Table Of Contents
- Introduction to starting an Electrical Shop in India
- Choosing A Location
- Deciding a Shop Name
- Get all Licenses & Permits
- Get Business Insurance
- Decide on Recruiting Staff
- Purchase all Tools/Equipments
- Digitise your Shop Online
- Market To Target Audience
- Things You'll Need For Running An Electrical Business
How To Start An Electrical Business?
If you've ever had thoughts on how to run a successful electrical business or looking out for effective electrical shop business ideas then keep reading. Running an electrical business can be one of the best career moves you can ever make if you own considerable experience in this trade, have a list of loyal customers, and know well how to comply with the rules & regulations.
On top of it, if there's already a demand for an electrician & electrical shop in the area you want to open the shop, nothing can thwart you from running an electrical business you always had dreamt of.
However, no matter how good you are at your work, running an electrical business requires a different level of expertise, and that you may spend your initial years understanding the finer details of managing the electrical shop. But then, if you have done adequate research on electrical business ideas and have a winning blueprint by your side, you could be among those successful electrical entrepreneurs who have aced the job in the first few months itself.
To help you with your research and strategy creation, we have come up with this short & succinct stepwise guide that includes in & out of opening & running an electrical business. So, let's go through the guidelines step by step.
How much money do I need to start an electrical business?
The initial investment required for electrical shop in India can vary anywhere from 3 Lakh Rupees to 20 Lakhs depending on your location (suburban area or metro city).
Step 1- Choose A Prime Location
After you have figured out how much area you will require to accommodate your electrical shop, you should determine the location you will open it in. If your work is based on providing electrical services instead of running an electrical business, then a small shop would be sufficient. Four factors that will decide if the area you are going to open your electrical shop is suitable or not are:
Location Factors#1: There is no electrical shop in the area.
Location Factor#2: There is an electrical shop in the area, but people aren't pleased with its services.
Location Factor#3: There was an electrical shop in the area but has stopped services or has recently relocated to a different location.
Location Factor#4: There are several electrical shops in the area, but a renowned electrical shop in the region has relocated to a different location.
If any of the factors described above is right in your case, opening an electrical shop in the area can be a good idea.
Step 2- Decide a Name for Your Electrical Shop
You must already have a few promising names in your mind for your electrical shop but before you go ahead and settle on one, go through the following factors essential to be considered before naming the business:
Factor#1: Whatever name you choose for your electrical shop, make sure it has a good recall value, i.e. people can recall its name easily whenever they require the services. You don't need a literary masterpiece as your shop's name.
Factor#2: Try to pick a name that will kind of build trust with your potential customers. Believe it or not, but it works, even a trustworthy name influences a lot of people until they have tried the services.
The bottom-line behind both the above factors is choosing a name that will be readily marketable in the future and will effortlessly attract your prospective customers to you.
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Step 3- Get All Required Licenses and Permits for Your Shop
As you know, you need to obtain various licenses and permits to run any business, and an electrical shop is no different. Licensing for opening an electrical shop varies from state to state, so we will only have a sneak peek of the general information and not go into much detail.
Visit your town's municipal corporation office and know your eligibility for obtaining a license. Ask them about all the licenses and permits that are required to run an electrical business and try to get them.
Step 4- Get Your Electrical Business Insured
Once, you have obtained all the licenses and permits; you should get your electrical business insured with an acceptable policy that must cover you, your shop and homes or businesses to which you provide your services. Get in touch with a few insurance companies that offer insurances for electrical business and get a policy. Even a single step without getting your business insured can be risky.
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Step 5- Decide the Services You Will Provide
There are three options, either you provide electrical services to homes or businesses or both based on the expertise you own. Whichever you choose to provide, commercial, or residential electrical services, there would again be a question as to which all services will you provide. Will you specialise in a few given services or will offer a full list of services?
Step 6- Examine If You Would Require Other Employees
Now when you have decided as to what services you will provide, you should consider whether or not you will need other employees to run your electrical shop. If you wish to offer a whole range of services for residential and commercial purposes both, you will perhaps need to hire someone as doing it all alone wouldn't be possible.
