Do you want to start an electrical contracting company from scratch? Or you need a sample electrical contracting business plan template? If YES, then i advice you read on.
The services of an electrical contracting company is always on demand because an electrical contracting company handles massive electrical contracts like wiring of building complexes and restoring electrical faults where necessary.
If you have a versatile knowledge in handling electrical issues, it will be easier for you to start an electric contracting company. Even when you don’t have the electrical skills, that is you are still trying to venture into and start an electrical career; you can still go for a training prior to starting a contracting company.
This article will serve as a basic guide to anybody who wishes to start an electrical contracting company. It will touch issues like things you need to start your electrical contracting company, how to start an electrical contracting company even if you don’t have a prior knowledge on electrical skills.
4 Things You Need to Successfully Start an Electrical Contracting Company
- Skill in Electrical Works-: This is the most important thing you need to run this business. You need to have basic skills to run an electrical business; and you may have to sit for some exams before you are issued an electrician’s license to start a contracting company. You can also undertake some training in schools that offer electrical training courses to help you keep up to date.
- License-: I have already talked about license but it’s good to mention it once more, you need an electrician’s license to operate as an electrician in any State in the U.S and you have to sit for an exam to test your electrical skills; you are issue the license after you pass the exams.
- Capital-: Starting an electrical contracting company is not highly capital intensive; but you need money to purchase all the basic equipments and machineries you need to run the business. You can source for a loan from the bank to help you get started. If you are going to opt for a bank loan from the bank, you will need to work out a repayment scheme that you will be able to handle to avoid getting into bad debt.
- Business Skills-: Electrical knowledge and skills is not enough for you to pull through when starting an electrical contracting company, you need some vital business skills to float your company. You will need good marketing skills, leadership skills to motivate your workers, ability to be creative and innovative.
Starting an Electrical Contracting Company – Sample Business Plan Template
There are two ways to start an electrical contracting company. The first way is to start the company from scratch. You handle the registration, licensing, registration, and work hard to grow your company. The second way to go about it is to pay a well established electrical contracting company to use their name as a franchise.
This may be the easier option because you will be using the brand name built by the parent company; but there are some disadvantages that come to using another company’s franchise. For example, the money you will pay to get the franchise is always on the high side.
Secondly, some franchise deal may require you to pay a certain amount of money annually or quarterly for you to continue enjoying the franchise. But this section will focus on steps to help you start your own contracting company from the scratch.
1. Obtain License-: The first is to obtain an electrician’s license if you haven’t gotten it. Make an inquiry via the office of the board handling the issuance of electrician’s licences in the State; ask for other requirement getting the license and fix a date for your exams. Work toward passing your exam at first sitting to get your license. The exam is just basics to test your electrical skills.
2. Company Registration-: You are starting a company and will need to register the company with the Corporate Affairs to permit you run the business as a legal entity. In addition to getting your company registered, you need to also get a business permit from the Town council in your State; get your Tax Registration number and also a contracting license from the State.
3. Purchase Equipments-: You need to order for wires, ladders, pliers, screw drivers and other equipments you need to execute your electrical contracts. You also need a truck to enable you transport bigger equipments to working sites.
4. Employ Other Electricians-: As an electrical contracting company, you are most likely to get big contract jobs once in a while, like wiring a shopping mall, and you will need a team of workers to get the job done faster. Every electrician you employ should be certified and have a license to practice as an electrician. Your company can also pay to undertake training your workers on safety courses to minimize the risk of accidents while working.
5. Advertise Your Business-: Finally, you need to advertise your company to start landing contract jobs. Less expensive means of advertising your electrical company include;
- Network With Construction Companies-: Most electrical contracts are awarded by building construction companies. The company handles the building, while the wiring and other electrical fixtures are awarded to the best electrical contracting company around. So networking with building construction owners will increase your chancing or being awarded contracts.
- Bid for Government Contracts-: Most times, Uncle Sam sublet electrical contracts in tune of millions of dollars yearly to private electrical companies. You can visit the ww.fbo.gov to check out available electrical contracts, and place your bids as soon as you find a business opportunity you can handle there because chances are that other electrical contracting companies scouting for the same business opportunity.
- Private Individuals-: It is not only Governments and construction companies that need the services of an electrical contracting company, private individuals, Realtors, and organizations need their services also. So you must a way to reach out to these set of people by attending business seminars where you will get opportunity of meeting other business people; share your complimentary cards and fliers to as many people as possible.