How much does it cost to start a electrical contractor business?

• $20,000 - For a Used Truck or Cargo Van

• $5,000 - Equipment and Inventory 

• $200 a year for a website

• $1,000 a Year for Insurance - If you need insurance, reach out to Wexford Insurance, they work with a lot of Electrical Contracting Businesses. wexfordins.com

• $2,000 a Year for Marketing

• TOTAL COST TO START: $28,200

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How much money can you make starting an electrical contracting business?

• $420,000 a year!

• Electrical Contractors make around $200 - $500 per each small job (small electrical work)

• Electrical Contractors make around $2,000 - $6,000 per each large job (Rewrites, new home installation, etc). 

• Simulation: (based on assumptions)

• 20 Small Jobs a week (4 a day) = $7,000 a week = $28,000 a month

• 2 Large Jobs a month = $7,000 a month $35,000 a month

• $420,000 a year!

 

Are Electrical Contracting Businesses Profitable?​​

• Yes, as long as your pricing is efficient and profitable based on your time spent, this business will always be profitable. 

• The challenge with this business is scaling past the local level and finding trusted employees. 

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Types of Electrical Contractor Businesses:

• Residential Electrical Contractors

• Commercial Electrical Contractors

• Industrial Electrical Contractors

• Fire Alarm Electrical Contractors

• Security Alarm Electrical Contractors

• Maintenance and Service Contractors

• Lighting Installation

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Positives of a Electrical Contractor Business

• This business is in a niche. There are not a lot of electrical contracting businesses, therefore you have less competition.

• This business is always needed. People do not know how nor want to do their own electrical work. 

• This business has high profit margins.  

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How do you get electrical contracting jobs? 

• Create a website with SEO (Search Engine Optimization) and post on social media apps. 

• Network with local home builders, general contractors, home remodelers, etc. 

• Sign up with Contractor Back Office (contractorbackoffice.com) to get leads for electrical jobs. 

 

How to Start an Electrical Contracting Business 

1. ​Save up money for down payments on equipment

2. Form your LLC with the Federal Government and Local Government

3. Create your website and social media pages

4. Purchase Insurance

5. Find a Lawyer to draft your customer service contract

6. Make connections with local realtors, contractors, property managers, and homeowners.

7. Implement local marketing. ​