How to start an electrical company

How to Start: An Electrical Company

So, you’re an amazing electrician and you’re ready to take the step of going into self employment. What do you need to know to convert your skills into a profitable business? We look at some core considerations when starting an electrical company.

So, you’re an amazing electrician, and you’re ready to take the step of going into self-employment. What do you need to know to convert your skills into a profitable business? We look at some core considerations when starting an electrical company.

The latest in our “how to start” articles where we look at considerations before starting an electrical business.

If you have the skills and experience necessary to trade as an electrician, then you might have considered doing so independently. Electrical contractors are able to set their own rates, make their own decisions, and, potentially, enjoy more fulfilling professional lives. So, it’s a natural leap for many experienced and skilled electricians to become self-employed.

The demand for qualified professional electricians who know how to deliver a skilled, professional and efficient service is huge. In other words, there’s never been a better time to set up a business as an electrical contractor. But how, exactly, do you go about doing this? We look at the core steps and some key considerations.

How to Create a Business

There are several different ways to form a business. You might register as a sole trader, or as a limited company. In the former case, you are assuming the business’s debts. In the latter, you are protected – though you’ll have to deal with more paperwork and reporting.

If you’re employing people, then you’ll need employer’s liability insurance. If you’re working with electricity, then more specialised business insurance should be seriously considered. It’s a good idea to set up a business bank account, too, since this will allow you to keep more accurate records, and keep your personal finances separate from your business ones.

Trading as an electrician, it should go without saying, requires that you be suitably qualified. You might also get registered with an appropriate professional body, like the NICEIC or NAPIT.

A registered electrician will work to the BS7671 standard, which will provide customers with peace of mind and help ensure that they comply with any relevant building regulations.

Early Investments

You’ll need the equipment necessary to get to the job and perform it. This means a reliable van, typically, as well as a handful of key tools. For many electricians starting out, opting for a van lease from services like Swiss Vans can be a cost-effective way to secure a reliable vehicle without the upfront costs of buying a van outright.

The requirements here are not quite as gruelling as those imposed on, say, a carpenter, but you’ll still need quality electrical tools to complete each different task properly. Leasing a van also offers flexibility, allowing you to upgrade your vehicle as your business grows or needs change, making van leasing a practical option for budding electrical businesses.

Marketing

If you’re going to attract work, then you need to make your would-be clients aware of the service you provide. Word-of-mouth can be hugely powerful, here, but you might also look to physical advertising through flyers, and digital advertising through a social media presence and a website.

Quality Assurance and Service

Electricians who provide a poor-quality service are likely to develop a poor reputation. Conversely, those who do a good job are likely to be rewarded with more custom. It’s therefore a good idea to review your service, and make refinements. Here we’re not just talking about the electrical work itself, but also the services that surround it. If you are rude, or leave the worksite in an untidy state, then it might not matter how good your wiring is.

Skill Up and Good Luck

When you take the leap and go self-employed, it won’t just be your electrical skills you’ll need. At least in the early days, it’s likely you’ll have a role to play in sales, marketing, customer service and business finance too. So take advice from the help available online, learn new business management skills and grow your electrical business. Good luck!

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