How To Become An Electrician | Start A Commercial Electrical Contractors Business

The Power Of Wealth

An electrician business is one recession-proof business that has withstood the test of time. This highly specialized trade offers services to both homes and businesses. In North America, we depend on electricity and electrical appliances for every aspect of our lives- so when our electrical systems break down, we need a commercial electrical company or residential electrician immediately. Because of the high demand for journeyman electricians, many people start the profession by attending commercial or online electrician trade schools. The benefits of being an electrician are enormous, and it’s also a career in which you can make good money. However, the competition for clients can be intense because every city has electrical repair and services businesses. But the rewards can be significant for those who persevere in training as an electrician.

How To Become A Master Electrician

Before opening up your electrician business, you’ll need to know what kind of technician you want to become. One can work as a mobile electrician, join a builder’s contracting company, work for primary industry, or join a union, housing estate, or business corporation services. If you decide to go solo and open your own company offering mobile services, you next need a detailed plan.

Online Electrician School

An electrician can only work independently in every state if they pass their state exam and receive certification as a commercial electrical contractor. You’ll need to call the state’s electrical Contractors Association and determine the specific requirements for an electrician company.

Here are the links you’ll need to apply to become an electrician, state by state

Training As An Electrician – What Does An Electrician Do?

Starting your own business can be difficult if you have just graduated from your training as an electrician, especially if you do not have experience or business skills. Thus, We recommend that you first work as an apprentice with an electrician to learn everyday job skills and business knowledge. Once you feel confident, then you can start your own business. 

Is An Electrician Business Profitable?

Again this depends on how hard you work. The majority of electricians are paid quite well. Those operating a business can expect to make anywhere from $70K-$125K a year, assuming you have a steady client flow or are well established. When starting, you will probably make around $50K-$70K a year.

Electrician Company Branding

Selecting the right name is essential so that clients can easily recognize your brand. If you have incorporated your business, you can name the company after your name. If you choose a name with electrical terminology, make it short and sweet.

Here are a few branding consulting companies

• Thryv
• Elmwood
• DPGW

Free Tools To Monitor Your Brand Include

• Tweetdeck
• Hootsuite
• Google Alerts
• Seesmic
• Yahoo Pipes
• Twilert
• Zapier

Commercial Electrical Contractors Business Plan

• Where will you be located?
• Who are your customers?
• What are the startup costs?
• Do you need a license or permit to work as an electrician?
• What equipment or tools will you need?
• What will you charge for your services?
• Who is your competition?
• Will you need insurance?
• How will you market your services?
• What will you name your business?
• Is there room to grow in the future?
• How many employees will you have?

There are some handy services available online

• LivePlan
• Master Plan
• UpWork
• Go Business Plans
• Fiverr
• GrowThink
• CorpNet

Some business plan templates that you should consider include:

• SCORE business plan
• The $100 startup One-page plan
• Bplans.com
• Bizplan.com
• Startpad
• LivePlan

Before you sign any paperwork, it is essential to speak to several electricians and ask them questions about the business. Experienced electricians can provide invaluable knowledge on the practical aspects of running an electrical contractor business.

Electrician Business Identity

Before operating your business, you will need to do the following:

• Register the business
• Go to the local Chamber of Commerce and determine your required licenses and permits.
• Obtain an EIN
• Register for state and federal taxes
• Obtain insurance
• Obtain a dedicated bank account

Form A Legal Entity

You’ll want to protect yourself and your business from litigation; it is vital to form a legal entity that may include a corporation, limited Liability Company, sole proprietorship, or partnership. A legal entity’s cost varies from $200-$2,000. You will need to renew your business each year.

Electrical Solutions Business Incorporation

Check out these few companies that can assist you in getting your LLC started.

• Legal Zoom
• Legal Shield
• Truic
• Zen Business
• Swift Filing
• IncFile
• Inc Authority
• UpCounsel
• Legal Match

Here are a few government links you might want to visit

• Small Business Administration
• USA .gov

IRS Website

This site by the IRS is a must-see when beginning your LLC

How Do I Get Funding For My Electrical Contractor Business?

• Because of stiff competition, most banks and lenders are reluctant to loan electricians money to start a business. You will need to have written a solid plan as the lender will ask for it. 
• If banks and private lenders fail to give you money, visiting a credit union is an option. These lenders do not provide huge loans and also charge high-interest rates.
• The other option is to seek funding from a venture capitalist.
• Crowdfunding is also an option.
• Today, small business loans are available, but these loans can take a long time to process, and the bureaucracy may drive you insane.

Here are a few of your options

• Kapitus
• Snap Cap
• Fund Box
• Lending Tree
• Lendio
• Bank Of America
• National Funding
• Biz2Credit

Small Business Administration

The Small Business Administration, SBA has a program to fund new startups and is worth a look

Pro Electric Banking

Here are a few of the standard business banking options available online

• US Bank
• Kabbage
• North One
• Bank Novo
• Bank Of America
• Chase Bank
• Capital One
• Wells Fargo
• Customers Bank
• Mercury

What Is The Cost To Start An Electrical Contractor Business

The costs for starting a mobile electrician business vary but generally will include the following:

• License and permits $500
• Contractors License $100
• Insurance $300-$500
• Van $20K for used and $40K for new
• Tools $5K-$10K
• Rental space, if not mobile, $5K
• One employee $3K-$5K

Your startup costs may vary from $5K to 25K, depending on the business’s size. If you do not have the money to purchase the tools, you could rent them, significantly reducing your overhead.

