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Electrical Contractor Business Plan

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Premiere Electric

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

The population in Richmond is growing. With more people come the need for more apartments and stores, in other words, new construction. New construction needs skilled electricians that can wire everything.

Premiere Electric is a new electrical contracting firm that Robin has started to serve the former Gardner and Miller customers, as well as expand her services to new customers in the tri-county area.

The market for commercial electrical contracting services is very fragmented and crowded. Among these, only a few are large firms with 20 or more electricians on staff. The remainder are small firms with less than three full-time electricians. Premiere Electric’s current niche is its strong relationship with former customers of Gardner and Miller, but this will not be sufficient for growth in a competitive market.

By focusing on data, communication and electrical installation and maintenance, Robin reduces her direct competitors to two large electrical firms that bid on the area’s largest projects. Though one day, Premiere Electric plans to be a force in the area’s largest projects, an opportunity exists now for new customers whose smaller projects are not being pursued aggressively by Robin’s competitors.

Competition

There are quite a few electric contractors in Richmond: Above Code Electric, Frazier Electrical, H.O. Feild Electric company, Prism Industries and Langhorne Electric to name a few. 

All of them advertise many years experience, training and customers who trust them. Electrical contractors enter their customer’s home. They need to do excellent work as well as be able to be in someone’s house without danger of invading privacy. 

Premiere Electric’s mission is to offer its customers the highest-quality electrical services. Robin focuses on personalized service by offering convenience and rapid service. Additionally, Premiere Electric has the technological expertise to install wireless voice and data systems, as well as intelligence systems in any size facility. Finally, Robin has strong vendor relationships with the most service conscious vendors who are capable of shipping major parts rapidly (on an overnight timeline in most cases) minimizing the system down time for Premiere Electric customers.

Expectations

Currently, there is $100,000 worth of business with former Gardner and Miller customers. Robin believes she can capture a lion’s share of it and build from that base. She will start as the firm’s only employee but will hire additional electricians as her sales grow.

Financial Highlights by Year

Financing needed.

We will be getting $62,000. Robin will invest $40,000 and we will get a $22,000 long term loan. 

Problem & Solution

Problem worth solving.

The population in Richmond is growing. With more people come the need for more apartments and stores, in other words, new construction. New construction needs skilled electricians that can wire everything

Our Solution

Premiere Electric’s focus is to meet the demands of the former Gardner and Miller customer base. Premiere Electric has established relationships with these companies and believes we will receive referral business from them over time. The company estimates that 80% of revenues will come from old Gardner and Miller clientele and 20% from new referrals and business. Though the former Gardner and Miller clientele will be important during the first year of business, Robin knows the future of the business is new referrals. 

Target Market

Market size & segments.

Many factors are contributing to this projected building growth, notably regulation, demographics, inexpensive capital, a strengthening U.S. economy, and technology. Alternative delivery methods are helping to make projects viable where they otherwise would not be.

Labor shortages may Impede growth to some extent will be. According to the Bureau of Labor Statistics, employment rose in 43 states in October, while declining in seven states. Finding qualified workers to perform the work has become onerous. Immigrant labor from Central America has helped somewhat, but the need for more skilled craftsman—electricians, pipefitters, plumbers etc.—will not be filled through immigration. Labor shortages will begin to slow growth and create wage inflation.

COMMERCIAL CONSTRUCTION FORECAST

RETAIL STORES AND MALLS

Online sales continue to grow, and extreme discounters keep expanding. Major retail chains and deep-discount stores will lead construction growth in this sector, although there will be some significant activity among regional and national grocery, drugstore, and quick-service restaurants. Specialty stores in urban cores will also contribute to growth, as will e-commerce warehouses. Look for increased activity in store renovations as well. There is the potential for 9% construction growth in this sector in 2016. Retailers will continue to fret about a possible increase in the federal minimum wage and the strength in the overall U.S. economy, which could slow growth.

COMMERCIAL WAREHOUSES

Commercial warehouse construction is being buoyed by regional distribution centers for major retailers and the positive effect of the Panama Canal expansion. The strong dollar and a weakened global are pushing up imports of cheaper goods into the U.S., driving up warehouse construction. We are looking at an 8-10% growth in this sector in 2016. A slowdown in the U.S. economy could be a drag on this sector, but not by much.

MULTIFAMILY HOUSING

Multifamily housing remains the star performer in this recovery. The 20-34 age demographic (children of Baby Boomers) is growing. This age group is the typical renter. The untypical renter is the growing 55-64 demographic of empty nesters. These two age groups are pushing up demand for rental housing. They are demanding walkability and high-end amenities in a work-live-play environment.

A significant amount of capital is chasing the apartment sector, a trend that does not seem to be abating anytime soon. Deals can be financed at 3%, making them easy to justify, especially in light of the available fixed-income alternatives, which can’t come close to real estate.

Expect growth to remain torrid at 17-20% in 2016. Rental demand is on the rise and shows no signs of slowing down. Most markets cannot keep up with current demand, making this segment a star performer for 2016 and most likely beyond.

Demographics and the strengthening U.S. economy are helping to drive construction growth. As the economy strengthens, employment is increasing. After sitting on the sidelines for the past few years, businesses and developers are building new office space.

Millennials (age 18-34), who now outnumber Baby Boomers, are traveling more than other demographic groups, which is feeding hotel growth and remodeling. The strengthening economy is increasing discretionary income, helping the lodging and retail sectors. Millennials are impatient shoppers, making it imperative for retailers to invest in more robust order fulfillment systems and fast and excellent customer service. Retailers who ignore Baby Boomers do so at their own risk. Boomers have significant financial resources and are much more active and educated buyers than previous older generations. 

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Baby Boomers and the Affordable Care Act are infusing life into what just a few years ago was a moribund healthcare construction sector. Emphasis will be placed on preventive care and wellness initiatives for younger Boomers, as well as more traditional acute care for the older demographic.

Inexpensive capital is flowing into urban-core areas, especially those with a strong presence in healthcare, education, and the life sciences. In general, areas with historically high rents are faring much better than areas that rise and fall with the economy. Lower rent areas are also seeing some growth, but it is more tepid than in the urban cores.

These are heady times for builders, and there is cause for optimism. While it is true that certain larger issues, such as industry labor shortages or another financial crisis emanating from China, could slow down growth, the way things look today, this train has miles to go before running out of steam.

Current Alternatives

All of them advertise many years experience, training, and customers who trust them. Electrical contractors enter their customer’s home. They need to do excellent work as well as be able to be in someone’s house without danger of invading privacy. 

Some try and stand out like Above Code Electric which focuses on electric fan installations, or Prism Industries which focuses on TV and television installations. Others like Frazier Electric and H.O. Feild Electric are general contractors but are not locals, they are are a couple towns over.

Then there are our direct competitors like Langhorne Electric who focuses on electrical wiring upgrading for residential and commercial buildings. 

Our Advantages

When Robin opted to start her own company and take matters into her own hands,  this was just another step in her quest to deliver services to customers that were second to none. As a woman in the male-dominated electrician profession, it has always been Robin’s competitive edge that has pushed her ahead with customers and employers. Her focus on new electrical technology places her in a unique situation. Both her major competitors had sought her services when Gardner and Miller announced the company’s departure from the area. Her reputation for quality work and excellent customer skills could have landed her with a new employer and a bigger pay check. The Richmond tri-county area is booming with new commercial construction, including a new research park and airport. Robin’s technical skills in data retrieval and communication systems will be a valuable asset for a company to have in the next five years.

Keys to Success

Premiere Electric’s keys to success include:

• Expedient and convenient electrical services.
• Growing and maintaining a referral network of customers.
• Focus expertise in data, communication and electrical installation and maintenance.
• Rapid order and delivery of electrical components.

Marketing & Sales

Marketing plan.

Premiere Electric’s focus is to meet the demands of the former Gardner and Miller customer base. Premiere Electric has established relationships with these companies and believes we will receive referral business from them over time. The company estimates that 80% of revenues will come from old Gardner and Miller clientele and 20% from new referrals and business. Though the former Gardner and Miller clientele will be important during the first year of business, Robin knows the future of the business is new referrals. The table below further estimates the total market potential of the type of services rendered by Premiere Electric in the Richmond tri-county area.

We plan on having a sales plan that takes advantage of the relationships we had before we re-organized. The millennials are the biggest growing part of the market. To gain new clients we will take advantage of Social Media. We will speak directly to them by Twitter and Facebook. We have green initiatives and a website that speaks directly to them. Our well-trained sales team will take over once they come our way. 

The services rendered by Premiere Electric can cover a project in its entirety from original concept to acceptance of completed construction work.

• Consulting services : engineering studies (functional analysis), evaluations and recommendations (value engineering analysis), feasibility studies, master planning.
• Design services : cost estimates, design analysis, project scheduling, conceptual drawings: electrical standards, specifications.
• Field services : 24-hour emergency service, troubleshooting, field engineering liaison and inspection, commissioning and checkout, customer representation at acceptance testing of equipment, preventive maintenance programs.
• Construction services : commercial and industrial.

Milestones & Metrics

Milestones table, key metrics.

Our key metrics are: 

• inventory turnover 
• Tweets and Retweets 
• Facebook views and shares 
• returning customers 
• customer referral program 

Ownership & Structure

Robin Sullivan is the sole owner proprietor and employee of Premiere Electric.

Management Team

Premiere Electric is owned by its sole employee, Robin Sullivan. Robin is a talented electrician who holds a Bachelor of Science degree from Eastern College that she obtained while working full-time as an electrician. Robin entered the world of electricity at just the right time when national legislation made it possible for her to join the electricians’ union. She started her apprenticeship and early training as an electrician in St. Louis, Missouri in 1978. She later relocated to the Richmond area in 1983 and has worked in the local number three jurisdiction for the past 18 years.

For the past 10 years with Gardner and Miller, Robin has focused on the new electrical technologies as new industries and commercial growth have come to the Richmond area. During that time, she has created a base of customer support that praises her ability to handle all aspects and responsibilities of the design and engineering process.

Personnel Table

Financial plan investor-ready personnel plan .">, key assumptions.

Our key assumptions are: 

• Buildings need electricity 
• Electricity wires fray and need repair 
• As technology gets more advanced it needs more electricity to accomplish its tasks
• Tech boom never dies, just changes. We will always have customers looking for services 

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

Our Startup Expenses are: 

Stationery etc.$100

Brochures$200

Start-up Inventory$10,000

TOTAL $10,300

Sources of Funds

We will be getting $69,000. Robin will invest $47,000 and we will get a $22,000 long term loan to cover the inventory as well as some machinery. 

Projected Profit & Loss

Projected balance sheet, projected cash flow statement.

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Electrical Contractor Business Plan Template

Written by Dave Lavinsky

Electrical Contractor Business Plan

You’ve come to the right place to create your Electrical Contractor business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Electrical Contractor companies.

Below is a template to help you create each section of your Electrical Contractor business plan.

Executive Summary

Business overview.

Oak City Electric, located in Raleigh, NC, is a newly established family owned and operated electrical contracting company. The company provides electrical contracting services to the local metropolitan area and its surrounding communities. With an emphasis on customer service and rapid response time, Oak City Electric is set to establish itself as one of Raleigh’s most trusted and reliable electrical contractors.

Oak City Electric was founded by Randy Wallace. Randy Wallace has been an electrician in the community for over 40 years. Although he has worked for several local competitors, Randy Wallace has always wanted to own and operate his own electrical contracting company. He finally saved up enough money and built up a large enough client base to make his dream come true. Randy’s education, experience, and skill set will quickly make Oak City Electric the #1 electrical contracting company in the area.

Product Offering

Oak City Electric will provide a variety of different electrical contractor services. These services include:

• Residential Electrical
• Commercial Electrical
• Industrial Electrical
• Safety Inspections
• Fixture, Smoke Detector, And Carbon Monoxide Detector Installation
• Smart Home Installation
• Security Systems
• Home Theater Installation
• Camera Systems

Pricing for all services will vary depending on the complexity and size of the project.

Customer Focus

Oak City Electric will primarily serve the residents living within Raleigh, NC, and the surrounding areas. About 51% of the city owns their own homes and will likely need electrical work at some point. There are also thousands of businesses in the area and over 1 million square feet of industrial/warehouse space. Many of the city’s residents and businesses are underserved when it comes to electrical services, so our services will be in high demand.

Management Team

Oak City Electric is led by Randy Wallace, a local electrician who has worked for the largest electrical contractor companies in Raleigh for over 40 years. Randy Wallace is fully licensed and bonded and has gained an impressive reputation as the most reliable and trustworthy electrician in the market. As a project manager that oversaw hundreds of projects, Randy has the proper knowledge and experience to own, manage, and operate his own electrical contracting company. He also has built a loyal client base, with many clients promising to use his services once the company is fully running.

Success Factors

Oak City Electric will be able to achieve success by offering the following competitive advantages:

• Technology: Oak City Electric will be able to provide the latest advancements in electrical contracting.
• Price: Oak City Electric is able to offer their services at the best and most competitive price.
• Community Relations: Oak City Electric will be a pillar in the community and be heavily involved in family-related activities in the area. It will sponsor events and provide free electrical services (for small jobs) to non-profit organizations and area schools.
• Highly Trained and Experienced Staff: Oak City Electric will be led by Randy Wallace who has decades of experience as an electrician and project manager.

Financial Highlights

Oak City Electric is seeking $400,000 in debt financing to launch. The funding will be dedicated to securing office space and build-out and purchasing the necessary equipment and tools. Funding will also be dedicated toward three months of overhead costs, including payroll, rent, and marketing costs. The breakout of the funding is below:

• Office space build-out: $100,000
• Equipment, tools, and supplies: $50,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $50,000
• Working capital: $50,000

Company Overview

Who is oak city electric.

Randy Wallace has saved his wages for the necessary down payment to receive local bank financing. He has also located a prime spot for the lease of the company headquarters where the equipment and vehicles will be kept. Due to his experience and reputation in the electrical contractor industry, Randy has been able to receive written commitments from large development companies in Raleigh for them to be the preferred electrical subcontractor for their upcoming projects.

Oak City Electric’s History

Once his market analysis was complete, Randy began surveying the area for an available office space with plenty of surface parking to house the company’s large fleet of vans and trucks. Randy incorporated Oak City Electric as a Limited Liability Corporation in April 2023.

Once the lease is acquired for the space, light construction can begin to build out the company’s headquarters and small office.

Since incorporation, the Company has achieved the following milestones:

• Located an office space that would be ideal for the company
• Developed the company’s name, logo, and website
• Hired a general contractor for the build-out of the warehouse, small office, and parking area
• Determined equipment and necessary supplies
• Determined how many vehicles necessary for the fleet
• Began recruiting key employees

Oak City Electric’s Services

Industry analysis.

