Domestic vs Commercial

[Undirection]

I run an electrical business and we've been going about 3 years. We do domestic and smaller commercial work. I like the buzz/'busyness' of the domestic work but in reality the paperwork is a ball ache and the margins aren't brilliant and often it takes an age to get paid. I worry that I'm a busy fool (I run the business but am not an electrician). Today I am wondering whether just to ditch the domestic work and focus on commercial. A friend, now in a niche electrical sector did this years ago and how has a 1.5m T/O. He said it was a game changer for them.

Changing would mean almost like turning the taps off in terms of calls incoming and working out how to target businesses (I think we can do this). We wouldn't have the buzz for quite some time but then this could be the right thing to do.

Compounding this is the offer to buy another unrelated business which I part owned before. It has high value domestic customers with margins from £1500.00 to £8,000.00.

Running the two businesses with both domestic and commercial currently may/will require staff so this is one option. or i just manager the commercial (easier, slower burn) and the high value domestic of the other business (which is also seasonal).

I'm rambling now but what I guess I am asking is, ignoring the other business option which may/may not happen, have you changed your strategy to focus on commercial only?

[trickywoo]

If you think the paperwork is bad and getting paid takes a long time for domestic work I think you can double both for commercial.

Get a card reader and make sure people know they have to pay when the job is done and that will cut out loads of work.

[iphonedyou]

Why turn the taps off by stopping domestic then starting commercial?

Wind one down as you ramp the other up.

[eliot]

would of thought getting paid for domestic was fast ? If course if you don’t send the invoice for a couple of weeks, then the client isn’t likely to pay it for a few weeks either.
I had to chase up a carpet supplier/fitter several weeks later asking for him to send me the bill.

For domestic stuff, assuming the job is finished then im happy to pay on the spot (assuming they issue the part p paperwork at the same time)

Any b2b could take months to get paid - and you have little leverage.

[khushy]

you lost me at “I”

[TwistingMyMelon]

What do you mean by commercial work?

It's a broad sector .... from offices that are like houses to specialist industrial work

I would argue it's harder getting money out of businesses than domestic !

I used a heating company recently and they demanded half payment before work starts and then full payment on day of work completion.

Or As above I'd take a card machine

[Johnniem]

In commercial work you would usually be working as a subbie for a main contractor. Think of payment in months rather than weeks and you'll get the idea. Also, larger commercial outfits are likely to cut your margins even further than they are now.

With domestic, just be good at what you do, honest, charge a reasonable amount and turn up on time when you have agreed a meeting or to start works. Advise in advance if you are going to be late finishing. If you act like this then I suspect many clients will be happy to pass on their happiness with a mention in the local 'so and so district appreciation group' on faceache. It is a good way of getting repeat of word of mouth business.

JM