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DIRT · dirttrades.com

The $1M Checklist for Electrical Businesses

10 reasons most electrical shops stall — and one fix for each.

  1. 1
    You are the estimator, tech, and manager

    When every decision goes through one person, that person is the ceiling. Electricians who cross $1M stopped doing all three.

    The fix: Hire or promote a lead tech who owns field decisions within clear limits. You stay on estimates and growth — they run the trucks day to day.

  2. 2
    Your labor rate doesn't include your real burden

    A $30/hr tech costs $50+/hr fully loaded — taxes, workers' comp, non-billable time, van, training. If you're not billing that, you're subsidizing your own jobs.

    The fix: Build a loaded rate sheet with burden, drive time, and non-billable hours baked in. Never quote below it — even on jobs you want to win.

  3. 3
    Your techs run fewer than 3–4 calls per day

    Drive time inefficiency costs $90K+/year for a 2-truck shop. Scheduling gaps are margin you can't get back.

    The fix: Route by geography and fill dead gaps before adding another truck. Batch same-area service calls into tight zones — fewer windshield hours.

  4. 4
    You price service work like residential but take commercial jobs

    Net-60 terms and retainage on commercial work can make a profitable business cash-insolvent. Many electricians find out the hard way.

    The fix: Model cash conversion before you chase commercial volume. If net-60 eats your payroll, the job isn't worth the revenue on paper.

  5. 5
    You're discovering you lost money 6 months later

    Real-time job costing is the difference between shops running 15–25% margins and shops running 5–6%. Month-end accounting is too late.

    The fix: Track costs on every job before you invoice — materials, labor, drive, callbacks. Know margin per job type while you can still fix pricing.

  6. 6
    Cold estimates just sit there

    You quoted it, they went quiet, you moved on. A structured 4-touch follow-up sequence recovers more revenue than most ad campaigns.

    The fix: Automate estimate follow-up on day 1, 3, 7, and 14. A quick text — "Still want that panel upgrade?" — closes jobs you already paid to find.

  7. 7
    You have no consistent online presence

    If your marketing relies on you personally making calls and showing up, it stops when you stop. That is not a business. That is a very stressful job.

    The fix: Google Business Profile plus a review system that runs without you. Post photos of finished panels and service trucks weekly.

  8. 8
    Reviews are an afterthought

    A plumber or HVAC company with 150 reviews is taking your calls before you know the lead exists.

    The fix: Text a direct review link after every completed job — same day, while the customer is still happy. Make it one tap, not a hunt on Google.

  9. 9
    You added overhead before revenue justified it

    $5K/month in new overhead before the revenue base is ready = $60K/year of drag on margins that were already thin.

    The fix: Add overhead only when revenue has been stable at the new level for 90 days. New office, new truck, new admin — prove it first.

  10. 10
    You spend on ads before fixing your close rate

    More leads into a broken follow-up system costs more money. Fix conversion first; then add volume.

    The fix: Hit 55%+ close rate on estimates before increasing ad spend. Fix follow-up and pricing first — then pour gas on the fire.