The electrical contractors industry has had healthy revenue growth over the last five years. This is mostly due to the increase in new construction activity and an uptick in renovations. Demand for nonresidential and residential construction projects is high, primarily due to low interest rates and access to credit. In addition to growing per capita disposable income and corporate profit, rising demand for construction projects requiring electrical work has boosted demand for industry services from corporations and individuals alike.

Over the next five years , industry revenue is expected to grow at a faster rate, largely as a result of pent-up demand. As the economy booms, the value of nonresidential construction and per capita disposable income are both anticipated to increase and contribute to industry revenue growth. In addition, the industry is projected to benefit from continued renovation and retrofitting activity, particularly green upgrades, such as energy-efficiency projects and smart home technologies. According to Arizton, these factors are expected to help boost the electrical contractor industry by a CAGR of 3.94% from now until 2028. Therefore, this is the perfect time to establish a new electric contracting company as there is a great demand for these services.

Customer Analysis

Demographic profile of target market.

Oak City Electric will serve the community residents of Raleigh, NC, and its surrounding areas.

The community of Raleigh has thousands of single family homes that will likely require electrical work. There are also a number of businesses and industrial parks that require regular lighting and other electrical services.

The demographics of the area in which we will operate are as follows:

Customer Segmentation

The Company will primarily target the following three customer segments:

• Contractors

Competitive Analysis

Direct and indirect competitors.

Oak City Electric will face competition from other companies with similar business profiles. A description of each competitor company is below.

Wallmore Electrical Contractors

Established in 1977, Wallmore is Raleigh’s largest and most requested electrical contractor. The company has grown itself to be the premier electrical contractor as it has completed dozens of projects over the years and has grown its workforce to over 100 employees and electricians.

The company was formed as a small family company and later acquired another electrical company in the area to allow itself to grow and add more services. They also have a very capable fleet of vans and trucks that are able to travel not just around the city, but across the state as well.

The company specializes in electrical lighting systems, such as LED retrofit, residential, commercial, industrial, and landscape lighting. They are also a preferred subcontractor to numerous large general contractors to complete their electrical projects for them. The projects range in size from residential developments to commercial remodeling and warehouse improvements.

We-Do-It-All Electrical & Mechanical Contractors

We-Do-It-All Electrical & Mechanical Contractors offers a complete electrical company to commercial industrial customers. The company offers a quick response to proposals and system installation services. Their team of well-trained and experienced electricians are capable of performing complicated projects with precision under tight time constraints.

The company has a lead industrial electrical contractor and commercial electrician that provides the design and implementation that is required for the project. He focuses on communicating with the client through the entire process; from initial planning and design to final implementation and testing. We-Do-It-All also places an emphasis on safety as they offer incentives for safe performance for all of their licensed electricians on staff.

Gamma Ray Electrical & Mechanical Contractors

Gamma Ray is an HVAC contractor that provides all electrical and mechanical services for any and all projects. The Gamma Ray electrical and mechanical team includes proficient electricians that are able to fix any electrical issue that can be found in the client’s living room, kitchen, or fuse box. The company’s electrical contractor services are open to both commercial and residential clients and can handle everything from troubleshooting to installing electrical systems for commercial buildings.

Gamma Ray’s complete list of electrical services include troubleshooting, infrared electrical testing, hookup and power supply, lighting and security lighting, wiring and connections, energy-use evaluation, 24-hour emergency services, preventive maintenance, electrical installation, diagnosis repair, updates and maintenance, equipment power supply, generator installation, electrical panel upgrades, and circuit installation.

Competitive Advantage

Oak City Electric enjoys several advantages over its competitors. These advantages include:

Marketing Plan

Brand & value proposition.

Oak City Electric seeks to position itself as a respectable, upper-middle-market competitor in the electrical contracting market. Customers can expect high-quality electrical work and customer service.

The Oak City Electric brand will focus on the company’s unique value proposition:

• Complete list of electrical services
• Licensed with the latest technology
• Highly trained and capable staff of electricians
• Large fleet of vehicles that is ready to be dispatched at a moment’s notice 24/7
• Affordable pricing

Promotions Strategy

The promotions strategy for Oak City Electric is as follows:

Website/SEO  

Oak City Electric will invest heavily in developing a professional website that displays all of the services the company will be able to provide. It will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.

Social Media Marketing

Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The company will use social media to develop engaging content, such as educational content about electrical work and about the services the Company offers.

Word of Mouth Marketing

Oak City Electric will encourage word-of-mouth marketing from loyal and satisfied clients. The company will use recommendations and word-of-mouth marketing to grow its customer base through the network of its existing customers. The company will incentivize its existing customer base to encourage friends to call Oak City Electric to help them with all their electrical needs.

Special Offers

Offers and incentives are an excellent approach to assisting businesses in replenishing the churn in their customer base that they lose each year. The company will introduce special offers to attract new consumers and encourage repeat purchases, which will be quite advantageous in the long run.

Oak City Electric’s pricing will be moderate so clients feel they receive great value when utilizing the company’s electrical contracting services.

Operations Plan

Operation Functions:

The following will be the operations plan for Oak City Electric.

• Randy Wallace will be the Owner, President, and Manager of Oak City Electric. He will be in charge of the general operations of the company. He will also provide customer service and provide electrical work for his customers until he hires a large staff of electrical contractors.
• He is assisted by his long-time friend, Jack Taylor, who will be the Vice President of the company. He will assist with the marketing and administrative aspects of the business.
• Randy will also hire several electrical contractors to provide electrical services to his long list of clients.

Milestones:

Oak City Electric expects to achieve the following milestones in the following months:

• 7/202X Finalize lease agreement
• 8/202X Design and build out
• 9/202X Hire and train initial staff
• 10/202X Kickoff of promotional campaign
• 11/202X Launch Oak City Electric
• 12/202X Reach break-even

Financial Plan

Key revenue & costs.

Oak City Electric’s revenues will come primarily from its electrical contracting services. The company will provide a range of electrical contracting services to the community and its surrounding areas. As the company’s revenues increase, it will look to gain a wider distribution area.

The warehouse lease, equipment, supplies, fleet of vehicles, and labor expenses will be the key cost drivers of Oak City Electric. Ongoing marketing expenditures are also notable cost drivers for Oak City Electric.

Funding Requirements and Use of Funds

Key assumptions.

Below are the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Monthly rent: $1,500

Financial Projections

Income statement, balance sheet, cash flow statement, electrical contractor business plan faqs, what is an electrical contractor business plan.

An electrical contractor business plan is a plan to start and/or grow your electrical contractor business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Electrical Contractor business plan using our Electrical Contractor Business Plan Template here .

What are the Main Types of Electrical Contractor Businesses?

There are a number of different kinds of electrical contractor businesses , some examples include: Commercial Electrical Contractor, Residential Electrical Contractor, and Industrial Electrical Contractor.

How Do You Get Funding for Your Electrical Contractor Business Plan?

Electrical Contractor businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start an Electrical Contractor Business?

Starting an electrical contractor business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop An Electrical Contractor Business Plan - The first step in starting a business is to create a detailed electrical contractor business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your electrical contractor business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your electrical contractor business is in compliance with local laws.

3. Register Your Electrical Contractor Business - Once you have chosen a legal structure, the next step is to register your electrical contractor business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your electrical contractor business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Electrical Contractor Equipment & Supplies - In order to start your electrical contractor business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your electrical contractor business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful electrical contractor business:

• How to Start an Electrical Business

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How to Start an Electrical Business: Full Guide

Table of Contents

Starting an electrical business can be a rewarding venture, both professionally and financially. However, like any business, it requires careful planning and execution. In this comprehensive guide, we will walk you through the key steps and considerations for starting your own electrical business.

1. Create Your Business Plan

Define your electrical services.

Start by clearly defining the specific services your electrical business will offer. Will you focus on residential or commercial electrical work? Will you specialize in specific areas such as lighting installations or energy-efficient solutions? Understanding your unique value proposition will help you target the right audience.

When it comes to residential electrical work, you may offer services such as wiring installation, electrical repairs, and appliance installations. You could also specialize in home automation systems, providing homeowners with the convenience of controlling their electrical devices remotely. For commercial electrical work, you might focus on electrical system maintenance, power distribution, and electrical troubleshooting for businesses of all sizes.

In addition to these services, you could consider offering specialized solutions such as lighting installations. By staying up-to-date with the latest lighting technologies and trends, you can provide your customers with energy-efficient lighting options that not only reduce their energy consumption but also enhance the aesthetic appeal of their spaces.

Identify Your Target Market

Identify and analyze your target market to tailor your marketing efforts effectively. Consider factors such as demographics, location, income level, and specific needs of potential customers. This will help you develop targeted marketing campaigns and reach the right audience for your services.

For residential electrical services, your target market may include homeowners, property managers, and real estate developers. By understanding their specific needs and preferences, you can customize your marketing messages to highlight the importance of reliable electrical systems, energy efficiency, and safety in their homes.

When it comes to commercial electrical services, your target market may consist of small businesses, corporations, and industrial facilities. Understanding their unique requirements, such as the need for uninterrupted power supply and compliance with industry regulations, will enable you to position your services as essential for their operations.

Set Your Pricing Strategy

Determining your pricing strategy is a crucial aspect of running a successful electrical business. Research industry standards and local market rates to ensure your pricing is competitive while still allowing for profitability. Consider factors such as labor cost, material expenses, and overhead costs when setting your prices.

When it comes to labor costs, you need to factor in the expertise and experience of your electricians. Highly skilled electricians may demand higher wages, but they can also deliver superior quality workmanship, which can differentiate your business from competitors. Additionally, consider the cost of materials required for each project and any overhead costs, such as insurance, licensing fees, and vehicle maintenance.

It’s important to strike a balance between competitive pricing and profitability. While undercutting your competitors may attract customers initially, it may not be sustainable in the long run. By offering fair and transparent pricing, you can build trust with your customers and establish a reputation for delivering value for money.

2. Legal Considerations for Starting an Electrical Business

Starting an electrical business involves various legal considerations that are crucial for success and compliance with regulations. By understanding and addressing these considerations, you can ensure the smooth operation of your business and build a solid foundation for growth.

Register Your Business

One of the first steps in starting an electrical business is registering your business with the appropriate authorities. This process may vary depending on your jurisdiction, so it is important to thoroughly research the registration requirements in your area. This typically involves filling out necessary forms, providing relevant documentation, and paying any applicable fees.

During the registration process, you will also need to ensure compliance with all necessary legal requirements. This may include obtaining the required permits and licenses specific to the electrical industry. These permits and licenses not only demonstrate your commitment to operating within the law but also provide assurance to potential clients that your business meets the necessary standards.

Understand Licensing Requirements

As an electrical business, it is crucial to understand and comply with the licensing requirements in your area. Electricians are typically required to obtain specific licenses and certifications to legally perform electrical work. These requirements are put in place to ensure the safety and competency of electrical professionals.

Familiarize yourself with the licensing requirements in your jurisdiction and ensure that your business and employees meet these requirements. This may involve completing specific training programs, passing exams, and obtaining the necessary certifications. By meeting these requirements, you not only comply with the law but also build trust and credibility with clients who value professionalism and expertise.

Insurance and Liability Considerations

Protecting your business and clients is essential in the electrical industry, where potential risks and liabilities exist. Obtaining appropriate insurance coverage is crucial to safeguard against unforeseen circumstances and potential legal issues.

General liability insurance is a fundamental coverage option that protects your business from third-party claims for property damage or bodily injury. This coverage can provide financial protection in the event of accidents or mistakes that may occur during your operations.

In addition to general liability insurance, workers’ compensation insurance is also important for electrical businesses. This coverage protects your employees in the event of work-related injuries or illnesses. It provides medical benefits, wage replacement, and other necessary support to help employees recover and return to work.

Consulting with insurance professionals who specialize in the electrical industry can help you determine the best coverage options for your business. They can assess your specific needs and recommend additional coverage, such as professional liability insurance, which protects against errors or omissions in your work.

By addressing these legal considerations, you can establish a strong legal foundation for your electrical business. This not only ensures compliance with regulations but also builds trust and confidence among clients, setting you up for long-term success in the industry.

3. Acquire Essential Tools and Equipment

When it comes to delivering top-notch electrical services, investing in high-quality tools is essential. Basic tools for electricians include wire strippers, pliers, voltage testers, multimeters, and screwdrivers. These tools are the bread and butter of an electrician’s toolkit, allowing them to perform various tasks with precision and efficiency.

Researching reputable brands is crucial when choosing your tools. Look for brands that have a long-standing reputation for producing reliable and durable equipment. It’s also important to consider the quality standards of your business. Investing in tools that align with your business’s quality standards will ensure that you can consistently deliver excellent results to your clients.

Advanced Equipment for Specialized Services

While basic tools are essential for most electrical work, if you plan to offer specialized services, you may need to invest in advanced equipment. Specialized electrical services, such as automation or renewable energy solutions, often require specific tools to get the job done effectively.

For example, if you’re venturing into the field of automation, you might need to invest in thermal imaging cameras. These cameras can detect temperature variations, allowing you to identify potential issues in electrical systems and prevent malfunctions. Similarly, if you’re focusing on renewable energy solutions, electrical testing equipment becomes crucial to ensure the proper functioning of solar panels or wind turbines.

Moreover, specialized software can also be a valuable investment for electricians offering advanced services. Software programs designed for electrical professionals can streamline tasks such as circuit design, load calculations, and energy efficiency analysis.

Investing in Safety Gear

While tools and equipment are essential, they should never come at the expense of safety. Electrical work can be hazardous, so investing in proper safety gear is crucial to protect yourself and your team.

Personal protective equipment (PPE) is a must-have for every electrician. Safety glasses, for instance, protect your eyes from potential debris or sparks. Gloves are essential for safeguarding your hands against electrical shocks and burns. Additionally, flame-resistant clothing is crucial to minimize the risk of injuries in case of accidental fires.

However, having the right safety gear is just the first step. It’s equally important to ensure that your team is well-trained in proper safety procedures. Conduct regular safety training sessions to educate your employees about potential hazards and the correct protocols to follow. By prioritizing safety, you can minimize the risk of accidents and injuries, creating a secure working environment for everyone involved.

4. Hire and Train Your Team

Finding qualified electricians.

As your business grows, you may need to hire skilled electricians to handle increased demand. Look for candidates with relevant certifications and experience in the electrical industry. A qualified electrician should have a strong understanding of electrical systems, wiring, and safety protocols. Additionally, they should possess problem-solving skills and the ability to work independently or as part of a team.

When searching for potential candidates, consider conducting thorough interviews to assess their technical knowledge and experience. Ask them about their previous projects, challenges they have faced, and how they resolved them. This will give you insight into their problem-solving abilities and their ability to handle complex electrical issues.

