Starting an electrical bussiness

[ians]

To answer a few questions someone asked ... I thought I would share my response because I believe many people out there are asking the same questions ... society makes it difficult for people to ask advice ... so let me start with the most important piece of advice ... don’t be scared to ask a question no matter how dumb you think the question might be ... I have been made out to look like a fool on more than one occasion ... but generally I come out on top ... the reason ... I am not scared to ask the so called dumbest of questions.

When is the right time to start working for yourself ... RIGHT NOW ... no matter how much research you do ... business plans ... loans credit applications etc. ... you will never be fully prepared ... sometimes the harder you fall the faster you learn.

The first mistake ... I am a hard worker ... starting a business is not about how hard you work ... before I started my business ... I worked 20 hours a day 7 days a week ... was the highest earning employee on site(because of my long hours) ... with that in mind ... I thought I would be a millionare in 5 years if I worked for myself ... being a hard worker in a trade doesn’t make you a good businessman ... you need to understand the difference between getting your hands dirty and operating a business.

I don’t get involved in mass projects ... like complexes and estates etc. ... from my own experience and watching many electrical companies fail ... it is the fastest way to loose whatever security you put up for accounts you open ... you go big you fall hard ... don’t trust anyone ... promises are just that ... and signed contracts are just pieces of paper for people with more money to screw the people less money.

It’s not about how much work you have or signed deals or anything like that ... it’s the cash flow in the bank account ... that’s all that counts ... that say CASH IS KING ... believe it ... I see it all the time at the wholesalers ... new contractor on the block ... new vehicles ... big mouth ... big spender ... 6 months later I ask the boss man at the wholesaler what happened to big spender ... he owes R800 000 and full of promises.

You need to create partnerships with people who you think you can trust ... sub-contracting to people who have good values ... morals and make sure payments are consistent.

Running a business is not about how many holes you can drill in a wall or how many DB's you can wire in a day ... business is about creating partnerships with people ... who feel they can trust YOU ... that you are capable of doing the job in a reasonable time frame to the standard you work to ... without ripping them off.

I consult for big companies ... all I have to do in the meetings ... listen to what the contractor has to say to the client ... once the meeting is over ... tell the customer if they are using technical jargon to try baffle with bullshyte ... so far 10 out of 10 meetings have resulted in the contractors returning to fix their short cuts.

[adrianh]

..

[Derlyn]

To answer a few questions someone asked ... I thought I would share my response because I believe many people out there are asking the same questions ... society makes it difficult for people to ask advice ... so let me start with the most important piece of advice ... don’t be scared to ask a question no matter how dumb you think the question might be ... I have been made out to look like a fool on more than one occasion ... but generally I come out on top ... the reason ... I am not scared to ask the so called dumbest of questions.

When is the right time to start working for yourself ... RIGHT NOW ... no matter how much research you do ... business plans ... loans credit applications etc. ... you will never be fully prepared ... sometimes the harder you fall the faster you learn.

The first mistake ... I am a hard worker ... starting a business is not about how hard you work ... before I started my business ... I worked 20 hours a day 7 days a week ... was the highest earning employee on site(because of my long hours) ... with that in mind ... I thought I would be a millionare in 5 years if I worked for myself ... being a hard worker in a trade doesn’t make you a good businessman ... you need to understand the difference between getting your hands dirty and operating a business.

I don’t get involved in mass projects ... like complexes and estates etc. ... from my own experience and watching many electrical companies fail ... it is the fastest way to loose whatever security you put up for accounts you open ... you go big you fall hard ... don’t trust anyone ... promises are just that ... and signed contracts are just pieces of paper for people with more money to screw the people less money.

It’s not about how much work you have or signed deals or anything like that ... it’s the cash flow in the bank account ... that’s all that counts ... that say CASH IS KING ... believe it ... I see it all the time at the wholesalers ... new contractor on the block ... new vehicles ... big mouth ... big spender ... 6 months later I ask the boss man at the wholesaler what happened to big spender ... he owes R800 000 and full of promises.

You need to create partnerships with people who you think you can trust ... sub-contracting to people who have good values ... morals and make sure payments are consistent.

Running a business is not about how many holes you can drill in a wall or how many DB's you can wire in a day ... business is about creating partnerships with people ... who feel they can trust YOU ... that you are capable of doing the job in a reasonable time frame to the standard you work to ... without ripping them off.

I consult for big companies ... all I have to do in the meetings ... listen to what the contractor has to say to the client ... once the meeting is over ... tell the customer if they are using technical jargon to try baffle with bullshyte ... so far 10 out of 10 meetings have resulted in the contractors returning to fix their short cuts.

Ian

You nailed it !

Don't procrastinate. Some people end up procrastinating their whole life away.

Another golden rule. Don't use your own money to do the job, NEITHER THE BANK'S.
Use the client's money. If they are not keen to pay the up front 60% commissioning deposit, then walk away. I do that regularly.

My late dad always used to drum it into our heads that R1 in your pocket is better than R5 in your "book".

My quote on a job states 3 things very clearly.

1. Read my terms and conditions before approving this quote.
2. Proof of payment of the 60% commissioning fee will be regarded as quote acceptance.
3. I am NOT a licensed and registered credit provider.

It works for me.

Peace out .. Derek.

[ians]

By the way as you pointed out in the message ... I have been doing it for many many years ... I have survived the 5 years 50% fail rate ... the 10 year 98 % fail rate ... I dont even know what the stats are for 20 or 30 years ... but I am still chugging along.

