Subscriber Discussion

Business Owners, How Did You Grow Your Business? Who Were Your First Hires?

UI
Undisclosed Integrator #1
Jun 17, 2018

We are a small startup. Last year (first full year) we did just over 400k in sales. This year, we are at $359k in sales, so pretty much doubled sales.

The majority of the business is surveillance, mostly Dahua.  We also do some access control and intrusion alarms.

But I can not do everything and am struggling with finding quality help. I have a couple of installers and they are pretty reliable but they are more of cable pullers. I have been through numerous service techs, and have yet to find the right one. I am getting better at screening, asking more technical questions, which I did not do with my last tech. Just looking at resumes, none seem to be remotely qualified.

I have spent a year looking for a tech. I have tried hiring people with no experience but potential and training them. I have tried hiring experienced techs.

Same thing with an office manager. Between COI's, contracts, invoicing, etc. there seems to be a ton of admin stuff to do. The current OM isn't cutting it. But I believe this position will be much easier to fill.

 

I just find myself spinning my wheels, double checking everyone's work (and finding errors), and working weekends.

 

Any suggestions on how to break this hamster wheel I am on so I can focus on running a business and marketing/sales?

 

 

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JH
John Honovich
Jun 17, 2018
IPVM

First, congrats! Starting from nothing is very hard, often the hardest part of running a business.

Also, I think if you keep trying, even without changing anything, you are going to find a good tech. Simply persistence and time.

That noted, 2 suggestions:

  • Have you spoken with any local tech / 2-year technical colleges? When I was an integrator we hired quite a number of qualified an hard working people out of those schools. They're not going to be able to troubleshoot legacy systems for the first year or two, but they will be likely way farther ahead than the typical cable puller and pick up quickly on installing new systems.
  • Do you have any local ADI or Tri-Ed/Anixter branches near you where you know the branch people? I would ask them for who they recommend. This would better help for finding an experienced person who might be looking for a change or an opportunity to be more a key person in a growing company.

Good question, hope that helps and looking forward to other's advice.

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UI
Undisclosed Integrator #1
Jun 17, 2018

 

Yes tried all of the above. The counter guys just look at me like I asked for their wife or even worse, their motorcycle... Everybody here is looking for techs so I am one of many.

 

We do plan on hitting the tech schools up harder.

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U
Undisclosed #2
Jun 17, 2018

I'm curious what your tech pay structure is like in comparison to your competitors?

Seasoned and experienced techs may want to find a joint where they can be more of a key player (as John mentions above) - but they most likely will not take a pay cut in the hopes that the new position 'works out' - though some might, if they really hate where they are at now.

As far as 'new' techs go, I'd hire for attitude and aptitude - in that order.

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UI
Undisclosed Integrator #1
Jun 17, 2018

I believe we may have started out a little low, but I have come to learn another $200 a week isn't going to make or break me.

 

The last tech was making $25/hour and at this point, for the right person, I would go to 30. Take home company van, 1 weeks vacation, holidays but as a small company, we do not have any medical/401k, etc.

 

The last tech had a great attitude, but he just wasn't there skill wise and it was costing me a fortune. Stuff that should have taken 2 hours, took all day, etc. Granted some of it was unfamiliar products but the core skills just weren't there.

 

I usually do not put salary in our ads, as it really depends on experience. I do not think in a year, I have even seen a resume for the person I am looking for.

 

 

RT
Robert T
Jul 11, 2018

What State are you located in? I'm looking to relocate and maybe able to help you. I could even fly out to help you on some projects depending on where you're located. Thanks

JH
John Honovich
Jun 17, 2018
IPVM

Idea: Ask your best customers who the best techs they had from their previous integrators. This might be a good way to help yourself, help your customer and hurt your competitor.

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U
Undisclosed #3
Jun 17, 2018
IPVMU Certified

Ask your best customers who the best techs they had from their previous integrators. This might be a good way to help yourself, help your customer and hurt your competitor.

Maybe even take it a step further, call a competitor and ask for a tech to do a small job for you.  If he’s worth hiring, casually chat him up.  Try not to get the owner or family ;)

UI
Undisclosed Integrator #8
Jul 03, 2018

We do a lot of "partnering" with other integrators so I have to speak up from the ethical point of view.  Purposefully mining technicians by "tricking" the owner of another integration firm into accepting you as a customer so that you can steal his/her techs is a REALLY bad idea.  It would be unprofessional and it just smells bad!  If you want to get an experienced tech from a competitor, contact a head hunter (SSC is one) that could ethically reach out to the techs at competitors to see if they have an interest in making change.  It's going to cost you but at least you won't start your business out on the "slime ball" path which is what you'd be doing if you took #3's advice.

