Any tradies run their own company here???

[Jayro]

Hi all,

Just wanting to pick some brains. Im a tradesman and considering starting my own business in the next yr or 2. Have wanted to for a few yrs now and getting keener by the day. Want rush into anything as I want to get it right. Have no plans to be a small back yard business and would plan to get to 5-8 vans on the road for me eventually.

Iv been doing this trade for about 12 yrs now since leaving school. Now back at tafe at nights doing a business course. I know in my head what I want to do and achieve. I know that ill only deal in certain brands and target the market I know im good at. I guess its just the fear factor. I "think" i will be good at it, I "think" I can make it work. BUT i am a little worried about the begining, pulling a wage still (even small will get us by).

Im thinking of increasing my weekend work to build up a bank account level and then once im happy with the $$$ behind me then take the next step.

Just wondering if there are any tradies on here who have had a go and made it work? Not meaning to sound rude but I dont just mean out in your own car plodding along each week. There is nothing wrong with that but its not the path im looking at.

Any plumbers, electricians, air con etc etc????

Cheers Jas!

PS I do fully understand that it will take huge effort and commitment. Im not under any illussion. I also realise that the economy isnt pumping along. My trade is still going along ok. And at the end of the day I still very much believe that I can make a go of it in this economy. Sure id like a booming one, lol But it is what it is. Im 30yrs old now and I dont want to be saying "gee I wish I did have a go". I know its easier to work for my boss and pull my wage but I want more and Id love to have a good go at it. My boss is always saying how this costs him, and this costs even more, and why does he bother bla bla" And I see his point but......

 

[moyjos]

Hi Jas,
I have PM'ed you

 

[Jayro]

Thanks for the PM. Much appreciated. Will chat with you soon.

Cheers Jas!

 

[BlackSpider]

Hi Jas,

What trade are you in, didn't see you mention it.
I'm not running a trade business, so can't give any advice there, but I do run a business.

It's a great thing that you are studying nights at TAFE for business.
That will be the key to your sucess in my opinion.
You can be the best tradesman in the world, but if you're no good at business, you won't earn the big dollars.
Or you could be a shocking tradesman, but be an excellent salesman/business man and win massive contracts and make an unlimited amount of money.
If you are the boss and have others working for you, it wouldn't be such a big deal.
I have learnt that being a perfectionist loses money and you have to loosen up your standards if you want to increase turnover and bring in the big dollars. You just have to let the little things go and ignore them sometimes, something I don't like to do, but you get used to it.

So being a good businessman/salesman will be the key to your sucess in my opinion.
Once you are operating one sucessful business, there is no reason you can't duplicate the system for another business, which can be totally unrelated.


Good luck

 

[Jayro]

Im a qualified air conditioning and refrigeration mechanic. Thanks for the reply. I agree about the business side being important, hence I hope the night tafe helps me along. I know a few great tradesman that are crap businessmen and have cost the family serious $$$ because they were of the opinion that "any fool" can run a business and there trade skill would make them the $$$. I really feel that the business side of things is the key. Happy staff, happy, well serviced clients and quality products would be my aim.

Cheers Jas!

 

[evand]

I had a pretty successful electrical/comms/computer networking cabling business in the commercial -government area which i started as a one man business, built up to a fair size and sold. What would you like to ask?

The main thing for you is how to get work or business. Every industry and trade (and different areas within each trade) does it differently.

You already have the technical knowledge, you just need to know how to get lots of business, enough to run as money vans as you want.

How does the business you are now working for get work? When you start out you can replicate what they do, thats how most tradies start off until they build up a bit of a rep in the industry.

 

[beachgurl]

My dad is a cabinetmaker and went out on his own around 10 months ago. He was getting a regular supply of "foreigners" so thought he may as well give up working for someone else and make a living from these customers. The work dried up for a little while and he had a very lean5 or so months. He built up his contacts and did a bit of advertising and eventually the work started coming in. Now he is getting referrals from these customers and he is finally busy again. He now makes more money from building and installing one kitchen per month than he did working full-time for someone else.

My brother's a fridgie and he considered going out on his own. He was making great money in the summer from private jobs but work was very lean in the winter.

All the best for starting your own business.

 

[softmonkey]

My boss is always saying how this costs him, and this costs even more, and why does he bother bla bla" And I see his point but......

Hi Jas good on you for wanting to have a go but there's something you may not have realised. Your boss sounds like your BEST source of information!!

Do you want to be the same guy in 5 years complaining to your tradies?

Maybe instead of tuning him out lend him a sympathetic ear and ask him questions, find out more about the expenses and difficulties he goes through. Then you can be better informed and prepared.

hope this helps

 

[willair]

Hi all,


Just wondering if there are any tradies on here who have had a go and made it work? Not meaning to sound rude but I dont just mean out in your own car plodding along each week. There is nothing wrong with that but its not the path im looking at.

Any plumbers, electricians, air con etc etc????

Cheers Jas!
.