In addition to interviews, it is crucial to verify the credentials of potential hires. Check their certifications and licenses to ensure they are valid and up to date. You may also want to contact their references to gain a better understanding of their work ethic and reliability.

Training for Quality and Safety

Investing in ongoing training and professional development is essential to enhance the skills and knowledge of your team. As technology and industry standards evolve, it is crucial for your electricians to stay up to date with the latest trends and advancements.

Consider providing your team with opportunities to attend workshops, seminars, and conferences related to the electrical industry. These events can offer valuable insights into new techniques, tools, and safety practices. By continuously improving their skills, your electricians will be better equipped to handle complex projects and provide top-notch service to your customers.

Furthermore, prioritize safety training within your team. Electrical work can be hazardous, so it is crucial to ensure that your electricians are aware of and adhere to proper safety protocols. Offer regular safety training sessions, provide them with protective gear, and encourage a safety-first mindset.

Building a Positive Team Culture

Fostering a positive work environment is essential for the success of your team. A positive team culture promotes collaboration, creativity, and mutual respect among team members.

Encourage open communication within your team. Create an environment where electricians feel comfortable sharing their ideas, concerns, and suggestions. This open dialogue can lead to innovative solutions and a stronger sense of camaraderie.

Recognize and reward achievements to motivate your team. When an electrician goes above and beyond, acknowledge their efforts and express your appreciation. This recognition can boost morale and encourage others to strive for excellence.

Provide opportunities for career growth within your business. Offer training programs, mentorship opportunities, and the chance to take on more significant responsibilities. By investing in your team’s professional development, you show that you value their growth and are committed to their long-term success.

Building a positive team culture not only increases employee satisfaction but also contributes to customer satisfaction. When your electricians work well together, communicate effectively, and feel valued, they are more likely to deliver exceptional service and exceed customer expectations.

5. Market Your Electrical Business

Building a strong online presence.

In today’s digital age, having a strong online presence is essential for any business. Create a professional website that showcases your services, team, and past projects. Utilize search engine optimization (SEO) techniques to improve your website’s visibility in search results. Leverage social media platforms to engage with potential clients and share valuable content.

Traditional Marketing Strategies

Don’t overlook traditional marketing strategies that can still be effective in reaching your target audience. Consider distributing flyers or brochures in the local area, advertising in relevant industry publications, or sponsoring community events. A well-rounded marketing approach can help you stay visible and attract new clients.

Networking and Building Relationships in the Industry

Networking is a powerful tool for growing your electrical business. Attend industry conferences, trade shows, and local business events to connect with other professionals in the field. Building relationships with contractors, architects, and property managers can lead to valuable referrals and collaborative opportunities.

Read our full guide on marketing your electrician business

6. Set Up Financial Management for Your Electrical Business

Setting up your accounting system.

Effective financial management is crucial for the long-term success of your electrical business. Implement a reliable accounting system to track income and expenses, manage invoices, and monitor cash flow. Consider using accounting software or seek professional help to ensure accurate record keeping.

Choose the Right Bank Account For Your Business

Choosing a business bank account is essential for electrician businesses to get started. With NorthOne, electricians can easily track their expenses, manage invoices, and receive real-time notifications for transactions, ensuring financial organization and efficiency. Additionally, NorthOne’s seamless integration with accounting software simplifies bookkeeping tasks, making it an ideal banking solution for electricians focused on growing their business. Apply for an account in minutes:

Understanding Taxes for Your Business

Be aware of the various tax obligations for your business, including income tax, sales tax, and payroll tax. Consult with a tax professional to understand the specific tax requirements in your area and ensure you are in compliance. Proper tax planning can help minimize liabilities and maximize profits.

Planning for Growth and Expansion

As your electrical business flourishes, it’s important to plan for future growth and expansion. Set clear goals and objectives for your business and develop a strategic plan to achieve them. Continuously evaluate market trends, customer needs, and industry developments to adapt your business strategy and seize new opportunities.

Starting an electrical business requires careful planning, knowledge of the industry, and sound business practices. By following this full guide and consistently delivering high-quality services, you can build a successful electrical business that thrives in today’s competitive market.

Justin Adler

Related posts, 12 best electrical contractor software apps in 2023, 18 best electrician apps for contractors in 2023, electrician seo: complete guide for 2024, 12 best electrical slogans to use in 2024, 5 best electrician accounting software options in 2024, 26 must-have electrician tools for your kit in 2024.

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How To Write an Electrical Contracting Business Plan

Kat Boogaard

If you’re ready to take the leap into business ownership, we’ll help you to get started with researching your electrical contractor business target market. With that information in your back pocket, you’ll be ready to dive into business planning and then launch your new contracting company.

Getting Started with Your Business Plan

You’ve been mulling over your business ideas for a while and now it’s time to make it happen. The word “startup” may give you mental images of Silicon Valley, but every business has to begin somewhere and yours is no exception. 

As an electrical contractor, you understand that frameworks are the only way to make a project successful, so think of your business plan as the blueprint that you’ll be working from as you prepare to launch and grow. 

There are plenty of business plan templates out there so that you don’t have to start from scratch, but we’re going to run through a few key areas that you’ll want to include in your research and planning stages. Below, we’ll cover a few nuts and bolts business plan sections: 

• Competitive analysis
• SWOT analysis
• Target market research
• Financing and cash flow

Sound overwhelming? It doesn’t need to be. Let’s walk through the details of each of these. 

Electrical Contracting Competitors

You need to know who else is operating in your space to plan how you’re going to stand out from the crowd. 

It’s likely that you already have an extensive network of fellow electrical contractors like other electricians, subcontractors, project managers, and general contracting firms in the local area. Take a look at their websites and research the services they offer to their clients. 

Is there a gap in your local market for residential or commercial services that your new business could fill? What do their customer reviews say? By knowing what your competition looks like, you can make informed decisions about the type of business you want to run and how your unique offers could attract potential customers.

SWOT Analysis

SWOT is an acronym that stands for strengths, opportunities, weaknesses, and threats. This type of analysis is an important part of the business planning process. 

Like with your competitor research (which can be used to make up the “threats” part of this analysis), this is where you’ll have the opportunity to jot down what you do well, where you need to improve, and what opportunities there are in your market that you could leverage. 

You’ll also want to think about the type of business structure you want to have at this stage. You can change this later on if you need to, but mapping out your vision for the future of your business now can help you to save time down the road.

While this is definitely an aspect to consider before you launch, a SWOT analysis is something that you should be working on as the business owner at least twice a year, if not quarterly. If this is the first time you’ve ever worked on one, you can find templates online to help you get started.

Target Market Research

To build a successful electrical business, you need to know what your target market looks like. As an electrician, you’ve likely worked with a range of customers across all kinds of projects, but now that you’re running your own business , you need to decide who exactly you want to serve. 

Research your service area and what the demographics look like—is it mainly commercial businesses who might need ongoing electrical work like electrical systems maintenance, or are there a large number of homeowners that could be looking for residential electrical services in your community? Is there a contracting company that’s building a new development nearby that could be looking to hire an electrician for multiple HVAC or electrical installations on their new properties?

Finding new clients to provide you and your team with consistent work is one of the biggest challenges of entrepreneurship, but doing your research ahead of time will help you to build out your new business in a way that works for both you and your potential customers.

Financing and Cash Flow

You can’t get a business off the ground without funding! Understanding your cash flow and bottom line, both ahead of launching and during the day-to-day operations of your electrical contractor business, is vital in ensuring that your business will survive. 

As most electrical contractors use equipment supplied by their company, you may not have much of your own to get started. If you’re hiring a team, you’ll also be responsible for supplying them with everything they might need on a jobsite, along with any necessary insurance , including workers’ comp . 

Your costs are going to vary greatly, but here’s a rough estimate for each of these items:

• Liability insurance : $600 per year
• Equipment: $1,000-$5,000 depending on what you need
• Employees or subcontractors: $15-$100 per hour
• Workers’ comp insurance : This one’s a little trickier, since rates vary so much depending on location, payroll amount, classification of workers, and your prior injury history. Use this formula to estimate the workers' comp rate for each employee you hire:

(Employee Gross Salary x Workers' Comp Insurance Rate)/$100 = Annual Rate

To get you up and running, you might be considering taking a small business loan. The U.S. Small Business Administration , or SBA, is a great resource for helping you find loan providers that make sense for your situation. You could also be a candidate for small business grants , which are worth looking into when you’re getting started. 

Pricing your services correctly will also be important, and this is where your competitor analysis can come in handy. See what the average rates are for electrical contractors in your service area (Indeed reports that electrical contractors earn an average of $23.22 per hour ), but also consider what kind of profit margin you want to make after you’ve run payroll, paid back any loans, and settled outstanding bills. This will be one of the most important parts of your business plan, so be sure to take enough time to work on this before you open your business to the public.

Marketing Strategies for Your Electrical Contracting Business

You’ve got your business mapped out on paper and fully funded, but now you need to let the world know that your new electrical company is ready to start working! That’s where your marketing plan comes in. It’s one thing to understand exactly who your target audience is, but it’s another to have a plan in place for how you’re going to reach them.

Marketing strategies don’t have to be complicated and can be broken down into three distinct categories–digital, traditional, and referrals.

Digital Marketing

For many of your customers, the first place that they’ll go when searching for an electrical company is Google. When they do, you want your website to be one of the first results that they find. 

One of the best methods to do this is to use a strategy called search engine optimization, or SEO. It may seem overwhelming at first but there are plenty of small tweaks that you can make to your website that can hugely improve your visibility online—such as using clear and intuitive headings on your webpages (like “California Electrical Contractor”). 

Setting up a Google My Business profile will also be useful. This will help your business show up in Google Maps listings, as well as make your phone number, and open hours easily accessible for any potential customers.

Using social media to connect with your market is also a helpful digital marketing strategy. You might consider hiring a freelancer to help create your social media content and manage your online communities, particularly when you first launch, as this can be a significant amount of work to manage alongside your other responsibilities as the business owner.

Traditional Marketing

It’s easy to think that everyone is online these days but, particularly if you work with residential customers, you’ll find that certain demographics may not have the access or inclination to use digital communications. 

Leaving business cards at other local businesses or with a customer after a job is completed is still a great way to get your name out there and keep your business top-of-mind when someone needs an electrical company. 

Direct mail pieces that can be delivered throughout your service areas can also be helpful in letting the local community know that your new business is in town and ready to take on new projects.

Referrals and Word of Mouth

One of the best ways that small businesses can grow is through word-of-mouth referrals from previous and existing customers. After all, they have first-hand experience of working with you and can give potential customers an idea of what your quality of work is really like.

If you can, gather testimonials and reviews from clients as soon as you finish a job with them. Encourage them to leave a review on your Google My Business profile (that’s great for your SEO too!) that you can then reuse on your own website and post on social media. Make the customer experience excellent from beginning to end and you’ll start to see those five-star reviews coming in in no time.

Launching and Growing Your Electrical Contracting Business

You planned carefully and now your business is thriving. At this point, you might be thinking about hiring some electrical contractor employees. 

Your first hires will probably be more experienced workers like a master electrician, journeyman, or estimator. These individuals have been in the electrical construction industry for a while and know how to work independently on a jobsite. But you should also consider how you can support the future of the industry.

Apprenticeships and training programs require hands-on experience and someone has to be willing to give these up-and-comers a chance. As the business owner, you have decision making authority to bring in new trainees during the early years of their career and mold them into dream employees. Not only are you helping to keep your industry a thriving career prospect, but you’re also ensuring the future stability and growth of your new business.

Running A Successful Electrical Contracting Business

Owning and running a business full-time is hard work, but it’s also incredibly rewarding. 

A firm business plan will help you stay on top of the many moving pieces that make up your new venture, while giving you the opportunity to understand your market and competition in a way that pushes you toward your success.

‍Becoming a business owner is a lifelong dream for many people. If you have the entrepreneurial bug and an interest in construction , starting your own electrical contracting business could be the right move for you. 

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How to start an electrical business in 10 steps

Quiz: Who has kept computers powered, Zoom meetings on schedule, and students learning remotely during the COVID-19 pandemic?

One answer is electricians, essential service providers who have provided services that power all other businesses. With our increasing reliance on electrical equipment, it is a good time to start your own electrical contracting business.

And the need for electricians is growing. In the year before the pandemic, twice as many electrical businesses hired workers than lost them. The industry is expanding with an average growth rate of 8% from 2018 to 2028. Experts say it will grow more as construction returns to pre-pandemic levels, adding more than 60,000 jobs.

You can be your own boss and capitalize on industry growth. First, it’s a good idea to ask yourself these 5 questions before you start a business . To avoid falling into the 50% of new businesses that fail within 5 years, you’ll have to plan thoughtfully. The following steps can help spark ideas for your success.

1) Choose what services you will offer

Professional electricians work in a wide variety of industries and settings, but there are two main categories:

• Linemen (Outdoor electricians): Linemen work on electrical transmission systems. They operate at higher voltages on wires that move electricity from substations to customers.
• Wiremen (Indoor electricians): These electricians install, maintain, and repair interior wiring systems. They may work on alarm, door, and gate systems or install receptacles or light fixtures and fans. Residential workers help homeowners while commercial wiremen focus on electrical installation for businesses like the construction industry.

Some other specialties you can start an electrical business in are:

• Industrial electricians
• Maintenance electricians
• Auto electricians
• Wind turbine electricians
• Electrical inspection
• Telecommunication line repair/installation
• Outdoor lighting
• Installing smart solutions
• Security and fire alarm installation

After looking at your skills, check out your local area. What services do your competitors offer? Look at the following elements where you might stand apart from the crowd:

• Geography covered
• Customer reviews
• Marketing strategy

While a small, one-person van electrical business may not compete with the local leader, the analysis can give you an overview of where you stand. You might see potential partners the established companies are overlooking and services that are too small for more prominent companies.

2) Uncover your unique selling position (USP)

After having a good look around your local market, you will want to differentiate your electrical business. Suppose you’re offering residential electrical services amidst fierce competition. In that case, you’ll want to make it easy for customers to understand why they should choose you.

Many electrical contractors start by understanding what licenses they hold and what kinds of jobs they can do. If you’re lucky, your specialty will align with a service that is hard to get in your market, and you’ll become the premier provider. Not everyone is fortunate enough to offer a unique service. You may specialize in a saturated niche within a competitive market. For example, you could be a residential electrician in a large city. Your qualified electricians can still stand out from the crowd.

Ask yourself:

• What features does my business offer? Are you a master of smart house technology? A ninja with security systems? Do you go above and beyond in customer service?
• How do these features benefit the customer? After-hours emergency service, for example, allows customers to relax when a problem arises instead of worrying all weekend that it will turn dangerous. The benefit is that this feature protects your customers’ families, homes, and peace of mind.

Another example might be your “No call out charge” policy. Reassured customers may be more likely to recommend your business to friends.

