You’ve been in business as an electrical contractor for several years now, but you’re just not turning the profits that you thought you would.
You have the skills, the drive, and the knowledge to run your electrical business, but you’re starting to question if starting your business was worth your time and your money. When will you start to see a profit?
Creating a profitable electrical company is no easy task. You’ve probably heard it hundreds of times: You have to spend money to make money. But making a profit is far from impossible if you have the right tools in your toolbelt.
Continue reading to learn how to build, maintain, and increase profitability for your electrical business.
Electrician Business Profitability: An Outlook on the Industry
The demand for electricians has almost always, and will continue, to rise. As of 2022, a shortage of electricians made the industry even more profitable. Some reports even show that this shortage is giving electricians the potential to make six figures.
The Bureau of Labor Statistics (BLS) predicts that the electrical industry will grow by 9% from 2020 to 2030.
Has COVID-19 Affected the Demand for Electrical Services?
Electricians are essential to the economy — so much so that it was deemed an “essential industry” during the COVID-19 pandemic.
However, the pandemic has hurt electricians, especially those who regularly work on construction projects.
The Profitability of Your Electrical Business Is Influenced By Cash Flow
Cash flow is one of the biggest issues that electrical businesses face.
Invoices for large jobs can take weeks – sometimes longer – to be paid. And when there isn’t money in the bank, your electrical business’ profitability is greatly influenced.
Your electricians recently started on a project that would bring in $15,000 worth of work in a week. 50% of that ($7,500) is paid upfront – but the remaining $7,500 could take up to 45 days to receive.
While you’re waiting on final payments to come through, your operational costs don’t stop. You still have equipment to pay for, employee checks to distribute, and more day-to-day expenses that come with running a business.
Gaps in payments can cause cash flow issues. The Flexbase Card offers a solution.
Made with construction companies and tradespeople in mind, the Flexbase Card offers 10x the credit limit traditional cards offer so you have access to capital that actually measures up to the costs of running an electrical business.
The Flexbase card offers perks like:
- 0% interest rate for 60 days
- 0 Annual fees
- Receipt tracking
- Cash rewards
- And more
Click the link above to get pre-approved today.
What Is the Average Salary for Electricians?
The national average salary for electricians is $63,310, according to the BLS, but the average electrician’s salary can vary greatly depending on the state the electrician business is located in.
Average Salary for an Electrical Business By State
The average salary for an electrician varies by state: