EFFICIENTLY WIRED FOR MAXIMUM OUTPUT:

Electrical Contractor Generates Powerful Expansion

BY VICTOR RIVERO

AS A SMALL BUSINESS OWNER, Tom Vargas, president of Vargas Electric in Las Vegas, Nevada, was looking to plug in to a source of power that would energize his company and expand his operations. He got wired with GCR Capital and as a result, is generating more business with greater efficiency.

“I needed to expand my business. I actually got in touch with GCR Capital via the Internet. I started working with them; they asked for documentation, and after talking with them on the phone, I provided everything they needed,” says Tom. “I liked working with them. When I called them to ask questions, they’d always promptly return my call. Working with GCR Capital, all my experiences have been very good, very professional,” he says.

ENERGIZED FOR EXPANSION

As an electrical contractor in Las Vegas, Tom’s business was getting to the point where he had a nice clientele, but he needed additional funding to add more employees. “GCR Capital helped me with furniture, tools; also, I went in and leased a bigger place which allowed me to do general expansion,” he says.

With still more help from GCR Capital, Tom financed a server and other equipment, including a wide-format copier. “Now we can do all of our blueprint work in-house. We got a server because, as you know, e-mail is very important. And I’m going to be adding staff, so we got office furniture.”

Vargas Electric has also expanded into creating a service department, and GCR Capital assisted in financing a service van. “If you use a truck, people come by and take your tools. Any kind of service you want to do, you want to do it with a van,” explains Tom. “That way, when your electrician is in servicing a client, he just locks everything up and everything’s secure.”

SWITCHING TO ELECTRICITY

Tom’s been in the electrical business since the early 1980s. His route was gradual and stable and he enjoys what he does, but he didn’t start off in electricity. “Actually, it was just by luck that I got into the business,” laughs Tom.

He explains how, after he graduated college in Long Beach, Calif., he began tending bar and struck up a friendship with another keep who doubled as an electrical contractor. “We just started talking one Sunday night with nobody there. His draftsman had quit.”

Tom remembered his own interest in mechanical drawing from high school; he’d actually kept some of his earlier prints stashed away. Now the opportunity presented itself, and Tom proudly presented his work – enough to make an impression.

He got the job and began apprenticing, learning theories and calculations alongside the electrical engineer. He learned how to design buildings’ electrical systems and when they didn’t have enough engineering work, Tom worked with the estimator in the next office.

Soon enough, Tom started landing some projects and became a manager. “From there, I went in to the field and checked on sites. It was something that I just fell into. I quit tending bar and it’s what I’ve been doing with my life ever since. I love it. I have a really good knack for it,” says Tom.

OVERCOMING BARRIERS

Eventually, his knack grew into a profession, and Tom went into business for himself. Like any small-business owner, Tom had to watch out for a myriad of barriers to viability and future growth.
Electrical contracting falls under construction, which, in the finance world, is generally considered a “high risk” category. Though there are many fine and competent electrical contractors and builders, “once they get into the office, they generally lack experience,” he says, explaining one reason for the “high risk” classification.

However, unlike many contractors, because Tom started from the top down, “That’s where my strength is,” he says about running a business. And assisted by GCR Capital, Tom generates new business each day and keeps his existing clients coming back for more – a powerful combination.
Vargas Electric specializes in commercial, retail centers, office buildings, and restaurants. “Over here in Las Vegas, the union does everything on the Strip and non-union guys like myself do everything off the Strip”, says Tom.

Another area Tom learned about was construction defect insurance rates, which are “sky high” on residential construction in Vegas, he says; he deftly avoids residential business. “I’ve been here eight years. I came because a lot of the lawyers over in California would convince all the homeowners and associations to file suit against builders. Insurance just got so high. Now the California lawyers
are over here.”

But with overall residential growth in Las Vegas just remarkable, there’s certainly been no shortage of commercial business, which typically accompanies such growth. And without the threat of higher insurance rates in this sector, nonresidential is exactly the area that Vargas Electric is servicing, says Tom.

GETTING WIRED FOR MAXIMUM ENERGY

Whether through luck or hard work, Tom has made many smart connections, but going with GCR Capital has been among his most successful. Having starting with one, today, Vargas Electric proudly employs between 5 and 10 people“ depending on the workload,” says Tom.

“I would definitely recommend GCR Capital. They’re very professional about everything. I haven’t had any problems with them. That would be the place I would tell others to go. It’s the customer service. They return the phone calls. If you call up, even if you happen to get voice mail, they respond quickly.”

Tom says that the “the way they treat you, the way they talk to you” are the reasons he’ll stick with them for future financing needs. “I don’t know what your experience is trying to get financing. You can run into some really condescending people. I have, refinancing my home. But every time I’ve called over to GCR Capital, not just John Grant but Lenny and the girls over there are always very
professional in the way they talk; they’re good communicators.

“Customer service is a big factor. It wasn’t like they took three or four weeks to get back to me. As soon as I got them everything they needed, they faxed back a proposal and we went from there.

“Personally it’s absolutely important to me and to my business. I’d be spending months trying to find financing elsewhere. I want to get a straight story so I can make intelligent economic decisions. I didn’t get the run-around from GCR Capital. If someone were to say, ‘We want to do business expansion, who would you recommend?’ I would tell them to definitely give GCR Capital a call.”


CONTACT INFO:
Tom Vargas, Owner
Vargas Electric
Las Vegas, Nev.
(702) 260-1951