Your USP allows you to direct your marketing to your target demographic, saving you money and bringing you new clients.

3) Pick your business name

A spark of creativity can take you far. An electric company’s name should unite your niche and USP and help customers remember your business.

You can keep it simple with a name like “John’s Residential Electrical” or own your niche with “Luminations Outdoor Lighting Systems.”

Use a business name generator if you need help with ideas. Talk to family and friends. See what is memorable as well as easy to spell and find online. You’ll also want to check the social media accounts and domain names available.

4) Get your paperwork in order

States and local governments differ in their electrical licensing requirements . A typical path to a new electrical business starts with having your master contractor designation, certified electrical administrator, or electrical contractor license. General electric contractors are licensed to work in residential and commercial settings in all specialty electrical contracting tasks like pump and irrigation, appliances, or door systems. An electrical contractor’s license will cost roughly $120.

If you aren’t licensed yet, you can start by studying up on how to become an electrician and get licensed .

Whether you do your electrical work or hire a licensed electrician, you’ll register your business and apply for a business license from your state or city. In most states, this is a requirement to do business in your state.

Finally, you’ll apply for an Employer Identification Number (EIN) from the IRS. This tax identification number works like a Social Security Number for businesses. It will let you open bank accounts, credit lines, apply for business licenses, and file taxes. It’s easy to apply online .

Insure your business

Electrical businesses can be shockingly dangerous, and business owners cannot forget about insurance to protect themselves from unexpected volts. You’ll likely need proof of business insurance for electricians to do business in your state.

The types of coverages you’ll need depend on your particular business needs. Sometimes, a Business Owner’s Policy makes sense as your primary small business insurance . Other times, you’ll buy coverage individually.

Here are some of the coverages you could use in your electrical business:

• Business Owner’s Policy (BOP): This coverage includes general liability, property insurance, and businesses interruption coverage wrapped up in one package. Each of those coverages can be purchased separately as well.
• General liability insurance : This coverage is almost certainly required to do business in your state. It covers your business if you’re sued for injury or property damage.
• Workers’ compensation insurance : If you hire electricians or other professionals to help run your business, your state will almost certainly require workers’ compensation insurance. It can help sustain your business when a worker is sick or injured. Workers’ compensation insurance is designed to cover medical bills, rehabilitation, and lost wages, protecting both the worker and your business when someone cannot work. It’s easy to calculate your premiums .
• Property insurance : Property insurance can include coverage for both your business location and the personal property inside. You may need a building for housing your fleet or responding to business calls.
• Business interruption : This coverage can supplement lost income if your business needs to cease operations for any reason temporarily.

5) Create a business plan for your electrical business

A business plan is almost always required when seeking investment funding or start-up loans. It can also be a way to convince employees and partners to come on board.

There are multiple templates available online to help you craft an intelligent business plan. Most suggest you include these sections:

• Executive Summary: Can you describe your business, mission, goals, and the keys to success?
• Company Summary: What services will you provide? What is your management structure? Where are you located?
• Market Analysis: What is your market segment? What does the housing or commercial stock look like in your locale? Is the industry growing?
• Strategy: What is your sales strategy, budget, and competitive edge?
• Personnel Plan: How will you hire electricians and a management team
• Financial Plan: What are your financial projections, including projected profit and loss? What are your fixed costs, margins, and expenses? How is your cash flow? Do you know your “break-even” number (which you need to attain to be profitable)?

The financial plan section is essential if you’re seeking funding for your business. You’ll want to research the funds needed to start your business. Include categories like working capital, vehicle costs, and equipment costs. Document your pricing and the number of jobs you’ll handle per day, showing total costs and profits.

How much will you have to pay contractors? Typical labor costs range from $90 to $140 an hour. Other electrical businesses use flat-rate pricing and can earn $200 to $240 an hour.  

How much will you make? The average small residential job costs customers $140 to $420, whereas large jobs average $2000 to $6000. Average industry prices for typical residential jobs are listed here:

• Wiring: $7 per foot
• Doorbell installation: $120
• Wiring a new switch: $150
• Installing a ceiling fan: $250
• Installing an attic exhaust fan: $400
• Installing a bathroom fan: $325
• Wiring a new outlet or replacing a conventional outlet with a GFCI outlet: $150
• Installing a light fixture: $240
• Wiring a new hot tub: $1,150
• Installing an electric car charging station: $1,675
• Upgrading an electrical panel: $1,800
• Installing a home generator: $4,000
• Installing a home automation system: $1,200
• Rewiring a home: $4,250
• Installing a sprinkler system: $2,850
• Installing a video surveillance system: $1,450

Many new contractors think the fastest way to profitability is to fit as many jobs into a day as they can get. But try to stay grounded when thinking about your profitability. Being able to cross-sell a customer and take care of all concerns they have with their electrical systems, doing a thorough job and explaining the type of work you’re doing, and being available for unexpected emergencies are profitable ways to customer satisfaction and more referrals.

6) Decide on your business structure

Many electricians choose to incorporate their new business as a limited liability company (LLC), which protects owners’ assets if the business is sued for damages. You can file the paperwork without lawyers if you’d prefer your start-up budget go to that fancy thermal imaging multimeter.

An LLC means:

• You can protect your personal assets
• You can choose between pass-through and S-corp taxation
• Tax benefits can mean faster growth
• Increased consumer trust

Your state may not require you to form your company as an LLC. You can operate as a sole proprietor instead. Other structures are partnerships, which can be limited liability. You can also consider forming a corporation. Your lender may require this.

7) Figure out your financial plan

Electrical business margins can be tight at 5%. Keep them from being trimmed further with a solid financial plan. It starts with keeping start-up costs low.

How much do you need to spend? Electrical businesses often pay $5,000 or more. Large costs will include equipment and a van. However, expenses vary. What you spend depends on the current state of your toolbelt and whether you’ll be starting from scratch (as well as how many pricy, digital tools your specialty requires). Here are some estimates:

You can easily spend $10,000 to $60,000 on a kitted-out van to run your mobile business. However, you can start by renting or buying a used van or financing a van and forking over just the down payment.

Often considered the gold standard of advertising for the trades, your van is a visual marketing tool that can cost around $1,000 for professional lettering and visuals.

A complete set of starter tools can be simple. Many electricians work with hand tools like pliers, fish tape, screwdrivers, and wire strippers. They rent more expensive equipment as needed. However, it is not unusual to spend around $6,000 for the basic set of new tools. Also, consider:

• Voltage testers
• Installation tools
• Strapping tools
• Multifunction testers
• Electrical wall chasers
• Digital tools, if needed, like circuit finders, and circuit analyzers

Stock to use on jobs

Don’t forget to stock your van with the little things you’ll need to do your electrical jobs, including parts like tape, wire, solder flux, solder wick, flux cleaner, and freezing spray. It can all cost $1,000 to $2,000.

Business basics

You may need a website, software for invoicing and bookkeeping, computer, and printer. It can all cost $2500 to get started.

Shoe wraps, branded shirts, and safety equipment build your brand and your professional authority. They’ll cost $200 or more, depending on how many employees you will hire.

Insurance and licensing fees

Consider your first payments, licenses, and registration fees, and you’ll need to set aside at least $600.

Advertising

You can use flyers, networking, and local partnerships to get word of mouth started free, but a modest advertising budget for pay-per-click ads or local newspapers is a popular way to jumpstart your phone ringing. Set aside at least $500.

Paying for it all can make you feel overwhelmed. Still, there are several sources of funding available for new electrical businesses.

Small Business Administration (SBA) loans for electrical businesses help cover working capital and equipment costs. There are many kinds of SBA loans, and lenders have different requirements, so be sure to check out other options. They cover expenses from $5,000 to $50,000. There are even microloans, which are quick to get and flexible in funding business expenses like tools.

Bank loans can be more challenging to get than SBA loans. Your local lender will be able to tell you the different payment options and funding available for your electrical company.

Another path to get started quickly is to self-fund start-up costs with a new 0% APR credit card, counting on an increasing customer base to pay off the debt before the regular interest rate kicks in.

8) Hire employees

How can you hire right for your small electrical business? If you’ve never hired employees before, read about how to hire your first employee , then think about the specific needs of your electrical business:

For starters, you’ll want licensed electricians to perform all the work you do. But what kinds of electricians will you need? Apprentices, journeymen, office workers?

According to the U.S. Bureau of Labor Statistics, electricians make an hourly average of $28.50, with an average national salary of $53,794 in 2019. You’ll pay more in areas with a high cost of living, like Alaska, Hawaii, or New York. You’ll also pay more for master electricians with multiple certifications.

9) Spread the word

Electricians have multiple opportunities to get the word out about their new business.

• Van: You’ve already outfitted your van, so start advertising there with signage that clearly states your business name and USP.
• Website: You’ve set up a website. Now get found in your community by setting up Google My Location services, looking into Google’s Adwords pay-per-click advertising. Formulate a strategy to be a featured result in the Google map local search results, which yield the best returns. Your website can also serve as a site to book calls or services, creating less friction for potential customers to reach you. You can use it to educate your customers through blog posts, videos, and testimonials and capitalize on search engine optimization (SEO).
• Local advertising: Electrical businesses serve a small local area and can therefore take advantage of affordable advertising directly to their target market in newspapers or radio. You can spread the word by sponsoring local sports teams or purchasing advertising on billboards or in local venues. Even leaving business cards with your phone number in local businesses can increase your visibility.
• Partnerships: If you are a residential electrician, why not partner with local real estate agents and offer to help teach them the basics of assessing electrical problems? Network with plumbers, roofers, and other tradespeople for opportunities to trade referrals.
• Social media: Electricians are not known for the visual appeal of their circuit breakers. However, showing before and after jobs, answering customer questions, and walking them through simple DIYs can build visibility and trust.
• Incentivize referrals from your customers: Developing word-of-mouth advertising is free and effective. Personal referrals make people 4 times more likely to buy because they come from a trusted friend. The more jobs you do in your market, the more opportunity you have to ask for referrals. You can even set up a digital system to incentivize customers with ongoing maintenance or another perk for referring new clients to you.

10) Check out these other tips for running a successful electrical business

A thriving new business means more than just rewiring fixtures for customers. You’ll have to coordinate trucks and appointments, handle proposals, billing, marketing, training, and complaints. It might make you question how you’ll stay sane as an entrepreneur .

When you’re ready to amp up your business, check out these extra resources for electrical business entrepreneurs:

• International Association of Electrical Inspectors : The online magazine features columns and discussions on industry trends that can help you keep on top of your game. Codebook quizzes are a great way to brush up on code requirements in all electrical specialties.
• National Electrical Contractors Association : Chapters, networking, conferences, and continuing education, this professional association for your electrical contracting business can keep you connected with industry trends and business necessities.
• Independent Electrical Contractors : An association hosting conferences, a newsletter, professional development, and apprenticeship programs
• Electrical Contractor Magazine : Stay up on new products and trade secrets with articles, videos, and more.
• Electrician Talk : Survey other electrical business owners on pricing, struggles, and ask for support. It’s all here on the community forum.

If you’re still excited to pursue your electrical business dream, grab a lightning-fast business insurance quote from Huckleberry .

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Electrical Contractor Business Plan Sample

Published Dec.30, 2020

Updated Apr.22, 2024

By: Noor Muhammad

Average rating 5 / 5. Vote count: 2

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Table of Content

Electrical Contractor business plan for starting your own business

So, you want to become an electrical contractor. Well, this is undoubtedly an exciting venture, but can end up causing huge legal troubles if you couldn’t manage it properly.

An electrical contractor can be a person or company that employs electricians to design, install, and maintain electrical systems. Due to the delicate nature of work, the company is required to comply with specific standards.

To succeed in this challenging yet profitable enterprise, you must write an effective business plan for electrical contractor as the first step. In your business plan, you must include details about how you will train the employees, reach your customers, and obtain your goals within the resource constraints.

If you don’t know how to write an effective business plan, you can take help from here. In this electrical contractors business plan pdf, we have provided all the details of an electrical contractor startup, E-Volts.

Executive Summary

2.1 the business.

E-Volts will be a registered, licensed, certified, and insured electrical contractor company based in Detroit. The business will comprise of highly trained electricians and supervisors to ensure the highest-quality work delivery.

From installation of transmission and distribution lines to the provision of electricity to buildings, E-Volts will be there to shine and help.

2.2 Management of Electrical Contractor

Managing an electrical contractor business requires extensive pre-planning. In some cases, even a smaller mistake can lead to a disastrous situation. Therefore, you should be very careful about all the details.

E-Volts will lease a facility in Detroit to set up their office. Following that, a procurement and HR manager will be hired so that the company could find the best equipment and the best hands to handle the equipment.

To manage the tasks effectively, E-Volts will be creating a database so that employees’ activities and engagements could be recorded. And the availability of specified workers could be ensured for upcoming projects.

2.3 Customers of Electrical Contractor

Before exploring how to start an electrical contractors business, you should identify your customers. Knowing your client base will help you to develop a sales strategy that is best suited to target them. Besides, recognizing customers will also enable you to create a precise electrical contractor startup plan by defining pricing, and services, etc.

E-Volts will provide its services to individuals, businesses as well as local government. In this business plan electrical contractor, we will be discussing the ways E-Volts will adopt to target these customers.

2.4 Business Target

Our target is to become the most renowned electrical contractor business in our vicinity within a year of the launch. Moreover, we aim at generating a net profit margin of $10.5k per month by the end of the two years. Our 3 years’ profit forecast based on our gross profit margin, sales forecast and net profit is given here:

Company Summary

3.1 company owner.

E-Volts will be owned by Mark Koch. Mark is an electrical engineer who has also acquired a degree in MBA after his graduation in engineering. He has a strong grip on power and protection systems. He has also captured much experience in the field as he did electrical systems’ related jobs during the last two years.

3.2 Why the electrical contractor is being started

Marks always wanted to start his own business. As business offers flexibility and scalability, extensive profits and freedom to implement own ideas.

He opted for starting an electrical contractor business since there couldn’t be a better way to invest his interest and knowledge of electrical systems.

3.3 How the electrical contractor will be started

Step1: Creating A Business Plan

Before starting this business, you must create a detailed electrical contractor business plan template.

If you are new to creating a professional business plan, you can take help from this electrical contractor business plan example.

Step2: Acquiring Required Licenses & Permits

Step3: Leasing Property, Equipment & Hiring Managers

E-Volts will be started in a leased facility. After which the company will procure the equipment, machinery, furniture, and other items.

Step4: Establishing Company’s Database & Website

A software developer/ IT expert will be employed to create a management database and website for the company. The database will help the company in keeping a record of completed and pending activities. Moreover, the platform will also enable customers to book the services remotely and give their reviews and feedbacks.

Step5: Hiring & Training Staff

At the same time, the company will establish its workforce by hiring and training technicians and electricians. In this sample electrical contractors business plan we will provide the list of employees that will be hired by E-Volts along with their job responsibilities and estimated salaries.

