We’ve all seen the commercials and ads for test and tag businesses.
In this blog post, we’ll explore whether or not these companies are a viable option for business owners.
First, let’s look at what these types of companies do: they’re in charge of testing homes’ plumbing systems to ensure that there is no leakage from pipes or fixtures.
Next, we’ll examine the pros and cons of starting a test and tag company so you can determine if it would be a good fit for your own personal goals.
Finally, we will discuss how much money you could expect to make with this type of company once it has been up-and-running for five years based on different factors such as location, number of employees, etc.
In Australia, when we talk about the testing and tagging industry, we could be talking about a $100 million business or one that earns around $5 million to $10 million – depending on who you ask.
It’s difficult to define exactly how much revenue is brought in by companies involved with this sector because there could be many not-for-profit organizations running testing and tagging programs for schools, sporting clubs, and other groups barely turning over any profit.
However, there are certainly plenty of commercial operators making a tidy sum from their businesses.
For example, Brisbane-based company Toxguard runs tagging programs for thousands of children each week and has various outlets spread throughout the country.
This type of business is also supported by businesses such as Service First, which supplies equipment to firms in this sector, including cash registers and point of sale systems.
Mark Hewitt is one individual who has worked hard to carve out his own business in test and tag.
His company’s official name is National Electrical Safety (NES) Services, but he recognizes that these sorts of companies need an edge over their competition to ensure they can survive.
Mark tells us more about how he set up the business below:
“When I first started my electrical tester training course I had no idea there were so many opportunities out there for people with the right skills.
I had always worked in construction so I never really considered being a tester or testing company as an option, but now I wouldn’t have it any other way.”
“I was able to use my electrical skills along with my qualifications to get my business off the ground.
Once you know what the industry is about and how it works, then opportunities will start to become apparent through your own research into the specific test and tag companies.
Being a sole trader didn’t seem appealing at first because of the lack of security.
But when you find something you love doing it’s all worthwhile.”
“My advice to anyone thinking about setting up a test and tag business would be not to rush into things too quickly, if you decide to start a test and tag business in Australia, call your service something like “Testing and Tagging Melbourne“.
No matter what your market segment maybe, the whole idea of electrical safety compliance is pretty simple: make sure equipment used by others has been safely tested and indicate that it meets Australian Standards.
In manufacturing, there are two types of testing, Factory Mutual (FM) and Heavy Industries Science And Technology Association (HISTA).
With FM you are required to test or check that all installations comply with Australian Standards at least once every six months.
Has varied depending on the type of equipment being used in your business – whether it’s power tools, forklifts, or other plant equipment.
The main advantage of hiring an electrical tester is that you don’t have to buy your own test and tag equipment.
However, if you do decide to set up your own business as a testing company then there are various forms of equipment needed such as lockout gear, plug testers, and earth fault loop impedance testers.
You can get all the necessary equipment from Service First Electrical.
Mark Hewitt says it’s important to stay close with customers so they know exactly where their maintenance funds are being spent.
This also provides the opportunity for businesses to create good relationships with clients so they can be given higher priority in any emergency situation.
“It’s really important to keep your finger on the pulse when it comes to industry trends because this way you will always be the first to hear about market opportunities.
For example, if you’re in the area of power tools then it would be wise to know what other types of equipment companies are using.”
“All information is good info when it comes to this business, so I’m always on the lookout for new opportunities.
If there’s one thing that I’ve learned it’s you shouldn’t try and tackle all your problems by yourself.
Sooner or later these things will come back and bite you if not resolved properly.”
“You’ve got to stay ahead of the game even though the basic idea might seem simple enough.”