At some points, every electrician dreams of being independent by owning and running an electrical shop. No one loves to work as an apprentice for the rest of their lives. Working independently as an electrician comes with its challenges – no doubt. The journey to the wild can be scary and mind-boggling, especially after the apprenticeship days are over. However, the perks outweigh the difficulties faced when the right steps are taken.
Electricians who contemplate on embarking on the entrepreneurship path will find this action-packed guide beneficial to their business goals. Do electricians stand a chance in the business world? In truth, they do and here are some reasons to back the answer. As long as the world depends on energy (electricity), there will always be a sustainable demand for electricians.
In fact, these professionals earn more than masons, plumbers, and carpenters in some parts of the world, such as Australia. There is also a high demand for this profession in New Zealand, so much that the Ministry of Business, Innovation, and Employment enjoins more people to undertake this skill – the same situation applies to the United Kingdom.
In the U.S. alone, there is a projected growth of 8% in this field come 2029, a report generated by the United States Department of Labour’s Bureau of Statistics. With these revelations, it becomes obvious an electrician’s role cannot be undermined. But what does it take to start an electrical store? It is time to find out more below.
How to Open an Electric Shop and Be in Business
It is one thing to provide electrical services as an electrician, it is another thing to incorporate business elements into the profession. Not all electricians succeed as business owners, even if they are well-versed in the electrical field. Nevertheless, the following sections discuss the way through an electrical business.
Identify Viable Electrical Business Goals
To begin with, what reasons are behind the decision to venture into this business? Extra income? More flexibility, including additional spare hours for self and family? The satisfaction that comes with working for one’s self? There should be a pivot point that motivates the decision to open an electrical store, which also anchors the business goals and objectives.
Define a Feasible Business Plan
What is a business without a business plan? Of course, such an enterprise will not survive the harsh market turbulence that comes now and then. It is worth investing an ample amount of time into creating a business plan; this serves as a navigational guide to establish the electrical business.
Besides, without this element, owning an electrical store will be a fairy tale. The business plan should be clear, concise, purpose-driven, and strategic – straight to the point.
There is no need to beat around the bush. Here are some elements entailed in this piece of documentation:
- Vision, mission, and objectives
- A feasibility study, comprising market analysis and strategies
- Financial projections and financing
- Growth opportunities and solutions addressed
Qualifications and Certifications
It is not enough to only have on-hands knowledge on electrical works, electricians should also have the right training and certifications.
These requirements place them at a vantage point where they easily get projects from clients and deliver satisfactorily.
In the same vein, they enhance one’s skill and experience. Electricians with high qualifications can take on complex electrical projects, including data and security systems, electrical vehicle charging stations, and solar panel systems.
Several associations exist to help one acquire more knowledge and skills in this field. They include Penn Foster Workforce Development (United States), Electrical Skills Training (United Kingdom), Electrical Workers Registration Board (New Zealand), and the National Electrical and Communications Associations (Australia).
An electrical shop will come from the wave of a magic wand, and not every electrician has the money to build the electrical shop. Hence, it is time to source for capital. Conceivably, some resources are available to get the business off the ground, but not enough to establish it.
Relevant electrical business assets include electrical tools, stock, a vehicle, and perhaps, an extra hand.
If sourcing for such resources personally is out of the question, resorting to a third party would be ideal. Private lenders and financial institutions are willing to offer business loans, provided that the business is feasible and rewarding.
Most of them also have SME professionals who provide expert business counsel.
But if that does not work out, the electrician may source for angel investors. Such individuals are always on the lookout for promising start-ups and are ready to finance the business more, compared to the traditional lenders. However, kindly note that they fund the business in return for a percentage of ownership or convertible debt in return.
Stocking Up on Electrical Tools and Related Items
Establishing an electrical shop is no walk in the park.
The capital tends to be significant. Excluding the purchasing cost, electricians have to deal with running costs. Electricians providing mobile electrical services will need a means of transportation, which does not come cheap as well.
The vehicle houses necessary pieces of equipment required to handle electrical projects in other locations. Interestingly, the market is flooded with tons of these materials, which comes with varying qualities and prices. They include the following:
- Electrical wall chaser
- Approved voltage indicator
- Battery drill
- Multifunction tester
- Fish tape
- Wire strippers
- Wire cutters
- Insulated screwdrivers
- Wrapping wire
- Single-core wire
- Multi-core wire
- Solder flux
- Solder wire
- Solder wick
- Electrical tape
- Freezing spray
- Kapton tape
- Cotton buds
- Flux cleaner
Purchasing electrical tools for the business may set an electrician back by at least $5,000, while the cost of a van may range from $5,000 to $35,000, depending on the brand, model, features, and conditions, just to mention a few.
There is a need to cater to the business set up and accounting costs, which can start from $1,000. These items are assets for the business and should be included when documenting the business plan.
Determining Service Fees
One of the many business cul-de-sacs is pricing. Fees differ from one niche to another, and even within the same business, services may be different.
The same thing applies to owning an electrical store. Electricians are careful not to undercharge or overcharge their clients. A secret tip is to find out what other electrical stores are charging for specific services. And if that is not enough, find out online what the fees are within a specific location.
The Bottom Line
Owning an electrical shop is not an easy task due to the fact that there are several working parts.
However, the rewards are worth the adventure. Electricians on this journey can learn a thing or two from established electrical business owners, apart from this guide.