the smartest move you can make is to befriend a long-standing electrical inspector who knows the code to advise you on code issues that you are not knowledgeable about
Good stuff, Dustin. Running a business is a big thing. Most people would do well to take a class. It's good to learn about insurance & liability, taxes, "knowing your numbers" (expenses, overhead, profit margin, gross vs net profit, etc), and simple bookkeeping like excel or sheets.
I'm almost 20, and I'm looking to be an apprentice in TX, yet I'm currently a CA resident working at TCF. But some gig that helps me out is TaskRabbit. I get to meet customers, do work, and be 100% self-responsible that all goes well.
Thanks for the video. If you need free consultation about software let me know. I have 7 years of experience in managing large-scale electrical projects. I can share with you which software you can use for your needs
I work for a small electrical company now. It’s almost 2 yrs. old. The owner set it up as an LLC BC the owner of the last company we both worked for is being sued into oblivion. He thought that bc he was a good salesman, he could upscale a mid-sized HVAC company into a complete Mechanical, Electrical, and Plumbing company. It was a complete bust. Over 100 of us were laid off. Every vendor in 3 counties never got paid. Jobs had to be finished with bonding companies. I had never been part of such a s**t show.
You speak the truth. I had my own thing in another field, but did basically everything you said. I went from just one customer to a base of over 100 in just two years by doing everything you said. Respect for the customer, knowing you limits, and honoring you word can take your business to a whole new level.
I see a lot of guys in their business who are busy but underpaid, which is not good for the trade; their prices are so low that they can't even afford to pay a correction fee of 47.00 from the county government or city
THANKS for doing this! I’m about to make the jump in about a month or two! I might be crazy for leaving a good paying union job but something keeps telling me to go my own way!
49 years in the trade. I listened and found every word to be truth. First be a good person. Care about the customer and their lives. Do things right. Your absolutly right on the financial part. I know so many that took their 401 k to open the bussines and loans that go under in short orde. take time to build a good customer base. Keep up the good work.
The 10k in the account is something I agree with (and understand). I'm not in the US, but we use USD as well. I have to send invoices abroad to get paid, and sometimes stuff is slightly delayed. You still have to pay your taxes, employees, materials etc. You may also be unable to work for a brief time. It is better to have some reserve to be able to say no to bad clients or low-paid high-effort jobs. I'm not in the electrical business [although I am licensed] these days, but the other thing is to make sure you have enough money and jobs to do, for any person you are responsible for in your team/company.
There is no double taxing of income. There is FICA tax, which is really social security and medicare tax that is split between employee and employer. It is sometimes called "self employment tax/penalty" because when you pay yourself you pay both sides of FICA tax.
Yes, the most challenging part of owning your business is that it's all on you. You must sell your services out there, or you will be dead in the water. Many guys who start a business are not good salesmen, which can harm the company's health. You have to be really people-friendly; if you are shy or timid, it's not good for you. Another thing I see a lot is guys underselling their services, basically paying themselves to have a job like wages working for someone else.
Excellent advice especially on not acquiring debt to get going. Use what you've got, build up steady and organically. I'd also add •For larger jobs especially ones with factory ordered parts like panels and lighting get a non refundable deposit from owner/rep before its even ordered. Once it ships THEY DON'T WANT IT BACK, it's yours. I had a customer change his mind in the middle of a job and I thought I was going to be stuck with about 5k worth of panels and breakers that I may or may not use on another job. It was resolved but that was too near a miss for me to not take note.
Hey Dustin, I live in North Carolina and I do mostly new residential electrical and I actually have my licensing test tomorrow. I’ve learned quite a bit from watching your videos and have a membership as well. You have a brilliant way of explaining things and I wish I had someone of your tier to work alongside to not just learn more but to better develop my own character. Thank you so much for what you do, for keeping it so interesting and having such a charismatic way of doing what you do. I truly hope and aspire to be even half as good as you are at this!
Hey buddy I just came back to this video and noticed your comment. I actually just passed my limited exam yesterday! I failed my first exam for single family dwellings and was discouraged but bought a new study course called fast trax by Paul Abernathy. I credit that course to helping me a lot. My 2nd try for the limited was a success! My advice would be to not be afraid to fail atleast once if you think you’re ready, that way you know what to expect next time. Read every question carefully and DO NOT skip a question without putting an answer even if it’s only a guess. Don’t get stuck on any one question for too long, it will affect the whole test. Hope that helps some.
@@johnhamby4656Congrats on your license! I live in SC and work mostly in NC. I plan on testing myself. I just feel like doing my own thing is the only way I’m gonna really get ahead.
I’d did JCR productions online course for my NC Limited License. Passed on first try. The online study is videos, questions and comes with 5 100 question practice exams. It is well worth the money. Made like a 50 my first practice test and tested over 80 by my exam time.
