Start-up Successes and Failures

Let's hear some start-up stories! Although I've been out of the business for two years, I am beginning to think that my former twenty years of asphalt handling have seeped into my bloodstream and contaminated my brain with an addiction that no drug can satisfy. I am considering starting a company doing repairs/small jobs with no employees. Anybody tried it? Successes? Failures? Yoda-like insights?>>>

I think Woody summed it up. You would need a 10 yr. or longer referral base and dont have to spend much or anything at all on advertising. Plus not waste much time running leads that never turn into a job. With new calls we average maybe 15-20% turning into jobs and referalls are around 75-80%. However, these new leads that do turn into jobs also turn into the future referalls and the customer base continues to grow rather than shrink.>>>

Were I to start a small business doing just small jobs and repairs, I would:

-Source out half to most of my work....SEE BELOW -Keep jobs small and managable with 1-3 persons -Be selective.....The 2-story, 3-layer, tear-off/resheet may seem like a lot of profit. But will quickly get eaten up by production/prep inefficiencies and force you to get out your hammer and bags when you really have to be somewhere else.

As a Quality Control Manager for the last three years, I have come across very talanted individuals and have personally kept thier phone numbers for this purpose.

Most of my sources work for "mom and pop" outfits, so thier work is not as steady compared to working for large companies. These guy tend to have a day or two off per week and can be available to pick up work for a day from another company (Me)...I have several tile,metal and flat specialist that I can trust for those type of jobs. I have comp. crews who can come in for a day and tearoff a roof for me. The next day I will come in and wrap up the shingling if they are not available for a second day.

By this method, you will have up to 10 people maybe through-out the year that work for part-time, hiring packets are quick and simple to fill out. Is there some committment through unemployment insurance by using part-time workers? I don't have the answer to that question (can they use your company as an insurance claim in the event they quit thier other job?)

I would attempt to do all of my jobs as I will be selective in my bids, but your going to be bogged down with request at some point...Its always good to have something in your back pocket when the time comes.>>>

I'm not necessarily stuck on repairs, but I am not ready to get back into hiring/firing/where's joe today/i need gas money/who took the compressor ordeal again. But I can see the value in having a helper or two when needed. Heck, me and a couple twenty-something know-nothings could roof a house in a couple days to a week, and I'm okay with that. I am trying to stay away from going into debt buying trucks and equipment. Woody, your point about motivation is right on target too. It sounds like you three are where I want to be: build my customer base up again, work off of referrals, put in a good day's work to be proud of, teach my kids a good craft, and stop chasing the bigger better deal. >>>

Willie makes a good point. It's been over a year since I did anything but additions and repairs. But I probably only make about half of Willies' 2 day figure. But I'm busy even in this economy. But instead of building up, I built down and have a decades long referral base to generate business. I get a very high percentage of the leads I get, well over 75%, so I don't spend much time beating the bushes for work that I won't get. If you have to do that, you might as well be going for bigger fish than repairs.>>>

I've thought about that myself LR. Doing just repairs/small jobs. But after much consideration i dont think its a good move. There is good money in repairs but much better money in replacements. I think it would be hard to pay all your expenses on repair monies only. Especially starting from scratch. Now if you were in GKRFG's position then it might work out. We just finished 2 mid-sized replacement jobs that took 7 days total. We would of had to do 30-40 repairs to make the same profit. I looked in the local newspaper yesterday and their were like 12 guys advertising in there for repairs. So lots of competition out there. You can do replacements with just 1 or 2 helpers. If you think a replacement will take you and a helper 3 days then just tell your customer 4 days and let them know you work with just 1 helper. They will be happy when you finish in 3 instead of dissapointed. Thats actually a good selling point. That you do all the important detail work personally. So if someone wants a replacement done that you could make $3,000 off of in two days what would you do? Refer me and GKRFG? :cheer:>>>

Your problem will be in the pace of jobs coming in. Too many, and you will have to put people off too far in the future to satisfy them. Customers needing repairs tend to demand the work be done within a week to 10 days. I find that having at least one employee gives me an added incentive to get my butt in gear than if it was me on my own.>>>