Starting a HA business suggestions

C

Customtech

New Member
I am in the process of starting a home automation business and wanted to get some input. I want to focus on affordable home automation for the middle class and upper middle. I was planning on using mi casa Vera for the controller. I liked the Vera because I have the most experience with it and it is very affordable with no monthly fees. I am starting to worry about starting a business based around this unit for a few reasons. 1) it is completely open to the public 2) it is not very user friendly. I understand it very well but am afraid many people won't be able to. 3) there is no support for it for technical problems. I am afraid most the time and money will go into fixing technical problems. What do you think? Is anybody's business based around this controller or offer this controller? It seems everybody uses C4 is anybody using anything different? Thank you for the help
 
Customtech said:
2) it is not very user friendly. I understand it very well but am afraid many people won't be able to.
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OK you want a system that is VERY user friendly and you are thinking of beginning with a system that IS NOT very user friendly.

A huge red flag.

Customtech said:
3) there is no support for it for technical problems.
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And this should be a another red flag.

Customtech said:
Is anybody's business based around this controller
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You don't base a business around a controller.

I really don't think this is the time to be starting out in the HA business. Folks are having enough problems just making ends meet with the essentials in life. For the middle class HA is NOT even close to being an essential.

If you are determined check with Elan and see what they require in the way of an investment from a new dealer.
 
For the record I only install part time (very part time lately) helping two different friends who have two different companies. Years ago I was a Commercial Fire Alarm TEch.

I would not put all of my eggs in one basket. I have been trying to set up an account for a few weeks with MiCasaVerde but they cant seem to get it right yet. I mentioned to them I have used mostly UPB the past 2 years and was BETA testing a UPB controller and someone from MiCasaVerde started trashing UPB. My opinion is that if you are talking to your friends you can trash away but to trash a competitor to a customer is unprofessional.

So while Zwave has some real benefits there are some people who may not want it. I would try and focus on two protocols at the start. Controllers will be tougher. The MiCasaVerde is supposed to be plug and play but I dont know yet since I cant get an account open. It seems to be made for the weekend DIYer. But there will still be people who can not do it and need a pro. Homeseer is a lot more work to set up a Hometroller (good for UPB and Zwave).

If you dare go with INsteon there is the ISY99. The ISY99 is a fantastic product but.... well I will leave Insteon as what you probably already know.

Make sure you are lic and insured for everything you and any employees do. I work under friends lic and insurance when I help them. For insurance purposes there are certain things I dont do.

My opinion there are two types of installers. The first is the get in and get out trunk slammer. The second is the installer with more finesse and more capabilities who will do a good job and back their work. I am sure you will be the later.
 
The Vera, it seems to me, is meant for the homeowner. I wouldn't use it for pro installs.

If you're serious, you should go with a more professional product. Your clients would appreciate it.

Get a state Tax ID, and go see what your local distributor has to offer. AVAD and ADI or 2 of the big ones, with lots of locations around the country.

If you don't mind buying equipment to be shipped, 2 of the cocoontech vendors would work well - AutomatedOutlet.com and Worthington Distribution (the pro division of ASIHome). You need to CALL by PHONE to get wholesale pricing.

There are dozens of other national distributors, but you're prob better off starting locally.

You have to jump through hoops to become Niles, Elan, and C4 dealers. Probably worth it.

URC would be a great one, with both affordable and astronomically priced equipment.

If you hang a shingle, working solo, then you are by definition a 'trunk slammer', working out of your trunk. ;) Some trunk slammers are better than others - be the good kind with insurance, as Digger said.

Where are you located?
 
I just made the jump into the home automation arena and I have enjoyed every bit of it. You have to have a passion for what you do and success will follow. You would be foolish not to obtain the proper licensing and insurance. In starting my business word of mouth has proven very profitable, but you need to market yourself. You need to start a website, send out flyers and research your target market. Elder car is about to explode so you may want to look into GrandCare or something similar. For automation systems I like HAI and a new system that is flying off the shelf is the 2Gig technologies system. Whatever you do make sure you are able to get hands on experience with the product before going to a customers house. You do not want to be reading the directions for hours while performing a paying install-very unprofessional.

So the first step is to obtain a sales tax id. You federal id will be your social if you are a sole proprietor.

Obtain the proper licensing and insurance.

Start marketing yourself.

I think that a lot of people who start a business believe that if they sit by the phone the calls will just start pouring in-you are wrong. Just because you have a website and some flyers does not mean you will drum up business. You are your best marketing tool so leverage every bit of it.

As far as dealers I like to use Worthington, adi, and avad. Some dealers only carry certain products so establish dealer accounts with several vendors.

Good luck.


Time for a plug:

Check out my website at http://www.jfabdesign.com
 
Frederick C. Wilt said:
You don't base a business around a controller.
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Amen! Not even close.

