Business Overview

Electrician businesses focus primarily on servicing electrical systems in homes and businesses. Because it is a trade business, it is highly specialized. Furthermore, local and state governments typically restrict non-tradesmen from working on electrical systems. Due to these factors, skilled electricians are typically in high demand.

Who is this business right for?

This business is right for individuals who are good with their hands, have good people skills, are good at solving complex conceptual and mechanical problems, and can work in a variety of different environments. To own and operate an electrician business, you must also be a skilled electrician. Most business owners are master electricians who have studied for many years as an apprentice.

What happens during a typical day at an electrician business?

Day-to-day activities of an electrician include repairing or replacing electrical systems, including main systems, fuse and breaker box panels, running electrical wiring, repairing and maintaining electrical wiring, transformers, and related systems. Electricians also spend a fair amount of their time on a job troubleshooting electrical problems.

Because wiring in a home or business is often hidden behind walls, electricians need to know how to diagnose what might be wrong with a system before fixing it. They may not have the luxury of taking down all the walls in a building to solve the problem, either.

What is the target market?

Electricians make money by charging customers for their services. They may charge on an hourly basis, or they may request a flat fee for services.

How does an electrician business make money?

Preferred client types for this business are commercial accounts. However, residential customers can also be an ongoing source of income, provided that the business can service a rotating base of clients. This could involve contracting with a Homeowners Association, or some other organized community, to service residential customers.

What is the growth potential for an electrician business?

Most electrician businesses are run as owner/operator businesses. However, you can take on an apprentice or work with many different partners and establish a higher-volume business. Some electrician businesses are also run as franchise operations. If you go this route, you should be prepared to pay a substantial amount of money upfront. However, franchises do offer several great benefits, such as an established brand name, protected service territories, and ongoing marketing support.