Awesome you touched on the shoes!! I live and do electrical work in Vietnam and it's customary to take shoes off before entering a house. BUT...... I have a problem with working on the shady ass electrical shit I run in to here with bare feet or feet in socks on concrete floors. Distribution here is all 230V as well, so even though your rubber soled shoes may not be EH rates, just having the rubber under your feet vs bare or socked feet does make a difference. We still use the lighted screwdrivers here to find the hot vs neutral and there have been plenty of times where the light won't light when wearing shoes, but once your feet are on the bare floor, it lights. So, I always ask if it is OK for me to keep my shoes on. I'd hate to be the electrician they pick up off the floor that got electrocuted while standing on a bare concrete floor, sweating your ass off because it's 100f out and have bare feet. Will it prevent every shock or electrocution? No, will it help, for sure! One thing you didn't mention, or I missed is to clean up after yourself!!!! What is with a lot of electricians who leave a mess of insulated bits, wires and just generally no housekeeping? Whether in residential or industrial. I always try to leave a location BETTER than how I found it and I have gotten so many compliments, here in VN and in the US about them thanking me for cleaning up when I am done. To me, it's just a no brainer. But we have all seen it, someone does some work and walks out the door and leaves a mess for the customer to clean up. C'mon man, have some respect. Anyway, as always, you made some great points in the video.
@ #5 - I'm in a very niche market in my area, and there's nothing i hate more than when someone comes in and starts to bottom feed. I have a friendly competition with a few other contractors. Everyone almost takes turns with the bids as they come out. I totally understand the draw to the customer base we work for, but please don't be a low-baller. If possible, talk to your competition. If there's room for more competition, than everyone should win in the end. No one should race to the bottom.
This is such great content!! So many great tips, I can definitely relate to a lot of it as being a polite and likeable guy! I'm needing to try out the software you mentioned as I'm tired of having so many different apps to do my business with.
40 years in the biz and I always have 20K in a business account as my zero, and every january, I pay myself except the original 20K, but that was after years of just running off a personal account
I honestly though electricians were your "catch all" tradesman that took on anything. I really didn't think about electricians being specialized and only doing certain kinds of work. Maybe thats why there are so many electricial companies.
If you stick to your guns where’s the room for growth though? If you fail isn’t that when you learn the most ? Would you rather have a pocket knife with one blade or multiple blades for all situations. Study code hard before new work you are unfamiliar with!
How do you feel about hiring electricians from temp agency - for example, I hate doing residential but I could hire a professional from tradesman international that's proficient in residential!
I’m really glad you mentioned the way that you speak to customers is important. When I hire contractors politeness and courtesy go a long way with me. If they have an attitude on the phone like they’re doing me a favor and they can take or leave my business, not only is it unpleasant to deal with them but in my mind it tells me they’re more likely to not show up on time, not respect my wishes on how I’d like the project done, etc. If a contractor is polite and speaks to me with respect I’m more than twice as likely to hire them. Some contractors are so blunt and rude. I’ve always wondered how they can speak with clients that way and stay in business. I guess their trade is in such high demand that some clients will put up with that due to lack of options.
30$ an hour for a Jman.. god those were the days lol. inflation is kind of a thorn when starting out with inflated material and wages. hard to navigate. thank you for making these great videos!
Also-shop for deals on new bank accounts. I started my own electrical contracting business at the start of this year. I got a $300 bonus after meeting a few requirements for my business checking account, and I got a $900 bonus with my business credit card. Free money…
No it shouldn't. If a contractor is good at paying off on time, I would put everything on a travel card or bonus card as you said. Take great vacations once in a while, buy tools with points etc. We put at least 20k a month on our business card. That pays for my flights to Los Angeles from Montana, where I run my company and channel.
I am currently looking at starting an AV, Networking, and Security camera company. I just found your channel and have already found some good informative videos. I work in IT with little low voltage knowledge from working with ISPs and electricians. Thank you!
This is not an advertisement. The whole "Treat People well" section is so important. We tried the blue crappy foot covers for a while, and I am a size 16 shoe, so that did no go well. Then I bought the Klein foot covers that could actually cover by shoes/boots. You don't really want to work on ELECTRICITY in your socks. Asian Customers where, even if you explain it to them that you cannot remove protective footwear, they are good with those. if the blue crappy ones fit your smaller shoes.. go for it!
Man... I was on a ship where they told me to take "that old Simpson" cuz nobody uses them anymore. To be fair... That's kinda true. A Simpson has no business on a container ship. You need a Fluke 117 or something similar. Something you can drop 3 or 4 decks in a cargo hold. (Yeah, I've done it.) But I can't believe I didn't grab that Simpson VOM. I feel pretty retarded about it. It was still in the box, with Styrofoam and everything. To make it up, another ship forced 2 Hameg O-scopes and a function generator on me because "nobody ever knows how to use them." Haha. I just brought them home for working on guitar tube amps. I'll add that whatever I do, customer interface is my least favorite thing on earth.
