This article was written by our expert who is surveying the industry and constantly updating business plan for an electrician.
Our business plan for an electrician will help you build a profitable project
Starting an electrical business is exciting, but figuring out what equipment you need can feel overwhelming.
The tricky part is knowing exactly what to buy without going broke or missing something crucial for safety and efficiency.
Every electrical contractor has different needs, and equipment costs can quickly spiral out of control if you're not careful about planning.
Complete Electrical Business Equipment List
Starting a successful electrical business requires careful planning and the right equipment. This comprehensive list covers everything you need to get your electrical contracting business up and running.
Basic Hand Tools
- Wire strippers - Essential for removing insulation from electrical wires safely
- Pliers set (needle-nose, lineman's, diagonal) - Gripping, twisting, and cutting wires
- Screwdrivers (flathead/Phillips, various sizes) - Installing outlets, switches, and fixtures
- Electrical tape - Insulating wire connections and marking circuits
- Wire nuts - Securing wire connections in junction boxes
- Utility knife - Cutting cables and removing cable sheathing
- Cable ripper - Safely removing outer jacket from electrical cables
- Fish tape - Running wires through walls and conduit systems
- Conduit bender - Shaping electrical conduit for installations
- Hacksaw - Cutting conduit and electrical hardware
- Level - Ensuring straight installation of electrical components
- Measuring tape - Accurate measurements for electrical layouts
Power Tools
- Cordless drill/driver - Drilling holes and driving screws efficiently
- Impact driver - Heavy-duty fastening for electrical panels
- Reciprocating saw - Cutting through walls and structural materials
- Hole saw kit - Creating clean holes for outlets and fixtures
- Angle grinder - Cutting metal conduit and electrical hardware
- Circular saw - Cutting lumber for electrical rough-in work
- Oscillating multi-tool - Precise cuts in tight spaces
- Hammer drill - Drilling into concrete and masonry surfaces
Testing & Safety Equipment
- Multimeter - Testing voltage, current, and resistance safely
- Non-contact voltage tester - Detecting live wires without contact
- Circuit analyzer - Testing outlet wiring and GFCI functionality
- Clamp meter - Measuring current without disconnecting wires
- Insulation tester (megger) - Testing wire insulation integrity
- Ground fault tester - Verifying GFCI protection systems
- Phase rotation meter - Testing three-phase motor connections
- Safety glasses - Eye protection from debris and sparks
- Hard hat - Head protection on construction sites
- Work gloves - Hand protection and improved grip
- Safety harness - Fall protection for elevated work
- First aid kit - Emergency medical supplies for workplace injuries
Specialty Tools
- Wire pulling system - Efficiently running cables long distances
- Conduit threading machine - Creating threaded connections on conduit
- Cable cutter - Clean cuts on large electrical cables
- Torque wrench - Proper tightening of electrical connections
- Knockout punch set - Creating holes in electrical panels
- Pipe bender (hydraulic) - Bending large conduit installations
- Cable puller - Mechanically pulling heavy cables through conduit
- Fiber optic tools - Splicing and terminating fiber cables
Ladders & Access Equipment
- Step ladder (6-8 feet) - Reaching ceiling fixtures and panels
- Extension ladder - Accessing high exterior electrical work
- Scaffold system - Safe platform for extended overhead work
- Ladder stabilizers - Preventing ladder movement during use
- Knee pads - Comfort during floor-level electrical work
Vehicle & Transportation
- Work van/truck - Transporting tools and materials to job sites
- Ladder rack - Safely securing ladders during transport
- Tool storage system - Organizing equipment in vehicle
- Generator - Providing power at sites without electricity
- Extension cords (GFCI protected) - Temporary power for tools
- Work lights - Illuminating dark work areas effectively
Business Operations
- Tablet/smartphone - Job scheduling, invoicing, and communication
- Field service software - Managing customers and work orders
- Digital camera - Documenting electrical work and problems
- Invoicing software - Creating professional bills and estimates
- Business cards - Professional marketing materials
- Uniforms/work shirts - Professional appearance and branding
- Magnetic vehicle signs - Mobile advertising for your business
Materials & Supplies
- Electrical wire (various gauges) - Primary material for installations
- Circuit breakers - Protecting electrical circuits from overload
- Outlets and switches - Standard electrical devices for homes
- Junction boxes - Containing wire connections safely
- Conduit (various types) - Protecting wires in commercial installations
- Cable staples - Securing cables to structural members
- Wire nuts and connectors - Joining electrical wires properly
- Electrical boxes - Housing switches and outlets securely
Licenses & Insurance
- Electrical license - Legal authorization to perform electrical work
- Business license - Permission to operate commercial enterprise
- General liability insurance - Protection against property damage claims
- Workers compensation - Coverage for employee workplace injuries
- Vehicle insurance - Commercial coverage for work vehicles
- Bonding - Guaranteeing work completion and quality
Our financial plan for an electrician will help you build a profitable project
What Equipment Budget Should You Plan?
Most electrical contractors spend between $15,000 and $75,000 on equipment and startup costs, depending on their specialization and scale. You really can't go below $8,000 for even the smallest setup because you need professional tools, safety equipment, and proper licensing just to operate legally and safely.