Expenses For Commercial Electrical Contractors

Typical ongoing monthly expenses will be as follows: your overhead will be low since you will not have to pay rent if you run a mobile business. Plus, there will be no employee salary if you are working solo.

• Wear and tear of Van $100
• Gas $200
• Replacing and upgrading tools $300
• License renewal $200-$300
• If you are renting a physical place, 
• then one way to cut down costs to 
• share the office space. $1,000

Becoming An Electrician Requirements – Training As An Electrician

• Being an electrician has inherent dangers; you must follow established industry safety procedures. Never let anyone not licensed perform any work for you, and double-check all work done by junior staff.
• Make sure your uniform is clean; your van is presentable and tidy- impressions count for a lot in every business.
• If you hire an employee or electrician, the onus is on you to check if their credentials are valid. There are severe penalties for allowing unlicensed workers to perform electrical work.

Electrician Business Insurance

For most businesses, several insurance policies exist for different kinds of risks. If you are unsure about your business’s risks, at least get General Liability Insurance, the most common policy that small businesses obtain. It protects you and the company when someone is injured and initiates a lawsuit. Speak to an insurance professional to determine what other types of insurance you will require. For a mobile business, you will need insurance coverage for fire, theft, and vandalism.

Here is a list of some standard insurance companies

• Biberk
• Three Insurance (Berkshire Hathaway Company)
• Next Insurance
• Thimble
• Geico
• Insureon
• Mercury Insurance
• Allstate
• Chubb
• CNA
• Farmers Insurance
• Huckleberry
• State Farm
• Hiscox
• Nationwide
• The Hartford
• Travelers-Business Insurance
• Liberty Mutual
• Progressive Commercial

Best Places To Get Small Business Insurance

• Statefarm
• Nationwide
• Travelers
• Liberty Mutual
• Chubb
• Cyber Policy

Electrician Services Certificate of Occupancy

If your business runs out of a physical building, you will need a Certificate of Occupancy. This certificate will confirm that you have met all zoning laws and building codes and meet state regulations.

Certified Electrician Company Contract

We highly recommend that you have a contract that you and the client must sign before offering any service. Especially if you will be an emergency electrician, the contract should state your work, how long it will take, potential problems, fees, and client expectations. The agreement is explained to the client to minimize the risk of litigation. Have a lawyer look over your contract template to ensure it is legal and offers you maximum protection.

Try out some of these “free” contract template websites

• Rocket Lawyer
• Legal Depot
• Forms Templates
• Signaturely
• Panda Doc
• Template .Net
• Eforms
• HoneyBook

Electrical Contractor Marketing Ideas

• Develop a webpage where you can detail your training and skills. What services do you provide, and how much do your services cost? Do not forget your contact information.
• Create flyers and distribute them around the local malls and shops.
• Drop your business card at the local hardware store
• Join social media and talk about your services
• Join online forums where electricians meet
• Create a logo and place it on your truck.
• Make a youtube video and showcase some of your electrical knowledge and skills.

Build Your Own Residential Electrician Website

Your restaurant domain name protects your website address on the internet. You can register a domain name with any hosting company you choose.

Some of the common domain registrars include:

1. Bluehost
2. Buydomains
3. Dreamhost
4. GoDaddy
5. HostGator
6. Namecheap
7. Shopify

Here is a list of options for building a regular website.

• Squarespace
• Bookmark
• Webflow
• Wix ADI
• Jimdo
• Webnode
• One
• Gator
• Mozello
• Weebly
• Mobirise
• Web.com

Here is a list of drag-and-drop page builders for WordPress.

• Beaver Builder
• Elementor
• Divi
• Hubspot
• Themify Builder
• Visual Composer
• Seedprod
• Thrive Architect
• Site Origin

How Can I Improve My Electrical Contractor Business?

• Market to homeowners
• Develop relationships with architects and building contractors
• Develop relationships with building managers
• Offer reasonable prices
• Maintain a good reputation
• Be honest with clients
• Offer free annual electrical inspections in homes, which may lead to more repair work.
• Educate customers on how to save on electricity bills
• Recommend energy efficiency appliances to customers
• Become a member of the local electrical contractors association

Who Are My Clients?

It depends on the type of business. Most large companies and industries either have their own dedicated electrician or contract their services to a large group of electricians. But if you are solo and operating a mobile business, most of your clients will be residential clients and small business owners.

Electrician Hourly Rate

In most cases, electricians charge per service. But some may charge per hour or have a flat rate. In any case, expect to be reimbursed anywhere from $70-$150 per hour.

Electrician Tools List

• Circuit finder
• Diagonal Cutters.
• Electrical Tape
• Equipment belt
• Fish tape
• Fishing tools.
• Hammer
• Labeling machines
• Level
• Measuring devices.
• Multimeter
• Pliers
• Personal Protection Equipment, gloves, eye goggles, boots, gloves, etc
• Power drills and drivers, hammer/drills.
• Power saws.
• Razor Blade.
• Screwdrivers and nut drivers
• Soldering Equipment.
• Tape measure
• Torch
• Utility knife
• Voltage tester
• Wire Crimpers.
• Wire stripper

Conclusion

All over the nation, construction projects are in full swing. According to the US Bureau of Labor Statistics, the demand for electricians will be growing. More importantly, the Bureau anticipates that the millions of older homes’ electrical systems will need upgrading to meet new electrical codes. Electricians will also install more recent and energy-saving electrical systems in many industries with global warming. Finally, a significant number of the early generation of electricians will be retiring within the next decade, so there will be plenty of jobs available to you if you so desire.