Yeh they offered me a big job in woking, some school new build quote came out at about 195,000 so i messaged him saying due to size we cannot afford to do that job, and we wouldnt trust getting self employed electricians in to help us out but we are happy to do smaller jobs for you, and more local jobs and build up a trust with each other as a company.. Thats when he suggested a meeting
This is exactly the thing he'll want to know more about I think. A lot of the big companies, such as they are now, are getting wise to the fact that they cannot simply pile on the work and take a year to pay. However, like us "little ones" they also understand that as we do, they need to complete the work and then get paid, and many don't have the vast reserves of budget to pay ahead of completion they once did (and likely will again).
So, be above all, realistic about what you can afford to take on - make sure you know what credit terms they want, and how long you can afford to sit out that money. A typical example might be a job that has ÂŁ5000 of materials, and let's say, ÂŁ2500 of labour ... plus VAT.
Now, if they want 90 days to pay..... VAT is an issue. But so is your supplier account (assuming you have one), and any labour you have to pay out for. You're paying the cost of three months worth of credit to cover the job in effect. Does your pricing reflect that?
Can your credit lines support it - most suppliers will give 30 days at most. So you're still looking for an additional 60 days, and overdrafts (trust me) ain't cheap now. If you can get one. Credit cards are suicide. Your guys, if you're using additional labour.... can they wait a month the be paid, or likely, will they want paying weekly? So, you need to know you can both cover all that AND make sure any costs in that are covered.
The next part of the issue - within the 90 days or so you're waiting for that money, how do you service other work coming in... if your money is all tied up in job one.
So, matey is going to want to be sure you can cope with those kinds of timescales, I think - that you have a solid trading background (even if short) and contingency plans in place if he's giving you a volume of work.
To be honest, at this point, what I would do is make this meeting all about listening only. Go and find out what exactly he wants from you, summarise it in notes, and then respond to it in writing - tell him you're going to go away, and put a deal together that meets his requirements - and for the moment, just that you're sure you can provide what he wants, in general terms. I would not be too keen to agree everything on the spot.
