When busy doesn’t mean profitable

Boxers & Briefs Podcast #38: Trades, trials, and transformations in business with No Shock Electrical

What happens when a thriving electrical business with a full workload discovers it’s losing money month after month? For Shamus O’Donnell and Matt, co-owners of No Shock Electrical, this challenging reality became a turning point that would reshape their entire business approach. Their journey through redundancies, financial losses, and ultimately recovery offers valuable lessons for any trades business owner navigating the complex relationship between workload and profitability.

From pub conversation to business reality

Fourteen years ago, Shamus found himself at a crossroads. Working for another electrical company, he realised his career direction and the company’s path were diverging. A conversation in an Ellerslie pub with a mate—fuelled by a few beers and mutual complaints about their work situations—sparked an unexpected decision. Both men decided then and there to start their own companies.

The timeline was remarkably aggressive. Within six months, both businesses were up and running. Shamus’s friend actually launched within two to three months. It was born purely from frustration and a simple question: could he actually do it?

“It was really just, can I do this, can I take the plunge and see what happens,” Shamus recalls. The decision embodied the entrepreneurial spirit of feeling the fear and doing it anyway.

From the beginning, Shamus had a clear benchmark for success. He gave himself five years to reach five staff members. If he achieved that goal, he’d continue building the business. If not, he’d return to working for wages. The number five wasn’t scientifically chosen—there may have been a few beers involved in that decision—but it provided a tangible milestone.

Five years later, No Shock Electrical had seven employees. The goal was exceeded, the business was working, and Shamus decided to dig deeper and see where the company could go. This success eventually created the opportunity for Matt to join the business approximately seven and a half years after its founding.

When No Shock chose Matt

Matt’s path to co-ownership began with familiar frustration. After having had enough of his previous employer, he threw in the towel. An ex-employee of No Shock, who was also a friend, saw Matt’s job search and made an introduction. A coffee meeting with Shamus led to employment and eventually, a partnership.

The transition from employee to owner wasn’t instantaneous. It took Matt a full year of careful consideration, during which he asked questions not just of himself and his family, but also of No Shock’s existing employees. He wanted to understand how they’d feel about the change in leadership structure. He also sought advice from others who’d been through similar transitions.

One conversation proved particularly influential. When Matt asked someone who’d made the leap from employee to business owner whether it was the right decision, the response was unequivocal: “100%. I’ve never made a better call in my life.”

This thoughtful approach to becoming a business owner—consulting stakeholders, seeking experienced perspectives, and taking time to make an informed decision—demonstrates the maturity that would later prove crucial during the company’s most challenging period.

The crisis: busy but losing money

After Covid, No Shock Electrical experienced a surge in demand. The business got exceptionally busy, work was flowing in, and everything appeared golden from the outside. But when Shamus and Matt looked at the numbers, they discovered a disturbing reality: the business was posting losses month after month after month.

The contradiction was baffling. The workload was there, the team was busy, and everything seemed to be running smoothly on the operational side. Yet the financial statements told a different story. The owners spent countless hours scratching their heads, trying to understand what was going wrong.

They brought in a business coach and worked together to analyse every aspect of the company. They examined their pricing, their processes, their overhead costs, their marketing—everything except, initially, the one factor that mattered most: productivity.

When they finally focused on employee efficiency, the picture became clearer. Jobs that should have taken certain amounts of time were stretching out. Some team members simply weren’t performing at the level required for profitability. Matt found himself frequently checking on workers, only to discover he was spending his time essentially babysitting and telling qualified electricians exactly what to do and how to do their jobs.

“It’s not how you want to run a business, and it’s not how you want your guys to be portraying their work,” Matt explains. The productivity issues weren’t isolated incidents—they represented a systemic problem affecting the company’s bottom line.

This crisis period stretched across approximately two years. There were massive highs in terms of workload and client demand, but the financial reality remained stubbornly poor. The downward trend was undeniable, and the owners knew they had to make difficult decisions.

Making the hard calls: redundancies and restructuring

After exhausting other options and examining every facet of their operations, Shamus and Matt faced an unavoidable conclusion: they had to let people go. The decision wasn’t made lightly. These were team members they’d worked alongside, invested in, and in some cases, trained as apprentices.

The redundancy process was emotionally draining for everyone involved. It’s one thing to know intellectually that staff reductions are necessary for business survival; it’s quite another to actually sit down with team members and deliver that news. The owners describe this period as genuinely dark, both professionally and personally.

But the restructuring proved necessary. The business had reached a point where the team was too large for the productive output they were generating. In trades businesses, the mathematics are relatively straightforward: each tradesperson needs to generate enough billable work to cover their wages, overhead costs, and contribute to profit. When productivity falls below that threshold consistently, the business model breaks down. Following the redundancies, No Shock Electrical implemented more rigorous productivity standards and clearer expectations. The remaining team members understood what was required, and the business began operating with greater efficiency. The financial turnaround wasn’t immediate, but the trajectory shifted from decline to growth.

Mental health in the trades

The challenging period took a significant toll on both owners’ mental health. Shamus and Matt were open about the darkness they experienced during the redundancy process and the months of financial stress that preceded it. For business owners in the trades industry, where mental health discussions have traditionally been taboo, this openness represents an important shift.

Both owners credit several practices with helping them navigate this difficult period. Regular exercise played a crucial role, though Shamus notes he was derailed by a knee injury last year. Good sleep patterns and strong communication with their partners at home proved essential for maintaining mental health through the crisis.

Shamus also practices mindfulness—something still relatively uncommon in trades culture. His approach is straightforward: being mindful of his surroundings, what’s happening in the moment, what’s happening in his head, and practising gratitude regardless of circumstances.

