How to Start an Electrical Business

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Starting an electrical business is a way to turn experience into money.
Starting an electrical business is a way to turn experience into money. (Image: electrical box image by jimcox40 from Fotolia.com)

Beginning an electrical business requires having some experience in the electrician field. You will need to hire skilled workers who can install electrical wiring, fixtures and are able to inspect wiring to ensure it is safe and properly insulated. This is one of the most important jobs in constructing any new space and should be taken seriously. Whether you are a large contracting operation or a small business, regulations for beginning an electrical business must followed.

Things You'll Need

  • business permit
  • electrician’s license
  • electrical supplies and equipment
  • employees
  • van or work truck
  • insurance

Contact your local government to ensure the location you have chosen to begin the business, whether it is a home or office, is in line with zoning regulations. Storage spaces must also be properly zoned in accordance with local regulations. Along with the business permit you need from your locality, an electrician’s license is also necessary for anyone doing electrical work. This will prove to customers the company is certified and employees are capable of conducting electrical work.

Purchase equipment and supplies. Items needed to kick-start the business include screwdrivers, wire strippers, wiring, voltmeters, ammeters, and power drills. Be sure to order extra equipment to keep in a storage shed when goods run low. Consider purchasing these items through a large wholesale electrical supplier, which might be able to offer a discount or free shipping if large purchases are made. Acquire a fleet of vans or work trucks to use when going from job to job or to transport equipment.

Hire a staff of employees willing to work for the newly established company. Conduct interviews and test the employees on their skills. Give them a simple electrical task to complete and grade them on how well they do. Applicants with the highest grades should be the ones hired. So not hire based solely on skill. Workers need to be courteous and friendly to customers in order to give the business a positive reputation.

Purchase an adequate amount of insurance to cover the jobs the company will specify. Contact an insurance agent and an accountant to find out which insurance package to pursue. This will save money for the business and protect workers if injured. Talk with fellow electricians or business executives to determine their recommendation of insurance.

Begin bidding on jobs locally if you decide to take the contracting route. Do some research on how to conduct the bidding process in your state by visiting the state’s procurement office. Only bid or work jobs profitable for the business. Be sure to set competitive yet reasonable prices for the customers. Offer discounts to large customers or regular clients.

Tips & Warnings

  • Keep adequate records of all your expenses. Document purchases, mileage costs and supplies so these spaces can be filled out on tax forms.

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