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Jonathan Morin
Jul 09, 2018
IPVMU Certified

""Maybe even take it a step further, call a competitor and ask for a tech to do a small job for you. If he’s worth hiring, casually chat him up.""

In my opinion, I find this suggestion not ethical. When you are professional, you are till the end. ... But this is my personal opinion as a security professional.

Security is a smal world and doing thing like that will come back.

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Max Shumeyko
Jun 18, 2018

Another idea is to think of best people you know in this field. Maybe some of them are looking for a new job. My best hires were people I know for more than 20 years. 

 

By the way how many people do you have now?

 

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UM
Undisclosed Manufacturer #4
Jun 19, 2018

Sorry, I did not intend to vote "disagree"

UI
Undisclosed Integrator #1
Jun 19, 2018

I believe you can change your vote.

 

Right now, I let go the tech and office manager, so its me, 2 installers, and a P/T marketing person who now will help with administrative stuff.

 

On a side note, we are also trying to write SOP's for most of our processes such as project management, alarm installation. The SOP's are focused on the admin side such as getting the correct documentation, COI's, ensuring project check off sheets are followed.

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Mike Dotson
Jun 18, 2018
Formerly of Seneca • IPVMU Certified

In this day and age...this really hurts your chances..."we do not have any medical/401k, etc."

You would need to offer a pay that can compensate for them having to get their own insurance.

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UI
Undisclosed Integrator #1
Jun 19, 2018

How does a small business with 5 employees afford insurance?

 

 

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Sean Nelson
Jun 19, 2018
Nelly's Security

If you can afford to pay 25 an hour, you can afford to pay 15-20 an hour with insurance

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MM
Michael Miller
Jun 19, 2018

So what do you do with your current employees making $25 per hour ask them to take a pay cut if they want insurance?

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Sean Nelson
Jun 19, 2018
Nelly's Security

Im just trying to think outside the box instead of being dead set on paying a guy $25/hr when a possibly more attractive compensation package would be lower pay but with added benefits. I think he can easily do this given his current situation and company size.

His business is small and it would be easier for him to do it than it would be a company with many employees. He just said he fired 2 people. So now he only has 3 other people, 1 of which you dont have to pay insurance for (the P/T marketing person). His other guys are not making $25 from what I gather. I'd be curious if his installers are considered full time too but lets say they are.

Even if you pay the new guy $15/hr and offered insurance benefits to the 3 employees, that could even be overall cheaper to the employer than paying the guy $25/hr with no insurance to the company. You could even consider paying 50% of the insurance to your guys which i am pretty sure would definetely be overall cheaper to him as an employer than paying the new tech $25/hr with no insurance.

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JL
Joe LoRe
Jul 04, 2018

You can also offer some sort of performance based compensation on top of base salary, need to make employees understand that the better the company does the better they will do and get them out of the mindset of just being more than just a guy out there to get a specific task done every day and instead as part of a team where everyone wants customers to be happy and teams a winner

 

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Sean Nelson
Jun 18, 2018
Nelly's Security

 I have a couple of installers and they are pretty reliable

Contradicts with

I just find myself spinning my wheels, double checking everyone's work

Im sure you mean by reliable that they show up on time, but that shouldn't be good enough for you, that should just be a basic requirement. IMO, they need to be fully trained and exceptional so you dont have to re-check their work all the time, and if they cant cut it, fire them and find someone who has quality work.

You are paying your last tech quite well IMO. Im not sure what area you are in, but $25/hr is quite nice for a starting installer, but have you considered lowering your hourly pay so you can offer benefits such as health insurance and 401k. Employees do put alot of stock into these things as more and more companies get rid of benefits like this, this could make you stand out in the crowd. I would also recommend trying to make a steady schedule for your techs. I know this is sometimes impossible in this type of position but we have some customers who pay their installers good money but they work them to death on some weeks, working from 8am to 10pm and they wonder why they cant keep people. Employees like stability and steadfastness for the most part.

If you want my advice, make it your #1 goal today to begin to build a team that can execute the same quality of work that you can put out if you were in each of their position, with no compromise. No disrespect but by listening to you, i dont think you have made this your mindset yet, because I was once in your same position before and I spoke similar things.

This is very exhausing because training people to be just as exceptional as you requires alot of your energy to train them to get to that leve.