“Even when something bad has happened in your day, you’ve had the worst day of your life, you can sit back and reflect and you’ll find at least one good thing that happened. And the second you find that, all of a sudden you’ve just flipped everything,” Shamus explains.

The owners also emphasise the importance of play and knowing when to step away. If someone’s having a particularly difficult day, Matt encourages them to take time off, go home early, collect their children from school, and spend time at the park. Creating space for mental health isn’t just about crisis intervention—it’s about building a sustainable work environment.

The trades industry has a concerning reputation regarding mental health. Statistics around mental health in construction and trades are genuinely scary, and historically, workers in these industries haven’t been encouraged to open up about struggles. However, both Shamus and Matt note positive changes. Organisations like Mates in Construction and others are doing significant work to shift the culture, and change is slowly becoming visible on building sites.

The increasing presence of women in the trades is also contributing to cultural change. Both owners view this trend positively, noting that female apprentices and tradespeople are proving themselves and challenging traditional industry norms.

Key lessons from the turnaround

The No Shock Electrical experience offers several important lessons for trades business owners:

First, being busy doesn’t guarantee profitability. It’s entirely possible to have a full workload, satisfied customers, and a team working every day, whilst still losing money. Regular financial analysis is essential, and business owners must be willing to dig into the numbers even when operations appear smooth.

Second, productivity matters enormously in trade businesses. Unlike some industries where inefficiency might be absorbed through higher margins, trades businesses typically operate on tighter margins where every hour of labour needs to be productive. When jobs consistently run over time, profitability evaporates quickly.

Third, difficult decisions shouldn’t be delayed indefinitely. Shamus and Matt spent two years working through their productivity crisis before making redundancies. Whilst their thorough approach ensured they’d exhausted other options, the extended timeline also meant prolonged financial losses. Sometimes, the hard decision needs to be made sooner rather than later.

Fourth, mental health support structures are essential for business owners. The stress of running a struggling business, making redundancies, and carrying responsibility for employees and their families takes a toll. Having practices in place—exercise, mindfulness, strong relationships, professional support—isn’t optional; it’s necessary for long-term sustainability.

Finally, failure and setbacks are learning opportunities, not endpoints. Shamus has been in business for fourteen years and openly acknowledges numerous failures along the way. Each setback provided lessons that informed future successes. The willingness to fail, learn, adapt, and continue forward distinguishes successful business owners from those who give up.

Building for the future

Having navigated through their crisis period, No Shock Electrical is now focused on strategic growth. The owners aren’t simply planning to expand their electrical division; they’re diversifying into complementary areas. Plans include developing a data and low-voltage division, and they’ve already established a mechanical side that’s growing well.

Perhaps more importantly, Shamus and Matt are committed to maintaining No Shock’s tradition of training good apprentices. Throughout the company’s history, they’ve developed numerous skilled electricians who’ve gone on to successful careers. The owners take genuine pride in this legacy and view it as a contribution to improving the broader trades industry.

Their approach to growth is measured and intentional. The lessons learned during their difficult period inform how they expand. They meet at least monthly to discuss plans, opportunities, and potential challenges. This regular strategic dialogue helps ensure they’re building sustainably rather than simply chasing growth for its own sake.

Advice for aspiring trades business owners

For anyone considering starting a trades business or transitioning from employee to owner, both Shamus and Matt offer straightforward advice: don’t be afraid, just give it a go.

Industry associations provide valuable resources. Master Electricians offers excellent documentation on starting a business, checking numbers, and following through on business planning. Accounting software companies like Xero provide helpful guidance for trades businesses. Plumbers have Master Plumbers with similar resources. These support structures remove many of the unknowns that might otherwise deter potential business owners.

The worst-case scenario is failure, but as Shamus points out, failure is simply a stepping stone to success—a lesson rather than an ending. In fourteen years of business, he’s experienced numerous failures, but each one contributed to eventual successes. The key is maintaining perspective and continuing to move forward.

For those considering partnership or co-ownership, Matt’s year-long deliberation process offers a valuable model. Taking time to consult stakeholders, seek experienced perspectives, and carefully evaluate the decision increases the likelihood of success. Partnership isn’t a decision to rush, but neither should fear prevent exploration of the opportunity.

The path forward

The No Shock Electrical story demonstrates that business success isn’t linear. A company can go from growth to losses to recovery, and each phase provides valuable lessons. The combination of honest financial analysis, willingness to make difficult decisions, attention to mental health, and commitment to continuous learning creates resilience.

For trades’ business owners facing similar challenges—high workloads that don’t translate to profits, productivity concerns, or difficult staffing decisions—the No Shock experience offers both warning and hope. The warning: busy doesn’t mean profitable, and productivity issues compound quickly. The hope: with clear analysis, tough decisions, and commitment to improvement, turnaround is possible.

The New Zealand trades industry needs successful, sustainable businesses that can train the next generation of skilled workers whilst maintaining profitability. Companies like No Shock Electrical, willing to share their struggles alongside their successes, contribute to a more mature and resilient industry culture.

As Shamus and Matt continue building their business, they’re not just creating a company—they’re contributing to changing the trades industry itself. Through better mental health practices, quality training programmes, and honest discussions about business challenges, they’re helping establish new standards for what trades businesses can be.

Their journey from a pub conversation to a thriving multi-division business, through crisis and recovery, illustrates that success in the trades isn’t about avoiding challenges. It’s about facing them honestly, learning from them, and building something sustainable that serves both the business owners and the broader industry.

To learn more about No Shock Electrical or to connect with Shamus and Matt, visit https://www.noshock.co.nz/ or find them on Instagram and Facebook.

This article and podcast is proudly brought to you by Gilligan Sheppard, the problem solvers in business who believe in thinking differently.