How to start an electrical business

Why start your own electrical business?

A job role that’s in demand, with increasing opportunities in the electrical sector, there’s never been a better time than now to start an electrical company.

No matter if you’re a veteran wirer or just starting out, setting up your own electrical business gives you the freedom to become your own boss. So you can manage your work-life balance, while enjoying great earning potential.

But starting your own company offers far more benefits, some of which include:

• Setting your own hours – you get to choose whether you work evenings or weekends, and when to take time off
• Choosing employees – you can choose whether or not to take on new employees, and you get to handpick any new electricians you welcome onto your team
• Choosing jobs – you get to pick and choose exactly which jobs to take on

Has your interest been peaked? If so, keep reading to find out all you need to know about getting your electrician business off the ground.

Creating your business plan

Regardless of which trade you decide to set your sights on, every single new business needs a plan.

After all, if you’ve never run a business before, how are you going to know what you’re doing?

So, before you think about picking your tools up and heading out, you need to sit down and formulate a business plan which:

• Sets out your goals
• Outlines steps needed in order to achieve them
• Financial estimations

Not only will have to you keep your goals in mind, but a good plan will also help you stay organised. Plans make it easier for you to make informed decisions.

It’s also a necessary document to have should you need financing to start your company.

With that in mind, here a some of the main considerations you should include when starting an electrician business plan:

• Make sure you budget for any start-up costs
• Think about how you’ll manage your finances
• Decide where you plan to operate
• Work out the best way to reach customers through marketing
• Choose what hours and days you’ll be working
• Make your business stand out (with new or better-quality services)
• Consider your relationships with suppliers

There are, of course, more questions to consider throughout the planning process. If you’d like more help, then you can download our free business template below.

What qualifications should a UK electrician have?

If you’re just starting out in your career as an electrician, then the law requires you to have a few key qualifications. Even if you’re looking at how to start an electrical business.

They keep you and others safe during your work. To find out what these are, why not read our article on training to become an electrician?

However, if you’ve been in the industry for years, you likely already have all the necessary qualifications and experience you need to become self-employed.

Other options for further learning include:

• Gaining a master electrician license or higher trade qualifications
• Taking courses in different disciplines so your company can offer specialised services, plenty of which you can find in our top training course guide
• Specialising in a specific area of electrical expertise, such as maintenance, again allows you to offer specific services

On top of these, it’s worth noting that many electrician jobs will involve working on a construction site. So, it’s crucial that you also have a CSCS card in your repertoire.

Having the right accreditations and qualifications will allow you to accept any job that comes your way.

What important business skills do you need?

While many electricians will already have the qualifications and experience needed to do a great job, it’s certainly worth asking yourself if you have the other important skills necessary to successfully run a company.

It might be that you’re already well-versed in some areas of business management, but we recommend taking a look at the following skill list to see how you stack up, and in what areas you might need to improve:

• What is your knowledge of building and construction?
• At what level is your current numerical understanding?
• Can you competently read technical plans?
• How good are your attention to detail and organisational skills?
• Do you have good initiative and problem-solving skills?
• Have you developed your customer service and interpersonal skills?
• Do you have the ability to lead and manage employees effectively?
• Do you have the patience, fairness, integrity, and self-awareness needed for the role?
• Do you have the enthusiasm and endurance to keep going when things get tough?

These are just a few insights into what is required on a skills level when running your own business, and for more details, we recommend looking at our article on becoming your own boss.

How to set up your electrician business

So, now that we’ve covered the basic steps required to begin setting up any new business, let’s now focus on exactly what steps to take when starting an electrician business specifically.

There are practical steps you need to take when starting an electrical company. For example, insurance requirements, registering with HMRC for tax, and marketing your business effectively, so you can be sure you’ve ticked all the boxes before you begin.

Registering your business

For any business to operate legally in the UK, it must be registered with HMRC for tax purposes.

This means settling on a name for your business, which you can learn more about in our guide on choosing an electrical company name, and deciding whether or not your new business will be recognised as a sole trader or a limited company.

Both of these company types come with different tax requirements and regulations that you’ll need to follow, so be sure to research these options fully to decide which will work best for your business.

Getting electrician insurance

Once your business is fully registered, the next step to take when starting an electrical company is to acquire the necessary cover.

Electrician insurance offers financial protection for:

• You and your family
• Your business
• Your livelihood
• Any third parties

Insurance cover is there in the event of any losses or damages caused by unexpected events during the course of your work.

It goes without saying that electrical work is rewarding, but can also be quite dangerous. Mistakes can unfortunately have serious consequences. So, it’s important you’re fully insured in the unlikely event something goes wrong.

Accounting and bookkeeping

One of the most common reasons for new businesses failing is poor cash flow management. That means it’s very, very important for you to keep an eye on your incomings and outgoings.

Doing this effectively will go a long way towards helping you to manage your finances. Using software and processes help you track whether invoices have been settled, and claim relevant business expenses.

We go into far more detail on how to do this in our article on small business accounting. It is important to consider your finances so your business stays profitable.

Buying your electrician tools and equipment

It is also good to think about buying all the tools you’ll need to carry out your job effectively. Branching out on your own means you’ll no longer have access to the tools provided by your previous employer.