One year, I decided to do this with my business and have built an incredible team once I made that my #1 mind set. It is one of the most successful feelings as a business owner, knowing that when you leave the office for a few hours, days, or weeks, that everything is being taken care of as if you were there yourself. It also allows you to set back and think about how you are going to grow your business as opposed to running around like a chicken with your head cut off trying to keep up with daily tasks. We have integrator customers that have utilized this mind set that have grown rapidly. Then on the other hand, we have integrator customers who never really caught on to this mind set and the owner of the business is still trying to keep up with everything, working like a dawg from morning to evening and have been doing this for years. Not saying there is anything wrong with working like a dawg, you will have to until you get your team built up, but you dont want to do that forever!!! So basically what my big wall of text above consists of is "Get your mind right" Looks like your headed in the right direction though seeking help on this forum! Good luck!

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UI
Undisclosed Integrator #1
Jun 18, 2018

Actually, I believe I have worked very hard to try to put together the right team. I don't make a profit and my salary is... well I honestly could bring home more if I worked at McDonalds... I keep the money in the business by hiring an office manager, service tech etc. I have a lot of overhead for a <1M company. The goal is to have the right team in place so that I can focus on sales/marketing and running a business, not working in it.

 

My installers pull cable, run conduit, etc. They are good at that, but they are not the most tech-savvy. And that is fine. They do not make $25/hour.

 

What I need is the technical guy who is going to log all the usernames and passwords for camera systems, update sitemaps as built, answer calls about setting up a new phone 6 months after install, remotely configure LPR cameras at night, configure Milestone, program an access control system, stage equipment, find solutions/products for various client requests, etc

Basically the lead/head tech guy. Nothing should come back to me.

My last lead tech had his laptop crash and his solution was to give it to me to reformat. He is no longer here.

I will never get out of selling 10-15K Dahua systems if I do not have that tech guy.

 

I do not double check my installers. Sometimes I go back and do some QC, to keep them on their toes but rarely do I find any issues.

 

When I say double checking, I mean on my service tech and office manager. I just realized we signed an alarm account up 3 months ago, and they have not been billed/charged for monitoring or cloud based access control. We had an account call a couple weeks ago at 3PM, (our biggest account) and say " We just bought this property, and we need an alarm today" Yes things got done in a hurry, and a little chaotic but when the dust settled, today, there is no monitoring agreement.

 

Both of these positions are now vacant and I am looking for new help.

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Sean Nelson
Jun 18, 2018
Nelly's Security

cool, well just a few small tips here that has worked for me especially on job posting sites. You need a guy that pays attention to small details. On job posting sites, you will get millions of applicants. What you need to do is in the body of your job posting, ask that they send a cover letter explaining why they would be a perfect fit for this job and any other info you may want to ask. This will eliminate 80-90% of applicants because most of them are just hammering out applications to get a job and not even reading your posting. For the people who did actually read your job posting, you can then sort them out by looking at who can actually make out legible sentences and/or who actually cares about writing a well thought out response. That will dwindle them down even more. Then you have some candidates to work with. Have them call you at a specific time. If they are late at calling you, they are done. When they do call you, have some good phone questions ready for them to see how they sound on the phone, because a good tech will be talking on the phone alot. Then of course you bring them in for an interview, again if they are late, they are done. 

Once you hire them, its very important that they have a clear list of expectations and the more precise the better. This way if they are failing, they should know specifically why they are failing. I could go into this more but just make sure you list all expectations as clear as possible

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MM
Michael Miller
Jun 21, 2018

Where are you looking for techs? What is your goal with your company? How large do you want to grow?

This fall it's 11 years since I started my company and I have been in your shoes.  It's not easy but I now have 19 people on staff and I will be hiring 2 to 3 more people shortly. My last hire was a project engineer who is fantastic.  He told me the reason he took the job was because how enthusiastic I was explaining the company, what we have done and where we are going.  He actually reached out to me on LinkedIn so always be selling yourself all the time.  

If I could do it all over again I would have emplimented our software tools sooner to improve efficiency.  This is our number one goal this year.  Maximize our software tools so we can automate as much as we can and have all of our quotes go out the door with detailed designs. Not sure what you are using for design/quotes but have a look at D-tools.  I can design projects down to the last rj-45 connector so nothing gets missed and every project has a detailed design so any tech can complete the installation exactly how you designed it. The more detail I give my techs the less time I need to spend with them explaining how to do the project which let's me quote more projects and work on the business more. Also with Dtools am working behind the scenes adding products and building packages so my sales team can build systems as well as I can with out me having to do the design by myself.  Just something to think about.

