If you have always dreamed of starting your own business, then an electrical shop might just be the perfect opening for you. When done correctly, such a business can make you incredibly successful since it has its own niche sub-categories, and the demand for these products is generally quite high. That being said, running an electrical shop is no piece of cake since it requires quite some skill and knowledge of the domain. Suppose you are looking to delve into this terrain.
In that case, it is impertinent for you to gain ample exposure and experience in this trade, after which you should be well on your way towards being a successful business owner. Assuming you have already mastered this art, you might be looking for a step in the right direction since starting a business can be quite overwhelming. Lucky for you, we have devised a step-by-step guide for you to follow, so you can not only start an electrical shop but also run a successful one.
1. Engage in market research
Assessing the demand for any product or service is extremely important to starting a sustainable business. As a result, the conduction of market research should invariably be the first step towards getting your business set up. This will require multiple surveys, a clear assessment of the region’s potential and opportunities, and any competitors in the same market space who might or might not make the endeavour feasible. Here are some important questions you can ask yourself during the conduction of market research to get concise results:
- Is there a demand for repairing services?
- What inconsistencies do customers find in the existing electrical services?
- What is the level of demand for various products in this domain?
- Is there space for a new competitor in this area?
- What are the general sentiments regarding your business proposal?
2. Develop a business plan
Once you have received the answers to the questions mentioned above (not an exhaustive list), you will be able to determine whether or not your business endeavour is feasible in the current market.
Moreover, these answers will also guide you in your journey towards developing a business plan that moulds its ways towards servicing every need of the prospective customers. In addition, developing a good business plan simply is not enough anymore. You must develop one that is flexible and in tune with your customers’ needs.
A SWOT analysis is generally the best approach to building a comprehensive business plan. Some important factors to consider in the business plan for your electrical shop include:
- Come up with a name for the shop and the image you wish to exude through your store. Ensure to pick one that helps differentiate your store from competitors.
- List down all the products and services your store will offer, as well as the pricing strategy to be followed.
- Consider whether or not your store is going to require any additional employees. If you cannot afford help in the beginning, it might be wise to hire interns.
- Figure out your finances. This sounds like very rudimentary advice but is perhaps the most important of all. Ensure that you acquire assets through long-term financial sources with minimal risk.
- Plan ahead for your working capital. Ensure that you procure sufficient amounts of it to avoid mishaps.
- Pick an optimized business size. Depending on how much you can afford and the market space, devise a business size that ensures maximum profits.
3. Work out legalities and licensing
As is the norm with starting any business, an electrical shop will also require you to work out various legal and licensing matters. Hiring a lawyer becomes quite pivotal in navigating this part since going through the various bureaucratical procedures yourself may be quite daunting. Here is a table containing the various legal and licensing processes you will be encountering during your journey:
Depending on the country and state you live in, the legal procedures expected from you will differ, so that the above list may be subject to some variation. That being said, it remains more or less the same, so ensure to prepare a checklist to prevent missing out on any step.
4. Pick a location
Setting up an electrical shop will require you to find an optimized location for your store. This plays a crucial role in determining the future course of your business since it determines the overall passing trade it will generate. Once you have allotted a certain sum of money towards the retail store, you can determine the area where you wish to set up shop. If you wish to find a location in the city, then you might have to allot more financial resources towards it since the demand for land in such areas is extremely high.
The reward for it will also be quite impressive since foot traffic in cities will garner ample sales. If your budget doesn’t support such an endeavour, then you can also set up your store in a suburban location since the demand in such areas is also fairly high. In case the type of your business resembles that of a large chain that supplies to big businesses, then you can choose to pick a location in a slightly remote area, where the cost of land is extremely low.
5. Set up shop
Once you have figured the location and your finances, have fallen into place (after meticulous planning, of course!), it’s finally time to watch your dreams unfold. This step involves quite a bit of networking in order to find the right real estate developer to help you out. Ensure that the layout of your store has a cosy and welcoming atmosphere, with good navigation and inviting faces.
In the retail space, it is important to cater to every kind of shopper, so it might be wise to set in place various servicing options, such as self-checkout options, assisted servicing and much more.
Living in this age of digital media, spreading the word about your store has become quite a convenient affair, but you can only do so if you take the first step. This means that you need to develop a comprehensive marketing plan that encompasses a 360-degree view of how you wish to reach your target audience. Some major modes of advertising that you can benefit from include:
- Personalized website experience
- Social media advertising
- Signing customers up for newsletters
- Newspaper, magazine, etc. advertising
7. Consider e-commerce
In this era of exponential digital growth, opting for e-commerce is one of the best things you can do to boost your sales. You may hire a team of web developers to help you navigate the tech side of things. Developing your own website, where customers can browse through product catalogues and place orders for themselves, could do wonders to increase your store’s traffic. There are quite a few brands out there that offer full-fledged software applications to business owners, so you may take their help and build your e-commerce electrical brand as well.
8. Develop growth plans –
No one likes to hit a wall when it comes to business endeavours. Every move you make regarding your electrical shop is directed towards improving its reach. This means that you will be required to regularly acquaint yourself with your electrical store’s performance and growth potential. Study changing customer preferences, check-in with your employees, engage in research about diversification, automate your operations and more. Ensure to constantly look for growth opportunities so that your electrical shop can remain a success for generations to come.
How to open an electrical supply shop?
Starting an electrical supply shop will require you to thoroughly understand this domain’s electrical distribution and supply chain management. Some easy steps to help simplify the process could be:
- Create a network of small-scale retailers and manufacturers.
- Develop a comprehensive business plan that incorporates warehousing and supply chain management as the backdrop.
- Diversify your distribution channels as much as possible so as to increase your reach.
- Chalk out the legal side of electrical supply businesses by hiring the necessary intermediaries.
How can an electrical store be improved?
Looking for ways to improve your electrical store is a lifelong activity since demand and customer preferences constantly shift. As a result, here are some evergreen methodologies you can adopt to improve your sales:
- Search engine optimization – Boosting your e-commerce presence through SEO can improve traffic to your store and thereby contribute to sales.
- Maintain a straightforward sales strategy – Unnecessary over-selling can often drive away customers to electrical stores, so ensure to maintain a simple and honest selling process.
- Short-term incentives – If you are looking to boost sales immediately, then you may take advantage of various festivities and promote your services through various buying incentives.
- Provide a diverse range of payment options – In this modern age of multiple payment gateways, implanting all the methods can help you improve your performance and retain a maximum number of customers.
- Conduct regular market research – This can help you update yourself on the customers’ preferences and remove any inconsistencies.
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The documents you will need to complete your application for an electrical contractor’s license in India are:
- Driving License
- Aadhar Card
- Photo Identity Proof
- Documentation of work experience
- Certificate of work done in EHT/ LT/ HT installation
- Memorandum and Articles of Association
- A self-addressed envelope containing the prescribed amount
- Valid supervisor’s license for a licensed engineering
- Copies of educational qualification