February 12, 2020

3 Ways to Build Profitable Electrical Business

Profit First Methodology

Three Ways to Build a Profitable Electrical Business

Three Ways to Build a Profitable Electrical Business
Three Ways to Build a Profitable Electrical Business

You know the electrical trade and want to start your own business. Unfortunately, your electrical skills do not necessarily translate into the financial skills needed to make a profit. There are three ways to build a profitable electrical business. The first is start by understanding and getting control of your finances. The second is to market effectively to bring in good-paying business. The third is to use a disciplined bookkeeping system that makes profit a habit instead of a goal.

Outsource Your Bookkeeping to Control Your Finances

Bookkeeping is too often an afterthought in a new business. The results are that you don’t really know which jobs are the most profitable and you do not effectively control expenses. Even if you have decent bookkeeping skills, you are the electrician the owner of the business. You need to see the results but you are busy practicing your trade, finding new work, and overseeing your employees. Start out by outsourcing your bookkeeping to someone like Exigo Business Solutions, the top accounting firm in the Kansas City area. You will not only get accurate, on time bookkeeping but you will have custom reports using QuickBooks bookkeeping software or business intelligence reports from tools like Microsoft Power BI. You will be able to see which of the jobs you are doing are the most profitable and which you either need to get paid more for or not take on. You will be able to spot issues with your expenses and fix them before they rob your or profits.

Market Your Electrical Business Effectively in Your Community

The days when putting an ad in the yellow pages brought in all the business you needed are long gone. Today everyone searches or “Googles” on the internet to find electrical services. You need a website and what is called SEO or search engine optimization. And, more to the point, you need “local SEO” which focuses on things like putting your business on Google maps and making sure that when someone searches for an electrician in your community that you are top of the “three-pack” that Google lists along with your contact information. You need to know your trade and you need to control your finances. But, you need to bring customers to the door and that happens today for a new business with a presence on the internet and good SEO. If you need help making this happen, contact us at Exigo Business Solutions today.

Make Profit a Habit in Your Electrical Business
Make Profit a Habit in Your Electrical Business

Make Profit a Habit in Your Electrical Business

Take on an electrical job in new construction, remodeling, or to fix a problem. You know what you have to do and exactly what the final outcome will look like. Then, you start an electrical business but have no idea what the final profit outcome will look like. There is something basically wrong with this picture. But, you can fix it by outsourcing your bookkeeping to someone like Exigo Business Solutions and use the Profit First method.

Using Profit First is how you instill the same discipline in your financial setup that you apply to your electrical work. In a nutshell, you will set up separate bank accounts for profit, owner’s pay, taxes, and operating expenses and allocate money to these accounts twice a month. You will be banking a profit as soon as you begin this system. Then you will get a handle on your expenses using modern bookkeeping solutions. This is an example of how outsourcing your bookkeeping can pay for itself in a more disciplined approach to your finances and a better way to do the books!

We know from experience at Exigo Business Solutions in the Kansas City area that these three ways to build a profitable electrical business work. Contact us to apply them to your business.

Choosing Days to Allocate Funds

Profit First Methodology

Real Revenue and How It Is Used

Profit First Methodology

Reserving High Percentages for the Tax Account Even When Taxes Are Already Taken Out

Profit First Methodology