Step6: Marketing & Advertisement

To reach its target community E-Volts will start advertising about its services and competitive aspects before a month of the launch. The detailed marketing and sales strategy plan of the company will be given in the upcoming sections.

Our startup expenses and available assets are summarized in the graph given here.

Deciding the services is the most important phase of a business. In this sample business plan for electrical contractor, you can look through the services provided by E-Volts. To have a greater idea of which services you can provide as an electrical contractor, you should read more electrical contractor business plan examples.

• Interior & Exterior Lighting: This will be our primary service. We will design and install lighting in homes, school buildings, plazas, restaurants, public spaces, and government buildings.

Areas Of Expertise:

• Home Décor Lighting
• Flush Mount and Semi-Flush Mount Ceiling Lighting
• Outdoor Landscape Lighting
• General Ambient Lighting
• Street Lighting
• Smart Lighting System
• Electronic Appliances Installation: Our workers specialize in installing air-conditioners, fans, electric chargers, motors, generators, transformers, solar panels, intercom, doorbells, circuit breakers, network wiring, and smart home wiring.
• House & Commercial Wiring Services: We will do wiring in homes and small buildings’ as well as in commercial properties.
• Installation of Underground/ Overhead Transmission Lines: Our workers are also skilled in the installation and removal of distribution & transmission lines whether they are overhead or underground.
• Repair and Upgradation: We have experts who can repair and upgrade electrical systems. You can have us at your doorstep whether you want just a fuse replacement or a complete electrical service upgrade. We also repair electronic appliances.
• Safety Systems: E-Volts specialize in protecting your power systems. We can tackle power surges. And we can also install safety systems in your homes like childproof electrical outlets, smoke detectors, and fire detectors, etc.

Marketing Analysis of Electrical Contractor

Marketing analysis is one of the most important parts of a business plan template electrical contractor. In this part, you have to identify who will be your customers so that you could meet their expectations and concerns within the available budget and resources.

The biggest problem new startups face is attracting potential customers. With a problem worth solving electrical contractor business plan you can understand your target customers’ psychology to determine their preferences and needs.

An effective electrical contractor business plan also includes a detailed analysis of market dynamics. By knowing the market ups and downs, and the strengths and weaknesses of your competitors, you can plan ways to outperform your competitors.

5.1 Market Trends

These days people are moving towards newer technologies. Some want to install a newer type of power outlet while some want to have a smart lighting system. Simply put, electricians are in demand like always. The only thing that can make you unsuccessful in this venture can be a really poor service delivery or extremely bad customer care.

According to IBIS World, nearly 205,048 electrical contractors are operating in the U.S. Their collective annual revenue sums up to $170bn as reported by First Research.

Business plan for investors

5.2 marketing segmentation.

Marketing segmentation means dividing the population of your target customers into distinct groups. So that you can determine the dominant traits of each group of your buyers.

This activity can help you get an insight into how you should plan your services, pricing, and customer care.

In this blog on how to write a business plan for an electrical contractor, we have listed the marketing segmentation done by E-Volts.

The detailed marketing segmentation of the target audience of E-Volts is as follows:

5.2.1 Residents: Our first target group will be the locals living in Detroit. We expect them to avail of our lighting services as well as repair & upgradation services. The residents will also be needing us frequently for the installation or replacement of electronic appliances and safety systems.

5.2.2 Businesses: Our second target group comprises of small and large businesses. They will consume all of our services like electrical repairing, AC installation, commercial wiring, ceiling lighting, etc.

In this category, restaurants, shopping malls, and cinemas, etc. will require our landscaping lighting, interior & exterior lighting, and ambient lighting the most. To turn them into potential buyers, we will be offering them several discounts.

5.2.3 Local Government & Construction Companies: Our third target group will comprise municipalities and home builders. They are expected to avail of our electronic appliances installation services, lighting, repair & upgrade services, as well as commercial wiring services.

This category will also be acquiring our wiring services.

5.3 Business Target

Our business targets set to be met in a defined time are given below.

• To obtain an average rating of 4.65 by the end of the first year
• To balance startup expenses with earned profits by the end of the second year
• To achieve the net profit margin of $10.5k per month by the end of the second year
• To extend our work areas by the end of the first two years

5.4 Product Pricing

Our prices will almost be in the same range as that of our competitors. However, we will be charging a little more for the installation, removal, and repair of transmission and distribution lines.

Marketing Strategy

In this electrical contractor business proposal, we are listing the ways adopted by E-Volts to reach their target customers. Moreover, we are also explaining the competitive advantages that E-Volts decided to come up with to go ahead of all competitors.

6.1 Competitive Analysis

• All of our professionals are skilled, licensed, and certified.
• We follow the National Electrical Code to ensure safe and secure working.
• We are offering an online booking facility so that our customers can call us to their location without visiting our office.
• In case of repairing services, our workers will reach the desired area in less than 45 minutes.
• Client satisfaction is our topmost priority. You can contact us anytime between 6 a.m. to 12 p.m. Moreover, you can tell us any problems you had with our workers through the feedback portal. You are also welcomed to give your valuable suggestions to improve our services.

6.2 Sales Strategy

The selling strategy of E-Volts as defined in its business plan electrical contractor is given here.

• We’ll create a great SEO optimized website for our business
• We’ll advertise our services through Google Local Services ads, local magazines, and newspapers
• We’ll ensure a strong presence on social media platforms
• We’ll offer a 50% discount on our lighting and repair services for the first month of the launch

6.3 Sales Monthly

6.4 sales yearly, 6.5 sales forecast, excellent work.

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Personnel plan

To ensure the smooth running of the business and efficient tackling of any disruptions or risks, you have to train your workers properly. E-Volts hired a business continuity coordinator to develop business continuity plan electrical contractor so that company can stay competitive.

The list of staff E-Volts will hire is given here in this business plan sample electrical contractor, along with their job responsibilities and average salaries.

7.1 Company Staff

Mark will supervise overall business operations himself, however, he will hire the following people.

• 1 Co-Manager & HR Manager to help manage the business
• 3 Supervisors to monitor different projects
• 1 Business Continuity Coordinator to manage threats and risks
• 2 Electrical Engineers to design electrical systems
• 6 Electricians to work for the company
• 1 Accountant to maintain financial records
• 1 Sales Executive to carry out the company’s sales strategy plan
• 2 Drivers to provide transport
• 1 IT Expert to manage company’s sites and database
• 1 Customer Care Representative

7.2 Average Salary of Employees

Financial plan.

The last step before initiating a business is creating a financial plan. A profit and loss business plan electrical contractor template analyze your investment group business plan , payrolls, taxes, and other expenses to draft a way of earning profits. In this electrical contractor business plan pdf we are providing detailed brake-even analysis, profit and loss projections, business balance sheet, and business ratios of E-Volts.

8.1 Important Assumptions

8.2 brake-even analysis, 8.3 projected profit and loss, 8.3.1 profit monthly, 8.3.2 profit yearly, 8.3.3 gross margin monthly, 8.3.4 gross margin yearly, 8.4 projected cash flow, 8.5 projected balance sheet, 8.6 business ratios.

Download Electrical Contractor Business Plan Sample in pdf

Professional OGS capital writers specialized also in themes such as electronics semiconductor business plan , solid manufacturing business plan , mining company business plan , steel sheet manufacturing business plan , biodiesel company business plan , diamond cutting and polishing business plan , etc.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Electrical Business Plan Template & Guidebook

Starting and running an electrical business requires a lot of effort, funding, and preparation to be successful. One of the most important components of a successful electrical business is a comprehensive business plan. To make the process easier, the #1 Electrical Business Plan Template & Guidebook can provide prospective business owners with the tools they need to turn their dreams into reality. With this helpful resource, budding entrepreneurs can streamline the planning process, develop an actionable roadmap for their business’ development and growth, and create a plan that stands out from competitors.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Electrical Business [11 Steps]
• 10+ Best & Profitable Electrical Business Ideas [2023]
• 25 Catchy Electrical Business Names:
• List of the Best Marketing Ideas For Your Electrical Business:

How to Write a Electrical Business Plan in 7 Steps:

1. describe the purpose of your electrical business..

The first step to writing your business plan is to describe the purpose of your electrical business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a electrical business:

Our mission is to provide reliable and innovative electrical solutions that meet the individual needs of our customers, creating long-term relationships through an unwavering commitment to service excellence.

2. Products & Services Offered by Your Electrical Business.

The next step is to outline your products and services for your electrical business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your electrical business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your electrical business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your electrical business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

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4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a electrical business?

In order to run an electrical business, you will need the following equipment, supplies, and permits:

• Electrical tools and supplies (wire cutters, crimpers, test equipment, etc.)
• Electrical wiring and components (switches, receptacles, conduit, etc.)
• Business license
• Insurance coverage.
• State and local permits as required by your municipality.

5. Management & Organization of Your Electrical Business.

The second part of your electrical business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your electrical business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Electrical Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a electrical business varies based on many different variables, but below are a few different types of startup costs for a electrical business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your electrical business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your electrical business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your electrical business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Electrical Business Plans:

Why do you need a business plan for a electrical business.

A business plan for an electrical business is necessary to help identify and clarify the company's goals and objectives, as well as outline a strategy for achieving them. It also serves to provide potential investors or lenders with detailed information about the company's products, services, financials, marketing plans and resources. Additionally, a business plan can provide valuable insight into the market opportunity for an electrical business and help guide the development of an effective business model.

Who should you ask for help with your electrical business plan?

An experienced entrepreneur or small business consultant can help you develop a business plan for your electrical business. You may also want to speak with a lawyer who specializes in business law to get advice on any legal complexities or regulations you need to be aware of. Additionally, a financial planner can help you assess the financial viability of your business and offer advice on the best ways to structure your finances.

Can you write a electrical business plan yourself?

Yes, it is possible to write a electrical business plan yourself. Depending on the business, you might need to research the current market and trends in your industry, as well as consider your target customer base. Additionally, you would need to create a detailed financial plan that outlines expected costs and revenue. You also might want to consider enlisting the help of a professional business plan writer or consultant who can provide advice and guidance in order to help ensure your plan is comprehensive and accurate.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

Electrical Contractor Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Construction & Engineering

Are you about starting an electrical contractor business? If YES, here’s a complete sample electrical contracting business plan template & feasibility report you can use for FREE to raise money .

If you have studied an electrical related business, or you have the passion for electrical stuff, then you may want to be an electrical contractor. One of the things that you have to however have at the back of your mind is the fact that you will need to arm yourself with the right information that will be able to operate of a very skilled level.

A Sample General Electrical Contractor Business Plan Template

1. industry overview.

Electric contractors are an integral part of not just the construction cum real estate industry, but plays very important roles in ensuring that households, offices and public facility enjoys electric power supply and electric appliances are repaired when they become faulty.

Basically, players in this industry executes electrical work at a sites such as installing wiring, services electrical equipment and sells and installs electrical equipment et al. So also, some of the electrical work they performed include new work, additions, alterations, and maintenance and repairs et al.

No doubt, the electrical contractor services industry is indeed one of the largest subcontracting industries in the united states of America going by the revenue generated in the industry. A close watch on the industry activities shows that the revenue increase is due to acceleration in downstream construction markets in the United States.

As a result of the steady increase of demand from downstream construction markets, activities in this industry, registered businesses and of course contracts / job numbers have been on a steady rise. Going forward, the construction industry and real estate industry are expected to continue thriving hence increase in the demand for the services of electrical contractors.

So also, the industry is also expected to benefit from the increase in renovation and retrofitting activities, principally for green upgrades, such as energy-efficiency projects et al.

The Electrical Contractor Services industry is indeed a thriving and profitable industry in the United States, Canada, Japan, Germany, united kingdom, and France and in almost all the countries of the world. Statistics has it that the Electrical Contractor Services industry in the United States of America, is worth over $135 billion, with an estimated growth rate of 1.9 percent.

There are about 202,274 registered and licensed electrical contractor services businesses in the United States and they are responsible for employing about 909,862 people. It is important to state that there is no company with a dominant market share of the available market in this industry.

According to research carried out by IBISWORLD, it  shows that, the small-scale and localized nature of operations in the Electrical Contractor Services industry results in a geographically dispersed structure that corresponds to the distribution of population and of course economic activity throughout the United States of America.

So also, most small-scale electrical contractors target a narrow, regional market, while larger-scale electrical contractors often undertake maintenance and construction contracts throughout several states. It was also indicated in the report that the Southeast region of the United States accounts for an estimated 23.7 percent of the industry establishment, which is roughly in line with the region’s share of the national population (25.6%).

The electrical contractor services industry will keep on thriving in the coming decade especially if an entrepreneur in this line of business is committed to providing reliable and quality work for customers in the services they render. The market is highly unsaturated and there is room for growth as the industry is expanding and maturing.

The good news for would be entrepreneurs in this line of business is that there is an estimate of continued annual growth for the electrical contractor services industry for as high as 20 percent.

Over and above, the electrical contractor services industry is very open to any aspiring entrepreneur who has acquired the required trainings, skills and perhaps professional certifications to start his or her own business and of course make good money from the industry.

2. Executive Summary

James Guttmann & Sons Electrical Services, Inc. is a licensed and standard American electrical contractor services company. We have been able to secure a standard and well – positioned office facility in a central business district in Little Rock – Arkansas.

We are an electrical contractor services company that is set to compete in the highly competitive electrical contractor services industry not only in Little Rock – Arkansas, but also throughout the United States market. James Guttmann & Sons Electrical Services, Inc. is set to executes electrical work at a sites such as installing wiring, services electrical equipment and sells and installs electrical equipment et al.

Basically, we will provide services such as electric power and systems installation and servicing, telecommunications installation and servicing, fire and security system installation and servicing, electronic control system installation and servicing et al.

Our business goal is to become one of the leading electrical contractor service companies in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry.

Our workers are going to be selected from a pool of certified and highly experienced electrical technicians and tradesmen (electricians) with different area of expertise as it relates to our service offerings in and around Little Rock – Arkansas and also from any part of the United States of America as the business grows.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading electrical contractor services companies in the United States and throughout the globe.

At James Guttmann & Sons Electrical Services, Inc., our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for all our partners, employees and for our clients. James Guttmann & Sons Electrical Services, Inc. is a family business that is founded by Engr. James Guttmann a graduated from Illinois Institute of Technology B.Engr. in electrical and electronics engineering.

He will run the business alongside his son Ken Guttmann who has a B.Sc. in Business Administration. They have a combine experience that can help them build James Guttmann & Sons Electrical Services, Inc. to favorably compete with other leading electrical contractor services businesses in the United States of America.

3. Our Products and Services

James Guttmann & Sons Electrical Services, Inc. is established with the aim of maximizing profits in the electrical contractor services industry.

