If you’re a qualified electrician who is looking for their next challenge, or you believe you can earn a better income by starting your own electrical business, understanding the costs associated with starting your own company is an important task to carry out before taking the plunge. From buying the rights to your business name to considering your business expenses, there is a lot to think about when starting up, but we’re here to give you a hand!
So, how much does it cost to start an electrical business? This depends on a number of factors:
1. Your personal finances
Starting up an electrical business can cost you some money – but it will be worth it! You’ll need to work out your current finances and determine what you’ll be spending at the beginning to get your feet off of the ground. Start small and keep investing in your business over time, or you could chuck in a lump sum to cover most things right at the start – it’s up to you! In 2016, Moneywise found that the cost of starting a utility business was approximately £17,962, but don’t let that scare you away. Starting your own business is an extremely personal experience. If you’re good at what you do and have the tools on hand, you can start your business with whatever works for you. You might already own some of the tools or know the right people who can help you get started.
2. Your location
It’s important to note that the costs associated with starting an electrical business will vary based on your location. For example, the same Moneywise report found that Manchester was the most expensive place to start a business, with average costs of £44,733, while Newcastle was the cheapest, at £17,008. A number of factors come into play here, including the cost of renting or buying property (which you may or may not need). Your location can also affect the prices you charge your clients.
3. Your potential overheads
There are a number of business expenses to consider when starting your own business, including:
- Rent
- Transport
- Insurance
- Bookkeeping
- Tools and equipment
- Marketing & website design
- Employees (if you have any)
Some new companies tend to use their home or van as a business location instead of renting a separate space, and this can help you cut down costs! Whether you choose to rent a space from a landlord or to do it a bit DIY – this will have some expenses involved with it as well, so it’s a good thing to keep in mind.
Last but certainly not least, you’ll need to be marketed to head off on the road to success. While social media and word of mouth will be important here, you also need to ensure you have a high-quality website that can help you get listed on Google. Your online presence is a place to be yourself and share with your customers. So, make sure you keep everything up to date and share all of your important content here such as hours of operation, photos of your work, contact details and maybe even some blogs!
This list isn’t exhaustive, but learning about the basic costs can help you get started with your new business. We know that taking the plunge into a new business is thrilling and sometimes a little bit scary. We’re here to help you tick one thing off your list: a website. Go Sitebuilder has been designed with busy small businesses in mind. Get started with a 14-day free trial and see just how easy it is to build a professional website all by yourself – no credit card or expert skills required!