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UI
Undisclosed Integrator #1
Jun 21, 2018

I am very familiar on how you feel about CW... :) You and I had an in-depth phone conversation last week I think.

 

I have ads on Craigslist and Indeed, and I also have posted on Linkedin for entry level techs to train. I also had an ad on fire and xxx something or another job board with no response. We also have ads posted on job boards at local tech schools

 

Right now I am looking for that tech with all the skills I need OR an individual that is green but can be trained.

 

 

U
Undisclosed #5
Jun 21, 2018

You are hitting the nail on the head. So many small companies with this same issue/s.

 

Compare your business to food and a simply production line that gets you the taste you want to deliver to prospects.

Once you have that taste secure, let the whole world know that is what YOU like and are offering.

Believe in it and others will follow or pick it up and defend it.

Finding the magical guys to do the work is a crap shoot as you end up competing with the highest bidder and highest ego.

Build from within, it can happen. Once again the belief and transparency system must be in place. Look deeply at who is representing your company and define how their ambitions or desires can help you grow. 

Dumb techs are everywhere...it is so embarrassing.

Good Luck Sir!

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UI
Undisclosed Integrator #6
Jun 23, 2018

I just started my business in January after having been in the industry for 10 years and got tired of doing 90% of the work for 10% of the profit. I made it all the way up to Service Manager at the last company so I got to see the inner workings on the office side. I have been doing good on my own. It is just me and a few guys I use here and there, no full time employees yet. I look for contract work from the bigger companies so I haven't had to focus on sales that much. The biggest problem I have seen in technicians is the "millennial effect" on hard work. Older techs who work hard did not want to learn the new IP based technology and the younger guys that grew up with computers do not want to work hard. I've interviewed and brought on 20 somethings at past companies that full well know what the jobs are going to entail (attics, extreme temp differences, endless cable pulls, etc.) and after a few weeks they would rather sit and play on their phones every chance they get and ask when they are getting promoted after a month. But on the flip side you send a 15 year install vet out to do a small 2 hour job that requires minor programming and they call you 6 hours later baffled by the web UI login screen. It is a constant balancing act trying to find the right attitude of willing to crawl through attics and able to do simple programming. Most of the time it ends up being two employees - one for install and one for programming. Or I am having to take time to do either one or both. 

The benefits have definitely been a huge hurdle. With most of the bigger companies offering a take home vehicle and some of the common benefits it is hard to find good techs that won't even consider you unless you offer the same thing. Health insurance is out of the question for a small business. I can't even afford it for my own family (wife and I are both self employed/own businesses). When they quote you at $1-2k a month, it isn't just a "small amount" that you can adjust their starting pay by. As for pay scales, $10-12 for cable pullers and basic installers, $12-18 for minor experience, and $18-30 for experienced installers, leads, and service techs. I think that is pretty common for Texas. Add to each $5-15 burden rate for basic things like time off and the various insurances/licenses and it starts to get pretty expensive keeping someone on full time in an industry that sees more waves than a Hawaii beach. Most people that haven't ran a business forget about the burden rate part. They just see the $12/hour and think that's low for an installer. It is actually more like $16-$18. So at ~$65/install hour on bids, having two or three installers and a lead on site starts to eat away the profit if your techs can't do the job in the quoted hours.

On that note, I've had a fun time trying to figure out each techs actual install capabilities per hour so I can bid jobs properly. I came up as an installer so I know how an hour of work really equates to about 40 minutes of work when you factor in the multiple van visits, Facebook/Insta checks, text message responses, and smoke breaks to complain about the company/client/job. For some techs it is even less. Over time you can start to see the patterns that it takes Bob a full hour to install that one 20 minute camera and Smith can do it in 15 minutes. Luckily they kind of balance each other out and hopefully the quality of install is good, no one gets hurt on the job, and good attitudes prevail. 

In the end I don't regret starting my own business. It's been a fun learning experience and I am always learning! Just look for someone that has the good outlook, is willing to get dirty when you need them too, and knows what "IP" means.

NOTICE: This comment has been moved to its own discussion: Integrator Startup Founder Shares Experience - "Constant Balancing Act Trying To Find The Right Attitude Of Willing To Crawl Through Attics And Able To Do Simple Programming"

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Avatar
Anton Miller
Jun 23, 2018
Shaked Projects

Finding quality employees never was easy, and in CCTV/security field things are even more complicated. An adequate serviceman/installer must be able to produce required result every time, without reminding that opening is external junction boxes are from bottom side only, under all conditions and have at least some knowledge in following fields:

Electricity
Electronics
Electromechanics
Strength of Materials
Hydraulics
Radio-Frequency Engineering 
Telephony
Optics
Computers Networking
Probably couple more I can't think of right now. 

