i need some advice about a company i am starting up

I'm not saying that you shouldn't do it but you have to understand that it's not quite that easy to do. There is more to running this kind of business than just getting the leads and getting subs to do the work.

For instance, if a sub screws up a job and you have no idea what they did/didn't do, you would have a very hard time trying to force them to do their job "correctly". They can say that the system works, the customer can say that it doesn't and you'll have a hard time trying to determine if your sub is a hack or if your customer is just crazy.

Or if your sub tells you that a system needs a $400 part when it doesn't, he will start to take advantage of you and your customers and rob both of you blind. Maybe your subs are honest and ethical which would be great. But it's not unlikely that they'll have you spending extra money that you don't need to spend even if they are honest.

My mate tried this in England. He was a plumber for a year at company i worked for and didn't have a clue what he was doing so left. He started up his own plumbing business and took on 3 plumbers as subs. Let me keep this short. His dad ended up calling us to bail him out and go fix all his and the subs balls ups. He had law suits coming out his ears because the subs were all useless and none of the work was completed.

Unless you have the first clue what your doing in HVAC industry then your taking a big risk. You need to know as much as the guys fixing the stuff.

goodhands said:

Hello every one, I am a young entrepreneur that has huge plans on starting up a HVAC business, now that is not my trade but I am great at running a business and the customer base won't be a problem, my marketing strategies are flawless as I have done some work into it to see how smoothly things can go, now I have about 6 sub contractors that are willing to work with me to get things going and so that way we can gain that work relationship not partnership just work relationship, I work the office get the leads and they run the calls and we all make money, now my question is, do I need to have a HVAC license to open a HVAC business here in Colorado? And of course it makes sense to have a certification to the business you are starting, but the bottom line is I can get the leads as long as I have someone to run the calls, and my subcontractors I am working with are licensed and certified and insured that's one thing I make shur to look for, I know some ppl frown in someone opening this kind of business without knowing much about it but hey I can get the leads/work

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goodhands:

Let's hope your flawless marketing strategies are better than your punctuation, spelling, and grammar.

BCConstruction said:

His dad ended up calling us to bail him out and go fix all his and the subs balls ups. He had law suits coming out his ears because the subs were all useless and none of the work was completed.

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That brings back the bad memories of when I had to bail out a friend who thought he could flip properties the same way they do it on the TV reality shows. I ended up doing his electrical, plumbing, drywall finishing and a little bit of the HVAC just so he wouldn't get sued for all of his money.

I share this because I think that his lack of knowledge caused him to get overwhelmed to the point where he stopped answering his phone. There were probably too many questions that he couldn't answer or make a decision about.

I figured this to be the case because that's exactly what he did to me. There was a rough-in for a downspout in the same exact spot that an outdoor light was roughed in. I asked him, "What do you want me to do about this?" His answer was, "What would you normally do in a situation like this?" I said, "I would ask the GC (you) to make a decision and give me guidance." He then asked, "Well obviously one of those two contractors screwed up. Whose fault was it?" I asked him, "Do you have drawings? What does the plan say?" and he changed the subject. :blink:

tedanderson said:

There was a rough-in for a downspout in the same exact spot that an outdoor light was roughed in. I asked him, "What do you want me to do about this?" His answer was, "What would you normally do in a situation like this?" I said, "I would ask the GC (you) to make a decision and give me guidance." He then asked, "Well obviously one of those two contractors screwed up. Whose fault was it?" I asked him, "Do you have drawings? What does the plan say?" and he changed the subject. :blink:

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I am literally shocked lately at the amount of people that know absolutely nothing about construction want to start a business in it.

The quote is so funny and right on point tedanderson! I had a buddy "flip a house" and I was stopping by there or walking him through things everyday, he had no idea on what needed done. HGTV doesn't seem to show everything! So he makes almost no money, then wants to do it again. I got nothing from it and told him no way in hell! What are people thinking?

brhokel606 said:

HGTV doesn't seem to show everything! So he makes almost no money, then wants to do it again. I got nothing from it and told him no way in hell! What are people thinking?