We want to compete favorably with the leading electrical contractor service companies and also installation, maintenance and repair companies in the United States- which is why we have put in place a competent quality assurance team that will ensure that every electrical repairs, installations and services carried out or related services rendered meet and even surpass our customers’ expectations.

We will work hard to ensure that James Guttmann & Sons Electrical Services, Inc. is not just accepted in Little Rock – Arkansas but also in other cities in the United States of America. Our service offerings are listed below;

• Electric light or power installation
• Electric wiring installation on construction projects
• Repair or maintenance of electrical wiring (except of electricity transmission or distribution lines)
• Domestic exhaust fans installation
• Closed-circuit video surveillance systems installation
• Communication wiring and cabling installation
• Electric power and systems installation and servicing
• Telecommunications installation and servicing
• Fire and security system installation and servicing
• Electronic control system installation and servicing
• Repairs and maintenance of communication and electrical equipment
• Other related electrical installation, maintenance and repair services

4. Our Mission and Vision Statement

• Our vision is to establish a standard and all – round electrical contractor services company whose services and brand will not only be accepted in Little Rock – Arkansas but also in other cities in the United States of America.
• Our mission is to provide professional electrical installation, maintenance and repair services and other related services that will assist businesses, individuals, households and non-profit organizations in ensuring that their facility and electrical equipment are always in good shape.
• We want to build an electrical contractor service company that can favorably compete with other leading brands in the electrical contractor services cum installation, maintenance and repair services industry.

Our Business Structure

James Guttmann & Sons Electrical Services, Inc. is a business that intend starting small in Little Rock – Arkansas, but hope to grow big in order to compete favorably with leading electrical contractor Services Company and installation, maintenance and repair companies in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.

At James Guttmann & Sons Electrical Services, Inc. we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer
• Head, Technical Services (Senior Electrical Engineer)
• Human Resources and Admin Manager
• Sales and Marketing Executive

Electrical Engineers and Electricians

Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Head, Technical Services (Senior Electrical Engineer):

• Serves as project manager of the organization; works directly with employees
• Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.
• Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
• Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
• Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
• Maintains quality service by establishing and enforcing organization standards.
• Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
• Makes certain that the technical department perform efficiently, coordinate employee efforts, and facilitate communications between management and handymen
• Ensures that the organization work in line with international best practices.

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Designs job descriptions with KPI to drive performance management for clients
• Regularly holds meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversees the smooth running of the daily office activities.

Sales and Marketing Manager

• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Creates new markets cum businesses for the organization
• Empowers and motivates the sales team to meet and surpass agreed targets

Accountant / Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for James Guttmann & Sons Electrical Services, Inc.
• Serves as internal auditor for James Guttmann & Sons Electrical Services, Inc.
• Responsible for carrying out electric light or power installation
• Responsible for carrying out electrical wiring installation on construction projects
• Handles repair or maintenance of electrical wiring (except of electricity transmission or distribution lines)
• Responsible for carrying out domestic exhaust fans installation
• Handles closed-circuit video surveillance systems installation
• Handles communication wiring and cabling installation
• Handles electric power and systems installation and servicing
• Responsible for telecommunications installation and servicing
• Handles fire and security system installation and servicing
• Responsible for electronic control system installation and servicing
• Handles general repairs and maintenance of communication and electrical equipment
• Handles other related electrical installation, maintenance and repair services as instructed by the Head, Technical Services.
• Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the creative director in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

6. SWOT Analysis

James Guttmann & Sons Electrical Services, Inc. engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured electrical contractor services company that can favorably compete in the highly competitive electrical contractor services cum electrical installation, maintenance and repair service industry in the United States and the world at large.

Part of what the team of business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for James Guttmann & Sons Electrical Services, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of James Guttmann & Sons Electrical Services, Inc.;

Our core strength lies in the power of our team; our workforce. We have a team of certified and highly trained and experience electrical engineers and electricians / technicians et al, a team with excellent qualifications and experience in various niche areas in the electrical contractor services cum installation, maintenance and repair service industry.

Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry.

As a new electrical contractor services company in Little Rock – Arkansas, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients (construction companies) in the already saturated and highly competitive electrical contractor services and installation, maintenance and repair services industry; that is perhaps our major weakness.

Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.

• Opportunities:

No doubt, the opportunities in the electrical contractor services and installation, maintenance and repair services industry is massive considering the number massive activities going on in the construction cum real estate industry and also the numbers of households and corporate organizations who are would always need one or more electrical appliances or wiring to fix in their facilities.

As an electrical contractor services company, we are ready to take advantage of any opportunity that is available in the industry.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power.

Another threat that may likely confront us is the arrival of a new electrical contractor services business or even installation, maintenance and repair company in same location where our target market exist and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

• Market Trends

No doubt, the electrical contractors industry is indeed one of the largest subcontracting industries in the United States of America going by the revenue generated in the industry. A close watch on the industry activities shows that the revenue increase is due to acceleration in downstream construction markets in the United States.

As a result of the steady increase of demand from downstream construction markets, activities in this industry, registered businesses and of course contracts / job numbers have been trending upward. Going forward, the construction industry and real estate industry are expected to continue thriving hence increase in the demand for the services of electrical contractors.

So also, the industry is also expected to benefit from the increase in renovation and retrofitting activities, principally for green upgrades, such as energy-efficiency projects et al. On the average, starting and running an electrical contractor services business can be cost effective.

This is especially so when you have highly trained, well qualified and experienced staff as members of your team. With the quality of work carried out by them for your customers, you will be able to retain your customers and the good work your company does will be well spread by word of mouth as customers will tend to recommend your services to their families and friends once you are able to do a good job in their homes and on their properties.

A company’s ability in providing its customers with quality service at affordable prices will also be a factor that will count in the industry. This way the company will be able to retain existing clients and get more business from new customers. The competition in the electrical contractor industry shows that there is a viable market for the services of electricians.

As long as you are prepared to run a high quality business, you will have your own share of the market as some electricians business that exist take their customers for granted and offer them mediocre services. This gives you room as a new entrant into the business to come in and dominate if you are prepared to give quality service to your client.

8. Our Target Market

Before starting our electrical contractor services company in Little Rock – Arkansas, we conducted a market survey and feasibility studies and we are certain that there is a wide range of both corporate and individual clients who would need the services of electricians on a regular basis.

In view of that, we have created strategies that will enable us reach out to various corporate organizations and households who we know can’t afford to do without our services. Below is a list of the people and organizations that we have specifically market our services to;

• Construction and Real Estate Companies
• Banks, Insurance Companies and other related Financial Institutions
• Blue Chips Companies
• Corporate Organizations
• Real Estate Owners, Developers, and Contractors
• The Government (Public works department)
• Schools (High Schools, Colleges and Universities)
• Sport Facilities
• Religious Organizations
• Individuals and households

Our Competitive Advantage

Surviving in the business world as an electrical contractor services business or installation, maintenance and repair company requires more than, your expertise, knowing how to deliver standard electrical installations, repairs and maintenance jobs but also how to network with key people that matters; decision makers that can decide who will get an electrical installation, repair and maintenance contract.

There are favorable conditions for growth in the electrical contractor services industry and as a result of this, survival in the industry will require that you build on existing knowledge of the services you offer to your customers and broaden your skill base in order to be able to compete favorably.

More electrical contractor services companies are coming up and they are using the services of existing franchise in the business to boost their competitive edge and exposure in the industry.

We are quite aware that to be highly competitive in the electrical contractor services industry means that you are not only expected to be able to deliver consistent and highly reliable electrical installation, repair and maintenance jobs, but you must be able to meet set targets. No one would want to continue to hire your services if don’t always meet up with the target date of completion of projects.

Our competitive advantage lies in the power of our team; our workforce. We have a team of certified and highly trained and experience electrical engineers and electricians / technicians et al, a team with excellent qualifications and experience in various niche areas in the electrical contractor services cum installation, maintenance and repair service industry.

Lastly, all our employees will be well taken care of, and their welfare package will be amongst the best within our category (startups electrical contractor services cum installation, maintenance and repair businesses in the United States) in the industry.

It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

James Guttmann & Sons Electrical Services, Inc. is established with the aim of maximizing profits in the electrical contractor services industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients. James Guttmann & Sons Electrical Services, Inc. will generate income by offering the following services;

10. Sales Forecast

One thing is certain, there would always be construction and real estate companies, corporate organization, government agencies, households and individual who would need the services of electrical contractor services cum installations, maintenance and repair companies.

We are well positioned to take on the available market in the electrical contractor services industry and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our company to enviable heights.

We have been able to critically examine the electrical contractor services cum installation, maintenance and repair market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.

The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Little Rock – Arkansas. Below is the sales projection for James Guttmann & Sons Electrical Services, Inc., it is based on the location of our business and of course the wide range of our services and target market;

• First Fiscal Year-: $ 250,000
• Second Fiscal Year-: $550,000
• Third Fiscal Year-: $1 million

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same electrical installation, maintenance and repair services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiffer competition in the electrical contractor services industry; hence we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the electrical contractor services cum installation, maintenance and repair services industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of James Guttmann & Sons Electrical Services, Inc.

Our corporate goal is to grow James Guttmann & Sons Electrical Services, Inc. to become one of the top 10 electrical contractor services brands in the United States of America- which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in Little Rock – Arkansas but also in other cities in the United States of America.

James Guttmann & Sons Electrical Services, Inc. is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our business by sending introductory letters alongside our brochure to individuals, households, construction and real estate companies, corporate organizations, religious organizations and key stake holders.
• Promptness in bidding for electrical installations, repair, and maintenance contract from construction companies, real estate companies, the government and other cooperate organizations
• Advertise our business in relevant business magazines, newspapers, TV stations, and radio station.
• List our business on yellow pages ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to become the number one choice for both corporate clients and households in the whole of Little Rock – Arkansas and beyond which is why we have made provisions for effective publicity and advertisement of our electrical contractor services company.

Below are the platforms we intend to leverage on to promote and advertise James Guttmann & Sons Electrical Services, Inc.;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our services
• Install our Bill Boards on strategic locations all around Little Rock – Arkansas
• Engage in road show from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas
• Contact corporate organizations and households by calling them up and informing them of James Guttmann & Sons Electrical Services, Inc. and the services we offer
• List our company in local directories / yellow pages
• Advertise our company in our official website and employ strategies that will help us pull traffic to the site.

Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo et al.

12. Our Pricing Strategy

At James Guttmann & Sons Electrical Services, Inc. we will keep the prices of our services below the average market rate for all of our customers, by keeping our overhead low and by collecting payment in advance from construction and real estate companies and other corporate organizations who would hire our services.

In addition, we will also offer special discounted rates to all our customers at regular intervals. We are aware that there are some one – off jobs or government contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.

• Payment Options

At James Guttmann & Sons Electrical Services, Inc. our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment via mobile money
• Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a standard electrical contractor services company; it might differ in other countries due to the value of their money. However, this is what it would cost us to set James Guttmann & Sons Electrical Services, Inc. in the United of America;

• Business incorporating fees in the United States of America will cost – $750.
• The budget for Liability insurance, permits and license will cost – $3,500
• Acquiring an office space that will accommodate the number of employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $100,000.
• The amount required to purchase the needed tool box and repair equipment – $20,000
• Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $10,000
• Amount required to purchase the needed software applications to run our business – $3,500
• Launching an official Website will cost – $500
• Amount need to pay bills and staff members for at least 2 to 3 months – $70,000
• Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $1,000

Going by the report from the market research and feasibility studies conducted, we will need about two hundred and fifty thousand ( 250,000 ) U.S. dollars to successfully set – up a medium scale but standard electrical contractor services company in the United States of America.

Generating Funding / Startup Capital for James Guttmann & Sons Electrical Services, Inc.

James Guttmann & Sons Electrical Services, Inc. is a family business that will be owned and managed by Engr. James Guttmann and his immediate family members. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $70,000 and soft loan from family members $30,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting James Guttmann & Sons Electrical Services, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our electrical installation, maintenance and repair services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

James Guttmann & Sons Electrical Services, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Securing a standard office facility, renovation and equipping of the facility inclusive: Completed
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of Logo for the business: Completed
• Purchase of repair and installation tools and equipment: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
• Creating Official Website for the business: In Progress
• Creating Awareness for the business: In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in the construction and real estate industries: In Progress

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How to Start an Electrical Business

Starting an electrical business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful electrical business.

Importantly, a critical step in starting an electrical business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start an Electrical Business :

• Choose the Name for Your Electrical Business
• Develop Your Electrical Business Plan
• Choose the Legal Structure for Your Electrical Business
• Secure Startup Funding for Your Electrical Business (If Needed)
• Secure a Location for Your Business
• Register Your Electrical Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Electrical Business
• Buy or Lease the Right Electrical Business Equipment
• Develop Your Electrical Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Electrical Business
• Open for Business

1. Choose the Name for Your Electrical Business

The first step to launching an electrical business is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally, you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your electrical business:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your electrical business.

2. Develop Your Electrical Business Plan

One of the most important steps in starting an electrical contracting business is to develop your business plan. The process of creating your electrical contractor business plan ensures that you fully understand your local market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your electrical business.
• Company Overview – this section tells the reader about the history of your electrical business and what type of electrical business you operate. For example, are you an electrical contractor, electrical manufacturer, or an electrical wholesaler?
• Industry Analysis – here you will document key information about the electrical industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing services like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your own electrical contracting business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your electrical business make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

Finish Your Business Plan Today!

3. choose the legal structure for your electrical business.

Next you need to choose a legal structure for your own electrical business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the business owner and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the business owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small business owners. It is an agreement between two or more people who want to start an electrical business together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for an electrical business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for an electrical business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your own business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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Not only does BusinessRocket have a 4.9 out of 5 rating on TrustPilot (with over 1,000 reviews) because of their amazing quality…but they also guarantee the most affordable incorporation packages and the fastest processing time in the industry.

4. Secure Startup Funding for Your Electrical Business (If Needed)

In developing your electrical business plan, you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for an electrical business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in an electrical business that they believe has high potential for growth.

5. Secure a Location for Your Business

When starting an electrical business, you’ll need to find the right location. There are a few things you’ll want to keep in mind when choosing a location:

• The area should be zoned for commercial businesses.
• The location should be accessible and easy to find.
• It’s important to find a space that’s big enough to accommodate your business operations.
• Check the cost of rent and utilities in the area.
• The neighborhood should be safe and have good infrastructure.
• Make sure you have enough parking available.

6. Register Your Electrical Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your electrical business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your electrical business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

In order to start an electrical company, you will need a business license, a trade name registration, and a general contractor’s license. You may also need a specialty contractor’s license, depending on the services you plan to offer.

10. Get Business Insurance for Your Electrical Business

The type of insurance you need to operate an electrical business will depend on the scope of business operations. 