whenever I do ANY residential, I always make sure ALL of my tools and bags/belt (I wear a tool belt) are clean so when I touch them I stay clean, and I don't leave paw prints behind EVER! Pro tip ALWAYS have a couple of "Mr Clean" brand magic erasers handy. I always use, at a minimum, old (thrift store) clean, bedsheets, as drop cloths. For bigger gigs proper painter's drop cloths (fabric and/or plastic) and "Blue 3m" painters tape. I also NEVER wear outdoor shoes/ boots in anyone's home (mine included) I like to use clean shower shoes or those wet/dry beach shoes over booties but never shoes that I've worn walking around outside. I've had this very wealthy client now for about 20 years, this dude is a total germaphobe. His home is white on white and is spotless, (he keeps staff on 24/7) I'm the only electrician he ever uses because I get his flavor of crazy, and I can cater to it! I hope this helps! cheers
What's funny... I went from Industrial to residential and I actually did okay. By my 5th house I was off and running but not without A LOT of code reading and asking everyone I knew to give me knowledge.
Can you make a video on electrical terminology. For example transformers, primary and secondary power, AWG, ground neutral and hot, electrical panels,circuit breakers etc
This video actually made me stop and think about what I “like” doing. I really do like working for GC’s but I really do not like going to people’s homes and working for them.
I’m a year in. I would recommend Profit First and Profit First for contractors. Both make the money side of your business easy. Started a helper about 2 months ago doing residential. Has been a great help with new wires and rewires. All great info. Definitely the niche and knowing what jobs you want to do. Word of mouth is definitely best. If people like you and think you do good work they will suggest you to everyone.
Every tradesman and/or business owner should be required to buy a copy, and actually read, a book titled, "How to Win Friends and Influence People" by the late Dale Carnegie. This is not some new-age gobbledygook, but time-tested principles for dealing with people. It's been on the bestseller list since its original printing in the 1930s. Knowing the principles Dale brings out in this book will make Dustin's point number eight become second nature. I'm retired now, but if I started a new business, every employee would be required to read this book, and we'd have discussions on it in staff meetings. Anyone can learn how to wire up something, but the person who excels in the fine art of dealing with people is worth their weight in gold.
Great comminucation with your customer is the utmost importace. Being freindly showing that you are attentive to when they are talking and are going to handle business, and being respectful is a great way to get call backs.
Great advice here. I do not finance my customers jobs. Smaller work of a few hundred dollars no problem anything larger than several thousand dollars, I get a 50% deposit or whatever it takes to cover the materials and more. Again, I am not a financier for my customers.
The showing respect to the customers home has won me more jobs than anything else. Take the shoes off. Even without asking. They love it. Touch the mezuzah. Show that respect… you’ll win those jobs almost 98% of the time regardless of your price
I been keeping all this tips I just started my electric company I was going for my master this year but after 10 years of running big jobs for a company on minimum wage I just when and apply for a business license and just gonna take my gc license and electrical contractor
I always tell my customer I need to keep my safety boots on even when entry their house, because I need my safety boot rubber insulation to prevent electrical shocks when working on their house wirings! Works all the time hh
Favorite line that I’m stealing: “ Never run into that before but I’m really good at figuring stuff out. Let me do a little bit of research and I’ll get an answer back to you.”
How do you suggest breaking into commercial or industrial as a new company? Thats all i have ever done, but the cost barrier to entry is way higher than residential work.
Do you ever get asked about whether you or anyone who works for you has a criminal record? And how do you respond to that? I think you’ve mentioned this before.
That's a great use of the CRM software -- That is to make xhort notes about the client so that you can remember details for your next visit. So their kod's 'footbal thing' can be a quick note to refer back on your next visit. I would also make notes about things I might notice for potential future work. The R in CRM is relationship so use the software to build one!
Tons of great advice here man. Lot of things that you would think should be obvious but many guys just dont realize or care about and these things are crucial to success.
Bro not gonna lie ...contemplating running my own business not electrical but welding....and I honestly think alot of the stuff is transferable and I think I need to reevaluate certain decisions ....the timing of this video is god sent
Dustin I have a question. I was recently sent over to the supply house to buy 6/2 SOOW cable. But the supply house was charging it as 6/3- black white and green. I’m confused as to why SOOW is classified differently than romex,bx, etc. Do you know why this is?
Same here in Canada. All the conductors are insulated in flexible cable so they count the green (bond) as one of the conductors. Where as in Romex and bx usually the bond conductors are bare and not included in the count.
another tip is to find a business peer group. Unless you are in a partnership, you will never have someone in your company with your perspective as the owner. A peer group is a group of business owners (usually not competitors) that grill eachother about their businesses. They are a great place to bring business related issues to, and they play the devils advocate to make your business more efficent.
A good follow up to this video for those of us who enjoy your videos but aren't in the trade. How to evaluate contractors when hiring them from outside the industry. How does Joe or Jane homeowner know if they will be hiring someone who does quality work and avoid the ones who do crappy or simply sloppy (even if to code) work? What red flags should we look for?
