How to Start Your Own Electrical Business
Whether you’re a qualified and seasoned electrician or a complete newbie, starting an electrical business could help you take control of your salary and become your own boss. Keep reading to find out why you should consider the move, and discover our top tips for making it in the industry.
When you become an electrician, you join a recession-proof sector with great profit potential. Both residential and commercial property owners will always need the services of electrical companies, and if you can offer a great product, you’re likely to see success as an electrician.
According to IBISWorld, the revenue of the electrical sector is set to rise at a compound annual rate of 1.3 percent over the next few years, to reach £26 billion. Thanks to this industry growth, the average electrician’s salary has increased by five percent, and now sits at £32,315. In fact, electricians have seen the biggest income growth of all the trades recently (ONS).
Benefits of starting an electrical business
- As we’ve already mentioned, you can protect yourself from economic instability by becoming an electrician. People will always need help making sure their electrics are in good order.
- Unlike retail businesses, you won’t have to rent premises, invest in specific furnishings and fittings, or buy a huge amount of stock. Instead, you can launch a mobile business, driving your van to your customers.
- According to the Office for National Statistics (ONS), electricians earn more than any other trade. The average salary increases to around £47,265 for the most skilled and experienced electricians. Of course, if you choose to start your own independent business, you’ll be in control of setting your own rates, deciding how much you charge per hour or per job.
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10 top tips for starting an electrical business
Here’s how you can get the most from your money when starting an electrical business:
- Create your brand. When a customer lets you into their home or business, they want to be able to trust you. If you come across as polite, professional and knowledgeable, your customers will have more faith in your ability to do the job. A well-designed logo, smart uniform, branded transport and a good attitude can all go a long way to helping win customers over.
- Get high-quality training. If you’re setting up an independent electrical business and carrying out a lot of the work yourself, you’ll need to make sure you have the right training. As a minimum, you’ll need to gain an industry-recognised Level 3 qualification, such as a Level 3 Diploma in electro-technical services. You may also want to complete an apprenticeship to give you on-the-job experience.
- Start with no experience. If you want to become an electrician or manage an electrical business, you can gain all the training you need by joining a franchise. Once you’ve invested in a brand, it’ll give you the chance to take part in comprehensive training schemes. Then, you’ll be able to launch your business with all the skills you need to make it in the industry.
- Avoid doing the dirty work. Some franchises, such as Mr. Electric and Mr. Handyman, give you the opportunity to start a business and take a managerial role. You don’t need to have worked as an electrician before; you’d be responsible for finding customers and then assigning a qualified tradesperson to the job.
- Choose reliable suppliers. When you’re starting an electrical business, it can be tempting to try to save money by choosing cheap suppliers. While it's essential you make a profit, you should also be focussing on providing customers with excellent, long-lasting solutions to their problems. Customers won’t use your services again if your products don’t stand the test of time.
- Invest in good tools and equipment. Just as you should buy high-quality products, you should also make sure you or your employees use decent tools to fit them. This will involve a significant up-front cost, but if you buy reliable equipment, it should make it easier to do a great job and serve you well for years.
- Protect your business. Even the most conscientious of electricians make mistakes. No matter how many precautions you take, accidents happen. When you run your own business, a single mistake can be financially crippling, so getting the right insurance in place is paramount. This can be expensive, but it’ll be worth it if the worst happens, as you won’t be hit with unexpected costs.
- Find low-cost marketing methods. Digital marketing is a highly effective and relatively low-cost way to spread the word about your business. If you're unsure how to create a digital marketing campaign, there’s lots of free content online to guide you through the process. Once you’ve built up a decent customer base, word-of-mouth recommendations will play a huge part in gaining you more customers. When it comes to tradespeople, referrals from family and friends are trusted by customers more than any other type of marketing.
- Use your vehicle to promote the business. If you operate from a company van or car, you can use it to spread the word. Invest in a high-quality vehicle wrap with your brand logo and contact details. You could include everything from your phone number to your social media pages.
- Seek professional advice. In the initial stages, when you’re drafting your business plan and thinking about your finances, you may want to enlist the help of a professional. This could be an accountant or even a solicitor, but it pays to get expert advice when you’re setting up a new business. They’ll be able to highlight any red flags and offer tips for making sure your new venture runs smoothly from the get-go.
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Find out more
Our article cache has a range of resources designed to help you set up a successful business. If you’re training to be an electrician or are raring to start your own electrical company, you’ll find lots of articles providing more information. See our electricians articles to browse by specific topics.
Alice Tuffery, Point Franchise ©
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