What does it cost to start this electrical crew?
Illustrative case · Small licensed residential electrical service and installation crew: one master/owner plus one journeyman and one van · Texas, United States; local authority, address and service radius not selected
Explore this business · Startup costs
The scoped opening budget is $144,996, with $80,836 capital assets and $50,000 available reserve. It is a new-van, already-licensed two-person operation using modest leased storage, not a property purchase or construction-company launch. Supplier comparisons and declared procurement allowances are separated below; the full installed van and tools are not quoted.
Define what must exist on opening day
The owner already holds a master electrician license, hires an already licensed journeyman and launches residential service and small installation work. Storage assumes about 600 square feet at an illustrative $1,200 monthly gross rent. No town, signed premises lease or local asking-rent comparison is claimed. A home-based storage arrangement could change use approvals, insurance and costs; it should not be treated as free by default.
The vehicle case uses Ford’s published $48,400 2026 cargo-van starting MSRP and $2,095 destination/delivery comparison. The manufacturer fact sheet does not establish the body length, roof, payload, local availability or negotiated price. The case adds 6.2% motor vehicle tax under the stated no-trade-in assumption, plus $500 unquoted title/fee allowance. Texas Comptroller’s FY2026 tax description supports the tax rate, not the dealer fee.
Separate assets, expenses and available cash
| Use | Amount | Basis and unresolved scope |
|---|---|---|
| New cargo van, destination, tax and title allowance | $54,151 | One van; Ford starting MSRP is a comparison, exact configuration/dealer quote pending |
| Secured van upfit | $5,920 | One partition, two shelf units, one rack and paid installation hours; no installed quotation |
| Tools, access and PPE | $12,000 | Two individual kits plus shared pulling tools; scoped budget, not a single retail kit |
| Office/mobile equipment | $1,200 | Two devices/shared printer allowance |
| Equipment tax allowance | $1,577 | Conservative budget on upfit, tools and office scope; local taxable base needs confirmation |
| Capital procurement contingency | $5,988 | 8.0% of subtotal including budgeted taxes; assumed spent/capitalized |
| Total capital assets | $80,836 | Straight-line book depreciation; no resale proceeds |
| Pre-opening expenses | $7,760 | Contractor fee, setup, website/identification, training and financing fee |
| Opening material stock | $4,000 | Tax-inclusive stock asset; consumed later |
| Refundable storage deposit | $2,400 | Asset retained for 60 months |
| Available opening reserve | $50,000 | Cash remaining after all other uses |
| Total uses | $144,996 | Exact sum; monetary display is rounded half-up |
The $5,988 procurement allowance is assumed to be spent and capitalized on opening equipment; it is distinct from the cash reserve. If actual quotes leave it unused, retain that cash and rerun depreciation and uses. Do not count an unspent allowance as both an asset and reserve. Pre-opening expenses reduce retained earnings at opening; deposits and stock remain assets.
Quote the equipment schedule, not a headline kit price
| Component | Quantity | Unit allowance | Subtotal |
|---|---|---|---|
| Partition | 1 | $1,200 | $1,200 |
| Secured shelving | 2 | $1,100 | $2,200 |
| Rack | 1 | $1,000 | $1,000 |
| Installation labor | 16 hours | $95 | $1,520 |
WEATHER GUARD’s upfit guidance supports the need for partitions, organized shelving and secure storage. It supplies no installed price for this selected van. Confirm payload after crew, ladders, wire, stock and shelving; quote compatible mounting, access and installation with the vehicle specification.
| Scope | Quantity | Unit allowance | Subtotal |
|---|---|---|---|
| Hand-tool and basic tester set | 2 | $600 | $1,200 |
| Cordless drill/cutting kit and batteries | 2 | $1,800 | $3,600 |
| Dedicated clamp/multimeter and verification kit | 2 | $1,400 | $2,800 |
| Portable access ladder | 2 | $450 | $900 |
| Shared pulling/bending tools | 1 | $1,800 | $1,800 |
| Personal protective equipment kit | 2 | $850 | $1,700 |
Klein’s 80028 kit page establishes a hand-tool/basic-tester scope. A $429.99 indexed Home Depot comparison was visible when checked, but its crawl is historical and live delivered availability was not confirmed. That retailer comparison is not used as a current quote or as the complete crew budget. Power tools, appropriate test equipment, ladders, pulling tools and selected PPE have their own allowances; do not buy a kit and count its included basic testers again.