- Solo Residential Electrician
A solo residential electrician focusing on basic wiring and repairs needs around $8,000-$20,000, with most costs going toward quality hand tools, testing equipment, and a reliable work vehicle setup.
- Small Electrical Contracting Team
A small electrical business with 2-3 employees typically runs $20,000-$45,000, including additional tool sets, specialty equipment, and commercial-grade testing instruments.
- Full-Service Electrical Contractor
A full-service electrical contractor handling commercial and industrial work can easily hit $45,000-$75,000, especially when you add specialized tools, heavy equipment, and comprehensive safety gear.
Equipment Budget Examples
Solo Residential Electrician ($8,000 - $20,000)
Solo electricians focus on essential tools that can handle residential wiring, repairs, and basic commercial work. The goal is getting quality basics without overspending on specialized equipment you won't use regularly.
| Equipment Category | What's Included | Budget Range |
|---|---|---|
| Hand Tools | Professional wire strippers, plier set, screwdrivers, electrical tape, fish tape, conduit bender, basic measuring tools | $800 - $1,500 |
| Power Tools | Cordless drill/driver combo, reciprocating saw, hole saw kit, basic oscillating tool, drill bits and accessories | $600 - $1,200 |
| Testing Equipment | Quality multimeter, non-contact voltage tester, circuit analyzer, basic clamp meter, outlet tester | $400 - $800 |
| Safety Gear | Safety glasses, hard hat, work gloves, first aid kit, basic fall protection equipment | $200 - $400 |
| Vehicle Setup | Used work van or truck, basic ladder rack, tool storage bins, magnetic business signs | $3,000 - $8,000 |
| Ladders & Access | 6-foot step ladder, 16-foot extension ladder, ladder stabilizers, knee pads | $300 - $600 |
| Initial Materials | Basic wire inventory, outlets, switches, breakers, wire nuts, electrical boxes, conduit fittings | $500 - $1,000 |
| Licenses & Insurance | Electrical license fees, business license, liability insurance first year, vehicle insurance | $2,000 - $4,000 |
| Business Setup | Basic invoicing software, business cards, work uniforms, smartphone/tablet for field work | $200 - $500 |
Small Electrical Contracting Team ($20,000 - $45,000)
Small electrical businesses need additional equipment sets and more specialized tools to handle multiple jobs simultaneously and take on larger commercial projects.
| Equipment Category | What's Included | Budget Range |
|---|---|---|
| Professional Hand Tools | Multiple complete tool sets, premium wire strippers, specialized pliers, conduit benders for various sizes | $2,000 - $4,000 |
| Power Tool Systems | Professional drill sets, impact drivers, multiple saws, angle grinder, hammer drill, complete bit collection | $1,500 - $3,000 |
| Advanced Testing | Professional multimeters, insulation tester, ground fault tester, phase rotation meter, advanced clamp meters | $1,200 - $2,500 |
| Specialty Equipment | Wire pulling system, knockout punch set, torque wrench, cable cutter, conduit threading equipment | $2,000 - $4,000 |
| Vehicle Fleet | Multiple work vehicles, professional ladder racks, organized tool storage systems, generators | $8,000 - $15,000 |
| Safety & Access | Complete ladder set, scaffold system, fall protection equipment, safety harnesses, comprehensive first aid | $1,000 - $2,000 |
| Material Inventory | Comprehensive wire inventory, panel components, fixtures, conduit, specialized connectors and fittings | $1,500 - $3,000 |
| Business Operations | Field service software, tablets for crew, professional invoicing system, job management tools | $800 - $1,500 |
| Insurance & Licensing | Expanded liability coverage, workers compensation, multiple licenses, bonding, vehicle fleet insurance | $3,000 - $6,000 |
Full-Service Electrical Contractor ($45,000 - $75,000)
Full-service electrical contractors handle complex commercial and industrial projects requiring specialized equipment, heavy-duty tools, and comprehensive safety systems.
| Equipment Category | What's Included | Budget Range |
|---|---|---|
| Industrial Tools | Heavy-duty conduit benders, hydraulic knockout systems, large cable pullers, specialized crimping tools | $5,000 - $8,000 |
| Advanced Power Tools | Professional tool systems, multiple drill sets, heavy-duty saws, industrial grinders, threading machines | $3,000 - $5,000 |
| Precision Testing | High-end multimeters, power quality analyzers, thermal imaging cameras, advanced ground testing equipment | $3,000 - $6,000 |
| Specialized Equipment | Cable fault locators, fiber optic tools, motor testing equipment, high-voltage testing gear | $4,000 - $7,000 |
| Heavy Equipment | Boom lifts, trenching equipment, large generators, compressors, welding equipment | $8,000 - $12,000 |
| Commercial Vehicles | Professional fleet with custom upfitting, crane trucks, material handling equipment, GPS tracking | $15,000 - $25,000 |
| Safety Systems | Comprehensive fall protection, confined space entry equipment, arc flash protection, emergency equipment | $2,000 - $4,000 |
| Material Warehouse | Large inventory management, industrial components, specialized materials, emergency stock | $3,000 - $5,000 |
| Business Technology | Advanced project management software, CAD systems, comprehensive accounting, customer management | $1,500 - $3,000 |