Tips for the new business owner

hr

lay out what you expect, and how you plan on getting there. I went around and introduced myself to all the sales and counter guys at the local supply houses. I get a lot of leads from them. I send them dinner tickets from time to time.

Get listed at the Find a contractor page at this site. Cconsider an RPA menmbership and getting on that contractor locator also, if hydronic radiant is your bag.

There are a couple excellent basic business books available at the Books and More section of this very website.

Let us know how you make out, good luck it can be a fun and rewarding journey if you have the right attitude. Money never hurts either.

hot rod

<A HREF="http://www.heatinghelp.com/getListed.cfm?id=144&Step=30">To Learn More About This Professional, Click Here to Visit Their Ad in "Find A Professional"</A>

Josh_4

TIps for a new business owner

Well... It's time. I am starting my own boiler/burner, hydronic and steam heat business. I was just wondering what wisdom you guys can offer to someone starting out? What was the one thing that you guys didn't anticipate and how did you get a customer base?

Mike T., Swampeast MO

It takes a LONG time to build that base but almost no time to loose it!

Robert O'Connor_7

Josh

It can be very rewarding if you are happy doing this type of work, although with loooooooong hours and sometimes little or no pay to show. Working away from family has got to be the biggest problem for me. I sometimes feel like doing my 8 hours and going home, but in reality it seems more like 18. Don't get discouraged too quickly and have enough $$ on hand to weather the slow times. Be real careful in how you write a contract, it WILL bite you in the A$$ if not careful. ALL BUILDERS ARE OUT TO SCREW YOU!! If you can do your own gig without them, you'll be better off. Other than that, lots of luck!

PS: see thread below.

http://forums.invision.net/Thread.cfm?CFApp=2&Thread_ID=27476&mc=25

Robert O'Connor/NJ

Mike T., Swampeast MO

To Quote you Robert

"ALL BUILDERS ARE OUT TO SCREW YOU!!"

From the perspective of many, many end-users of your service you only screw them. They have ZERO desire for your service as they'd rather be spending their money on something else that's "fun".

The better builders will at least jack you while you're being screwed...

To be successful build your reputation on uncompromising quality, but learn to meter the materials to the budget.

Unknown

Robert hits it


head on.

The best advice I can give you is to do everything you can to differentiate yourself from the rest of the pack. Do not do what the other 500 contractors in your area do. Customers will not be able to know that you are a better choice if you don't let them know WHY. They won't know that your work is superior UNLESS they choose you.

You have 7 seconds to make a good first impression on a customer. If you screw that up, they will NOT buy from you regardless of your price.

Get the tape "The Art of the close" by Brian Tracy. Nightingale productions. That tape made a HUGE difference in my life. I knew PHVAC systems inside and out, but a sale was new to me. Watch it at least 3 times.

Do not rush in and throw your advertising dollars in the same places that everyone else does. You'll be no different than they are in a customers eyes. Unless you want to be a service oriented company, avoid the Yellow Pages. I have NEVER gotten a decent YP call. It's always someone doing the alphabet walk with their fingers until they get someone to bite. Don't waste your money there.

A good web site is a plus. Make sure your company web site can be accessed with as many key words as possible.

Like HR said, talk to the suppliers. Let them know you're open for business. All of the suppliers I had done business with BEFORE I went on my own treated me no different when I did open for business. Be loyal to them.

In closing, I cannot stress enough the importance of distancing yourself from the other contractors in your area. Never allow yourself to be lumped in with them.

I wish you the very best of luck. Don't give up. You have to work at succeeding, failing requires nothing.

Mark H

To Learn More About This Professional, Click Here to Visit Their Ad in "Find A Professional"

joel_19

charge enough

80% of contractors fail not from lack of work but lack of money ! most guys think "well the boss charges x so i can charge less because... " Wrong ! stop right there on that thought . if 80% don't make it then chances are your boss isn't going to make it either!, doesn't know his cost and doesn't charge enough ! So if anything odds are you need to charge more than him !
get Hot Rods wife's books that will be a huge help.

