Starting your own electrical business is a wise choice, especially if your interest really lies in the field of electricity. However, considering the variety of large business competitors, an electrician business can be a frustrating responsibility, especially that it also takes time and money to prosper. You need to be at least well guided and knowledgeable. |
Like other businesses, starting up an electrician business also follows certain procedures. Whether you are starting from scratch, purchasing an electrical contractor franchise for company branding, below are the general steps that you can follow to start up your own electrician business.
1. Obtain a training or education from a certified trade school or training program. Once done, gain some experiences about being an electrician through apprenticeship or working in a certain company and earn a license by taking some exams and submitting a variety of paper works, as specified by your state.
2. Write a business plan containing all business details of your electrician business, including the financial projection, marketing, and advertising strategies. Through your business plan, you will be able to assess every aspect of your business, such as its weakness and strength. You will also need your business in case you might seek for an outside financing or loan from your bank or any other lending institution.
3. Create a company name and file your business structure with your secretary of state. The structure of your business will determine the type of income tax that you will have to file, your potential income, and estimated cost of money that you will have to spend for business maintenance and some paperworks. The most common type of business structure includes sole-proprietorship, Limited Liability Company (LLC), partnership, or corporation.
4. Comply with the state requirements in order to run a legitimate electrician business, such as obtaining a local business permit, state contracting license, tax registration certificate, and your tax identification number and employer identification number.
5. Complete your business with all the significant things needed to operate efficiently, such as your vehicle, communication tools, and electrician equipment.
6. Purchase business liability insurance for your electrician business. Your insurance agent will be able to explain to you how much your state require and advise you if you need an additional surety bonding.
7. Make your electrician business known and gain customers through an effective public relations plan. In addition, establish professional presence by creating a logo, which will represent the value of your business and make customers remember you. Aside from your local office, you may hire a website developer to create a virtual office and invite more customers to request for a service. Finally, create a fair pricing strategy which must be transparent to customers who will approach your office. Negotiate deals and win contracts, if applicable.
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