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I have an chance to partner with a master electrician in the Dallas/Fort Worth area to form a new electrical contracting business. He’s a reputable guy with skills in commercial work. I am trained in industrial and residential work, though I haven’t practiced industrial in a long time and would prefer to leave it that way. I would appreciate any advice in how to grow a business reasonably quickly that will provide a steady base, good income and a manageable environment. Our goal is to NOT become a huge conglomerate; simply a firm with less than 50 people that does quality work in the local market.
Further info is that this area is experiencing an outrageous growth in residential and commercial building. It’s also a haven for many rogue contractors lowballing jobs.
All thoughtful advice and warnings heeded!
Thanks in advance!
Replies
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TP,
I'm in Dallas, and you can say that again, talk about lots of work going on right now.......whew!
50 employees is NOT a small business. I know very successful electrical contractors who have less than six. Don't plan to be big, just plan to do a good job and be fair to your customers. If being big is your goal, it may happen, but not without a lot of very hard work building up a customer base.
Business is a tough thing. If you have what it takes, it will happen for you. Hire people you trust, and let them do what they know how to do. Give your customers a fair shake and they will call back.
They say that you can do a thousand jobs well, and know one knows. Screw up just one job, and everybody hears about it.
Trust your gut.
Good luck,
Ed. Williams
*You can make more money in one day doing commercial or industrial work than in a week of residential, especially in working on existing installations.
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Ed:
Thanks for your thoughtful response. You're right, 50 is large -- and not our target. We'd be really pleased to be running 2-to-5 crews effectively. Since you're in the DFW area, have you got any thoughts about the highest demand for electrical talent right now?
Best regards,
Tim
*The ideal market for any mechanical/electrical services is one where you dont constantly get beat-up on price. Construction jobs in most markets are going to be cut throat if they are in fact a bid/spec type job. I think going out and knocking doors and getting commercial/Industrial types to try you out from the ' Service ' standpoint is the key in developing a customer base which will lead to installation/construction jobs where you dont have to bid against others!! Also consider what ED said in the fact that good word of mouth and relationships open alot of doors and bad word of mouth will slam 'em shut quicker than you know what!I live by the 90/10 rule when it comes to growth.. 10 percent of your customers will give you 90 percent of your work if you do 3 things....1. provide a quality product 2. provide a fair price 3. service the heck out them !!!!!Randy
*Tim- if you have any background or strengths in the industrial instrumentation/controls and PLC type technology the market is ripe for the harvest from the standpoint of not many people can do it or even offer it. and like finding a good Programmer and technology people in general you can make the highest of margins and provide your industrial customers with the option of using you for not just electrical in general but PLC and automation!Randy
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Tim,
Skilled construction people in any trade is very hard to find in Dallas right now. All the trades I work with have the same problem. We just can't find the people we need. Anyone worth thier salt is working right now. No one is looking for work. There is just too much work going on. When you find someone that fits your need, you better hire them and hold on tight. I don't know what a good electrician can earn right now, but I bet it's high. Good employees are your #2 asset. Without good customers and good employees, you don't have a prayer.
Good luck,
Ed. Williams
*I guess I'm throwin' a wrench in the works but I think you should seek out the type of work you enjoy the most. That is the way to build success, whether for an individual, or for a company. I think if you enjoy what you do, if it fulfills you, you have a much better chance of bein' happy, and I think that is at least as important in the long run as doubling your income to do work you don't enjoy. - jb
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One word of advice:
Answer your phone, return your messages.
Well I guess that's a few more than one word, but
in any service business, if you aren't available and addressable, you might as well not be there
-s-
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I have an chance to partner with a master electrician in the Dallas/Fort Worth area to form a new electrical contracting business. He's a reputable guy with skills in commercial work. I am trained in industrial and residential work, though I haven't practiced industrial in a long time and would prefer to leave it that way. I would appreciate any advice in how to grow a business reasonably quickly that will provide a steady base, good income and a manageable environment. Our goal is to NOT become a huge conglomerate; simply a firm with less than 50 people that does quality work in the local market.
Further info is that this area is experiencing an outrageous growth in residential and commercial building. It's also a haven for many rogue contractors lowballing jobs.
All thoughtful advice and warnings heeded!
Thanks in advance!