Episode 26 - How to Handle The Sub Contractor Trap & Take Your Business Higher

In the field of electrical work, being a subcontractor could end up screwing your business or if positioned properly could take it to the next level. Many electricians have attested to the fact that being a subcontractor can potentially offer more stability, flexibility, and access to larger projects. However, if you don't know how to go about it, or are unable to follow the right process, you could find yourself in a difficult situation that may jeopardize your business.Being a subcontractor has its own set of challenges, and some of these include dealing with cash flow issues, difficulty in recognizing which accounts payable belong to which project, and having trouble identifying whose client is whose. Even if cash flow is not a problem, there could be a 40-60 day delay in the return of the cost that you shouldered, and invoicing can be challenging when you're juggling multiple projects. Additionally, it can be tough to serve clients with additional services when your contractor says otherwise, which makes it hard to leverage without the contractor in the picture. These are just some of the problems that subcontractors often face, but don't worry, solutions do exist.For one, if you're only locked in to a 10% agreement with your contractor, you should ask whether you're allowed to offer additional services to the client. This way, you can have opportunities to sell your own service. It's also important to find a contractor that offers a 30/70 split, although this may be challenging, taking time to research and creating a list of contractors who can potentially offer these terms is worth the effort. Additionally, the good neighbor program is a great way to expand your client base. By reaching out to your subcontractor client's neighbors and giving out your card or asking what their electrical problems are, you can help create a good start with potential clients who may require your services in the future. Don't miss out on this valuable information! Tune in to the podcast now to learn more about how to navigate the challenges of being a subcontractor and achieve success in your field.