On the other hand, I disagree with Frederick on timing. Now is a terrific time to start a business IF you're damn good and willing to put the necessary work into it. Hell, I re-open the doors on my business officially April 4th after attempting to work for others for much of the last year. I'm ready to rock and have a pipeline of work prior to even letting my old client base know that I'm returning to the industry.

There are other threads on this subject. Search 'em out as there is good info in them.
 
I too am a dealer and installer; though I have a very well paying day job - so this is my hobby... Because of that my business is based around assisting DIY'ers; not taking on large projects (the likes of what DELInstallations describes). I help DIY'ers who are less technical; need help; and want a deal.

I have a great friend in real estate who told me I'd be crazy to do HA full-time - even in his custom home-building world, he doesn't want it, and neither do his customers. Luckily, that is a changing tide. People want control and flexibility so it's becoming expected in all new construction and retrofits.

In my opinion - get licensed for whatever market you're in - get insurance; get a marketing strategy; and all the things that go with it - and network. There are people who want full automation still, but the big dollar ones are few and far between - and you better be able to sell something UL listed for life safety and be licensed for anything security related... those big jobs are what really pays the bills though - as long as you have the credentials to do it right. Again - my personal opinion - but if you don't have the experience, then network with someone used to dealing with these issues. It'll go a long way.

Where I live, installing an alarm seems easy - bit when you go for your alarm permit, you better know what sirens are allowed, if any; what will get the quickest police response (cross zoning) ; etc - so that - if an alarm goes off, they actually care!
 
I deal with both aspects of the industry, the big white whales and the smaller stuff. The big mistake is building your entire portfolio around a single product, controller or single line. The whales are often a lot more high maintenance compared to a straightforward integration job, lots of calls, site visits and working in phases or leaving things to be done as the jobs progress. I'd rather have 10 smaller installs over a single whale.

In the smaller end of the scope, I've found that a lot of my work starts with something simple, then the person mentioning little things they want to do or then a little tooting of the horn or mentioning what I could get a controller or panel to do. Some people want all the technology you can throw at them, others want to do something by pushing a single button. The best thing to do is use a product that can integrate with multiple manufacturer's products (HAI and Elk are what I'm referring to). Simple and small, then can be ramped up into a AMX and Crestron with other products in the mix.
 
I've also been thinking about starting an HA business as I love HA. I believe that most successful people love what they are doing to some extent. I believe now is the best time to do start a business provided you do the necessary ground work. Why not start a business when so many integrators are quitting? It's much smarter to start now when there are fewer competitors.

My issue is that I've been blessed with a good 40 hour/week job (my degree is in electrical engineering, but I don't really use it for my line of work). Frankly, I'm too scared to ever quit. Is it really worth the effort, extra time and expense to rely solely on income from an HA company? My take home before deductions is $104k/year and my job offers benefits that are probably worth another 15-20%.

Could I really make more installing custom HA systems? How many years would it take to at least break even assuming I work in a medium sized city (200k-300k people)? I know it's usually not kosher to talk about income, but I really would like to know from a few professionals if I'd regret quitting my job in 5 years etc... I was thinking about doing evening work for the first year, but I have to figure out licensing; mainly, I need to find out if the licensing board in my area would count my engineering degrees in lieu of an apprenticeship. If I really need a two year apprenticeship to be licensed to install security systems and low voltage components, it may not be worth it.
 
Thank you for all the replies and advice. Yes I definitely would have all the proper lincense, insurance and all that fun stuff. I have owned a couple of small businesses before. I didn't mean to say that my businesses would be based around a controller. I was pretty sure vera would be a bad one and everything everybody said confirmed my concern. I have no set ways I want my business to be. I want to consider all my possibilities and go from there. This board is by far the most knowledgable and helpful I have found.

I do want to know everybody's opinion on controllers. I think I'm pretty set on using z-wave technology. I really like the technology and think it has a ton of support. What controllers are you using? What do you like about them what don't you like about them? In your opinion why is controller A better than controller B? What about commercial? Does anybody know automation in that industry? Such as schools, hotels universities etc..

To reply to etc6849 in regards to whether he thinks this is a good industry: My personal opinion is that home automation is on the verge of explosion. It is supposed to grow 50x in the next 5 years. There have been studies to show that in the near future automation could save hotels 30-40% energy savings. That is an insane number and any hotels not to jump on board is going to hurt them. Automation is spreading through public schools and universities. surveillance is really growing fast and automation will follow. Personally I think this industry is going to be huge in the next ten years. There will be lots of money to be made.
 
Maybe you could call all the local custom installers, and ask nicely. Type up a resume, with a nice cover letter.
 
