A Step-by-step Guide to Starting an Electrical Business


Do you have any ambitions to start a business using your electrical skills? Learn how to get started.

If you’ve completed your apprenticeship or have previous experience as an electrician, you might want to explore starting your own electrical company as a next step. This is your step-by-step guide to forming a new business, from legal documents to marketing and pricing.

A firm that makes, supplies, or installs electrical equipment is known as an electrical business.

An electrician firm is in charge of installing and maintaining an electrical system’s wiring and equipment. You can work in both residential and industrial structures, as well as construction sites.

How to Start a Business as an Electrician

Follow this step-by-step guide to help you create a profitable electrical business.

Determine who you want to sell to

Depending on your area of competence, you have the option of doing residential electrical work, industrial electrical work, electrical construction work, or emergency electrical work.

Assemble a business strategy

Develop a strategic plan that includes a market study and sales approach, as well as predicted revenues and expenditures. Aside from the business strategy, you’ll need to figure out how much money you’ll need for upfront charges and how much you’ll be able to charge clients.

Consider the various borrowing choices

Depending on the amount of cash you have in the bank and the equipment you want to buy, you’ll need to apply for a company loan or a personal loan. New electrician businesses are unlikely to be able to obtain business financing in the early stages.

Examine the market’s setup

It is critical to have your business structure in order from the start, as changing your business structure later can result in unexpected tax consequences. Electrical contractors should start their firm as a sole trader since it is a simple and affordable method to get started, but alternative structures are also feasible.

Make sure you’re informed of your legal obligations

You should put your consumer agreements in writing so that you are protected if something goes wrong. A separate contract must be provided that defines the terms and conditions of any subcontractors or workers you hire.

Target the right audience

Your marketing strategy will be determined by your target audience. Would you like to have workers from the construction sector on your team? After that, you might wish to connect with the individuals in your company. Do you want to include both residential and business customers in your advertising campaign? You could explore creating and advertising your services on platforms like Airtasker and hipages once you’ve invested in your logo and branding.

Choose a name and a logo for your business

The name of your electrical company is its brand or trademarked name. It’s critical that you pick a company name that reflects the image you want to communicate to customers. When you’ve decided on a company name, double-check to see whether it’s available and then register it with the Investments Commission (ASIC) and Australian Securities. You can opt to develop a logo for your business using a variety of graphic design services.

Check you have the right certifications and licenses

Make sure you have the necessary skills and experience as an electrician to operate on your own before starting your own business.

There are several paths to becoming an electrician. Electricians must often undergo a four-year apprenticeship program. You may also be required to have a Certificate III – Electrotechnology Electrician. The average cost of the course is $14,500.

After that, you’ll need to obtain an electrical license in order to work independently. Depending on where you’re based, several government offices are in charge of licenses:

Queensland WorkSafe 1300 362 128
NSW NSW Fair Trading 133 230
VIC Energy Safe Victoria 1800 815 721
SA State Government of South Australia 131 882
WA Energy Safety 08 6251 2000
TAS Department of Justice
ACT Environment and Planning
NT Electrical Workers and Contractors Licensing Board 08 8936 4079

Before applying for a license, in Western Australia, Queensland, Tasmania, and Victoria, you must have evidence of insurance to apply for a license. Make sure to compare quotes online to get the right balance of coverage and price for electricians insurance.

Get the equipment you’ll need

You’ll need some basic equipment and tools to get started. Just some of the things you may wish to consider are listed below:

  • Electrical tape
  • Basic tools, including hammer, screwdrivers, pliers, and wrenches. Some of these will need to be insulated depending on what you intend to use them for.
  • Cable cutters, wire strippers
  • Voltage detector

Determine the right business structure for your needs

Before you begin, you must decide how you will organize your company. Here’s a quick rundown of the many types to think about:

Sole proprietor: This is the most frequent type of business structure for electricians. A sole trader is legally accountable for all parts of their firm, including all earnings, losses, credit, and obligations.

Partnership: A relationship is an agreement between two or more people that is legally binding. This group of people shares profits, losses, and responsibilities. Starting a Limited Liability Company is more expensive than starting a Sole Tradership.

A corporation: A corporation is a major corporation that is governed and controlled by a board of directors. Companies are regulated by the Australian Securities and Investments Commission (ASIC). Directors are accountable for a company’s debts and losses.

Determine your terms and conditions of business

Your Terms and Conditions spell out how you interact with clients and what you are and aren’t liable for. It’s standard practice to include Terms & Conditions when sending a quote to a customer. It will include information on the services you will offer, your charges, payment terms, and client guarantees, among other things.

If you hire more people, you’ll need to create a contract to delineate crucial details about their jobs, such as their hours, pay rates, superannuation, employee and employer responsibilities, and termination.

Where do you go looking for clients?

Your method of customer acquisition will be determined by your field of expertise and target market. You’ll need to network with your present connections in the business if you want to work as a subcontractor on construction projects, but you won’t need to spend a lot of money on a logo and branding.

Share this


The Intricacies of Islamic Ceiling Art: Geometry and Symmetry Explored

Islamic ceiling art captivates with its intricate geometric and symmetrical designs, which are a hallmark of Islamic architectural aesthetics. These designs are not just...

Baroque Ceilings: The Grandeur of 17th Century Europe’s Artistic Mastery

Baroque ceilings offer a stunning glimpse into the grandeur of 17th-century Europe. These ceilings, adorned with elaborate decorations and dramatic artwork, were designed to...

The Role of Ceilings in the Palaces of the French Monarchy: Architectural Grandeur and Symbolism

Ceilings in the palaces of the French monarchy, such as the Palace of Versailles, played a significant role in showcasing the power and cultural...

Recent articles

More like this