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If you have experience as an electrician and are thinking about starting up your own business, there's a lot you need to know. From legal documents to marketing and how much to charge, here is your guide to setting up your electrician business.
Before you start your business, you need to make sure you have received proper training and experience as an electrician to work independently.
All electricians need to complete an apprenticeship which usually lasts four years. You're also required to complete a Certificate II in Electrotechnology. Course fees depend on the university of your choice and can range from $5,000 to $15,000.
After this is complete, you need to obtain an electrical licence so you can work unsupervised.
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You'll need a few different tools and equipment to start your own electrician business. This includes:
When you're launching a business, it can be tricky to be accepted for business loans. For starters, you'll typically need to be in business for at least 12 months. That's why some people choose to explore options when it comes to personal loans. Always be sure you can afford the full repayment plan and any charges before applying for this type of loan.
Before you set up your business, you need to decide how you will structure it. We've written a full guide on business structures here, but the following is a summary of the types to consider:
You'll need a few different legal documents to start your business and engage with customers. One of these is your terms and conditions, which dictates how you work with customers and what you are and aren't responsible for. Terms and conditions are standard in business and protect you if a dispute arises. Make sure you attach these terms and conditions to each quote you provide.
You will also need to organise documents which limit your liability when engaging with other businesses. Supplier and wholesale documents establish clear payment terms and what happens if something goes wrong, for example, if a part is faulty or breaks.
If you have any employees, there are certain documents you will need for them. Employee agreements set out important aspects of their work including the hours they need to work, termination clauses and employee and employer obligations. You may also want a workplace health and safety document and an employee handbook.
Depending on the state that you live in, you may charge between $60 and $100. However, these costs depend on the supply of electricians in the area and how much time you will spend getting to the job. Depending on the level of experience and expertise of the electrician, the prices vary and can go up to $200 an hour.
Do I need insurance?
You should get insurance to protect your business. One to consider is public liability insurance which covers you if your clients sue you for causing personal harm or damage to their property during work. Read more about how public liability insurance works.
How much can I make with electrician business?
Business profits vary depending on the state you're in, the size of your business and how many employees you have. Many owners of electrical businesses can make well in excess of $100,000 once their business is up and running.
Do I need a license?
You will require a licence to operate unsupervised. Depending on the state you live in, licensing and registration requirements vary. In Queensland, Western Australia and Victoria, you can not apply for a license unless you have proof of insurance, whereas in other Australian states it is not a requirement.
Depending on the state you are opening your business, there are different government offices responsible for licensing:
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