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HGTV - Houses Getting Totally Vandalized

I ****HATE**** that network. Every show I've seen on it misrepresents EVERY SINGLE THING about old houses, house restoration, costs, time, effort, etc.

And most of the "guests" they feature are just such fools.

If I watch it for more than 45 seconds, I usually end up throwing things at the television.

And that just irritates my husband.

brhokel606 said:

So he makes almost no money, then wants to do it again. I got nothing from it and told him no way in hell! What are people thinking?

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He started out with legit subs who walked off the job because there was no plan or direction. Then he hired hacks that did shoddy work and took advantage of him. Then he hired a couple of crooks who coerced him into paying upfront but they were never seen again.

Then he had the nerve to say, "Ted, you got me over a barrel." when I went to bail him out.. as to say that I was the one that put him in that position for not "warning" him ahead of time when I initially refused to be part of that project in the first place.

goodhands said:

Hello every one, I am a young entrepreneur that has huge plans on starting up a HVAC business, now that is not my trade but I am great at running a business and the customer base won't be a problem, my marketing strategies are flawless as I have done some work into it to see how smoothly things can go, now I have about 6 sub contractors that are willing to work with me to get things going and so that way we can gain that work relationship not partnership just work relationship, I work the office get the leads and they run the calls and we all make money, now my question is, do I need to have a HVAC license to open a HVAC business here in Colorado? And of course it makes sense to have a certification to the business you are starting, but the bottom line is I can get the leads as long as I have someone to run the calls, and my subcontractors I am working with are licensed and certified and insured that's one thing I make shur to look for, I know some ppl frown in someone opening this kind of business without knowing much about it but hey I can get the leads/work

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I think you need to partner with a lic. a/c contractor
learn and go off on your own after 4 years

not a good idea to sell what you do not know how to install

BCConstruction said:

My mate tried this in England. He was a plumber for a year at company i worked for and didn't have a clue what he was doing so left. He started up his own plumbing business and took on 3 plumbers as subs. Let me keep this short. His dad ended up calling us to bail him out and go fix all his and the subs balls ups. He had law suits coming out his ears because the subs were all useless and none of the work was completed.

Unless you have the first clue what your doing in HVAC industry then your taking a big risk. You need to know as much as the guys fixing the stuff.

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so for you guys the term (BALLS UP) means fu8k up :thumbsup:

goodhands said:

now my question is, do I need to have a HVAC license to open a HVAC business here in Colorado?

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Sticking with your question. You have to research licensing requirements for Colorado but I can tell you that in general if you are sub contracting you will need to have contractors license and probably a general contractors license. You will also need insurance and bonding since you are responsible for the jobs. I think you will also be responsible for failure to perform and any mistakes your subs make. You will need to provide signage for your subs trucks, sales forms, and uniforms so they show up 'as your company'. It is not as easy as you may think. Plus I know that many customers want to know if you are brokering things out or if you are 'the company' doing the work.

Tony,

www.prolongroofcare.com

Kowboy said:

Allan Mullally, the President and CEO of Ford Motor Company, has never built a car in his life and after a career in aerospace, he has turned Ford around. So much for needing to know how to work in a business to be able to run a business. It just isn't so.

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There is a vast difference between your analogy and poster # 1's situation. What initially comes to mind,Ford already had a management team and worker bees that knew how to build cars +places to do it in(factories). Poster number 1 has no team in place.


To compare the two situations is not even close to similar. Would you like a mechanic who read a book on brain surgery to operate on you ? What the heck,he is already used to working with tools.:laughing:

fjn said:

What initially comes to mind,Ford already had a management team and worker bees that knew how to build cars +places to do it in(factories).

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To add to that, the guy has influence and all sorts of resources at his disposal to make up for any areas of inadequacy. This guy became the boss because he possesses what it takes to make people do their job properly. Just simply being the boss does not accomplish this.