Whether you run your own electrical business or work for hire, saving money will always increase your net profit. Saving money as an electrician involves more than taking care of your tools and finding new clients.
You’ll have to manage your cash flow, keep track of your accounts, and make wise investments when it comes to how you spend your money. Here are five tips that will help you save money as an electrician.
The demand for electricians is growing, and that demand is expected to grow even more in the next few years. The emergence of smart technology has created new avenues for electrical work as well.
But just because you’re getting more work, that doesn’t mean you’re necessarily earning a higher net profit. Your net profit is the amount of money you have left at the end of the month after you’ve incurred all your expenses. These expenses can include overhead costs, transportation and fuel costs, paying employees, as well as overhead costs.
Many electricians also fail to keep track of their accounts. Your accounts and financial figures are crucial as they’re necessary for tax purposes. If you aren’t careful, you can end up losing money that you didn’t need to lose. Here are five ways you can save money as an electrician.
Accounts and Bookkeeping
Being vigilant about the money coming into your business, as well as how that money is being utilized is important. Hiring an accountant is a good way to outsource how you’re utilizing your money if you can’t do it yourself.
If you don’t want to hire an accountant, there’s a much cheaper way. Just use an online software that’s dedicated to keeping track of your finances. Software like Wave or CloudBook will take care of all your accounting needs for you.
Develop Client Relationships
It’s easier to save money when you have a constant stream of work coming in. That’s why performing your best and providing quality work for your clients can bring you consistent profits in the long run.
Aside from your work as an electrician, you should also focus on developing and maintaining good relationships with your clients. This will earn you word of mouth advertising and even referrals.
Marketing and advertising are core areas where an electrician needs to spend money. At the same time, word of mouth advertising is completely free and brings in more clients as people are more willing to turn to products and services recommended by people close to them.
Outsourcing Over Hiring
You may eventually find yourself needing to hire employees. This happens especially as you start growing your business and discover that there’s more work than you can handle.
You may be tempted to seek out the best employees with the most experience, but such employees will also charge more for their expertise. Instead, opt to outsource that work to expert electricians as and when that work appears.
When you’re looking at employees to hire, consider hiring apprentices. An apprentice can handle small electrical tasks while you deal with larger and more complicated electrical work.
Invest in Continued Professional Development
New technology and innovations are emerging every day. Electricians today need to know how to work with smart technology, create smart homes, and install integrated electrical systems. Both residential and commercial properties are turning to new technology.
Keeping this in mind, it’s also time to upgrade your knowledge. If you feel that you need to learn more about new electrical software, then invest in a course that will improve your trade skills. Continued professional development is necessary for electricians, especially as it’ll keep you up to date with the latest developments in your industry and equip you with skills to handle new electrical technology.
Practice Safety At All Times
Working as an electrician can be dangerous. You’re constantly interacting with technology that could hurt you, or in the worst case, require hospitalization. The Electrical Safety Act of 2002 was passed with the intention of increasing safety measures for electricians. Ensure that you’ve read through the Act and know how you can protect yourself at work.
Keep your tools up to date, and if you notice that any tool is beginning to fray, get it repaired or replaced.
You can also consider getting public liability insurance in Australia. Public liability insurance protects you should you face legal problems stemming from your work as an electrician, either from your client or a third party. Legal fees and court cases can require you to spend thousands as you protect your business. However, a public liability insurance can provide financial cover for your business under such circumstances.
Learn more about Insurance for electricians in Australia to select the right balance of cover and cost!
Saving money as an electrician is essential if you want to grow your career as well as your finances. Keeping track of your accounts, investing in core areas like skill development, outsourcing work where you can and practicing safety at work can truly help you save money as an electrician.
