So you’ve successfully become a licensed electrician and you’re ready to start your own electrical business. You’ve already come up with a business plan, so what’s next? Maybe you’ve covered all of the basics, but maybe there are a few things you’ve forgotten. Here are a few helpful tips to keep in mind when starting your electrical business.
Business insurance protects your company from certain liabilities. There are several different types of business insurance, including public liability insurance, professional indemnity insurance, employers’ liability insurance, and electrical contractors’ insurance if you’ll be working with subcontractors.
Before you can register for taxes, you’ll have to apply for an Employer Identification Number or EIN. Depending on your type of business, there will be different taxes to register for. Each state has different tax requirements when it comes to businesses.
Just about every place in the United States requires electricians to have a license before performing any electrical work. State and local licensing requirements can also differ in certain places, so it’s best to make sure that you have the correct licenses in every town/state you plan to work in. Certain building permits are also required.
It’s important to have a bank account for your business that’s separate from your personal account. This is necessary to protect your assets (home, car, etc.) because if your business is sued, you can potentially lose these too. Also, with a separate bank account, you’ll be able to have a separate credit card to use for business expenses.
Because working as an electrician is considered a skilled trade, you’ve probably acquired many tools working on the job during your education and training or apprenticeship. It’s important to invest in quality tools--- after all, this is your business.
You’ll also need some modes of transportation. Maybe you only need one vehicle, or maybe you need more. Using your own vehicle may work for a while, but like your personal bank account, it may be easier to have your own company vehicle or vehicles. If you’re just starting out, the thought of purchasing multiple vehicles (or even just one) can be overwhelming. Fortunately, there are companies that specialize in trucks for rent to businesses. This option is a great alternative to buying a vehicle if you’re just starting out.
There’s a specific type of marketing called recruitment marketing that helps you find qualified employees to work for you. As a business owner, this is an important type of marketing strategy because it brings skilled workers to you. This can be outsourced, meaning that you can hire an agency to help bring qualified candidates to you. This, among other tasks, can be outsourced.
There’s no escaping the fact that we now live in a digital world. Nowadays, this is probably the best way to market your business. First and foremost, you’ll need a website that describes all of your services, the areas you service, hours of operation, and how to contact you. Social media business pages are also created to do the same thing, but they have the potential to reach a wider audience with specialized business tools. All of your social media business pages should direct people to your website, where all of your information should be.
To start a business of any sort requires careful planning, no matter the industry, but for a business in the skilled trades, planning is of great importance.
Many of these tips are obvious, but some business owners can skip out on or forget to get certain types of insurance. Also, it’s important to understand how licensing regulations and permits work in skilled trades. When getting your start in the electrical business, be sure to keep these six helpful tips in mind for success.