starting a small electrical contractor company

[csharp]

So I have been writing up a business plan for the past couple months. I feel that this is something I would like to pursue but I always have doubts.....So to all whom have started their own business please give me some advice to getting over this first hurdle called doubt...I do believe this is a service I can provide to a customer very well. As I have been in the trade for 7 plus years. I have watched and learned a lot from my employer on the do's and dont's. But what I feel I am having a problem with is how am I able to compete with all the franchise and small electrical contractors out there? Has anyone had an ideas that really worked that no one in the market was doing for marketing that just really got a name out there? and another question that is keeping my mind thinking all the time is, I have a retirement plan with my employer and I have been thinking of pulling my money out to use for my business startup....would this be a wise decision? considering the market is always up and down. I know I would be hit with a high tax rate because I am not 59 1/2....But if this business where to take off it would be a great investment right? thanks for your resposes in advance.

[tallen]

How would you distinguish yourself from your competition? What would be your particular market niche (who would you target as customers) and/or what would be your unique selling point?

[Steve B]

Quality work and great customer service will go a long way. It will take you quite a while to get enough customers to support yourself, but if you do those two things it will eventually happen for you if you have the passion and patience.

[huggytree]

ive been running my own plumbing business now for almost 6 years...so were very similar

I keep a data base of all the local builders...then I send them fliers every 3-4 months....once a year or so I call them...ive been doing it steady for the whole 6 years....so everyone in town knows who I am.....eventually they all seem to call me and let me bid

I started out trying to be cheaper than everyone else...didn't work well.....then I decided to raise my prices and be the quality guy....I focused heavily on service.....it took me a while to learn, but I found out about 50% of the population will pay more for higher quality........service is important, but people don't buy based upon service....they will be a repeat customer because of service though....

electricians around here are very cut throat...they barely scrape by...they charge almost 1/2 of what I do....im always shocked....hopefully its not the case where you are

find a couple of builders, get a good website and youll survive...spend all day finding and talking to customers right now...until you have work you will have to fight to survive

I would personally never take anything out of retirement........I saved for years to get my business going...I don't think an electrician needs much besides a drill and a van? what do you need the $$ for??? spent thousands on a website...don't skimp...ive skimped over and over...each time I spent more it was more successful

find a niche...my niche is high end remodelers...I work on 100 year old high end homes...its mentally hard work and those cheap guys who pound out new homes wont do well here...but you can

[Tony Manto]

The one think you have to consider I what they call the J curb. This is where things get worse before they get better. This might take 1, 2 even 5 years before you start making more money than working for an employer. If you are passionate about starting your own business I would recommend you have enough finance to ride this out.

Working with builders is the perfect answer, you could even try property managers. Don't compete on price. Live by price, die by price....

There is never a good time. Providing you have a good plan, and finance to back you, there comes a time where you just have to go for it.

[huggytree]

property managers are going to hire someone 1/2 price....ive never been able to get any to last for more than a project or 2 at full price...price is king with that kind of owner

I have 1 multiple property owner that uses me....they are willing to pay full price because I know them personally and they are willing to pay for honesty/skill and quick response....most of these types of people only care about price.......they want to keep their $$....I would never recommend marketing to these types of customers...99% wont pay full price

it took around 3 years in business before I noticed the power of referrals.....you have to build a customer base up large enough before referrals come in at a steady pace...before then I was mostly working for prime contractors and not so many homeowners