New Business

[Nola26 0]

So I posted a few thing on here about the camera system I installed at my police station. I installed a 36 camera dual location system. Since I finished that project I have been approached by another city department and two other people about installing systems. The price quote that the city parks department got was ridiculous in my opinion. A 5 camera system with one of the cameras being an IP camera and the rest analog, with a middle to low middle of the line DVR, was quoted at $11,000. And a second location of 4 cameras all analog, was $10G.

 

Now my question is, if I do start a business to install small to medium residential/ small business systems, what is a fair labor rate? Neither of the quotes listed the labor rate. Do installers typically charge extra for two story homes, equipment rentals, etc? Just trying to figure out if its worth the headache of starting an LLC.

[SectorSecurity 0]

A fair labour rate is the one you think you can make money on. I always bill by the hour, I don't care if its a 2 store home or 20 000 sq ft warehouse, they both get billed by the hour. If I have to rent equipment I pass the cost along to the customer.

 

You have to remember there is a lot more then just starting the business and paying for labour, you have insurance, vehicles, stock, employee premiums, there is a lot to it, I suggest you get some quotes on all that before you make your final decision.

 

If you do decide to start the business, then I wish you the best of luck.

[Nola26 0]

There will be no employees as I will only take jobs I can complete myself or will the help of one friend. Wont really need any vehicles for a few jobs a year. As far as insurance goes, I am going to piggy back off of my brothers contractors insurance and it wont cost too much. I was just wondering if there was a per hour labor rate range that the industry tends to be in.

[SectorSecurity 0]

I have seen labor go between 40-150$ an hour, more if the job demands it.

 

As far as piggybacking on the insruance, I highly doubt his insurance covers failure to perform, this is what I worry about, second to my general liability.

 

If you install a CCTV system and the place gets robbed and your system didn't work, you may be on the hook for the stolen items. My Insurance covers me should a system I install fail to perform, although we cover this in our contracts that we are not responsible for the health of systems if you do not stick to a maintenance contract.

 

As far as having a friend help, once that friend gets paid, and most friends like to get paid, they become an employee, the other thing you have to worry about is if that friend gets hurt on a customers job site you might have some explaining to do.

 

Not trying to discourage you, just some tips to think about, as for the truck if you are doing just odd jobs then a big enough car is perfect its how I started out.

[Nola26 0]

The insurance is the biggest question I had, but I cant find any information on CCTV installer insurance online. As far as employees go, if I do 3-5 jobs a year, I will probably only need a helper for one of them. I guess I need to look at legal contracts to protect myself from "system failure" because I do not intend to charge maintenance fees on systems.

 

And from what I found in Louisiana, there are licenses I would need to get to sell, design, or install "CCTV alarms" but I didn't find anything that said I needed a fire marshall license to just install a basic CCTV system that isn't part of a monitored alarm system.

 

The only reason I am even considering this business, is because I have installed a 32 camera system and I have gotten pretty good at the design, networking, and installation of the systems. Also I find all of the alarm companies that do CCTV systems to be grossly overpriced on equipment and installation which opens up a market for independent installers like myself.

[SectorSecurity 0]

I will look up who I went with for insruance, I believe it was actually underwritten by a marine insurance company.

 

I would for sure write something into your contract surrounding failure to perform. Not only can this help protect you it can help keep you from having customers that expect their system to work for a lifetime without error.

[chaz 0]

Just a couple of points to consider

worker compensation insurance - who pays if you get hurt working at my house or business

 

liability insurance - who pays if you drill a wall and hit a plumbing pipe or drill and hit an electrical line and there is a fire at my house?

 

On licensing, most state require a license anytime you are running wire (high or low voltage) in a wall or above a drop tile ceiling.

 

Get the proper insurance and license