If you’ve decided to start up your own electrical contracting business, there are a number of risks to avoid...
While it is admirable to work for one electrical business for a considerable amount of your career, most people have dreams of one day becoming their own boss.
Making this career change can bring a number of benefits to you and your family - financial independence, better work/life balance and the chance to run a business in the way that you see fit. However, for those that aren’t skilled in business, turning your electrical start-up into a professional business entity poses many risks that you’ll want to avoid.
Don’t Mix Finances
A consideration for any new business owner is how to run the financial aspect. As well as running payroll for your team, there is taxation, wholesale supplier and customer invoices, superannuation and the list goes on. This situation can get even trickier if you decide to mix personal and professional finances.
Using a personal account for business finances is an easy mistake to make when starting out but it can quickly become a liability. You want to have a separate account for business so you can build a financial history that you can later use to apply for credit and other products or services you may need to run your business.
Embracing New Innovation
There are many reasons why employees choose to work for an employer, whether it is the pay rate, proximity to their home or even the business’ reputation. However, in recent times, the ability to learn new skills or work among innovation practices has become a key consideration for potential talent.
A great example of this is solar technology. According to the Climate Council, around half of all Australian homes could have a form of solar installed by 2018. As such, contractors would be wise to think about not only offering this service to their customers, but provide industry training to their own team.
In all the excitement of starting your business, it can be easy to not look too far into the future. That said, there is the famous quote “failing to plan is planning to fail”.
One of the main benefits of a business plan, is to give yourself control over the enterprise through identifying and managing challenges. With a little foresight, electrical contractors can assess their industry and plot a productive route to the top.
This article was featured in our quarterly Middy's MAG #13 Feb - Apr 2016 Edition. Read Latest Issue