Working for yourself is not about making lots of money ... its not about bussiness plans and overdrafts and credit limits.

The most important thing about running a bussiness ... WHAT YOU DO WITH THE MONEY THE BUSSINESS GENERATES ... in fact this relates to your salary/income of any form.

Finding new customers ... they are a dime a dozen ... thats the easy part of running a bussiness ... especially if you have a trade.

Non payments ... sometimes they just take longer to ride out that others.

you as a person will determine how successful you will become ... some people need a bussiness plan ... some people just need a goal ... others say they need capital ... some will even say more meployees ... and other will say you need all of the above ... but at the end of the day you as a person will need what ever it is to keep you motivated to keep going ... trust me when I tell you it is a long hard road for some of us.

[adrianh]

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[Delta]

Thanks for the advice.

I realize it's not easy but am deadset on going ahead. I understand I won't make millions but want to be my own boss.

I don't have kids yet, bakkie paid off, not in any debt besides small bond, 10 months salary in savings.
If I don't try now then I never will.

What do you suspect will be my biggest issue now initially starting out?

[ians]

Thanks for the advice.

I realize it's not easy but am deadset on going ahead. I understand I won't make millions but want to be my own boss.

I don't have kids yet, bakkie paid off, not in any debt besides small bond, 10 months salary in savings.
If I don't try now then I never will.

What do you suspect will be my biggest issue now initially starting out?

Spending more than you need to ... its like its in our DNA.

If it feels right ... run with it ... just remember the only thing certain in life ... you gonna die one day.

As I sit here typing and think back ... 1 thing that stands out ... there will always be challenges ... you will never have enough money ... so make sure you put something away ... from the very first month and get into a habit of doing it ... that fund must never be used for anything other than your own personal satisafaction ... but beware of insurance/investment brokers ... I lost a lot of money investing in Sanlam and Old mutual.

Take break as often as you can ... it helps to clear your mind so that you can focus on old and new challenges ... when you get stuck in the same ol same ol grind ...it becomes the norm.

YOu could wake up tomorrow and get the virus and be dead in less than a month.

The more you socialize the faster you grow ... join a Church ... a running ... fishing ...cycling club.

What ever you do ...DONT listen to all the experts who know whats best for you ... yet sit in a dead end job ... going nowhere.

You become the people you hang around with ... everyone has a price ... making money is easy ... its sticking to your morals and standards that makes it difficult ... one thing I can say ... when I put my head on the pillow at night ... I sleep well.

I was in a meeting on Wednesday and everyone was handing out business cards ... I wasnt at the meeting because someone found me in the yellow pages or a business card they found in the dustbin ... I was there because I was highly recommended by another customer ... if I made an impression ...trust me they will find my number

[Derlyn]

Thanks for the advice.

I realize it's not easy but am deadset on going ahead. I understand I won't make millions but want to be my own boss.

I don't have kids yet, bakkie paid off, not in any debt besides small bond, 10 months salary in savings.
If I don't try now then I never will.

What do you suspect will be my biggest issue now initially starting out?

Ross

Forget about the 10 months salary saving that you have.
Start as if you have nothing.

Your first goal is to make your first month's salary.
If you keep on falling back on that saving, soon you will have nothing. ( from an old toppie )

If you can make that first month's salary in less than a month, you are on your way.
If not, here comes the difficult part, lower your standard of living until you can.

It's not rocket science, brother. We work in order to maintain a certain standard of living. Period.
The more we earn, the more we spend. The more you want to spend, the more you must earn.
Just don't fall into the trap of spending more than you earn and you will be fine.

Remember, the kroon is not everything.

Quality leasure time for me is important. That is why I work a 4 day week.
Wednesday's are my midweek break. I could have been earning money on that day, but like I said, the kroon is not everything.
Of course, I do realise that when starting out, leasure time is not a priority, but it's something to work towards.

What will your present boss say if you told him you wan't every Wednesday off from now on ?

You don't have to work too hard .... Work clever.

There is nothing better in this world than not having to rely on someone else for your salary.

Go for it, my brother. I look forward to hearing about your success in the future.

My 2 cents worth

Peace out .. Derek

[Lindley]

Now this is Advice..
I realised that if you dont wake up it will be too late,This salary story actually blinds you,it blocks your every opportunity because you have that month end mindset,As they say
a mind streched can never go back too its original form!
Actually starting up my own Business process and registrations almost done!

[Justloadit]

Be careful of the client who says money is not a problem, insist on 80% deposit in this case. If he complains about the deposit, then his intention was never to pay you, then walk away, it will be cheaper for you, just a few hours lost doing the quote. If money was not an issue, why is he complaining about deposit.

Be careful of the client who has lots of money and contracts you to work on a pay later means. The reason his got all this money is because he does not pay his debts. Remember it costs lots more money using lawyers to get your money than what you are owed.

Also, and this may piss off some people - but if the client arrives with a Bible under his arm, or informs you his a devout Christian, then be extra vigilant in your business dealings with him. He is busy setting you up to trust him to take you. You don't bring religion to a business deal.

Never, never start a job with out the deposit!
Also never, never leave the site with out full payment. Once the job is done the client has no reason to hurry final payment, he already has the goods.

Remember that the law says that once an asset is bolted to the wall,you cannot remove it, even if it has not been paid for yet. It is easier to not put it on the wall, than to fight to get your payment. So before you finish the job, ensure the client has your final payment ready. I know this is going to be difficult, but the sooner you get that hard skin, the better chances you will have to make a success.