A guide to starting your own electrical contracting business
Starting your own electrical contracting business is hard work. By ticking off these 10 steps, you can make it a little bit easier.
You’ve done your apprenticeship, got your licence – now you want to start your own business. But there’s a lot more to it than getting a ute and waiting for the phone to ring.
Yes, we’re being a bit tongue in cheek there, but there’s a lot of truth in it, because a lot of people who ‘go it alone’ do so without too much thought beyond ‘I want to work for myself’.
They just want to get cracking – which is fair enough, but the day-to-day quickly consumes the everyday. And as a small business owner, you need to make time to work on the business, as well as in it.
Put it this way, ask a contractor who’s been running their own business for the past 10 years if they’d have done anything differently in the early days, and they’ll reel off a load of stuff.
| Fortunately for you, most of that ‘stuff’ is covered below.
By putting the right things in place now, you can make sure you get clarity on where you want to go and how you want to do it, and you’ll spend your time taking deliberate actions in pursuit of your bigger goal, rather than lurching from day to day without a plan. Albeit with the best of intentions. |
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Get clear on your business vision and goals
First up, get clear on what you want your business to be. Do you always want to be a one-person band working in your current location? If so, that’s absolutely fine.
Do you want to grow into a multi-disciplinary business offering other trades as well as electrical contracting across all of the states? If so, that’s absolutely fine, too.
Whatever your BHAG (Big, Hairy, Audacious Goal), you need to map out a way to get there. A business plan outlining your market, your products and services, financial projections and marketing strategy (more on that later) will enable you to understand your costs, and create goals to work towards and track as time goes by. Track your key performance indicators to keep you on track towards your goals.
Build your brand
From deciding on and registering your business name and designing a logo to getting uniforms and caps, and even nailing your email tone of voice, A LOT goes into building your brand.
You need a website so potential customers can find you online. Get your search engine optimisation right, and you can save a fortune on digital advertising. Your website address should be logical and aligned with your business, and you’ll be able to get a professional-looking email address once this is in place too. Bobselectrics@yahoo.com.au will work fine, but it doesn’t look prof.
Have a marketing plan
If a business is created but no one knows it’s there, is it really a business? Yep, we do philosophy here, too. But it’s true, right. Without customers, your business isn’t real, so you’ve got to promote and publicise the fact you exist.
This can be done in any number of ways – flyer drops, local posters, sponsoring local sports teams and hooking up with local business groups are all legitimate options.
Set up Facebook and Instagram accounts and start sharing stories of you and your business, too. You’ll build a following, which is essentially an untapped pool of potential clients. Create a marketing plan you can work towards – plan, measure and evolve.
A big part of your brand is your customer value proposition. Why would someone call you rather than a competitor? Identify that, and share it throughout your marketing.
Make sure you’ve got all the boxes ticked
You need the right insurances in place . Professional indemnity is a must, and if you’re employing people, you need to make sure you’ve got workers compensation sorted too. There’s a mountain of workplace health and safety compliance you need to manage, so make sure you’re across all of that, too.
Get the software in place
The right software can automate processes and save you a load of time. It can also enable you to do more.
From the right email program and accounting software to job booking systems and measuring time spent and profit on individual jobs, choosing the right systems will give you insights into your business that will enable you to make the very best, most informed decisions in the future. Choose reputable, cloud-based systems that put cyber security high on their list of priorities.
Managing your finances – well
Running your own business is a lot of responsibility and you need the right people in your corner. You’ll need a business bank account, and an accountant – ideally one who works with other trade businesses – is an essential.
A good one will be able to help you set up and register your business, advise the right structure, and keep you compliant in terms of BAS, GST and everything else you need to do.
Knowing what to charge, how and when to raise your prices, and ensuring you get paid on time are crucial, too.
Choosing the right wholesaler to work with
The right wholesaler will give you more than products.
Choosing an independent electrical wholesaler will offer you local knowledge, exceptional products – and expert product help – as well as a friendly face when you need it.
Gemcell independent wholesalers pride themselves on going above and beyond, and if they can help, they will.
Your reputation will be on the line with customers with every job, so having product experts in your corner is critical.
Deciding what jobs to take on – and what to turn down
It can be tempting to take on any job – every job – when you’re starting out. But tread carefully. One wrong decision could have significant consequences, particularly for a new business.
Accept the jobs you have a good feeling about – if there are alarm bells going off about any aspect, then think twice. You’re better off not accepting a job than committing to it and ending up with a huge problem down the track.
Growing the team
As you become more established, you’ll need more people. It stands to reason. Someone to do the paperwork. Another electrician. An apprentice. As you bring people in, make sure they’re right.
The fact they – on paper at least – can do the job is one thing. Being the right person for you, your business, and your clients is another completely. Culture matters.
Do your homework on them, get references and go with your gut . The adage ‘hire slowly, fire quickly’ exists for a reason.
| Scaling and growing with systems and processes To develop your business, you need to be guided by your business plan, and make decisions based on the milestones you’ve decided on. |
Good partnerships with local businesses and other trades are helpful, as are customer reviews – collect them after every job and publicise them.
Evolving the tech side of the business is important, too. If you have good tech that saves time and automates everyday tasks it frees up your time – and the busier you get, the more time you can save. Learning new skills and adding new services to your offering will also help attract more new business and create an increasingly valuable proposition.
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