Top 3 Mistakes Entrepreneurs Make When Starting Their Elevator Business

Starting an elevator business is an exciting adventure. I know because I’ve been there. When I launched Madden Elevator Company, I believed I had all the answers to making money and scaling my business. Little did I know, the journey ahead was packed with hard-earned lessons that would redefine my approach to success. Looking back, I see mistakes I could’ve avoided, and I’m here to help you skip those bumps in the road.

Let’s talk about the top three mistakes entrepreneurs make when starting an elevator business and, more importantly, how to avoid them.

Mistake #1: Underestimating the Initial Costs

Starting an elevator business requires serious upfront investment. It’s easy to overestimate potential revenue and underestimate how much you’ll actually spend on equipment, licensing, labor, and maintenance. I’ll be honest—this one hit me hard in the beginning. We started Madden Elevator out of our basement with zero capital and zero customers. We had to make due at the time with what we had.

Bridging the Gap:

• Plan for everything. Create a financial plan that includes every possible expense. Don’t forget your hidden costs like insurance premiums or emergency repair tools.
• Build a safety net. Have at least three to six months of operating expenses saved up. I like to say even more than that, but saving that kind of money when starting a business is easier said than done. It can be a lifesaver when unexpected costs come up though, like equipment breakdowns or delayed payments from clients.
• Invest in quality. Skimping on equipment might save money upfront, but trust me, it’ll cost you more in repairs and replacements later. Go for higher-quality tools and parts from the start.

A solid financial plan and the right resources can make all the difference. Stop guessing—start preparing.

Mistake #2: Lack of Technical Knowledge

Entering the elevator business without a strong grasp of mechanics, safety standards, and maintenance is a recipe for trouble. Even with my experience spanning fieldwork to management, I quickly realized I didn’t know everything about running an elevator company. Learning to prioritize both my own learning and my team’s growth became essential to keeping us on track and moving forward.

How to Overcome It:

• Hire the right team. Prioritize experience and certifications when building your team. A skilled technician is worth their weight in gold.
• Keep learning. The elevator industry evolves constantly. Stay updated on the latest technology, attend trade shows, and invest in training for yourself and your staff.
• Follow safety protocols religiously. Safety isn’t optional. Establish and enforce strict maintenance and safety guidelines to avoid legal and reputational issues.

Surround yourself with people who compliment your weaknesses. A knowledgeable team delivers top-notch service and prevents rookie mistakes.

Mistake #3: Inadequate Market Research

When I started, I thought I understood my market. I didn’t. I knew exactly what kind of service my company brought to the table, but that wasn’t enough. I needed to know what my competition brought to the table. I needed to get to know them through and through.

Members of my family—specifically my sweet mother, called every company in the vicinity to ask for their billing rates. She had an ability to get all kinds of information for us. They would even tell her what they charge for a typical 2-stop hydro on limited service and for full maintenance. My mom knew how to get the job done—old school!

How to Stay Ahead of it:

• Do your homework. Research your local market thoroughly. Who are your competitors? What gaps can you fill? What do customers in your area actually need?
• Listen to your customers. Build trust by providing great service and being responsive to their needs. Happy customers lead to referrals, which were one of my biggest growth drivers.
• Tailor your offerings. Not all customers are the same. Some want quick response times, while others value long-term maintenance contracts. Figure out what your customers care about and deliver on that.

Market research isn’t a one-time task. Now, my amazing mother would have done anything to help us succeed, even if that meant calling the competition annually to keep her comp-pricing sheet up to date. But as the leader, it was my job to research consumer needs and market trends to stay competitive.

The Big Advice

Starting an elevator business isn’t easy, but it doesn’t have to feel like you’re out there all on your own. I used to think I had to figure everything out myself, and let me tell you—that mindset slowed me down. Once I started reaching out to others in the industry, everything began to change. I found mentors, built connections, and soaked up knowledge from people who’d been in the trenches before me.

That’s why I’ve created programs like eADVISOR—to give elevator business owners the kind of support I wish I’d had starting out. This isn’t just another do-it-yourself program. It’s a resource built by someone who’s been where you are, designed to connect you with a mentor who knows this industry inside and out. If you’ve found yourself endlessly searching for guidance, tools, or just someone to help you navigate your business challenges, working with me can give you that edge.

You don’t have to do this alone. With the right support, you can avoid expensive mistakes, make smarter calls, and build a business and team you’re genuinely proud of.