How to grow a small electrical business

[Isetech]

I talk from my own experience, I have the TEE shirts to prove it, lots of them.

Anyone who has been around for more than 30 years, I salute you., well done, I take my hat off to you.

When I started this little business, the 286 computer was the best thing since sliced bread.

Pagers where used to message people in case of emergency.

We stood in long ques at the bank with cash and cheque and deposit book.

We were paid by cash or cheque.

Quotes and invoices were hand written and delivered

Long cords were attached to dialup phones.

Electricians were proud of their certificate.

You could buy a brand new bakkie, with a canopy and mag wheels for under R20 000.

[Isetech]

What have I learnt:

Cash is king, no money, no business, it is that simple. You can shuffle words as much as you like. It only takes one bad customer to end your dream. The quicker you can identify the customers who have a negative impact on your business , the faster you grow. This people is one of those tips that could make or break you.

The main purpose of a business is to generate enough cash to pay the bills, grow the business and create partnerships with people who trust each other, it works both ways.

As you grow you need to employ people, identify their strength, train and educate them so that they can add value to the business.

If you are in it for the long game, I would suggest you lead and interact with customers on a personal level and gain trust. Stick to your word, there is no place for bullshyters.

I still after 30 years dont believe in signed contracts, if I shake your hand, my word is more valuable than any document.

I have learnt to stay away from advertising in any form, you want to see rats and mice come out the wood work, post ads.

Make sure the customer is good for the bill, too many people see sports cars parked in the garage and just assume the customer is good for the bill. Do your homework, people dont just jump from contractor to contractor for no reason and its not always the contractor at fault.

[Isetech]

So how do you grow a small business?

You need to make sure you have a set point/goal. This will determine your growth. I am not talking about people who inherit large sums of money or handed down wealth. There is nothing wrong with running a small business, I have done it for many years.

For example if you plan on just being a small contractor doing the odd house bashing, a kitchen revamp, rewire or general maintenance, chances are you will work for the rest of your life. You will end up driving the same car for many many years and need to stay healthy, other wise you will find a couple days off work will impact paying your bills at the end of the month. The best advice I have ever heard, put away a little money for a long time and hopefully one day you will get to enjoy real freedom not just the freedom of from working for a boss.

You could also use your name as the company name, it doesn't really matter, because chances are you dont plan to grow or sell the business.

[Isetech]

Then we move onto a small business which has a higher set point/goal

This is were you need to consider certain things like the name of the business, if you plan to grow and sell, then you might be better off finding a more universal name.

As we all know cash is king, how do you fund a small business which you want to grow so the overheads will increase, you will need to employ staff who are more qualified which will increase the wage bill. HP repayments on the vehicle that you will need to purchase, tools and equipment?

This is where I am at the moment, I plan to wind down the current business from now until December 2025. Find a name that is universal and figure out how to fund the new chapter starting in Jan2026.

Something that I have stayed away from in the past, partnerships, but this might change.

I have learnt that if you plan to grow, you can't live by the phrase , "If you want something done right, do it yourself". I have been involved in 10 bar contracts working with more than 50 people in a team, we got the job done because there was a leader who was on site first in the morning and last to leave, spent the entire day making sure that everyone was given a task, made sure they completed each task and assisted when they got stuck or overwhelmed., shuffled people around the site as needed. If one team was getting behind, other teams would be relocated to assist. The biggest lesson learnt from that project, was the way the manager handled the teams, instead of shouting at people for mistakes, they would be moved or assisted to make it right.

You want the job done right in a certain time frame, get the right tools for the job and make sure teams have tools required to complete the task. This has become the number one reason for so many failures on large site, right up there with toilet visits to sit on the phone.

The tricky part is going to be finding people with the right attitude and willingness to work, figure out what their strength then help them grow.

The smartest crayon in the box is not always the best choice.