Electrical Services Business Plan in Nigeria
Are you a young individual in search of new business and you have electrical skills? Do you have an interest in becoming an electrician? If your answer to these questions is yes then reading this chapter will lead you to make lots of profit soon.
Many people see providing electrical services as a blue-collar job so to them it is not honorable. Yet they call for an electrician’s services when they need to install or maintain electrical fittings. Just so you know, electrician’s all over the world make a lot of money year after year.
In case you are wondering why, this is it. Electricity and electrical appliances have become part of our lives. Not everyone has the skills to install these appliances or fix them when they go bad. This is where you come in as an electrician. As you read on, you will see how to convert your skills to real cash.
Why you should consider starting an electrical service business
Almost everything we used these days is powered by electricity. From our phones to our entertainment systems, from our kitchen equipment to our laundry equipment, everything requires electricity. Do you know that Nigeria has an estimated 198 million individuals that will rise to 250 million by 2050?
Now ask yourself, do we have a sufficient number of electricians to satisfy this growing demand. The answer is no and in this lies a huge opportunity for you. In several developed countries, electricians are regarded highly and are hardly without contracts. Reports from the United Kingdom, Canada, and the United States show that electricians are in high demand. This is because their skills fall under the occupational skills shortage category.
Looking at these facts, it is clear that if you give yourself to this venture, you are a potential empire waiting to happen. As long as you are hardworking, provide quality services, and market your business properly, you’d be hitting the jackpot soon.
The beauty of this business is that you don’t need a fortune to start. With a few tools and your skills, you can grow. You don’t have any skills? Not to worry, find a reputable electrician around you and get trained. While doing this, get certifications online to keep you abreast of the industry on the international scale.
How Profitable is the Electrical Service Business in Nigeria?
Like we always say, what’s the point going into an unprofitable business? It will only amount to a waste of time, resources, and effort. One of the most lucrative small-scale businesses in Nigeria today is the electrical service business. Electricians are in high demand, you may not know this because you haven’t taken note just yet. Can you count how many times someone has walked up to you asking if you knew where to find an electrician?
How profitable is this business in real sense? The best way to figure this out is by working with real figures. In a day, an electrician can make as much as #10,000 to #15,000. In some cases, it may be more, depending on the location of the electrician. Let’s do some calculation at this juncture:
1 day = #10,000
6 working days in a week = #10,000 x 6 = #60,000
4 weeks in a month = #60,000 x 4 = #240,000
12 months in a year = #240,000 x 12 = #2,880,000
Did you just say wow? Let’s shock you a little more, this is just for a startup who isn’t working on contracts yet. It can be way more than this. So those electricians that you consider paupers are actually making a whole lot of cash, you just don’t know.
Types of electrical services
From this list, you will know what kind of services you want to offer. There are three types of electrical services in Nigeria and they include:
- Domestic Electrical Services – Focuses on handling the electrical needs of households. These may include wiring, fixing circuit breakers and power outlets, etc.
- Commercial Electrical Services – Focuses on handling the electrical needs of commercial centers like offices, business hubs, shopping malls, etc. In this case, the electrician handles fixing electrical office equipment and upgrade of existing systems.
- Industrial Electrical Services – Deals with providing electrical services to industries, drawing new plans for industrial layouts, upgrading lighting controls, etc.
How to start your electrical service business in Nigeria
By now you must be itching to start your own electrical business. However, the question is how can you achieve this? Starting this business goes beyond having a passion and possessing great skills. This business is very competitive and requires a lot of input from your end. By input, we do not mean money, you actually don’t need a lot of cash to start this business.
While you are pondering on your action plan, here are a few tips to help you out.
Run a comprehensive feasibility study – The fact that you are starting a small business doesn’t mean you should take it lightly. If you are going to be successful, you must take the bull by the horns. Your feasibility study will help you get information about your target market, fixing your prices, developing your marketing strategies, etc.
Get a business plan – This is one step many people, especially artisans take for granted. Writing a simple but comprehensive business plan can save your business from crashing. Your business plan should contain details about your services, operations, marketing strategy, financial projections, and expansion plan. With a business plan, you can the needed support to expand your business from investors and even the bank.
Acquire the needed tools – As an electrician, there are several tools you need to operate. The tools will depend on the kind of electrical services you want to deliver. Through your feasibility study, you can find out the tools. A basic rule of thumb is that you don’t have to buy all your tools at once. You can invest in them gradually as you grow in the business.
Market your services – Having all the above in place without telling the world about your services is not an option. Even the biggest companies in the world still invest in advertising so why should you? You don’t have to break the bank to advertise your business. By simply creating a small banner and handing out a few fliers, people will get to know you. No form of advertising beats referrals so tell people to tell other people about your business.
Management and Sustainability of your Electrical Services Business
According to statistics, 30% of new businesses crash before they get to two years of operation, 50% crash in the first five years, and 66% in the first ten years. It hurts and it is really scary but it is the fact. So if you want to grow and remain afloat, you have to develop an efficient management and sustainability plan.
You are very likely going to start out as a sole proprietor but you must have plans to grow beyond a one-man business in the nearest future. Clearly define different aspects of your business and the responsibilities that must be carried out. This way, when you begin to employ staff, you already have a structure in place.
Finances are the backbone of any business. If management is not able to handle finances properly, then the business is on its way to biting the dust. You must come up with a financial plan to keep your business afloat. We already told you how much you can earn which is quite huge. However, with a terrible financial plan, you are likely not to utilize this money for your business growth.
Running an electrical services business is not about wielding tools and joining wires. It is more about gaining the necessary skills, following the trends, and being able to manage the business efficiently. All of these do not come by magic, you must make a conscious effort to acquire all the needed skills.
While many people are worried about the capital to start the business, it is the least of your problems in this case. Starting an electrical services business doesn’t need huge capital investment. You may not even spend a dime of your own to begin, you can land contracts without owning any tools. From your first gig, you can get the funds to purchase your tools.
Do you now see that it is not so difficult to start this business? Get your hands to work and in a few months, you could be one of the big boys in town. What are you waiting for, get to work.
Get your Electrical Services Business Plan in Nigeria today. To place an order, pay N20,000 to
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