Top Tips for Starting an Electrician Business

Jan 19, 2022 · 6 minutes to read

An electrician working in power plant.

There are plenty of opportunities for hardworking entrepreneurs looking to start their own electrician business. Skilled tradesmen are in demand, and if you have the drive and patience to complete the necessary training, you might build a lucrative career out of being an electrician.

However, there’s more to being a electrician than just getting the proper license. You’ll also need to think about everything that goes into starting a small business, from writing an electrician business plan to insuring your company.

What are the advantages of running an Electrician Business?

There are many reasons to pursue a career as an electrician. According to U.S. Bureau of Labor Statistics data, the median annual pay for an electrician was $56,900 in 2020. That’s substantially above the national median of $41,950 for the same year.

The BLS also projects that electrician positions will rise slightly faster than the typical career between 2020 and 2030. The need for electricians is expected to remain high due to new development projects, more network connectivity, and the need to update ageing wiring.

To work as an electrician, there is no requirement to have a bachelor’s degree. This makes it an accessible career option for many. You’ll get the chance to work with a wide range of people in a variety of situations, which may be appealing to you.

The Difficulties of Starting an Electrician Company

Although there are several benefits to launching an electrical business, it important that you understand the difficulties that often come with owning your own business. Because you’ll likely encounter a lot of competition as an electrician, it’s a good idea to research the industry in your region before you open your doors.

While you don’t need a college degree to become an electrician, you will need to complete training and possibly an apprenticeship to obtain the skills necessary. Your state or city may have laws in place that mandate a minimum number of study and practical experience hours before you can become a licensed electrician.

When you own an electrical business, you are solely responsible for locating and interacting with clients. You’ll also be firing on all cylinders, with the possibility of being called out late at night or even on weekends. Working as an electrician isn’t a 9-to-5 profession!

Finally, keep in mind that working as an electrician may be challenging, stressful, and even hazardous at times. You will be dealing with electrical cables and power flows, but may also face other workplace risks, such as falling objects or tripping hazards around unfinished worksites.

What You Need to Become an Electrician

Starting any small business takes hard work and dedication. An electrician business is no different, though the exact steps you’ll need to take may differ from other occupations. Here are the general electrician requirements for becoming licensed and starting your own business. It’s advisable to check your local laws and regulations for the exact steps you’ll need to take to work in your state or city.


To become an electrician, you need a high school education, but you must also undergo an apprenticeship that involves both classroom and hands-on training. One of the electricians’ unions, such as the National Electrical Contractors Association, can provide you with this training. To become an electrician, you’ll need to learn how to read blueprints, analyse electrical circuits, and follow important safety protocols. You’ll also learn to solder, how to wire outlets, and other essential skills of the trade.

Electrician’s Licence

In most areas you’ll need a state-wide electrician licence to work as an electrician. Some states rely on individual cities or counties to enforce licensure. Obtaining an electrician’s licence usually requires you to pass an exam, fill out documentation, and pay relevant fees.

You are considered a journeyman electrician if you have received your electrician certificate. Specialist electrician licences are available in a variety of electrical sub-specialties, such as refrigeration, heating and air conditioning equipment, and elevator systems.

You can also finish extra skill development to become a master electrician. Every state has its own standards for master electricians, but in general, you’ll need 4-8 years of experience, letters of recommendation from satisfied clients, and the ability to pass the master electrician test.

Depending on your local requirements, you’ll also need a business permit and a company licence to operate your own electrical firm.


Because working as an electrician may be risky, having adequate electrician insurance is key. General Liability insurance will protect your business in the event that a customer is injured or you accidentally damage their property. These types of compensation claims are often expensive, and your insurance can pay these costs so you don’t have to.

In some states you may be required to have Workers’ Compensation insurance, particularly if you have any employees. Your state or local government website will have more details on the workers’ comp laws in your area.

You might also consider other forms of insurance that cover your tools, stock, and commercial vehicles. These can help you replace these items if they are damaged or stolen.

Other Initial Considerations and Tools

Investing in high-quality tools that are built to last will spare you the trouble of having to replace them every few years. Look for a reputable provider of wire, solder, and other supplies. Building a positive relationship with a provider will be beneficial to you.

To go to work, you’ll need a van, truck, or at the very least a large automobile. You will benefit from having an office or lock-up where you can keep all of your tools and materials. If you wish to keep everything at home, make sure that local zoning regulations allow you to work from home.

Plan of Action

When you decide to start your own electrician company, you must first create a good business strategy. Your business plan outlines all of your electrical business ideas, including your company name, target clients, starting and continuing expenditures, and the amount of money you’ll need to earn to break even. It can also help you plan your advertising strategy so you can reach clients while spending as little as possible.

Starting an electrician business is not simple, but with the right preparation, you can improve your chances of success. And with the right business insurance, you can help protect what you are building. Start comparing insurance for electricians online in just minutes with BizInsure.

*As with any insurance, coverage will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained in this article is general only.  Coverage for claims on the policy will be determined by the insurer, not BizInsure, and will depend on the specific facts and circumstances involved.

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