A method of operating a blind rivet nut-setting tool includes pressing a blind rivet nut on an output shaft against a workpiece to move the output shaft from a first position to a second position and actuate a limit switch, which automatically activates a first motor to rotate the output shaft and thread the blind rivet nut onto the shaft. A trigger is then depressed to activate a second motor, which rotates a cam member and displaces the output shaft to plastically deform and permanently set the blind rivet nut on the workpiece. A reverse trigger is subsequently depressed to activate the first motor in an opposite direction and unthread the blind rivet nut from the output shaft.