Lance F said:
Keep precise books from day 1. I couldn't run my business without QuickBooks by Intuit.
Amen. QB is easier to use, and probably more widely used, than any other small business accounting package out there. I've worked with many, started my business on MYOB but was much happier after the move to QuickBooks. These days I do the books for my flying club in QB. The data entry can be a drag, but the numbers you get back out are priceless.
I co-founded
The Chip Connection, Inc. in 1998. It was meant to be a computer consulting business right off the bat, but we did a lot of high-end audio work as well to pay the bills while we were getting started. So, Nick, I've done a LOT of what you're going to do.
Fish tape is your friend!
A good drill is also essential. One of those "mirror on a stick" contraptions and a tone generator/induction amplifier combo are also pretty much required equipment. Other than that, your toolbox will be pretty average. Once in a while you might want to rent something, we once had to bore a 4" hole through 18" of concrete. That massive Milwaukee hammer drill was the only way to go, and it even took 3 hours.
Your tendency right off the bat will be to charge really low rates. That is to say, you'll underestimate the amount of work required and knock yourself below minimum wage when all is said and done. As a guideline, for the wiring portion of jobs, we used to quote $2.00 per foot for open walls and $4.50 per foot for closed walls. Our labor rate was $75/hr. We still managed to provide better service at a better price than anyone else in town.
I'd suggest you document the business tasks you need to do - For example, I wrote a document for myself on how to do our sales taxes, payroll taxes, etc. That way I could easily go back to it to find the correct numbers in QuickBooks that related to the proper tax forms. Don't bother trying to do the end-of-year stuff yourself, though - I do my own personal taxes and I did all of the other business taxes, but that 1020S was a real monster and the $400-500 each year for the accountant to do it fast and correctly was money well spent.
Find a good small business lawyer and talk to them about what the most beneficial form of business would be for you (sole proprietorship, LLC, S-corp, etc) and then do it. Our initial consulation plus the entire incorporation process cost $400 and was well spent.
I've got to agree with everyone else on insurance. You need it, and it's not as bad as you might think. You also might want to get bonded. It was kind of stupid as being bonded provided us NO benefit other than to be able to say "Hey, we're bonded" but it was only $80/year. Likewise, Workman's Comp insurance was one heckuva lot cheaper than the fine we got slapped with after we started hiring people before we had it.
You'll go through a lot of paperwork here in the beginning, but if you dot every i and cross every t you'll be in good shape. Then, go get some clients and make enough money to get a company airplane.
If there's anything I can help you with, let me know.