To Learn More About This Professional, Click Here to Visit Their Ad in "Find A Professional"

Weezbo

Howdy Josh. *~/:)

here is something no one has said..buh here it is..i was sorta astounded at how fast hydronic boilers took over from steam..and i am a young guy in his fifties *~/:)

as tight as we are building these days i be real sure that the future will trash a great percentage of this last few years advances...fuel (liquid)costs are purely heading in only one direction.... so,...i would say keep abrest of the times as the first general drift of good business practices... know who to urinate off immediately. lots of bad word of mouth from someone lots of people know is good :)plus it doesnt cost much remain enigmatic *~/:)

Help some people in your community from time to time, so you thought... YOU had problems :)oh and maybe have a motto you find you can live with .."Deeds not words"is our old school motto,and hand in hand was "Do not rely on your Laurels".....the business world is always changing as do various forms of government...adapt...

Unknown

I gotta pipe in on one thing; that seven seconds thing is a total bunk idea.

"First impressions" mean absolutely nothing, unless it's to people you don't want to work for in the first place.

If what comes out of your mouth is technically sound, easily understandable, and sincere, you can be Bozo the Wonder Plumber Clown and you'll get the job.

Don't stress about your impression. Focus on what needs to be done, what the customers want and need from you, hit those two things with everything you've got, and you'll get the work you want. People notice when you show them you know what you're doing, and that you care about what's good for them and their project.

Bill_14

\"First impressions\" mean absolutely nothing?

Wow, what a statement. I would think that a good first impression would actually help "Bozo the Wonder Plumber Clown". Please...

Bill

Unknown

Marketing people will disagree, I know. However marketing people are also victims of their own mindset.

Seriously; ability, clarity, sincerity. I have seen nothing that trumps those three things as of yet. If you are missing any of them, then perhaps how well-pressed your slacks are is a compensating feature. If you have them, then you have no need to worry about impressions, and worrying about them will just make you less sincere.

David Sutton_6

one thing i learned..

If you are going to have a partner make sure ...what is in him is what you are missing.. partners are a hard thing to deal with, if your good in the field get one thats good with the books.

Don't i repete...Don't be in a rush to be the big guy or the biggest company. get a acountant, lawyer and a hitman.

Keep track of everything or you will bleed to death. start with what you NEED to start and make GOALS to get what you want. Separate your self from the company pay your self like you work for you and stock pile the rest...good luck ..David

Mad Dog_2

All gave very sound advice...here's mine

1) Know exactly what you need to charge - Ellen's Books and basic accounting will help you here.
2) have the guts to charge it - even when some will call you a crook.
3)Watch the ego trip thing. Don't try to out-do or run with shops that are sometimes established for several generations. They usually have shops and trucks that are paid for long ago, and lots of money in the bank. Also phones that ring everyday - regardless!
4) Don't be extravagant - grow very slowly and carefully. Make sure you can REALLy afford new trucks, et cetera
5)as the Mr Hunt said - specialize. You will get known alot quicker that way.
5) Join the chamber of commerce - usually inexpensive and a good networking tool.
7) If you have to work for contractors at first - get away from them as soon as you can.
8) Do better work than anyone else around you, but don't "give away" too much.e.g., don't go overboard on valves and things unless they are paying for it.
9) It is more important to be a good businessman than a good tech - think out decisions and crunch your numbers - always.
10) Don't let the stress kill you....Do your best for youyr customers, but don't beat yourself up when the don't show loyalty or if you aren't able to get to them all sometimes - they'll be back.
Here to help if you'd like to chat. Good luck son, Mad Dog

To Learn More About This Professional, Click Here to Visit Their Ad in "Find A Professional"

David_5

Advice

Get a very thick skin. People are going to call you all kinds of things. Learn to critique yourself and your decisions. Always go over jobs and decisions and ask how you could have done it better.

Captain Picard once said " you can do everything right and still fail".

Good luck
David

Bill_14

Clowns???

How about trying both...make a good first impression and do a great job? We don't attempt to hire any clowns!!

Bill

John R. Hall

Here's my advice

Wait until my book comes out later this year titled "The Next Contractor" and get a lot of great advice from 100 contractors. (Shameless self promo.)

