There are more than 75,000 electrical businesses scattered all across the country right now. And that number is likely going to grow in the coming years as more and more electricians decide to branch out and create their own businesses.
Before you take the leap of faith and start an electrical business, there are some steps you should take to set it up for success. By following these steps, you’ll put yourself and your business in a much better position to be profitable right away.
Take a look at 8 key steps for starting an electrical business below.
1. Determine the Need for an Electrical Business in Your Area
The first thing you’ll want to do before starting an electrical business is figure out how much your area actually needs another electrical business in it.
Is your community growing by leaps and bounds every year? Is there a big electrical business that recently went out of business or moved to a different area? Do you simply get the sense that people in your area aren’t happy with the electrical services currently provided to them?
If you answered yes to any of these questions, then starting an electrical business might be a great idea. Just make sure the demand for one exists at the moment.
2. Create a Name for Your Electrical Business
Once you’re sure you want to start an electrical business, come up with a name for it. Try to choose something that will set your business apart from others.
Some electricians opt to use their names to build up a sense of trust with their customers. Others get more creative to ensure people remember their names once they hear it.
Regardless of which approach you choose to take, make sure you pick a name that will be easy to market to people later. It’ll make your life a lot easier when it comes to attracting customers to your business.
3. Obtain the Proper Licenses, Permits, and Insurance for Your Electrical Business
When starting an electrical business, you can’t simply come up with a name and start showing up at people’s houses to perform services.
You need to obtain the proper licenses, permits, and insurance to work in your area. Make a trip to your local city hall or town municipal building to see what you’ll need to do to get your business up and running.
Call a few business insurance companies as well to obtain business insurance quotes. You shouldn’t run a single electrical wire or swap out a single electrical outlet without an insurance policy that will cover you and the homes and/or businesses in which you work.
4. Think About Which Services Your Electrical Business Will Provide
Speaking of homes and/or businesses, have you decided whether your electrical business will cater mostly to homeowners or business owners?
Some electricians choose to do both. But you may want to pick between providing residential or commercial electrical services based on your level of experience and expertise.
You also want to decide which services you’ll provide for customers, regardless of whether you choose to serve homeowners, business owners, or both. You may want to specialize in one or two services or offer a long list of services to customers.
Read more here to get a better idea of some of the services you might want to provide.
5. Consider Whether or Not Your Electrical Business Will Need Other Employees
If your plan is to offer more than a dozen services to home and business owners, you probably aren’t going to be able to do it alone. You’ll need help answering all the service calls you receive.
If that’s the case, hiring employees for your electrical business is a good idea. It’ll allow you to serve more customers in less time.
But there is also something to be said for starting an electrical business small and allowing it to grow organically. Rather than dealing with multiple employees from the start, you might want to consider only hiring one or two helpers, if you hire any at all.
6. Purchase a Truck and Tools for Your Electrical Business
Some of the biggest expenses you’re going to encounter when starting an electrical business are the truck and tools you’ll need to buy for your business.
At the start, you might not need to rent a physical location for your electrical business. But it’s going to be impossible to complete electrical jobs without a truck and tools.
Think about purchasing a used truck when you first start and run your business out of it. Look around for used tools as well that you can upgrade later once your business starts picking up steam.
7. Set Up a Website for Your Electrical Business
In addition to investing in a truck and tools for your electrical business, invest in a website for it as well.
Your website will allow you to tell customers which services you provide. It’ll also allow you to tell them which areas you cover and what your hours are.
If you can swing it, it’s always good to have your website SEO optimized so that it attracts more attention through search engines. By starting a blog about electrical work on your website, you could bring in more traffic every month and generate more business.
8. Start Marketing Your Electrical Business to Potential Customers
The final step you’ll want to take when starting an electrical business is marketing your company to potential customers.
You can do this by running ads on a local radio station or putting an ad in the newspaper. But you can also do it by kicking off a social media campaign on Facebook, Twitter, or Instagram.
In 2018, marketing your business on the internet has become incredibly important. Find ways to do it effectively to get your business off on the right foot.
Starting an Electrical Business Can Be the Best Career Move You’ll Ever Make
If you’re an experienced electrician and you know there’s a demand for an electrician like you in your area, starting an electrical business on your own is smart.
You can make your own hours, bring in your own money, and run your electrical business the way you think it should be run. You’ll find it to be very fulfilling and will be glad you started a business if you follow all the steps listed here first.
Read our blog for more tips on launching a successful business.