10 Steps to Launching a Successful Electrical Startup

Skilled trades fill a very important need in society. Plumbers help provide clean and efficient water to residences and businesses. Auto mechanics help fix and maintain cars to stay road-ready. HVAC technicians can help keep buildings at safe temperatures. Electricians ensure buildings can receive power, which is one of the most important trades of all. Many entrepreneurs learn skilled trades to start their own businesses. If you’re interested in becoming an electrical business owner, you’ll need to develop a short- and long-term plan to maximize success.

1. Choose Your Niche

Entrepreneurs see a problem or need in society and fulfill it. All electricians satisfy the need to provide power to the people through safe and functional electrical systems. However, you may want to fill a specific electrician role, such as solely working on commercial buildings or construction sites. Some choose to fulfill eco-friendly niches, such as providing solar or wind power. Others don’t work on buildings at all but instead provide lighting and power to the city’s roads. The smartest way to start a business is to decide what role in the electrical industry you’ll play.

2. Create a Business Plan

Once you’ve decided what your business will do or offer, you’ll need to figure out how to get started. Who will your target audience be? How large will your business get? Will you have a brick-and-mortar location or operate mostly online? Will you hire employees, and how many? What will financial success look like to you? These are some of the many questions to ask yourself when deciding on a business plan. 

3. Obtain Relevant Skills and Knowledge

Unfortunately, you can’t just decide to become an electrician and get licensed the next day. You’ll need experience! Many electricians start as an apprentice for four or five years and gain experience on the job. Others attend formal trade schools to gain their experience or a mix between the two. From there, you’ll likely become a journeyman electrician, which is essentially a middle-tier level of expertise and job access. Your ultimate goal will likely be to become a master electrician, especially if you want to run your own business. You may need to take additional training or certification in specific niches, like solar power, if applicable. These skills take years to learn and develop, so you’ll need to be patient.

4. Prepare for Licensing

Most states require a license to perform electrical work, especially if you run your own business.  Electrical licenses are important for safe, skilled, and legal electrical work. You’ll need a certain amount of preparation before getting an electrical license. You’ll either need formal education or job experience to obtain a license, but you’ll need to pass an exam first. It’s always smart to establish solid studying practices and take preparation classes or tests before taking the real thing. Electrical licenses typically require regular renewal in most states as well. Georgia, North Carolina, and Hawaii electrical continuing education is required before renewing a license. You’ll want to check your state for its renewal requirements and take the necessary preparation and education if applicable. Regardless, it’s always good to keep your knowledge of electrical codes and regulations fresh.

5. Find Funding

Most people don’t have the pocket change to open an entire business of any kind. You’ll need funding! Most people take out small business loans with favorable rates and terms to purchase commercial property and equipment. You can also utilize personal savings, investor contributions, or split costs with a partner. Remember, when you take on a partner, you also split profits.

6. Buy Insurance

Electrical work can be dangerous. On top of that, most businesses will deal with at least one unsatisfied customer from time to time. Obtaining business insurance can help mitigate risks that arise when it comes to electrical work or customer dissatisfaction. As a basic rule, most businesses should obtain general liability insurance should they damage a client’s property or wiring. You can also obtain electrical contractor insurance for more tailored coverage.

7. Start a Marketing Campaign

Most businesses will need to hire outside help with marketing. You’ll need your business to get proper attention for success. The difference between a failed and successful business is often marketing. You’ll need to establish an online presence with a website and social media profiles. You’ll need to target local traffic to your website and business. Don’t be afraid to hire a marketing team for this purpose.

8. Hire a Team

The larger your business expansion goals are, the likelier you’ll need to hire employees. There’s a lot to running your own electrician business, like appointment scheduling, financing, taxes, vehicle maintenance, parts and equipment purchasing, marketing, and more. Hiring help can make a huge difference in your workload and success. You’ll need to make sure you can afford to pay your workers, however—you may need to wait a bit.

9. Purchase Necessary Equipment

You’ll need to be able to afford and purchase all required equipment for your electrical business. You’ll likely need vans or trucks, wiring, power tools, solar panels, and more. You won’t be able to take on clients without the necessary tools of the trade, so this is an important step. Don’t be afraid to use your business funding for these purchases.

10. Learn and Adapt

An important key to business success is knowing how to adapt. You’ll be making a lot of mistakes and adjustments when you first start. Learn from mistakes and do better in the future. Adapt to different types of clients and conflicts. When you learn and grow as a business, you’ll be able to make the right calls in the future. Adaptability is crucial for success.