Reserve follows the monthly trough
Opening stock is $4,000; later inventory targets the larger of $2,500 and 20 normalized days of current material consumption. Supplier purchases are cash-paid; no trade-credit facility is assumed. The base case collects all service sales and 70.0% of installation sales in the same month, with the remainder next month after modeled credit loss.
The base reserve draw to the lowest balance is $29,170, leaving $20,830 in month 5. A collection test reducing same-month installation receipts to 40.0% lowers that trough to $17,391 without changing EBITDA. Longer travel alone lowers the base cash trough to $7,721. Both are separate single-driver tests; they are not the full downside scenario.
Three commitments deserve written evidence
The new vehicle is the largest capital commitment. Obtain an exact dealer configuration, total delivered price, tax/title schedule and payload calculation before finance. The tool schedule is the next major operating purchase: match testing and access to accepted job types and check what the owner already owns. Finally, confirm upfit compatibility and installed cost; removing shelving or partition costs on paper does not establish a usable work vehicle.
For monthly spending, payroll is more consequential than storage rent. The owner and journeyman cost $13,782 per month including the burden allowance before overhead. The $300 GL premium is an assumption; TDLR’s required liability limits describe coverage, not price. A bindable quote must match the crew, work classes, vehicles and customer contracts.
What changes the budget before launch?
Major utility/service upgrades, a shop conversion, additional vehicles, lifts or specialist equipment are excluded. Job material and permit allowances need real bills of material and AHJ quotes; unpriced scope must be added, not entered as zero. The cash-paid financing fee is a general case allowance, not an asserted SBA guaranty fee.
The case uses lump-sum residential real-property repair/installation contracts with supplier tax already in job-material costs. Texas distinguishes residential lump-sum, separated and nonresidential repair contracts. A separate retail sale or different job classification needs a new tax treatment. Before buying, reconcile every quote’s freight, taxes, installation, compatibility, overlapping kit contents and payment date. A revised quote must feed the monthly model and all five guides.
Validate the case inputs
Download the input and evidence register (CSV). This case export separates observed context from assumptions and leaves quotation fields blank for your project. It is an educational register, separate from the planned personalized model.
Sources and scope
- SBA Loan: illustrative planning-case methodology · Checked 2026-10-04 · Declared authoring assumptions, not supplier prices, observed demand, loan offers or a real company.
- Ford Pro: Transit and E-Transit fact sheet · Checked 2026-10-04 · Published 2026 new cargo-van starting MSRP and destination; exact payload/body/upfit not quoted.
- Ford: commercial vehicle catalogue · Checked 2026-10-04 · 2026 Transit commercial starting MSRP cross-check; destination, taxes, title, registration and options excluded.
- Texas Comptroller: motor vehicle sales/use tax, FY2026 · Checked 2026-10-04 · Texas motor vehicle tax on taxable consideration net of applicable trade-in.
- WEATHER GUARD: standard van upfit · Checked 2026-10-04 · Manufacturer scope for bulkhead, shelves and lockable tool storage; no installed price.
- Klein Tools: 80028 28-piece tool kit · Checked 2026-10-04 · Manufacturer tool-content scope; not full crew equipment or live delivered pricing.
- The Home Depot: Klein 80028 kit · Checked 2026-10-04 · Indexed retailer listing for 80028, Internet 100647881.
- Texas TDLR: new electrical contractor license · Checked 2026-10-04 · Texas statewide contractor license, master of record, annual license and liability limits; not project-specific approval.
- Texas TDLR: compliance guide · Checked 2026-10-04 · State code edition, local inspections, invoice/vehicle license identification.
- Texas TDLR: electrical licensing FAQ · Checked 2026-10-04 · State licenses, exemptions and city permit authority; no blanket permit exemption.
- Texas Comptroller: real property repair/remodeling · Checked 2026-10-04 · Residential real-property repair, lump-sum versus separated contracts; commercial and mixed-use differ.
- BLS Occupational Outlook Handbook: Electricians · Checked 2026-10-04 · US May 2025 employee wages, all electrician license levels; not Texas licensed-master compensation.