue. I absolutely guarantee that at least one of them will excel in trying to cause you problems.
The sorts of jobs you describe as being your target are types famous for having very little margin for error. Tract homes, in particular, are a contractors' minefield.
Remember ... promises don't pay the bills. You are the one exposed; as with gambling, never risk what you can't lose.
Loans? Partners? Friends? Friend, the Mafia has better rates than those sharks. You'll have enough trouble keeping your bills paid at the supply house.
"he invited me to dinner where I met with one of his archatects, one of his general contractors,and a plumer he has helped get licenced, during this meeting he was in the same resterant in another booth meeting with a engeneer who has designed a hygrogen plant and is looking to the group(the developers company) to build the project."
Sounds very professional to me, setting up a meeting at a dinner, they must of been painting his offices!
I would do some serious checking on this guy, starting with his real address, and then checking his DB rating.
Sounds very professional to me, setting up a meeting at a dinner, they must of been painting his offices!
I would do some serious checking on this guy, starting with his real address, and then checking his DB rating.
Depends on the restaurant....if it was the Christopher Columbus Foundation in NYC, it's a good thing....if it was the Lone Star Steakhouse in Minneola....not so much...
glad someone does....cause I don't
Joint wenture oppertunity's, it can go both ways. I did it before and did very nicely. There are some who will tell you it is a sure way to ruin, and there are some who have pulled themselves up out of the rut of working class wages thru risky business venture. One thing is surefire. If you never risk you will never gain.
Nothing builds confidence like successfully doing something. I started small and worked up to larger jobs. One thing I would advise is NOT mislead your clients into thinking you can tackle anything. Some things must be overcome which take time, ie building a work force complete with equipment, trucks, a management system etc. You cannot do a job with a labor figure of $150,000 with two men and no office help and do it on schedule, bid other jobs and handle service work. If you bite off more than you can chew it will come back to bite you in lost customers and people who will think you're incompetent.
Don't be afraid to say "I can't tackle a job this big at the moment". You will always have to tell people NO from time to time or you will have a black eye! It is not a weakness to say no. It is a weakness to say nothing when you should say no.
One bad experience with a customer and you've likely lost him for ever...