What Impacts The Profit Of An Electrician Business In 2024?

In 2024, there’s a real need for tradespeople work that’s been rare to see in the past 50 or so years. It’s something a lot of newly qualified and keen to work engineers, electricians, plumbers, and contractors are taking on. New businesses have a better chance than ever to establish themselves, especially in local communities where their work really matters.

Electricians, especially, are in high demand. Electrical needs have more than doubled in the past decade, with hundreds of gigabytes of new and different software and technology now used in commercial and domestic settings. Someone willing to come in and do the rewiring has the chance to make a killing!

However, it’s not all good news. Before you get stuck in on maximizing your profits with a new electrician business, it’s best to understand what has the potential to impact your bottom line. Take note of this now and there could even be less debt in your future in the long term.

Picking Up New Clients

Electricians most often work on repeat business. Once they’ve visited someone’s home or office for the first time, fixed up an issue, and didn’t leave a mess behind, it’s likely that the client will call you again if they run into future electrical problems.

But even repeat business was a new client once upon a time. As a new electrician business trying to establish itself, you may find it tricky to convince new prospects to give you the time of day.

Relying on referrals is key to success in this area. If you’ve impressed a client in the past, ask them to pass your number round.

Finding a Reliable Supplier

Suppliers can be tricky to secure, hard to work with, and slow to deliver. Of course, this is a worst case scenario, but it’s definitely something an electrician should keep in mind when they’re networking through their supply line.

Indeed, there are new and reliable suppliers establishing themselves all over the world, from a battery copper foil manufacturing company to electrical tape and plier vendors, but many new businesses will need to put in the research to find them.

Dealing with Waste Products

It might be surprising to hear, but electricians regularly pull away from a job with a lot of waste product in their pocket.

Most of the time this is old wires, batteries, circuit boards, and tape you’ve replaced and are now safely removing. Sometimes though, wastage is material you brought with you that’s been cut up, adapted, and there isn’t enough left to use elsewhere, and now you have to dispose of it.

The former isn’t regularly a problem, but the latter can cut your profits back tenfold. If you’re regularly having to throw away good material you paid premium for, and then replace it with a new supply on a monthly basis, you could lose a lot of money.

Electricians have a historic demand right now, but does that mean you can make a good profit?