The trades sector gives electricians several options to advance their careers. But have you thought about working for yourself rather than a pre-existing business? If so, think carefully about both the pros and downsides of becoming your own employer.

To help you decide whether to establish your own business or stay in your current position as an employee, this article discusses the advantages and disadvantages of becoming a self-employed electrician.

Advantages of Self-Employed Electricians Over Regular Employees

Before we get into the challenges you might encounter, let's first examine the benefits that could make working as a self-employed electrician useful for your career.

Pro: You're in Charge

One of the main advantages of working for yourself is that you have control over your success (and failures). Many of us aspire to be able to answer just to clients rather than a demanding employer or supervisor, and electricians make this a reality every day.

The hours you work are under your control. As a result, you can modify your calendar to avoid taking on more work than you can handle. Additionally, you won't need a note from the doctor or any other kind of justification in order to take time off when you need it. For many electricians, the option to modify their shifts to enable more family time is sufficient justification for quitting the time-clock business forever.

Pro: You Keep the Majority of Your Earnings

Although it would be wonderful to claim that you get to retain 100% of your earnings as a self-employed electrician, you still have to pay taxes, payroll, and healthcare. Although you are not an employee of a corporation, you are nonetheless earning much more money. You can set your own prices and decide how much money you want to be paid out of your earnings.

What's better? You have more say over how much money is set aside for retirement. This is a substantial financial benefit because employers rarely match contributions fairly or adequately. Complete control over your finances allows you to build your nest egg faster and more efficiently.

Pro: You Decide Your Workload

Being an independent electrical contractor gives you the freedom to choose what falls inside or outside your area of expertise. Have you ever resented how your boss forced you to complete duties better suited for someone with a different skill set? You are no longer required to tolerate that risk. Do what you do best instead and build a successful career around it!

Pro: You Decide How to Grow Your Company

Being your own boss also gives you the freedom to set your own business objectives and steer the expansion of your enterprise on the path you believe is best. For example, you can build an enterprise that addresses the industry's challenges to provide a better customer service experience rather than working for an employer who frequently frustrates its staff with contradicting standards or procedures.

Electricians Working for Themselves Face Special Challenges

There will be difficulties in every self-made organization, but this does not mean that one should give up on the concept of being self-employed. In actuality, self-employed electricians have a variety of solutions to help them handle problems that come up throughout their careers.

What are the drawbacks to working for yourself as an electrician?

Con: Inconsistent Work

Consistent work is one of the benefits of being an electrician for a more significant business. When you work for yourself, there may be times when your income fluctuates. When your business is smaller, it might be challenging to offer incentives to clients to come back for additional work. You'll need a plan for getting through the lean times.

Con: Start-Up Expenses

You will be responsible for providing supplies, tools, and management strategies as a self-employed electrician. You'll also require at least one corporate vehicle and storage space for your belongings when you're not using them. This could prevent your start-up from taking off because it demands a large initial investment.

Con: Lack of Work-Life Balance

As a self-employed electrician, you have the option of picking your own hours, but doing so requires attentiveness. It's simple to become preoccupied with things other than the electrical jobs you'll finish. You must also manage payroll, quotes, customer support, advertising, bookkeeping, and other tasks. These obligations may quickly take over your entire day.

Con: There Are Inherent Risks

The dangers associated with your industry present another difficulty for independent contractors. Physical risks for electricians include shock, falls, property damage, and others. When considering possible hazards to your facilities, team, and clients, you must assess how your business can sustain financial losses from these occurrences.

Business insurance for electricians can defend your organization against a variety of lawsuits and safeguard your assets in the event that something goes wrong out of your control. How, for instance, would you salvage your tools and equipment if your workspace caught fire? Or what happens if a worker hits anything while operating your company truck?

You should take into account a number of policies to completely shield your electrical company from litigation and damage claims, including:

• General Liability
• Commercial Auto
• Business Interruption
• Workers' Compensation
• Commercial Property

You might also think about purchasing a Business Owner's Policy (BOP), which offers a discounted rate by combining several of these coverages into a single policy. When considering the electrician insurance cost, bear in mind the possible savings you'll experience if you ever need to use it instead of paying for a claim out of pocket.

Is Being a Self-Employed Electrician the Right Career for You?

In the end, electricians have bright futures, whether employed by another person or running their own business. But working for yourself is a terrific way to accomplish those goals if you want to have more control over your professional life and possibly earn more money. But, of course, when making this decision, you must be prepared and secure a thorough business insurance policy to safeguard your new company's interests.