Starting a business

[Gary Fowler]

This is not really tractor related although it might run into some tractor work down the line.
My neighbor wants me to start up a business doing electrical fixture upgrades. This would be working with a lighting distributor (his brother) who has several contracts to upgrade business light fixtures from fluorescent to LED. The work does not require a licensed electrician just need some basic wiring knowledge. I would have to get a contractors license with something like an LLC company and could entail working in several different states.

Does anyone know how I would go about doing that? I would also need some basic company liability insurance, I have no idea how much that would cost. This would be a small operation starting out with 4 employees with max of about 15 employees.

Anyone with business experience chime in here!!!

 

[jenkinsph]

There are companies that will go into large buildings and replace all the existing lamps at one time. You would think that this would be an easy transition for them to install the newer led T8 and T12 tubes. No need for a new business unless there is more work than the existing companies can handle.

I have had employees working in many states across the country years ago, some were good with traveling and others were an absolute pita. Caution is advised. IIRC you have traveled quite a lot in your work in the past and maybe you have a handle on some good employees for this work. .

Federal government buildings might be ideal work to consider because with tax exempt status you would not need to track a lot of paperwork or deal with local inspectors and the like. Even if you found a need for an electrical license you could get your license in Arkansas and use it throughout the US and it's territories on government sites. You would not need to deal with the local or state license or their inspections. That reduces the red tape and a lot of extra paperwork.

If you go for it I hope you have success, nothing ventured nothing gained. Think it through carefully.

 

[Handloader109]

So, you would set up the llc, (pretty simple and relatively cheap). Your company it seems from your description. Probably local license as contractor is all you need, check with the city of Bismarck. You as owner would be responsible for the liability insurance. Check with whoever you buy insurance from to see if they offer or could direct you to a company. (something like a 1 million dollar policy would be plenty.) if your friend is looking for a partnership, I would decline. it would be better to be an employee than a partner. (and as employee you would not need insurance nor business license)

 

[Gary Fowler]

So, you would set up the llc, (pretty simple and relatively cheap). Your company it seems from your description. Probably local license as contractor is all you need, check with the city of Bismarck. You as owner would be responsible for the liability insurance. Check with whoever you buy insurance from to see if they offer or could direct you to a company. (something like a 1 million dollar policy would be plenty.) if your friend is looking for a partnership, I would decline. it would be better to be an employee than a partner. (and as employee you would not need insurance nor business license)

No partner, my neighbor is working for his brother getting a new company started up. His brother is the district lighting distributor for most all lighting fixture companies and has recently bought a couple companies that do work for schools in Texas and another that he is bidding jobs for internationally to furnish and install LED lights to replace every type including one contract for Ho Chi Minh City to replace all of their street lights (I wouldn't be involved at all with that one)> I don't see this venture as lasting indefinitely since once the new LED lights are in, it is supposed to be a 10 year bulb. Right now they have more jobs than they can find people to do and everyone wants the work done right now. One contract is for 360,000 lights to be replaced, so lots of work to be done. I just don't know what the pricing structure of this type work would be, although some videos show less than 3 minutes to replace 4 foot x 2 foot fluorescent fixture. Of course that does not include getting material in place, removing packaging and disposing of the fluorescent bulb hazardous waste.
The labor to do the work can be estimated pretty easily but all the ancillary costs like waste disposal, and even daily out of town living expenses would have to figured into the overhead.

 

[murphy1244]

Don't know a thing about it but Good luck I hope its a success.

 

[Jkott]

I assume you have tried to replace a few to see what you are in for?

I've had the ends of old fluorescent light bulb holders disintegrate. Then it becomes a lot more than 3 minutes.

Are they all the same type of fixture? All low enough to use a ladder or scaffolding? Will you need lifts?

They replaced all the can lights with LED's in our building's lobby. I think it was a couple dozen bulbs, but I seem to remember them needing an articulating lift to get over the stairs and "raised landscaping". It was a couple years ago, but I seem to remember them taking much more than a couple days (I'm thinking more like a week) to change those out.

 

[Gary Fowler]

I don't have much info at this time other than it would be on a per unit basis. I have been thinking about how I would entice a person to come work for me and I don't think there is enough money in this to afford to pay for employee health insurance which most folks would want. Plus working out of town, I would have to pay per diem in order to get permanent employee to work on this and I just don't think the lighting distributor is going to want to divvy up the profits enough for me to make any money.
I am really thinking this would not be a good endeavor given the proposed price structure.
I have to get more info before committing the first $ to this.

 

[Complete Turf Care]

Getting a business set up is easy. I've done a few over the years. I just go to my Secretary of State's web site and fill out a few forms and pay $60 and it's set up. Then, you have to go to the IRS site and get a Federal Tax ID number. That too, is fairly simple. You will need the tax ID number to open a bank account.

After that, I would suggest you get an accounting program to keep track of everything. I use QuickBooks, but there are others out there.

And, contact any insurance agent for insurance. You will need liability and worker's comp. Cost for both of these are based on payroll. I pay about $0.05 to $0.10 per dollar of payroll, but I have heard of some occupations as high as $0.95 per dollar. Check on this before you start setting up your pricing.

Having said all of this, I think you should think long and hard about starting a business in something you know nothing about. I highly recommend you start your own business, but do something you know.

 

[Omega Woods]

Having said all of this, I think you should think long and hard about starting a business in something you know nothing about. I highly recommend you start your own business, but do something you know.

This.

You should get as much information about this business from your neighbor and his brother. If you're satisfied, Mr. LawnCare has the basic steps for starting a business listed above.

If you even get a whiff of something not being on the level with your neighbor's brother (cash investment, non-specific information about the scope and timing of jobs, contracts to sign in order to get "more information", large capital outlay, etc.), politely make your exit or at least talk to a business attorney.

Good Luck!

 

[Handloader109]

Be careful of locking yourself into a cheap time-frame per light.... My company did a contract about 5yrs ago that went in and relamped about 20 of our locations. Replaced all fluorescent bulbs. (like for like unfortunately). Any bad ballast were charged separately. Then quarterly the contractor would inspect and replace bulbs that failed. Again, bad ballast were charged separately. Most location had some high lights that required 16ft ladder and two employees. Required. We just ended it I don't really think there was a cost savings (was based on us calling for service as bulbs died) we paid a lot for this contract...... Wasn't cheap at all.