How to Start an Electrical Business – What You Must Know

Posted in: Platinum Business Inspiration

There are plenty of reasons to want to start your own business. 50 in fact, according to Entrepreneur.

Having your own business lets you set a formality and culture for your working life. It lets you do what makes you happy, offers you new skills, and can create that all-important flexibility you’re craving. Each day is different when you have your own business and as well as new challenges there are new ways to connect with clients. Life is never boring when you have your own business, so take the plunge!

Here’s how you can do it…

Starting your own electricity business

There are a number of things to consider when setting up your own electrical business. Firstly, be clear about your “why”. Embarking on the road to being a business owner is not going to be an easy one so be clear about why you want to go out on your own and start your journey with your eyes wide open.

Also know who your customers are and what your niche market will be. Who’s your ideal customer? What kind of service do they require? What pricing is fair? Get to know who will be needing your services and align that to marketing, pricing, location, branding…everything.

Other things to consider are:

Rules and regulations – not towing the line because you were not aware of a particular law is no defence. Don’t get caught out!

Competition– Opening up the Yellow Pages is not enough here. You need to study your competition and know what they do well and where you can improve on their offering.

Costs– The excitement of starting a business often translates to over estimating income and underestimating costs. Have someone in your corner that understands budgets and small business so that you can manage this realistically.

Once you’ve figured this out you can start building your business.

Licensing

The first thing to consider before starting your own business as an electrician is your eligibility for an electrical contractors licence. Licence requirements and processes are slightly different in each state, so do your research. You may need to complete a business course via TAFE or other suitable registered training organisation.

Insurance

Your insurance needs to be firmly in place before you even consider opening up your services. This might feel like you are putting the cart before the horse but if you don’t have insurance you run the very real risk of being sued. As a minimum you will need Public Liability insurance for the amount of $5 million, more if you plan to do large commercial jobs. If you operate in Queensland you may need to include consumer protection insurance.

Business structure

Getting your business structure right is a big deal. You can change it down the track, but there could be tax consequences as a result.

Most electricians when starting out on their own do so as a sole trader. This means you are the sole person legally responsible for all aspects of the business. A sole trader business structure is the easiest and cheapest option, but other structures you might like to consider include:

Partnership: an association of people or entities running a business together but not as a company.

Company: a legal entity separate from its shareholders.

Trust: an entity that holds property or income from the benefit of others.

Before deciding, it’s important you seek advice from a professional business adviser, lawyer or accountant.

Branding and marketing

If your intent is to put yourself out there and chase electrical work, you’ll need to sort yourself some branding. A great brand name and a good looking logo is just the start.

Your branding can reinforce your value or distance you from it. It should represent your work and make a great first impression. Good branding can create buzz, position you as a true leader and innovator, and it can convey a service that’s different from what else is on the market. Don’t miss the opportunity to shine by skimping on your brand-deciding time.

When it comes to marketing, it pays to be strategic. Traditionally trades people get their leads through word-of-mouth but when you’re just starting out this might not be possible. To get recommendations you have to attract customers in the first place. Keep a cap on spending though, marketing budgets can quickly get out of hand.

All sounding a bit hard? Why not scrap all of the above and go for a franchise instead?

Why you should buy a franchise instead

Franchises are not only significantly easier to start up, they have a higher rate of success than startup businesses because the franchisee has done the market research. Franchisers are also easier to obtain finance for compared with a startup business.

With a franchise you get all the independence of a small business but you’re supported by the benefits of a big business network. You can tap into an already established reputation, recognised branding, proven work management and work practices, and ongoing support.

With a Platinum Electricians franchise you can accelerate your business growth and profit using our proven success model. We will continually train you, equip and support you with over 60 business tools. What you gain in savings and time far outweighs the minimum royalties you pay.

Think a franchise could be for you? Submit your expression of interest today.