Below are just some of the key tools you should look at buying before you start work:

• A multi-function tester
• Insulated screwdrivers
• A spirit level
• A multi-tool
• A drill
• A tape measure
• Fish tape
• An electric wall chaser
• Pliers
• An approved voltage indicator
• A torch
• Wire strippers
• Wire cutters
• A hammer

For more information on exactly what tools to buy, why not browse our article on essential electrician tools?

Remember, if you sign up as a Checkatrade member, you’ll benefit from amazing discounts on equipment, tools and workwear from suppliers such as Selco and Wickes.

Tips for marketing your business

When it comes to marketing your business, you have plenty of options to choose from. We go into greater detail on these in our electrician growth guide, but below are a few suggestions to get you started:

• Build or update your business website
• Try SEO to raise your online profile
• Get active on social media
• Invest in branding and company signage
• Made use of PPC advertising
• Expand your service offering
• Joining an online directory like Checkatrade for lead generation

Of course, the marketing doesn’t end there, and for further tips and tricks, why not download our free marketing guide below?

Case study – How Checkatrade helped promote E. Jauncey Electrical

Knowing how to start an electrical business is one thing. But wwe wouldn’t want to leave you without offering you a firsthand account of someone who has been through the startup process with Checkatrade.

With over 20 years of experience, Elliott Jauncey was looking to reach new customers, promote his business, and keep his stellar reputation for excellent work intact as he grew. But with no website or advertising, Elliott needed a way to reach potential customers.

So, he joined Checkatrade. And with his own profile page, visible customer reviews, and handy search metrics, Elliott was suddenly in a brilliant position to kick-start his company.

1. Starting a new electrical business

In 2012, E. Jauncey Electrical was founded. With no marketing experience, Elliott was unsure where to start when it came to promoting his company, an issue faced by many new businesses. Which is why he turned to Checkatrade for help.

We were able to help him get started marketing his business by setting up a space where customers could view his past work, see reviews, and get in touch with him directly for a quote.

2. Building trust

Elliott knew getting his name out there and building trust in his customer base was essential.

“With me, it’s important that my potential customers know I can look after them,” explained Elliott.

“My reputation means everything to me, and when setting up the business with my own name on the side of the van, I had to guarantee my reputation as a trusted tradesperson”.

Elliott wanted to show his customers that they came first and that the work would be top quality, and he was able to do this through his Checkatrade account and reviews.

3. Building a website

Creating a website is a huge task that can cost a lot of money if done wrong.

Elliott said, “I needed a way to ensure that I could get my message across to my potential customers by allowing them to see customer reviews from each and every job.”

Fortunately, with Checkatrade, you don’t technically need a website.

As a member, Elliot was given his own profile that he could personalise, showing the important stuff like contact information and the types of work he specialised in, and what areas he covered, all whilst giving him a chance to showcase pictures of previous jobs.

4. Using the Checkatrade app

Elliott also mentioned that he found using the Checkatrade Trades app easy and straightforward for his business page.

“I could update my own profile page as often as I wanted to and I could post all my own images to showcase my work, plus have all my contact details and my public liability insurance all in one place.”

He said that “it’s very easy to monitor how much business is generated via the company,” which is great for keeping tabs on your return on your investment.

5. Customer searches

Elliot also mentioned that he wanted further insight into how customers were searching for his business, and Checkatrade’s free search feature proved to be an excellent way for customers to find him in his local area.

“There’s even a breakdown to find out which words were used in the customer’s search which was great because I could amend the words I used in my profile, to help to maximise how many times my business appeared as a search result.”

“I receive enquiries every single week and I win new business consistently that has found me via Checkatrade.”

6. Take my advice

As far as Elliot was concerned, Checkatrade was a great success for E. Jauncey Electrical!

Elliott said, “I can honestly say my business has thrived since being a member.”

“The advertising really does pay for itself and the cost per month is very affordable.”

“If you are a grafter like me and you want more work, then what is there to lose? Why wouldn’t you want to get your share of searches on Checkatrade? No brainer really. My recommendation is one you can rely on!”

What are you waiting for?

Ready to give your new business the spark it needs to be successful by joining our leading trade directory?

With a range of memberships available, you can choose the option that’s right for your business. Our fixed membership option lets you build the plan that’s perfect for you and your business needs.

Interested in starting an electrical business? There are other ways in which Checkatrade can help.

• Share in existing job leads and consumer searches
• Trades app – for job management, messaging, invoicing and more
• Guarantee for trade jobs booked through us (naturally T&Cs apply)
• Savings at suppliers like Selco and Wickes
• Reduced cost of public liability insurance
• Great savings on the cost of Quickbooks software

We’ll help you out with plenty of job inquiries, but you can also save money with exclusive discounts. Adding our good name to yours, you can take advantage of the trust we’ve built for over 25 years.

FAQs

Is it worth going self-employed as an electrician?

As an electrician, no two days are the same, and when self-employed, you have full control over your future career and the direction of your company.

But it’s important to remember that running your own business is no easy task. It takes a lot of time and effort to become a reputable and profitable name, but it is a rewarding journey.

How much does a self-employed electrician earn?

As a qualified electrician, you can expect a good salary that is very competitive within the trade industry.

Generally, the average salary for a self-employed electrician is around £40,000 per year. To learn more about electrician rates, read our article on how much electricians can earn.