S Davis

advice


Josh,

The best advice I can give is only buy the items you can't live without at first and then get a cushion built up in the bank for that slow time or when the tax man comes and belive me it happens to everyone at one point or another, and just because you are not working does not mean the bills stop, Insurance, truck payments, advertising and tools when they wear out or break just to name a few.
If things do get slow and you start to consider lowering your prices don't you will only be sliting your own throat, some think you can make up the difference in volume
of work this does not work.
As others that have alot more experience than I do have said, being a good Tech does not make you a good buisness man read books on buisness and learn as much as you can about running a buisness so the buisness does not run you, and be ready to work 24-7 for at least the first 3-5 years.

Good luck to you it is a great ride you just have to watch out for the bumps.


S Davis

Apex Radiant Heating

John L

more tips

spend time now to develop a biz plan. Check out www.hudsonink.com for marketing tips, ideas, programs,this company does have great programs, also check out www.serviceroundtable.com for similar ideas.This service has a $50 monthly sub but it is worth it. If you came from the tech side of the biz, learn the other side as fast as possible. Get your customers on maintenance agreements. There are a lot of "things" to do and remember. Make lists of priorities and work the list. Learn how to market your services and skills. Getting the phone to ring is what gets the ball rolling because if there are no phone calls then there is no biz for the most part. Get your hands on some selling and marketing materials- Charlie Greer has some good stuff. Put as much passion into the selling of your services as you do into the "work".
Ask yourself what makes you different from the other people in your town in this biz. Write it down and memorize it and tell your customers this. BUILDERS WILL SCREW YOU AS THEY DO EVERYONE ELSE. ASK YOURSELF WHAT DID I DO TO ADVANCE MY BIZ TODAY? you market for cash flow and you manage for profit- do these two diligently and you will be successful.Learn how to close deals, sell for a healthly profit and dont be afraid to ask for top dollar for your work. 25% of the companies in this industry go out biz each year and it is mostly because they are not financially strong which comes back to properly pricing your work. Yellow pages are expensive and generally not worth the money. Direct marketing is better and more profitable. door hangers are useless. newspapers are also expensive.set a budget for marketing.

John L

more tips

spend time now to develop a biz plan. Check out www.hudsonink.com for marketing tips, ideas, programs,this company does have great programs, also check out www.serviceroundtable.com for similar ideas.This service has a $50 monthly sub but it is worth it. If you came from the tech side of the biz, learn the other side as fast as possible. Get your customers on maintenance agreements. There are a lot of "things" to do and remember. Make lists of priorities and work the list. Learn how to market your services and skills. Getting the phone to ring is what gets the ball rolling because if there are no phone calls then there is no biz for the most part. Get your hands on some selling and marketing materials- Charlie Greer has some good stuff. Put as much passion into the selling of your services as you do into the "work".
Ask yourself what makes you different from the other people in your town in this biz. Write it down and memorize it and tell your customers this. BUILDERS WILL SCREW YOU AS THEY DO EVERYONE ELSE. ASK YOURSELF WHAT DID I DO TO ADVANCE MY BIZ TODAY? you market for cash flow and you manage for profit- do these two diligently and you will be successful.Learn how to close deals, sell for a healthly profit and dont be afraid to ask for top dollar for your work. 25% of the companies in this industry go out biz each year and it is mostly because they are not financially strong which comes back to properly pricing your work. Yellow pages are expensive and generally not worth the money. Direct marketing is better and more profitable. door hangers are useless. newspapers are also expensive.set a budget for marketing. this can be either a fun biz or a pain in the derriere. remember what willy the shake said-there is a time in the tide of man when taken at the flood leads onto fortune- here's to your time and tide. GOOD LUCK

ScottMP

MY first impression is

That you are arrogant !

Your probable a really nice guy and a great technician.

You lost me in the first seven seconds

Scott

To Learn More About This Professional, Click Here to Visit Their Ad in "Find A Professional"

REF

I think

that if you follow Ellen's books, spend money on training, make that first good impression by doing the things the guy that doesn't buy into the good impression, and only work for those who appreciate quality and you'll be on your way. It is really great to be in business, however, keep it real. I mean it is going to take a lot of time to get going. Maybe you could sub-out some work to keep going. Again read Ellen's books because if you don't you will most likely fail from the lack of correct pricing. Best of luck.. Keep us posted..

