Solar power is a growing industry, and the demand for solar installation services is increasing yearly. If you are looking for a new career or business opportunity, then starting your own solar contracting business might be the right choice for you. In this article, we’ll go over some of the steps you need to take before starting.
As you map out your solar contracting business plan, don’t overlook the importance of maintaining sound legal foundations. Using an online business formation service like ZenBusiness can facilitate your startup process. To help determine if this service aligns with your needs, take a look at these insightful zenbusiness reviews from others who’ve navigated the entrepreneurship journey with their assistance.
Solar contracting business plan
Plan your solar business
You need to plan your business from the ground up. How much money do you need? How long will it take to break even? Will you be able to secure a loan or funding for your startup? What are your marketing plans, and how will they be implemented?
As part of this planning process, it’s essential to consult an attorney with experience in solar contracting businesses. This will help ensure that all aspects of your business are legally compliant and that you’re adequately protected against possible disputes with vendors or customers.
Register your business for taxes
Now that you have a business plan, it’s time to register your business for taxes. You’ll need to learn how to file taxes to do this. The first thing you should do is open a bank account under your company’s name. As soon as possible, purchase a computer and printer to keep track of all aspects of running your new solar contracting business: expenses, income, and sales.
Secure the necessary licenses and permits
Securing the necessary licenses and permits is critical in starting your own solar contracting business. There are several different types of licenses and permits you may need, depending on your location. Here’s what you should know about them.
If your primary business involves any aspect of solar energy, you’ll need to secure a license that authorizes it. For example, if the main thing customers will be paying for is installation services, then an installer’s license would suffice. However, you will also need an electrician’s license if you plan to sell equipment.
In addition to securing a professional license for solar installation work, contractors must also obtain state environmental permits for all installations above a certain size threshold. As a general contractor, you will need to overlook daily construction and tasks, and this is how you can become one:
- Complete the required education.
- Check whether you require a permit.
- Join a practice and gain enough experience to qualify for special licenses.
Don’t forget the insurance
The last thing you want as a business owner is to get sued by your customer or employee. You need insurance to protect yourself from any potential liability claims. Insurance is also a legal requirement for most states, so you may be in trouble with the law if you don’t have it.
If your contract work involves some sort of injury or damage like fire or water damage, and someone sues because of it, they could win their case and even get a large payout from the court that would bankrupt your business. While this would be an extreme example, it can happen if you don’t take precautions beforehand by getting enough coverage through an insurance policy.
We hope this article has given you a better idea of what it takes to start your own solar contracting business. It’s not always easy, but it is worth the effort because there are so many benefits to owning your own company. You get to be your own boss, set your working hours, and work in an industry that is growing every day. So if this sounds like something that interests you, go ahead and try it!
Featured image: Jeremy Bezanger/Unsplash