I was plumber for a while,working 90 hours plus a week,on a 24 hour call up system ,where i paided a Lady with a very good phone manner to answer the phones lines i had setup ,nothing flash ,i was never good on the phone,had a simple sign on the back and sides of the utes with my contact numbers to answer the calls, u see so many utes outside places doing a job with no contact details,1000 cars may well drive past the ute ..
The only way you could make money in your game is doing entire comm floor fitouts or refits from start to finish ,duct work install,fridg side,fit off,
but it that game you run the risk of not being paided,and need a high cash buffer to keep it all going,there is a good quote on page 54 in a book by
M E Grerber,the E Myth,you come face to face with the unavoidable truth
You don't own a business-you own a job..good luck imho willair..

 

[gcad]

One way to go is subcontract to other refrigeration companies first and build your own customer base to the point where you have enough work that you don't need to subcontract anymore.

 

[Jayro]

Thanks for the replies and all the bits of advice, much appreciated.

Softmonkey, Im always having VERY long chats to the boss about business. How and why he does things, what works, what doesnt. I work along very well with the owner of the business and learn what I can as I go. He is the one who talked me into doing the Tafe course. Certainly never tuning him out (not sure where you got that impression). I see many things he does that works and see plenty that dont work and that I wouldnt do.

Speaking of Tafe, lol. Im off for another night on the books (well computers these days)

cheers Jas!

PS evand ill send you a PM in the next day or 2 if thats ok.

 

[Reach]

Hi Jayro,

I have had some exposure to SMB in sydney, with my own business. I have also worked for a number of aircon SMB in the sydney area.

I know from my discussions with them the challenges they had:-

- Getting Quality Staff (a problem for all businesses)

- Winning Business Contracts - This is key - understanding how what business look for in a aircon maintenance. (new builds/ existing contracts) what are the SLA's, what are the expenses and conditions for a typical contract. How can you provide an edge above other competitors. Typically business look for a certain size/stability for there contracts.

- Seasonality of the aircon market.

Basically they needed staff to fulfill the summer peaks, and looked to business /maintenance arrangement to fulfill the winter lulls.

They operated with marked vans, and received alot of referral work, which i believe is strong in your market. Getting good contacts in the building industry would be invaluable. Ability to understand what competitors quote etc is important.

I have always found that talking to customer you have not received contracts with the be invaluable. Ask them why? how come? etc. I have rarely been given an answer which did not help my business

They operated from home at first, with a low overhead, and storing equipment in the garage. In the business there was a division of roles.

For you I would suggest its important to differentiate - "working on the business" and "working in the business".

As the owner you will need to do both, but to get to the size you want you will need to "work on the business" at lot more.

- Selling
- Quoting
- Marketing
- Finances
- Cashflow
- People Management
- Time Management
- Suppliers
- Maintenance
- Establishing Business Practices
- IT
- etc

You will need to understand your strengths and weaknesses and try to make up from your short comings from the people around you.

Of course - im not in your industry - so please excuse me if ive got the wrong end of the foot!

- All the best

 

[Minx]

My partner is a tradie and runs his own business. The following are based on my observations and opinions

Upsides
- He is good at what he does and has quite a few builders constantly giving him work - builders all stick together and are sticky beaks on projects. In fact three builders who take his services come from the main builder who supplies him with work
- Money is good
- Affording the finer things in life, toys etc.
- Minx will get her BMW X5 in due time, paid for by the business, fuel paid for by the business etc
- Minx will go on a holiday to (insert destination here) for business/research reasons
- Don't have a boss, no one to boss you around

Downsides
- Works a minimum of 70 hours a week
- Has often worked 7 days a week, 3 weeks in a row
- For the above reasons can be tired and in a stinky mood when home
- People want their jobs done yesterday, so that means you often can't just pack up and go home. You sometimes have to stay until the job is finished.Unlike being an employee like my partners, he knocks off and it's common that my partner stays on for an extra 4-5 hours.
- Then after all that find the time to do paperwork e.g. invoices, wages, BAS etc
- Sometimes I could argue that having an apprentice or employees is bad. Can't just book a holiday to Europe etc.
- Find the time between all that to quote for a job and write it up. Unfortunately it's almost to the point where my partner doesn't do quotes or jobs unless it's for the builders that want to use him as he knows the quote is just a formality and he hasn't wastes his valuable spare time looking at plans or the job and writing up a quote for nothing.
- Having people work for you. At the end of the day they don't care. They do their set hours, get paid then go home. At least 3 builders have commented negatively about the apprentice. Getting rid of someone isn't so easy.
- Looking for work. If you or employees don't work, you don't get paid. If you don't get paid, you still have to pay employees.
- Owner builders. I won't get into that one, but my partner does not do work for owner builders.

 

[Jayro]

Thanks very much for those replies. Great info and advice. Much appreciated.
Cetainly lots to think about and not something im going to rush into without thinking it through over time.

Cheers Jas!