Electrical Contractor

Skilled electricians are always in demand, especially ones who can work with homeowners and small business owners. As the general population becomes less handy with tools and wires, your electrical knowledge and expertise will become more and more valuable. This is a classic one-person business, and you may find considerable competition. You will need good estimating skills to assess the cost and complexity of the work you are asked to do. Sometimes it seems as if electricians have to be part detective to interpret the hidden wiring in an old house or to trace the cause of a short “somewhere in the wall.” Of course, you’ll be familiar with code standards in all the communities in your service area.


Costs are relatively high as you must equip yourself to do whatever electrical job is offered. You’ll also need to secure certification; and your educational requirements to stay certified may demand that you take regular refresher courses. Set aside at least $5,000 for all of this, then add your equipment, liability insurance, and related costs.


Many electricians have made an excellent living by focusing on upgrading the wiring in old houses. If your area has a charming neighborhood of old Victorians, twenties bungalows, or quaint cottages that are being restored, you have a golden opportunity to build a client base. Other electricians work closely with an independent builder to install wiring in new structures. For these jobs, getting the work done according to the overall construction schedule will have a big in?uence on profits for the builder. Your planning and time-management skills can help build you a steady stream of referrals and repeat projects from these builders.

Approx. cost of start-up: $10,000 to $15,000


Approx. potential earnings: $40,000 to $60,000


Typical fees: $40 per hour for labor plus parts costs (varied)


Where to promote: Yellow Pages, classifieds, neighborhood flyers, community bulletin boards, radio spots, possibly a Web site in more competitive regions


Qualifications: Skill and experience as an electrician, ability to manage time and expenses, good people skills, license or certification and regular credit hours toward career development in most states


Things needed: Cell phone, tools, parts, and equipment related to the nature of the work, van, marketing materials


Required staff: No


Hidden costs: Inventory of parts, vehicle maintenance, insurance