Whatever you do, LEAVE SMARTHOME OUT OF THE EQUATION AT ALL COSTS.

Last year I went through an insane amount of trouble over an Elk system that they charged our company credit card for and didn't ship because they had falsely claimed that it was in stock. Then they claimed that they couldn't refund the card, etc. etc.

A month later, we literally spent like ten hours on the phone and exchanged a dozen emails, jumping through hoops to get dealership status. The fax of the application that we so diligently filled out and sent in somehow was "misplaced". Everytime we called it was like we were starting all over again. No one seemed to know what was going on, ever. It took over two months to sort it out and by that time I had lost the client for my first job for the beginning of our Home Automation division of the construction company. I looked like a complete idiot, and as an extension, so did my boss.

This year I decided that I would try it again since my boss had cooled out about what happened. I placed an order and two days later was informed that I do not have a dealership account and the order was canceled. After losing my cool a bit, sending a few emails and making a couple more calls, I finally had my dealership status reinstated. I logged back on, placed my order again, and... wow that's so weird! The next day I got an email stating that I had to reapply for my dealership status or place the order normally. More emails. More phone calls.
At this point I was teetering on the edge of abandoning the idea, but I have a fair amount of time and money already invested in this, so I persisted. The order was finally placed and shipped.

Ten days later, I checked on my tracking number and found that they had shipped the package to Brazil. I live in Canada and that was stated very clearly on the shipping and billing address of the account. Still no word two days after informing them of the problem of what is going on or when in the hell I will get my shipment.

These people are so incompetent that it is laughable. If this is not resolved promptly and in a fashion to my satisfaction, I will be selling any Insteon devices that I have around my place and looking at UPB. It's a shame because I really like the ISY.
 
Try Worthington Distribution (they also own ASIHome); they've always impressed me and have great prices.
 
Quixote_1 said:
Whatever you do, LEAVE SMARTHOME OUT OF THE EQUATION AT ALL COSTS.

Last year I went through an insane amount of trouble over an Elk system that they charged our company credit card for and didn't ship because they had falsely claimed that it was in stock. Then they claimed that they couldn't refund the card, etc. etc.

A month later, we literally spent like ten hours on the phone and exchanged a dozen emails, jumping through hoops to get dealership status. The fax of the application that we so diligently filled out and sent in somehow was "misplaced". Everytime we called it was like we were starting all over again. No one seemed to know what was going on, ever. It took over two months to sort it out and by that time I had lost the client for my first job for the beginning of our Home Automation division of the construction company. I looked like a complete idiot, and as an extension, so did my boss.

This year I decided that I would try it again since my boss had cooled out about what happened. I placed an order and two days later was informed that I do not have a dealership account and the order was canceled. After losing my cool a bit, sending a few emails and making a couple more calls, I finally had my dealership status reinstated. I logged back on, placed my order again, and... wow that's so weird! The next day I got an email stating that I had to reapply for my dealership status or place the order normally. More emails. More phone calls.
At this point I was teetering on the edge of abandoning the idea, but I have a fair amount of time and money already invested in this, so I persisted. The order was finally placed and shipped.

Ten days later, I checked on my tracking number and found that they had shipped the package to Brazil. I live in Canada and that was stated very clearly on the shipping and billing address of the account. Still no word two days after informing them of the problem of what is going on or when in the hell I will get my shipment.

These people are so incompetent that it is laughable. If this is not resolved promptly and in a fashion to my satisfaction, I will be selling any Insteon devices that I have around my place and looking at UPB. It's a shame because I really like the ISY.
Click to expand...

Typical SH experience in my opinion. You should pick a better distributor (I should say a "real" distributor) and get a dealer account (AO, AARTECH etc). FYI there will be a UPB version of the ISY out shortly I believe.

I have been pulling my hair out with a similar situation with setting up a dealer account direct with a mfg the past 3 weeks. I had to apply 3 times and countless emails back and forth to get the account set up. Each time I got the "Welcome New Dealer" email but the account could not be found in their system. Then when it was set up they gave me retail pricing not dealer and had to do it again. I was finally able to order some product to test to see if I want to actually install it or not. If I do decide to sell/install the products I will have the burden of maintaining safety stock in case the problems happen again.

You should consider having an inventory of safety stock in case of a backorder or a problem with the product as you go to install it. Build it up over time. If you need to dip into it replenish it and always rotate stock so customers get the latest and greatest.

I dropped a dealer account I had with another mfg last year (for Bio locks) as they were way to disorganized for me to rely on them. Its a shame as it would have been fairly easy money to install and was supposed to be something I could do as filler work (an hour here and there to install a lock for $100 overall profit). Since I work full time in the alarm industry it was supposed to be some extra cash nights and weekends when people are home and dont have to take a day off for someone to install a simple lock.
 
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