The Challenges of Owning an Electrical Contracting Business and Why a Franchise Could Benefit You

Posted in: Platinum Business Inspiration

Running your own electrical contracting business has several benefits. You have the freedom to choose your jobs, when and where you work and decide your own payment rates. However, are you aware of the common frustrations that running your own business entails? Here, we look at the top frustrations electrical contractors face when operating their own businesses, and how you can overcome them.

1. Lack of time and achieving that work-life balance

As Denis Matijevic, who is the General Manager of Franchising at Platinum Electricians, points out, a lack of time management skills can become a huge challenge for new business owners. As an electrical contractor, being able to show up to jobs is at the core of the business. With other things like traveling to jobs and getting stuck in traffic, along with marketing, administration, customer queries, and bookkeeping to worry about, it can be easy to fall behind on the work-life balance factor.

2. Business strategy, model, and structure

Denis also points out that knowing what to do can also be a challenge to people who are new to running their own electrical contracting business. What’s your strategy and business model? What’s the structure that you’ll operate under? How do you hire someone, register an apprentice, and manage accounts and payroll?

Making the leap from an employee electrician to the owner of your business requires both technical skills (as an electrician) and business acumen and knowledge. For some people, it can be a big jump to make without the right support.

3. Business management skills

Owning a successful electrical contracting business also requires business management skills. This means being able to manage a lot of moving parts, from employees, contractors, and support staff, to tax, compliance, and invoicing. You’ll need to learn to delegate tasks, manage people, and communicate with different businesses like accountants, bookkeepers, and outsourced administrative staff.

4. Marketing and promotions

Being responsible for marketing your business is another factor to consider. People won’t know about you if you don’t advertise. Whether it’s setting up a website, internet pay-per-click advertising or direct mail, you need to have a defined marketing strategy to grow your client base.

5. Set up and compliance

Having the right business structure impacts your taxes and other compliance obligations. Whether you’re operating as a sole trader, company, or any business vehicle, you need to be aware of your tax obligations, eligible tax breaks, and regulatory framework to operate successfully. Getting professional advice from an accountant, lawyer, or consultant might be essential if you’re starting out as an electrical contracting business.

6. Administration and delegation

Answering customer queries by phone or through your website and updating your client database can seem non-essential, but if you want to operate a successful electrical contracting business, you’ll need to address these challenges. You might start out as a sole trader and answer your own phone calls, or contract out these functions at the start.

As you grow your client base, you’ll likely need to hire your own administrative support staff. Knowing what to delegate and how it will be a challenge if you don’t have a clear strategy for delegating non-core, support functions, is essential when growing your client base, staff and business.

7. Getting expert advice and support

Knowing when to get expert advice is another vital element and a potential source of frustration. Setting up your own business means legal and compliance issues, and this typically includes record-keeping obligations you need to fulfill. As noted above, you’ll need business skills as well as your existing technical skills as an electrician, so you’ll need to work with experts such as accountants, business consultants, and marketing companies. This is not only time-consuming since you need to find trusted advisors; it can also be costly to pay for these partners’ advice.

Overcoming these challenges

Fortunately, buying a franchise is one of the best ways you can resolve most of these potential sources of frustration. By buying into a reputable, proven electrical-contracting franchise such as Platinum Electricians, you can access the expert advice and guidance you need whenever you need it, and in the process, have things like marketing and bookkeeping models set up for you.

This leaves you free to focus on building a business that will one day work without you and give you more work-life balance.

As Denis details, a Platinum Electricians franchise is set up to provide electricians with success:

  • Professional help – Denis is proud of the ‘Platinum Family’ – the franchise network that gives you access to a group of like-minded people who are ready to help you with anything from practical to emotional support.
  • Demonstrated business model– Become a business with a proven, demonstrated business model with a turnkey structure and strategy.
  • Bookkeeping and accounting– No need to find your own bookkeeper or accountant, as Platinum Electricians take care of this for you with their partnered professionals.
  • Marketing– Marketing and promotions are a huge part of the franchise system, so you don’t need to worry about how to market, we teach and guide you.
  • Customer calls– Platinum’s Head Office is responsible for incoming customer queries.
  • Compliance– Platinum Electricians will guide you through system and HR compliance on your behalf.

Eliminating business owner frustrations with a Platinum Electricians franchise

One of the biggest challenges of running your own electrical-contracting business is lack of time. By buying into an established franchise like market leader Platinum Electricians, you can access a turnkey business model and have ongoing support for everything from marketing to compliance and bookkeeping.

Denis believes that there are three currencies in the world – money, lifestyle and time, and more often than not, business owners have to sacrifice one to obtain the other two. Owning a Platinum Electricians is the ideal solution for owning and building a profitable, thriving business, while at the same time living a great lifestyle and achieving that sought-after balance of work and life.

Are you ready to enjoy the perks of becoming a Platinum Electricians franchisee? Contact our friendly team today to discuss your options as a member of the Platinum Electricians family.