Start-up & Maintenance

I am currently employed as an E&I Technician with a Fortune 500 company and would like to do start-up and maintenance for some small industry in my area. I live in Georgia. Any suggestions as to types of contracts as far as maintenance is concern, prices for Start-up, and any other ideas or suggestions would be appreciated.

Well I work for a fortune five company doing just that and
am in the six figure range.

And the question is?

I am currently employed as an E&I Technician with a Fortune 500 company and would like to do start-up and maintenance for some small industry in my area.

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And you would want to do this for what reason? I have, as skeezelfits, worked for a fortune 500 company and also a couple of small ones. I have to tell you that working for the small ones is not a good bet. With small companies come many limitations that are not as prevalent in larger ones. So, before you leap out there and do something you may regret, check it out really well. Not just on this forum, but as many inputs as you can get. I can imagine that your biggest response will be to stay where you are. Greater opportunity, more security, better benefits, etc, etc. Small companies struggle to make it on a day to day basis sometimes, that is a very stressful environment to work in. Trust me, I have tried it!

randylud

I totally agree with you.

Super Dave

When you small self employee you do not make big monay but you are
in stress all the time what I going to do tomorrow?.Pressure in the bank.suppliers waiting for the monay etc.

From a point of employee The self employee live better.
Just think.
how hard he work for the salary different.He work 24 hour a day
he take the work home with him.I can count all the problem.
But if you work for stable compay I am not sure you can do much more
in the same working hours as a self employee.
Think about all the risk.
I started just like that because I thought
to do maintenance make more money.
It sucked me in. I used to work around the clock to satisfied all
my daughter jusr born some how she become 5 year old. I was never there.
From that point I became system integrator.I still have some customers
for maintenance jobs but they dont keep me much busy.
I stoped with the maintenance jobs even the money was good.
peace of mind worth something.

Good Luck

Now the advantages!

The above comments are basically right on mark concerning running your own business. The hours are long, taxes, payroll, collecting money, responsibility for work being completed in a timely and professional manner, travel, leagalize, (the list goes on) and all (in my case anyhow) raising four children.

Now let me state some of the advantages: Money, Freedom from politics (perhaps the biggest reason for me), Total creativity from the ground up, Being your own boss (not enough can be said about this!), The thrill of losing your a$$ (never boring!), etc. The advantages go on and on for me. I cant tell you how many systems I've desinged in my sweats. Regarding the children, yes, you do make some sacrifices but when I'm in town and I have a "family thing" with my wife and kids, I just do it, period.

Most here who run their own business' would probably attest to the fact that it takes serious commitment and fortitude to run a business succesfully. Be prepared, eventually you will get "burned" somehow and in some way but then some of us would'nt have it any other way.

All that being said, go for it SD. IMHO I would start out slow and get a taste of it (dont quit your day job just yet). Regarding the rates you should charge, you should first check out locally what the going rates are (this varies across the nation and world for that matter). The more unique the service you have to offer, the better the rate you can charge.

This may or may not be for you and thats perfectly OK. Both sides of the fence have their pro's and con's. Try it and see for yourself.

Regards,
Chris

Chris

I read your advantage list.as self employee I agree with you.
But I will count the disadvantage of your advantage:
1.Freedom actually you are not free at all you have many bosses (your customer who want you right now).
2.Freedom from politics you have it in evry costumer you have to struggle on your place.and give up to his desire.
3.Total creativity from the ground up that true but you always have budget limit.

To sum up I am self employee and go through that evry day.
after 15 yaers in the business I can understand the people who
prefer to be Employee.
Some time I want to be employee just to reduce the pressure.

Agreed

Arik,

I agree with your counter-points. Freedom always has it's costs and yes, instead of a few bosses you now have a whole bunch (every customer you ever had!) etc. but could you now ever really imagine working directly for another company? The only way I could ever really consider going to work again for somebody else would be if it meant the difference between feeding my family or not.

There are those times when the pressure seems insurmountable and you wonder when the next check will be coming in but when you really look at the whole picture, that is what makes it very special to be in business for yourself. Running a business is not for everyone (as you well know) and is probably not the best idea for most. Only each individual can figure that out for themselves.

One saying I try to remember when things get tough: "Your born into this world with nothing and you leave this world with nothing therefore everything is a gift".

Regards,
Chris

Arik and Chris,
You laid it out great. I can't add anything of substance but I just wanted acknowledge your comments. Arik I use that same line when people say "you are your own boss". I say instead of one boss to answer to I have one hundred and at any given time they will want my undivided attention. It sure would be nice to have only one person to please.

I've been self-employed for ten years now and have experienced everything you noted. But deep down inside I know that none of us would voluntarily give it up. Sometimes things happen that are beyond your control but we persevere. I just want to build something that will stand on its own. Be here long after I'm gone. Let my sons take it to a whole other level when I'm too tired to poop.

Chris

Nice phrase.We are still in this world and I any how want to be here.
The reason I still in the business as you Wrote "the difference between feeding my family or not."
In retrospect when I look on the people who graduated college with me
after 15 years of work they made almost like me.
I may sound like I dont like what I doing.but when you need to do all
by your self it tough.
You know when I look back as a small business I made big projects
which I very proud.and that what keep me on. the challenge.


Regard

Arik

Thanks for the replies! I recently acquired my electrical contractors license and have been asked about doing maintenance and small project work from other companies that are in my area. Those companies understand my present work schedule and that at this time I have no intention of quiting my present job! But they like the work that I do. (Small town so news travel fast!) I was basically asking for some suggestions on some contract language that I might want to include to protect myself.

The most important rule payment terms.
Dont agree for something you canot finance.
if its long project, put some mile stone of payment.
Put it as term to continue for the next stage.

Thanks. I guess that is important because I plan be the contractor for the instrumentation and controls in their plants. They also have VFD's, but nobody to work on them. One of the plants do not even have an electrician. Parts for their machinery probably could cost a pretty penny! I don't want to get robbed.

Agree with previous post & pose these suggestions

SD
I agree with all the previous pros and cons. I initially started out doing instrumentation and controls work and have basically gone on to just controls and robotics.

A suggestion for your would be, initially don't buy anything for the customers. Since it's a small town (as you put it), most of these potential customers would understand. You provide the manpower and knowledge, they provide the required materials and equipment.

Another suggestion would be write into your contract billing schedule a few percentage points reduction if the bill is paid early (< 15 days) and add a few if paid late (> 45 days). Just be sure to show it on every bill you send them.

One final suggestion, have fun, enjoy the challenges (there are plenty), and make time for yourself & family.

Good Luck.

Sounds like they do not want to pay a REAL tech and want to **** and moan to you every time they have a problem. Watch out.

The woods are full of people around here that can get the job done.

P.S. But you could be super? I don't know.........

A rule of thumb

Dave makes a good point, especially starting out but that may not fly with all customers.

What I generally do with all of my contracts (subject to change of course) is the following:
1. 30% to 40% downpayment
2. 25% to 40% upon delivery of control cabinet / parts / initial engineering / delivery of equipemnt / etc. (by now you would hope to have been paid for 75% +/- of the total contract which should cover materials and much of the labor). If customer has not made payment "do not pass go".
3. 25% to 35% final payment upon completetion.
4. 10% after 30 days of completion if required (some customers will as a rule require this).

This has always worked well for us but as already stated, every customer is different and one has to act accordingly.

Regards,
Chris