Business folded

[knoppdude]

Hi everyone,
I have just folded up shop, and placed my license on inactive status. This was a purely objective decision, with no regrets. I realized that while I may be able to handle the actual work, my understanding of business was sorely lacking. This I will correct over the next four years, and may enter the bloody fray again. I learned the hard way that you have to understand the business side of contracting to succeed. So, to all who wish to become electrical contractors, learn the business side as much as you do the technical aspect of the work, and your chances for survival will increase. One of the things I did not do was to charge what I should have to make a profit, on top of earning a wage. If I do this again, I will learn this and all of the rest of the business of electrical contracting, have good financing of the business, and a real business plan, before starting out. I believe that money is to made if the business is run correctly. I wish success to all who try.

 

[K8MHZ]

Hi everyone,
I have just folded up shop, and placed my license on inactive status. This was a purely objective decision, with no regrets. I realized that while I may be able to handle the actual work, my understanding of business was sorely lacking. This I will correct over the next four years, and may enter the bloody fray again. I learned the hard way that you have to understand the business side of contracting to succeed. So, to all who wish to become electrical contractors, learn the business side as much as you do the technical aspect of the work, and your chances for survival will increase. One of the things I did not do was to charge what I should have to make a profit, on top of earning a wage. If I do this again, I will learn this and all of the rest of the business of electrical contracting, have good financing of the business, and a real business plan, before starting out. I believe that money is to made if the business is run correctly. I wish success to all who try.

I agree 100 percent. I owned a couple businesses in the 80's. Auto/marine electrical systems specialty shops. I sure wish I would have taken some business courses. Some people are born to be in business, most of us need to be taught.

 

[zog]

Just because one is a good EC does not mean he/she can run a business, I think many assume it is easy. Good luck and try it again when you are ready.

 

[stevenje]

One of the things I did not do was to charge what I should have to make a profit, on top of earning a wage.

Don't feel alone. Many before you have made the same fatal error. The sad part is that there will be many more to follow in the future, which ultimately impacts everyone in the trades.

 

[hillbilly1]

I tryed it twice, and was going for a third time, but took a business course at the local Technical college, and found out I did not have what it takes to do the business end. I can design it, put it in on time and on budget, but like many others don't charge enough to cover hidden expenses. My accountant was making more money than I was in the business.

 

[ptonsparky]

I've been at it 30 years and still don't have the business end of it down like I should. Wife has a good job.

 

[Strife]

Don't feel alone. Many before you have made the same fatal error. The sad part is that there will be many more to follow in the future, which ultimately impacts everyone in the trades.

I just wished some of them would have folded before they outbid me:-(

 

[jmsbrush]

What you guys are saying is the harsh reality of business. This is why there are 10% who makes 90% of the money and the other 90% make 10% of the money.

It?s a very interesting thing. There are contractors who simply do not know the business end and understand how much to charge and there are the ones that know how much to charge but they can?t mustard up the courage to do so.

For us guys that do charge somewhere between $200 and $400 an hour. We are called rip-offs and scammers. A business is like having a child. It?s not for the weary hearted.

I wish you luck in your next venture and do not look at this like you have been defeated. "With every failure there is an equivalent seed for success waiting around the corner". "Napoleon Hill"

 

[Sierrasparky]

What you guys are saying is the harsh reality of business. This is why there are 10% who makes 90% of the money and the other 90% make 10% of the money.

It’s a very interesting thing. There are contractors who simply do not know the business end and understand how much to charge and there are the ones that know how much to charge but they can’t mustard up the courage to do so.

For us guys that do charge somewhere between $200 and $400 an hour. We are called rip-offs and scammers. A business is like having a child. It’s not for the weary hearted.

I wish you luck in your next venture and do not look at this like you have been defeated. "With every failure there is an equivalent seed for success waiting around the corner". "Napoleon Hill"

You siad it right on.
I have not lowered my prices and try to always charge what it costs to be in biz and make a profit.

This is one reason I get so pissed when all those trunk slammers are allowed to circumvent the system.

 

[hillbilly1]

You siad it right on.
I have not lowered my prices and try to always charge what it costs to be in biz and make a profit.

This is one reason I get so pissed when all those trunk slammers are allowed to circumvent the system.

Yeah, the competition where I live is a lot of retired electricians from up north that do it just for something to do, not to make a living. Tough bidding against that.

 

[gk351]

I'm currently going on my second year in business. It's tough! I'm a true one man shop, with my ole man (37 years exp.) helping when HE wants. I'm currently close to finishing a fire house here locally, and yet on paper, this has been the most struggling time since I started. I bid the job good and fair, but just left out so many things. I will be fine in the end. Being a one man show, I have plenty of work stacking up while trying to complete my current job. I'm actually in the process of hiring a guy. That costs money, but I will pass it on. People around here ( Central IL) feel I get paid in gold, but if they only knew the truth! Good luck to those business owners!

 

[Fulthrotl]

What you guys are saying is the harsh reality of business. This is why there are 10% who makes 90% of the money and the other 90% make 10% of the money.

It?s a very interesting thing. There are contractors who simply do not know the business end and understand how much to charge and there are the ones that know how much to charge but they can?t mustard up the courage to do so.

For us guys that do charge somewhere between $200 and $400 an hour. We are called rip-offs and scammers. A business is like having a child. It?s not for the weary hearted.

I wish you luck in your next venture and do not look at this like you have been defeated. "With every failure there is an equivalent seed for success waiting around the corner". "Napoleon Hill"

when's the ipad app coming out? i was talking with my wholesale house owner about this, explaining the automated take off and such.... and he wants to see it... he'd like to see all of his customers
running it too.... i did 4 bids this week i'd a loved to have had this for.....

 

[Sierrasparky]

when's the ipad app coming out? i was talking with my wholesale house owner about this, explaining the automated take off and such.... and he wants to see it... he'd like to see all of his customers
running it too.... i did 4 bids this week i'd a loved to have had this for.....

Huh !!!

 

[satcom]

It is tough operating any business, in today's environment, this makes it critical to recover all your expenses and have a decent cash flow from profit after "ALL"! Your overhead and operating expenses are covered, this usually requires charging a higher rate to survive, try not to look at the other guy for pricing your services, he may not know his own cost or he may have a full time job with benifits and playing contractor to add some extra cash

 

[ramsy]

I have just folded up shop, and placed my license on inactive status. ..with no regrets. ..my understanding of business was sorely lacking.

License-board monitor #1745 has noted your declaration, and will leave you alone now. Don't worry about getting stung at your next gig.

This story may actually work quite well on unsolicited advertisers, who have pillaged plenty of contractor businesses to death. If you don't mind my copying the idea, like so; "Get lost I'm out of business." or "Go peddle your search engine, internet, referral BS, to someone who cares, since I folded and don't give a damn."

Street smart contractors, less sophisticated is the accounting department, can compensate in the BS department. Small talk & clever deception skills are sharpened to perfection, starting at the trade-apprenticeship level.

BS skills are what establish a comparative advantage over the ivory-tower educated geniuses, who can be relative social idiots, and among the contractors best customers.

For the few conscientious contractors that are serious about business accounting & owner-operation restructuring, there are professional services, such as Financial Crossroads http://www.financialcrossroads.com/ that are readilly available.