Some business insurance policies you should consider for your new electrical business include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Auto insurance : If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs. 

11. Buy or Lease the Right Electrical Business Equipment

To run your electrical business, you will need a variety of equipment, including tools, testing equipment, and safety gear. Ensure everything you need before starting your business. You may also want to consider purchasing a vehicle or trailer to transport your equipment.

12. Develop Your Electrical Business Marketing Materials

Marketing materials will be required to attract and retain customers to your electrical business.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your electrical business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional electrical business website provides potential customers with information about the services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your electrical business.

13. Purchase and Setup the Software Needed to Run Your Electrical Business

You’ll need electrical estimating software to help you price out jobs and materials. You’ll also need a Computer-Aided Design (CAD) program to create wiring diagrams and other designs. Billing and invoicing software can help you keep track of payments and customers. Finally, a project management tool can help you stay on top of jobs from start to finish.

14. Open for Business

You are now ready to open your electrical business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

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How to Start an Electrical Business FAQs

Is it hard to start an electrical business.

No, it is not hard to start an electrical business. You will need to have a good understanding of the electrical code, and how to safely install and repair electrical systems.

How can I start an electrical business with no experience?

There are a few ways to start an electrical business with no experience. One way is to find an experienced electrician who is willing to mentor you. Another way is to take classes or attend seminars that will teach you the basics of the trade. You can also watch instructional videos online or read books about electrical work. Make sure you are well-informed and prepared before starting your own business.

What type of electrical business is most profitable?

The type of electrical business that is most profitable is a business that provides services such as repair, installation, and maintenance. Providing these services can be a lucrative business, as there is a lot of demand for them. Additionally, other small business owners that provide residential electrical services often have low overhead costs, which can help to increase profits.

How much does it cost to start an electrical business?

The cost to start an electrical business varies depending on the size and scope of the business. However, on average, starting an electrical business can cost between $10,000 and $30,000. This includes licensing, permits, insurance, and equipment costs .

What are the ongoing expenses for an electrical business?

The ongoing expenses for an electrical business can vary greatly, depending on the size of the business, the services offered, and the location. Some of the most common expenses include utilities, labor costs for electrical workers , materials and electrical supplies, marketing and advertising, and insurance.

How does an electrical business make money?

Professional electricians make money by completing electrical jobs for their customers. This could be by installing or repairing electrical equipment, or providing a consultation service.

Is owning an electrical business profitable?

Yes, owning an electrical business can be profitable because there is a consistent need for these kinds of services. Electrical businesses are necessary for both residential and commercial properties, so they are always in demand. Additionally, as technology advances, more homes and businesses will require updated electrical systems, providing greater opportunities for electrical business owners.

Why do electrical businesses fail?

There are a number of reasons some electrical businesses fail. One reason may be that the business does not have a solid business plan and marketing strategy. Other reasons may include competition from larger businesses, bad customer service, lack of qualified electricians, or not enough capital to sustain the business.

Other Helpful Business Plan Articles & Templates

Electrician Business Plan PDF Example

• February 28, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful electrician service. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your electrician service’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of an electrician service business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the service industry, this guide, complete with a business plan example, lays the groundwork for turning your electrician service concept into reality. Let’s dive in!

Our Electrician Business Plan is strategically crafted to encapsulate all crucial elements necessary for a comprehensive approach. It delineates the company’s operations, market strategies, competitive landscape, team management, and financial forecasts.

• Executive Summary : Offers a snapshot of the electrician business, underscoring the array of electrical services for residential, commercial, and industrial clients, market insights, management expertise, and financial strategy.
• Services & Prices: Enumerates a wide range of electrical services, including installations, maintenance, emergency services, energy-efficient solutions, and safety inspections, complemented by a transparent pricing model.
• Key Stats : Details the market size , growth trends, and electrician demographics in the U.S.
• Key Trends: Discusses the growing demand for smart home technologies, renewable energy integration, LED retrofitting, and the evolving regulatory landscape.
• Key Competitors : Reviews major competitors, assessing their service offerings and market stance.
• Differentiation: Illustrates the unique selling propositions such as tailored electrical solutions, focus on energy efficiency, advanced technological applications, competitive pricing, and a robust online presence.
• SWOT Analysis : Conducts a comprehensive analysis of strengths, weaknesses, opportunities, and threats.
• Marketing Plan : Crafts strategies for outreach and client acquisition, leveraging digital platforms, content marketing, community engagement, and strategic partnerships.
• Timeline : Sets forth pivotal milestones and objectives for the business’s developmental phases and market penetration.
• Management: Introduces the leadership team, accentuating their extensive experience in electrical services and business management, underscoring their roles in steering the company towards its goals.
• Financial Plan: Forecasts the financial trajectory, outlining revenue targets, profit margins, and essential financial metrics, underpinned by assumptions regarding service contracts, pricing strategy , and customer loyalty. Discusses funding initiatives to fuel startup and expansion phases.

Electrician Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your electrician business’s business plan, offering a concise overview of your company and its services. It should detail your market positioning, the range of electrical services you offer, including installations, maintenance, and repairs, its location, size, and an outline of day-to-day operations. 

This section should also explore how your electrician business will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your business’s unique selling points that differentiate it from these competitors.

 Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the business’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your business’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

Briefly describe your electrician business’s service offerings, emphasizing the breadth and quality of electrical services provided, including residential and commercial installations, maintenance, and emergency repairs.

Mention your business’s location, highlighting its strategic positioning to serve a broad area effectively, the ease of accessibility for your teams to reach clients and any logistical advantages it provides. Explain why this location is beneficial in ensuring prompt and efficient service, which is crucial in emergency electrical situations.

Market Overview

Industry size & growth.

Analyze the electrical services industry’s size and its potential for growth, focusing on opportunities in residential and commercial sectors due to new constructions, renovations, and the shift towards energy efficiency and smart technologies.

Key Market Trends

Highlight the trend towards energy-efficient solutions, the integration of smart home systems, and the increasing need for reliable electrical maintenance. Emphasize the rising demand for electric vehicle charging installations.

Key Competitors

Examine the competition, ranging from large contractors to local electricians. Distinguish your business by emphasizing customer service, specialization in areas like smart technology, and a commitment to safety and compliance.

Make sure to cover here _ Industry size & growth _ Key market trends _ Key competitors

Dive deeper into Key competitors

First, conduct a SWOT analysis for the electrician business, highlighting Strengths (such as certified expertise and a broad range of electrical services), Weaknesses (including market saturation or limited brand recognition), Opportunities (for example, the growing demand for smart home installations and renewable energy solutions), and Threats (such as regulatory changes or economic downturns that may impact construction and renovation projects).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain clients through targeted advertising, promotional offers, a strong online presence, and participation in local community events.

Finally, create a detailed timeline that outlines critical milestones for the electrician business’s launch, marketing initiatives, client base development, and expansion goals, ensuring the business progresses with clear direction and purpose.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the electrician service’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the electrician service towards its financial and operational goals.

For your electrician service business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your electrician service’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your electrician service business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Privacy Overview

Free Electrical Business Plan PDF Download | Electrical Shop Business Plan

How to Start an Electrical Business - Free Electrical Business Plan PDF Download

Are you considering starting an electrical business and are in need of an electrical business plan? if yes, you'll find this free book to be extremely helpful.

This is a practical guide that will walk you step by step through all the essentials of starting your business. The book is packed with guides, worksheets and checklists. These strategies are absolutely crucial to your business' success yet are simple and easy to apply.

Don’t Start a New Electrical Business Unless You Watch This Video First!

Checklist for Starting a Business: Essential Ingredients for Success

If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a business. This will allow you to predict problems before they happen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!

Here’s a Valuable Free Gift for You This is a high quality, full blown business plan template complete with detailed instructions and all related spreadsheets. You can download it to your PC and easily prepare a professional business plan for your business. Click Here! To get your free business plan template

The Single Most Important Ingredient for Business Success

The first and most important thing you need to acquire in order to succeed in a small business is... knowledge.

Sounds exaggerated? Listen to this...

According to research conducted by Dun & Bradstreet, 90% of all small business failures can be traced to poor management resulting from lack of knowledge.

This is backed up by my own personal observations. In my 31 years as a business coach and consultant to small businesses, I've seen practically dozens of small business owners go under and lose their businesses -- not because they weren't talented or smart enough -- but because they were trying to re-invent the wheel rather than rely on proven, tested methods that work.

Conclusion: if you are really serious about succeeding in a business... If you want to avoid the common traps and mistakes... it is absolutely imperative that you acquire the right knowledge.

"Why Invent Mediocrity, When You Can Copy Genius?"

That's an excellent quote I picked up from a fellow business owner a few years back. What this means is that you should see what is working and try to duplicate it. Why go through all the trouble of inventing something new, that you don't even know will ever work, when you can easily learn from and duplicate something that has been a proven success?

[ Note: One of the BIGGEST mistakes almost all new businesses make is that they WASTE tons of valuable time, energy and money on trying to create something "new", that has never been tested or proven... only to find out later that it was a total loss. Don't make the same mistake! ]

Hi! My name is Meir. I'm the founder and president of BizMove.com, a successful Internet based information business. I'm also the author of numerous books, mostly in the area of small business management.

I've been involved in small business for the past 31 years of my life, as a business coach, manager of a Electrical firm, a seminar leader and as the owner of five successful businesses.

During my career as a business coach and consultant I've helped dozens of business owners start their businesses, market, expand, get out of troubles, sell their businesses and do practically every other small business activity you can think of. You see, I have been there .... done it ... and bought the Small Business t-shirt! -- This free book contains techniques and strategies I've learned during my 31 year small business career.

Here's what you'll discover in the 'How to Start a Electrical Business' book:

Success Tip: Setting Goals

Good management is the key to success and good management starts with setting goals. Set goals for yourself for the accomplishment of the many tasks necessary in starting and managing your business successfully. Be specific. Write down the goals in measurable terms of performance. Break major goals down into sub-goals, showing what you expect to achieve in the next two to three months, the next six months, the next year, and the next five years. Beside each goal and sub-goal place a specific date showing when it is to be achieved.

Plan the action you must take to attain the goals. While the effort required to reach each sub-goal should be great enough to challenge you, it should not be so great or unreasonable as to discourage you. Do not plan to reach too many goals all at one time.

Establish priorities. Plan in advance how to measure results so you can know exactly how well you are doing. This is what is meant by "measurable" goals. If you can’t keep score as you go along you are likely to lose motivation. Re-work your plan of action to allow for obstacles which may stand in your way. Try to foresee obstacles and plan ways to avert or minimize them.

Click here! to download your Electrical Business Plan book for free (PDF version)

Management Skills Video: How to Become a Great Manager and Leader

Learn how to improve your leadership skills and become a better manager and leader. Here's how to be the boss people want to give 200 percent for. In the following video you'll discover 120 powerful tips and strategies to motivate and inspire your people to bring out the best in them.

For more insightful videos visit our Small Business and Management Skills YouTube Chanel .

Here're other free books in the "how to start a business" series that may interest you:

Here's a Sample 'Executive Summary' for a Electrical Business plan :

COMPANY NAME ADDRESS CITY, STATE, ZIP CODE Tel.  Fax: Email:

COMPANY NAME is an Electrical Sub-Contractor, primarily doing commercial, industrial, medical and residential. COMPANY NAME offers value engineering for energy evaluation & efficiency. The purpose of the company's plan is to grow in the fields mentioned above as well as branch out into Nevada, Arizona & New Mexico. COMPANY NAME also wants to further the company's market share in the solar/energy and the service industry.

1.1 Objectives

1. To fund growth of existing business & increase market share of our service business 2. Expand into the field of energy/solar 3. With additional capital the ability to bid larger projects.

1.2 Mission

COMPANY NAME 's sole purpose is to establish a profitable and well managed company while at the same time designing to please the local residents with excellent service in California.  COMPANY NAME’s near future plans are to grow the company's electrical contracting business in California and other states such as Nevada, Arizona and New Mexico.  The company will seek to provide these services in the timeliest manner and with an ongoing comprehensive quality control program to provide 100% customer satisfaction.

1.3 Keys to Success

1.  Servicing and maintaining our existing client base 2.  Having employees that understand and implement our high standards 3.  Reliability and communication with clients from beginning of each job to end.

COMPANY NAME is in the city of Orange and has been in the county of Orange since 1994, servicing Los Angeles, Riverside, San Bernardino and San Diego counties. We provide electrical contracting services to a wide range of clients, including owners and general contractors, mainly in the medical field. COMPANY NAME's current corporate office is at [INSERT ADDRESS].   The company's corporate office is a 4,650 sq ft concrete tilt up building. This corporate office houses all administrative operations, with warehouse space used for inventory and service vehicles. All of the work is done at many off-site locations.

2.1 Company Ownership

COMPANY NAME is a privately held C Corporation where OWNER’S NAME is president & secretary and CO-OWNER’S NAME is Vice President.

2.2 Company History

In 2006 and 2007 COMPANY NAME experienced a decrease in sales due to California budget cuts for the company's voice and data division that had provided services to Employment Development Departments.   The decrease in sales was also due to existing clients who were very slow in paying for services rendered.  COMPANY NAME had also made the decision to focus more on the medical field and their primary client base. The company had cut ties with three general contractors and proceeded to establish new contacts within the medical field. The year of 2008 was a great year and COMPANY NAME was on track to double sales; however the economy was starting to slow. 2009 was a respectable year, however, again, due to the economy COMPANY NAME re-evaluated again to expand into solar/energy industry.

Table: Past Performance

3.0 Services

COMPANY NAME 's products are: 1) Design build which is based on a per square foot price. 2) Contract work which is specific to a certain set of blueprints/drawings. 3) Service work that is based on an hourly rate.

COMPANY NAME will focus on four main markets within the industry such as: MEDICAL This field is a viable source of business now and due to ever changing technology a great source of future business that will sustain us long term. SERVICE There will always be a need for service and this is an area that we have never taped into and believe there is great potential. COMMERCIAL/INDUSTRIAL This has been the company's main focus; COMPANY NAME has built great long term relationships with building owners who now look for our guidance in directing their energy improvements. SOLAR/ENERGY We feel we always need to look at new trends and stay ahead of change in our approach to long term sustainability.

How to Organize Paperwork for Business

We must all be efficient and productive in today's business world. Being organized helps you handle tasks quickly so that you have more time and space to do what you truly want to do.

1. One-time mail system.

Have an In Box on your desk for new mail/information. Look at your mail once a day. Review each piece of mail once to decide whether to do it, delegate it or dump it. If it adds value to your business or is required for doing business, do it or delegate it. If not, then dump it. If you keep it, then categorize it using the A, B, C system. Use your time wisely.

2. Categories for performing your work.

Set up desk trays labeled A, B, and C. Items in category A must be handled today. Category B items must be handled this week. Category C items are generally filing that must be kept because they have some value, such as invoices, tax returns, and statements.

