Business idea: Electrical estimating company
The electrical estimating company offers services that are always in demand. Inflation, crisis and other external factors have little effect on demand in this area. In this article, we will look at how to start your own electrical estimating company, the project’s features, and what you should pay attention to.
Electrical estimating work: business features
High-quality electrical estimating is a prerequisite for commissioning residential and most non-residential facilities where electricity is installed. In addition to new premises, electrical estimating is often required in old buildings if there are problems with electrical wiring or in case of significant renovations. This work aims to connect the consumer to electricity and ensure its stable operation.
The list of works may include:
- planning and laying of electrical cables (hidden or open);
- partial or complete replacement of wiring;
- replacing, removing or moving sockets/switches;
- dismantling outdated communications;
- estimating of lighting fixtures;
- estimating of electricity meters;
- troubleshooting when the electrical signal is lost;
- assembly of shields;
- estimating of telephone/TV networks and Internet cable;
- estimating of a grounding loop and estimating of lightning rods.
The advantages of the project are the constant demand for services and good opportunities for scaling.
Minuses:
- There are risks associated with installing electrical equipment. It is the owner of the company who is responsible (including legally) for the life and health of his staff during the performance of work;
- You will need significant initial investments;
- high level of competition;
- Drop in demand in winter.
In this case, the potential profit can be pretty high.
Stages of electrical estimating work
If we talk about connecting the premises to the electrical network, electrical estimating work includes:
- Studying design documents and taking measurements.
- Development of the project taking into account the received data and all requirements.
- Selection of necessary materials and tools.
- Carrying out work on site.
- Commissioning, including additional settings and troubleshooting.
ONLY AFTER THIS ELECTRICAL ESTIMATING WORK IS COMPLETED CAN THE PREMISES BE PUT INTO OPERATION.
Step-by-step plan on how to open an electrical estimating company
A sample launch plan looks like this:
- market analysis, assessment of competitors, and target audience;
- registration of permits;
- financial calculations, including calculation of initial and monthly investments, as well as possible profits;
- rent, purchase of necessary equipment and consumables;
- hiring;
- marketing;
- risk analysis.
We analyse competitors’ offers and demand for work.
First, you must analyse the demand for these services in your city. Potential clients will be not only individuals but also construction companies. Usually, in this industry, they focus on working with legal entities. The ideal place to start such a business is a city actively developing and building up, with many new buildings appearing. There will definitely be a high demand for electrical estimating services in such a place.
Analyse your competitors: what they offer, their target audience and pricing policy, and how you can stand out.
Beginners are only advised to undertake some services at a time. Assess what work is most in demand in your city and select 1-2 areas (estimating of electric boilers, estimating of heated floors, etc.). The correct choice of concept is critical.
Electrical wiring room
Many companies start without an office and meet with clients on their premises or in the city. But the company will need a warehouse: someone’s garage can be used for these purposes. A large company needs a room of 40-50 square meters for electrical wiring. Meters are divided into customer reception areas, a warehouse, a locker room, a toilet and a design workspace. You need to purchase furniture and computers for the office.
Purchase of equipment and consumables for electrical estimating
Purchasing equipment is the most expensive item in startup expenses. But you shouldn’t skimp on this article: high-quality equipment for electrical estimating is an essential factor in the success of your project.
The bare minimum set includes the following:
- perforator and drill;
- signalling device and screwdriver;
- gating units;
- voltage detector;
- stepladders;
- hand tool.
Exactly how many tools you need depends on the number of employees and the project size.
In addition, you will need consumables – switches and sockets, cable, insulating tape, corrugation, voltage meters and switchboard equipment.
You need a specific inventory of consumables, so it makes sense to purchase them in bulk.
Electricians and other personnel
Due to the risk of injury at work, it is essential to take personnel selection seriously.
Pay attention to the following factors:
- electrical safety clearance level of at least 3 (confirmed by a certificate);
- availability of specialized education, experience and recommendations;
- ability to find a common language with clients.
It is advisable to hire staff with good habits.
Qualified employees require decent wages and will not agree to work for cheap. Electricians are the face of your company; Its reputation largely depends on them.
You will also need a promotion/marketing specialist, an accountant (in-house or outsourced), and a cleaner (if you have an office).
Customer acquisition channels
Primary methods of promotion:
- own website with a price list, examples of work, and an online order form;
- contextual advertising;
- sending commercial offers to potential clients;
- advertisements on boards and in newspapers;
- distributing business cards and flyers near your company’s location;
- Advertising on radio and TV (if there are enough funds for it);
- social network;
- participation in discussions on specialized forums;
- Participation in exhibitions.
Profitability
A company’s profitability depends on many factors, including the concept of your business. If you work with individuals, the average bill is about 20-30 thousand Rubles. In this case, if there are orders, you can expect a 600 – 700 thousand turnover.
Profitability can reach 30%. The initial investment can actually be repaid in about 12-14 months.
Risks of the electrical estimating business
Main risk factors:
- Aactions of competitors;
- An increase in the price of consumables, which may lead to a drop in demand for services;
- Shortage of funds – you need to think about this point in advance;
- Insufficient qualifications of employees, which can lead to reputational losses;
- Insufficient demand in the region. If there aren’t a few new buildings being built in your city, there likely won’t be enough demand for electrical work.
An electrical estimating company may become a source of stable income, especially in those cities where new buildings are being erected. There are different formats for launching such a project. It is essential to correctly analyse the market, find your niche, hire qualified personnel, and think through ways of promotion.