Respectfully,
REF

Unknown

well from what I've seen, people who spend too much time worrying about image and impressions often come across as fake. People notice that. When they hire someone for technical work, they don't want a salesman. They want a competant technician they can talk to.

I'm not saying go out of your way to look like a slob. I'm just saying that part of things isn't worth really worrying about. The 3 biggies are what you should worry about. The rest works itself out. A glowing reference trumps everything.

SVDW

Joel, from a supply house perspective I can't agree with Hot Rod more. If you have good contacts with your ex-employer's supply houses don't hesitate to exploit them. Some of our most successful accounts split off on their own & we are happy to help any way we can. You get better service & we sell more of "our" stuff. We know you're going to stay with the guys that took you seriously and treated you right when you started out. Go talk to the inside/counter sales guys & find out who you will be dealing with & spend a few minutes telling them about your business & yourself. Get the direct phone lines, e-mail & names of the people you deal with so your needs are addressed by the guys that know you & what you products you use. Let your inside guys know that you want to attend any product training class & seminar available (usually free). We get credit for training a contractor & you learn more about the products you use, (& hopefully a free lunch!). Above all, please use PO #'s or something to identify your purchases so you can keep your billing straight. If you get a quote on something jot down who you talked to & how much he/she quoted you & the date. Some supply houses will do your heat loss, drawings & ect. free of charge so let us spend our time doing it instead of you. Don't be afraid to ask for a price break if you quoted a job too low & need a little help to get through it. Ask your salesman if the supplier will letter your truck free of charge or help you promote your business in some other way. It all helps. Granted, not all suppliers do these things but they should. You guys pay our bills & provide our jobs. Sorry this turned into a short novel but I hope it helps & wish you much success.

don_144

i'll

say make sure you live in a place where the average income is above poverty.

Edward A. (Ed) Carery

Where???

Josh,

Where are you located, (what state).

Ed

Josh M.

I live in the greater Seattle area. I worked in the radiant/hydronic/steam industry for 5 years then worked for a rep for 2 and on big boilers for 2. I think that I am very well versed. Thank you all for your advice. I take it very seriously. Why learn from your own mistakes when you can learn from someone elses. By the way guys how much did you start out with? I have to try this with about $50,000. Am I kidding myself or is this possible?

Al Letellier

new business advice

1--become the best at what you do....keep yourself educated and trained on a consistant basis
2--Find your niche and stay there
3--return phone calls even it's to say sorry I can't
4--charge MORE than enough...if you're good enough
5--Be prepared to live and breathe your business...it will become your life...but take time to relax and recharge
6--Look and act like a pro
7--Above all else, honesty and integrity are your best tools
8--Stand behind, above and all around your work...if you mess up, clean up the mess
9--Pay thyself first
10--I can't take credit for this one...."give the first tenth of you income, save the second tenth, and spendthe rest with thanksgiving and praise" !!!

All the best of luck to you

To Learn More About This Professional, Click Here to Visit Their Ad in "Find A Professional"

S Davis

Starting Capital

I started with $2000.00 and the wife ready to skin me for leaving my last employer, I borrowed a pickup from my father inlaw and never looked back that was a little over three years ago, but I had been specializing in radiant for nine years and had been working in the northwest in the heating trade for about 13 years and had alot of contacts, you should do well in the Puget Sound area there is alot of boiler and radiant work if you treat your customers well and do good work, we are located 60 miles north of seattle and don't have to worry about not enough work, most of it comes word of mouth and we do very little advertising.


S Davis

Apex Radiant Heating

Mad Dog_2

meter materials to the budget...................................

THAT!!! has been one of mt BIG problems in the first few years. I'll remember that phrase, Mike.- good one. Mad Dog

To Learn More About This Professional, Click Here to Visit Their Ad in "Find A Professional"

Mad Dog_2

Forgot this one...that got me in to trouble from time....

to time..... ALWAYS be clear on Flat rate price or T & M rate BEFORE!!!!!!!! any work commences. This was the biggest headaches for me until not too recently. Mad Dog

To Learn More About This Professional, Click Here to Visit Their Ad in "Find A Professional"