Few people know all that and even fewer are willing to crawl though attics/breath guano/freeze/overheat/fight off spiders/fall from trees/rooftops/ladders/cut fingers/electrocute/have to carry all food/drink/toilet paper/work 12 hour shifts including two hour's drive to and fro...

Basically, there are two options, and neither is good:

a) Wait until you find a pro who is comfortable to work with you and give him whatever asked (might take few years)

b) Find a relevant trades school graduate or, probably even better, a STEM college dropout who is comfortable to work with you and give a raise each time you are asked

U
Undisclosed #5
Jul 06, 2018

Beware that some super techs hustle the game. I know of 3 technicians getting 175k+ in the SF bay area AND....most junior technicians can diagnose issues in half the time. Security technicians in data centers can make up to $60 an hour with no overtime. However what do you think their main revenue is? 

OVERTIME! easily 25 hours a week to handle the chaos. (technician barely works 38 hours).

So..40 hours per week @ 60 hr. times 52 weeks.

20-30 hours per week OT at 90 hr. time 52 weeks.

and 25 hours emergency DT at 120 per hour times 12 months.

in all reality the technician is just hanging out metering a door contact, changing ips to IPv6, backing up a database, painting conduit, focusing cameras, labeling field devices.

Qualifications..atleast know the following ACMS with certs. Hirsh, Lenel, Software House, ProWatch, Genetec, Avigilon. Know the following VMS, Onssi, Genetec, Milestone, Exacqvision,VideoEdge maybe some March.

Special technicians have CISSP, Sec+, Net+, CSP, MSCP, A+, CCNA or other legacy certifications. 

All in all...these techs like Boeing Union Workers...sitting on the clock.

Good times, where is the BBQ?

Don't believe me? just go hang out at some of the data center parking lots...you will met them.

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JH
John Honovich
Jul 06, 2018
IPVM

some super techs hustle the game. I know of 3 technicians getting 175k+ in the SF bay area 

And developers straight out of college get $300k packages at Google, Facebook, etc. While I certainly believe you about those technicians, that's largely a reflection of SF's atypical situation. Also, 1 bedroom apartments for $3,000 a month, etc.

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UI
Undisclosed Integrator #7
Jun 27, 2018

There's something else....how big do you want to be, what's the goal?  Certainly possible to get a very good salary with 2, 3, 4, 5 people.  Going to 15 people may add you 10% in salary but 30% in nightmares.

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U
Undisclosed #2
Jun 27, 2018

"There's something else....how big do you want to be, what's the goal?"

Don't you think that the 'goal' should be the first thing to figure out - not just 'something else'...?

Without a goal in mind, you can't create any kind of business plan.

Without a business plan to follow (which can be adjusted as you learn new things) you will always feel kinda like you are flailing.

Flailing can work when times are good and jobs are plentiful.... but you run the real risk of being one of the first casualties of any industry downturn.

U
Undisclosed #3
Jul 04, 2018
IPVMU Certified

Flailing can work when times are good and jobs are plentiful....

Or as they say in Silicon Valley, “Flail fast, flail often”.

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Meghan Uhl
Jul 03, 2018

In Arizona we have access to a couple of temp agencies who specialize in providing technical workers.  Anything from cable puller to Lenel Certified as an example. (specific manufacturer certifications are hard to come by in the temp labor pool though so you should keep your scope broader - maybe ask for a tech with background programming security video and access control systems instead of a particular vendor) You pay a little more per hour but the agency provides ALL the payroll, taxes, insurance, HR duties taking that off your plate.  We work with Tradesman International.  We only ever need their electricians and helpers so you'd have to explore what level/kind of security techs they could supply.  I don't remember the names of the other agencies but I know they're out there so do some Google searching in your area.  Those businesses give you the opportunity to bring on a tech and if he/she doesn't work out, they'll do the firing and replace with a different tech right away.  If you find one you like, you can usually hire them full time but will have to pay a fee for that OR, just keep "renting" them so during slow times you won't have to lay off and ....  you don't have the admin of payroll, taxes etc.  If you decide to hire full time and pay the fee, just think of it in terms of all the $$$ you saved on hiring, training, managing, etc.

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