Moreover, a helper will make it easy for you to serve more customers that too in less time. You may also require someone to answer the service call your customers make. As such, initially, you won't need many people. You would require more people as the business grows.
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Step 7- Buy the Tools and If Possible a Van or a Truck
Now comes the significant primary investments you need to make to run your electrical shop a little more exultantly. Buying the tools and the van or a truck for your electrical shop are the biggest investment you are going to encounter.
As far as a physical location is concerned, you can rent one, but you can't do without a van/ truck or the tools. Initially, you can purchase a used van/ truck as well as used tools. Later on, when your business flourishes, you can always upgrade your tools.
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Step 8- Go Digital! Get a Website for Your Electrical Shop!
Do you know? "The number of mobile internet users in India is estimated to reach 829 million by 2021." It is a digital era now and that no business can easily survive without going online. The customers usually search for all the information online before they consult a service provider.
Tap into all the platforms where your customers are and sell your services easily. Go online. Get a website and optimize it for search engines. Launch a blog, educate your customers about electrical issues and not only bring more traffic to your website but also build trust with your potential customers through it.
Get active on social media where your customers are hanging out and generate more awareness about your electrical shop. As far as social networks are concerned, a recent study depicted that in India, the number of social network users will reach more than 336 million by the end of 2020."
Step 9- Market Your Electrical Shop to Your Prospective Customers
Just now we discussed how you can leverage various online platforms to promote your business, that's a part of marketing itself such as optimising your website for search engines, getting active on social media, and so on.
This is how you can organically endorse your business. Apart from these, you can also run ads on the internet, local newspapers, or radio stations that involve some investments.
Things You'll Need For Running An Electrical Business
This is a list of definite things that you should consider before thinking about electrical shop business ideas:
- Business Licenses
- Professional electrical license
- Lease or Rental Agreement
- Insurance information on Business liability
- Local Permits (if applicable)
- General Contractors List
- Professional liability insurance information
- Sales tax no. information (if applicable)
- Real estate companies and agents list
- Color Ad information
- Ad Rates for Different Marketing Portals
- If you are an expert at providing electrical services and there is a need for an electrician like you in the area you are going to start an electrical business, opening an electrical shop is indeed a wise decision.
- While running an electrical business involves a lot of attention, it has its freedom as well.
- You can work in the hours you want, you can run your business the way you want and can earn as much money as possible.
- It is, of course, an excellent step to open an electrical shop; all you need is to abide by the guidelines we have mentioned above.
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Q. How do I start a small electrical business?
Ans- These are some of the best tips to grow your electrical business:
- Maintain healthy relationships with clients, vendors, suppliers, and managers.
- Obtain all licenses and permits beforehand.
- Finalise a Prime Location for better business.
- Develop solid marketing plans to promote your business.
- Connect with real estate agents and builders who could provide you with good business prospects.
Q. Is electrical business profitable?
Ans- Yes, with the rapid growth in technology, the electric industry can be easily considered as one of the best business ideas in India. It is also a promising employment opportunity for electrical engineers.
Q. How do electricians get clients?
Ans- Below is some of the simple steps of marketing tips for electricians and electrical contractors:
- Fix your target audience
- Build a client database
- Create an engaging online presence
- Generate, respond to online reviews
- Be visible- online, print, etc.
- Keep your loyal customers closer
- Connect with real estate agencies
Q. Are electrical shops profitable?
Ans- Yes. Depending on your location, and monthly sales average you can earn a handsome profit of around 10%. Generally, people cover their investments in the business within 2 years of operation and tend to generate a steady cash flow with occasional profits.
Q. How do I start an electronic business?
Ans- Follow the simple steps below to clear your doubts on how to start an electrical business:
- Do competitive market research
- Curate a research-based business plan
- Raise sufficient funds via investors or taking a small business loan
- Understand electronic suppliers requirements
- Understand client requirements
Q. How much money is needed to open an electric shop?
Ans- According to the current market scenario, you can expect an initial investment of 5-8 lakh rupees if you're opening a shop in a suburban area. If you're planning to run a successful electrical business in a metropolitan city the investment may increase up to 12-15 lakh rupees.
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