3. Prioritize your work within categories A and B.

Sort the categories into 1, 2, and 3. A1 must be done NOW, it is "hot" or "urgent." A2 can be done this AM. A3 can be done by the end of the day. B1 is done on Monday. B2 done by Wednesday. B3 done by the end of the week. Make the decision once, then do the work.

Set a day and time each week for filing. Don't let it stack up. Give yourself space to work.

5. Purge your files on a regular schedule.

For example, purge files every six months. Send these documents to storage. This gives you more space to work.

6. Storing records.

Store documents in boxes. Mark the contents of each box. For instance, clients A-F2013. Mark the destruction date on the box, D = June 02. Base your destruction date on the legal requirements for your industry.

7. Toss out stored documents on a regular schedule.

For example, two times per year, visit the storage area and remove boxes that are beyond the destruction date. Depending on your industry, they may need to be shredded rather than put in the trash.

8. Color code your records.

For example, clients with first names beginning with A-F are in Orange folders; G-K Yellow; L-P Blue; Q-Z Green. This will save you time when you are searching for a file. You can also apply this to AP, AR, Payroll, and Taxes. This can also be done by year. For example, 2012 AP is blue; 2013 AP is purple.

9. Hot files.

Put a red cover on files that you consider "hot." These could be urgent projects, legally or financially sensitive, or important VIP clients. Keep these visually at your fingertips.

10. Use out guides.

If you work with other people and share files, create a check-out system so that files are not lost. Put the file name, taken-by name, and date on a card and place it in an out guide box. When you can't find what you want, check the box to see if your co-worker is using the file. Be sure to remove the card from the box when you return the file.

Copyright © by Bizmove Free Business Guides. All rights reserved.

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Home > Homes > Electrical Installers > 12 tips for starting a successful electrical contracting business

Electrical Installers

12 tips for starting a successful electrical contracting business

May 14, 2024

5 min read |  Guest Blogger

This audio was created using Microsoft Azure Speech Services

Starting an electrical contracting business is challenging, even for experienced electricians. We asked two Canadian sparkies, Simon Noone and Ben Morin, to share their tips—both went out on their own after working for other contractors. Noone started his company, Tried and True Electric, six years ago in Wallacetown, Ontario. Morin launched Amped Electric, which operates in Brandon, Manitoba, in 2015.

5 tips for getting the business going

• Consider whether you want to go solo or work with a business partner. Although many electrical contractors run companies on their own, “a partner gives you freedom and flexibility to take a vacation or time off if your family needs you.” says Noone. A good partner, he says, can share the load and help you build a stronger business.
• Make sure a partner’s values are aligned with your own. Before signing any legal agreements or writing a business plan, Noone and his business partner talked to each other at length. They both wanted to be sure they understood—and shared—each other’s work ethic, quality standards, and vision for the business’s future.
• Know your limits and get the business help you need. “I trained as an electrician, not as a bookkeeper or accountant,” says Morin. Working in the trades, he says, means you should understand when to call in an expert rather than trying to do everything yourself.
• Develop business systems, whether for dealing with paperwork and record-keeping, for prompt quoting and invoicing, or for handling customer inquiries. Staying organized and working efficiently is necessary for business success, both electricians agree.
• Be financially prepared for a rough start. Noone and his partner set aside enough money to cover at least the first year’s expenses. “Between buying a vehicle, paying for materials, and payroll—we hired an apprentice right away—money was going out faster that it was coming in. It wasn’t until the 11th month when we could pay ourselves.” But that moment, he adds, reassured him the business was going to succeed.

3 tips for maintaining positive customer and supplier relations

• Build long-term relationships with suppliers . Noone says he depends on suppliers to have high-quality materials in stock, to price materials fairly and consistently so he can quote accurately, and to stand behind what they sell—now and in the future. “We deal with Schneider Electric almost exclusively for panels now, and we really depend on Homeline arc fault breakers. Some other arc fault breakers experience a lot of nuisance tripping, which can cost an electrician a lot in call backs just to replace one small part.”
• Address customer issues quickly. Most customers, says Morin, will be reasonable when they know what’s going on. “Even when there were supply chain issues during the pandemic, for example, Schneider addressed our questions in a timely manner, which meant we could keep our customers informed—and happy.”
• Document every change order. When customers ask for extras, “put it in writing and get clients to sign off on it,” says Noone. Homeowners don’t know when a seemingly simple request adds a lot of expense. If you haven’t documented changes, he says, be prepared to face objections when you invoice. “No one likes surprises, and every client absolutely has the right to question what’s on an invoice,” he adds, “so you need backup to help them understand your charges.”

4 tips for managing stress

• Practise the tough stuff. “Chasing after payments and dealing with confrontational clients—those are things I don’t enjoy,” Noone says. “But over time I’ve learned how to do it.” As well, organized business systems, complete documentation, and clear communications make it easier to deal with many issues.
• Learn to unplug. Morin says it took a while, but he learned to leave the stress of running a business at the office. “Now, when I get home, I sometimes imagine a coat rack inside the door. I take my work hat off, and I put my family guy hat on.”
• Don’t forget that you do have a backup plan . For electricians in many job markets, Morin says, there’s enough demand that “it’s relatively easy to go back and work for someone else.” That safety net can make taking the leap and starting an electrical contracting business a little easier.
• Remember your why. For both Noone and Morin, when business is especially challenging, they see family as a motivation for working hard at building a business and a support system when they need it. Noone says his employees and their families also motivate him. “We want our employees to feel like they’re building a company with us. As we grow, we want them to grow too.” Both electricians recommend taking stock of the business’s developments. “I like looking back at where I started,” says Morin. “The time went so fast, but seeing the business and the projects we do come to fruition puts a smile on my face.”

At Schneider Electric, we are committed to making your professional life easier by providing you with tools and resources designed to save time, increase efficiency, and grow your business.

That’s why we’ve created the mySchneider Electrician Program. A personalized experience offering a whole portfolio of solutions and business advantages designed to make your work more efficient, support your business needs and open the door to new business opportunities, such as starting an electrical contracting business. All completely free, accessible from your mobile device via app or browser.

Don’t wait, enjoy the mySchneider benefits, login/register at mySchneider .

About the author

Jeff Sproule, Ontario Channel Sales Senior Manager

Jeff Sproule is the Ontario Channel Sales Senior Manager for Schneider Electric Canada.  With over 25 years of experience in the industry and 17 years at Schneider Electric, Jeff has spent the last 9 years leading various Commercial and Channel Sales teams in Ontario to provide best in class product offers to Electricians and Electrical Contractors.

Tags: Electrical Contractors , Electrician , entrepreneur

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President Joe Biden slapped major new tariffs on Chinese electric vehicles, advanced batteries, steel, aluminum and other goods Tuesday as he embraced a strategy that’s increasing friction between the world’s two largest economies.

President Joe Biden sits down to sign a document in the Rose Garden of the White House in Washington, Tuesday, May 14, 2024, imposing major new tariffs on electric vehicles, semiconductors, solar equipment and medical supplies imported from China. (AP Photo/Susan Walsh)

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President Joe Biden speaks in the Rose Garden of the White House in Washington, Tuesday, May 14, 2024, announcing plans to impose major new tariffs on electric vehicles, semiconductors, solar equipment and medical supplies imported from China. (AP Photo/Susan Walsh)

FILE - A worker assembles an SUV at a car plant of Li Auto, a major Chinese EV maker, in Changzhou in eastern China’s Jiangsu province on March 27, 2024. The Biden administration is announcing plans to slap new tariffs on Chinese electric vehicles, advanced batteries, solar cells, steel, aluminum and medical equipment. (Chinatopix Via AP, File)

WASHINGTON (AP) — President Joe Biden slapped major new tariffs on Chinese electric vehicles, advanced batteries, solar cells, steel, aluminum and medical equipment on Tuesday, taking potshots at Donald Trump along the way as he embraced a strategy that’s increasing friction between the world’s two largest economies.

The Democratic president said that Chinese government subsidies ensure the nation’s companies don’t have to turn a profit, giving them an unfair advantage in global trade.

“American workers can outwork and outcompete anyone as long as the competition is fair,” Biden said in the White House Rose Garden. “But for too long, it hasn’t been fair. For years, the Chinese government has poured state money into Chinese companies ... it’s not competition, it’s cheating.”

The tariffs come in the middle of a heated campaign between Biden and Trump, his Republican predecessor, to show who’s tougher on China. In a nod to the presidential campaign, Biden recognized lawmakers from Michigan in his remarks and spoke about workers in Pennsylvania and Wisconsin, all battleground states in November’s election.

Asked to respond to Trump’s comments that China was eating America’s lunch, Biden said of his rival, “He’s been feeding them a long time.” The Democrat said Trump had failed to crack down on Chinese trade abuses as he had pledged he would do during his presidency.

Karoline Leavitt, the Trump campaign’s press secretary, called the new tariffs a “weak and futile attempt” to distract from Biden’s own support for EVs in the United States, which Trump says will lead to layoffs at auto factories.

The Chinese government was quick to push back against the tariffs, saying they “will seriously affect the atmosphere of bilateral cooperation.” The foreign ministry used the word “bullying.”

The tariffs are unlikely to have a broad inflationary impact in the short term because of how they’re structured, some not to take effect until 2026, but there could be price increases in the meantime for EV batteries, solar and some other specific items.

Biden administration officials said they think the tariffs won’t escalate tensions with China, yet they expect China will explore ways to respond to the new taxes on its products. It’s uncertain what the long-term impact on prices could be if the tariffs contribute to a wider trade dispute.

The tariffs are to be phased in over the next three years, with those that take effect in 2024 covering EVs, solar cells, syringes, needles, steel and aluminum and more. There are currently very few EVs from China in the U.S., but officials worry low-priced models made possible by Chinese government subsidies could soon start flooding the U.S. market.

Chinese firms can sell EVs for as little as $12,000 . China’s solar cell plants and steel and aluminum mills have enough capacity to meet much of the world’s demand, with Chinese officials arguing their production keeps prices low and would aid a transition to the green economy.

China’s commerce ministry said in a statement that the tariffs were “typical political manipulation” as it expressed its “strong dissatisfaction” and pledged to “take resolute measures to defend its rights and interests.”

Under the findings of a four-year review on trade with China, the tax rate on imported Chinese EVs will rise to 102.5% this year, up from total levels of 27.5%. The review was undertaken under Section 301 of the Trade Act of 1974, which allows the government to retaliate against trade practices deemed unfair or in violation of global standards.

Under the 301 guidelines, the tariff rate is to double to 50% on solar cell imports this year. Tariffs on certain Chinese steel and aluminum products will climb to 25% this year. Computer chip tariffs will double to 50% by 2025.

For lithium-ion EV batteries, tariffs will rise from 7.5% to 25% this year. But for non-EV batteries of the same type, the tariff increase will be implemented in 2026. There are also higher tariffs on ship-to-shore cranes, critical minerals and medical products.

The new tariffs, at least initially, are largely symbolic since they will apply to only about $18 billion in imports. A new analysis by Oxford Economics estimates the tariffs will have a barely noticeable impact on inflation by pushing up inflation by just 0.01%.

The Chinese EV maker BYD has explored the possibility of opening factories in Mexico for the Mexican market, possibly creating a way to ship goods into the United States. U.S. Trade Representative Katherine Tai said she was talking with industry and workers about the possibility and to “stay tuned.”

The auto industry is still trying to assess the impact of the tariffs. But at present, it appears they could be assessed on only two Chinese-made vehicles, the Polestar 2 luxury EV and potentially Volvo’s S90 luxury gas-electric hybrid midsize sedan.

“We’re still reviewing the tariffs to understand exactly what’s affected and how,” said Russell Datz, spokesman for Volvo, a Swedish brand now under China’s Geely group. A message was left seeking comment from Polestar, which also falls under Geely.

The Chinese foreign ministry spokesperson, Wang Wenbin, said the U.S. is trampling on the principles of a market economy and international economic and trade rules.

“It’s a naked act of bullying,” Wang said.

The Chinese economy has been slowed by the collapse of the country’s real estate market and past coronavirus pandemic lockdowns, prompting Chinese President Xi Jinping to try to jumpstart growth by ramping up production of EVs and other products, making more than the Chinese market can absorb.

This strategy further exacerbates tensions with a U.S. government that claims it’s determined to strengthen its own manufacturing to compete with China, yet avoid a larger conflict.

“China’s factory-led recovery and weak consumption growth, which are translating into excess capacity and an aggressive search for foreign markets, in tandem with the looming U.S. election season add up to a perfect recipe for escalating U.S. trade fractions with China,’’ said Eswar Prasad, professor of trade policy at Cornell University.

The Europeans are worried, too. The EU launched an investigation last fall into Chinese subsidies and could impose an import tax on Chinese EVs.

After Xi’s visit to France last week, European Commission President Ursula von der Leyen warned that government-subsidized Chinese EVs and steel “are flooding the European market” and said, “The world cannot absorb China’s surplus production.’’

Biden’s administration views China, with its subsidies of manufacturing, as trying to globally control the EV and clean-energy sectors, whereas the administration says its own industrial support is geared toward ensuring domestic supplies to help meet U.S. demand.

“We do not seek to have global domination of manufacturing in these sectors, but we believe because these are strategic industries and for the sake of resilience of our supply chains, that we want to make sure that we have healthy and active firms,” Treasury Secretary Janet Yellen said.

The tensions go far beyond a trade dispute to deeper questions about who leads the world economy as a seemingly indispensable nation. China’s policies could make the world more dependent on its factories, possibly giving it greater leverage in geopolitics. At the same time, the United States says it’s seeking for countries to operate by the same standards so competition can be fair.

China maintains the tariffs are in violation of the global trade rules the United States originally helped establish through the World Trade Organization. It accuses the U.S. of continuing to politicize trade issues and on Friday said the new tariffs compound the problems caused by tariffs the Trump administration previously put on Chinese goods, which Biden has kept.

Those issues are at the heart of November’s presidential election, with a bitterly divided electorate seemingly united by the idea of getting tough with China. Biden and Trump have overlapping but different strategies.

Biden sees targeted tariffs as needed to defend key industries and workers, while Trump has threatened broad 10% tariffs against all imports from rivals and allies alike.

Biden has staked his presidential legacy on the U.S. pulling ahead of China with its own government investments in factories to make EVs, computer chips and other advanced technologies.

Trump tells his supporters America is falling further behind China by not betting on oil to keep powering the economy, despite its climate change risks. The ex-president may believe tariffs can change Chinese behavior, but he believes the U.S. will be reliant on China for EV components and solar cells.

“Joe Biden’s economic plan is to make China rich and America poor,” he said at a rally this month in Wisconsin.

AP autos writer Tom Krisher contributed to this report from Detroit.