business plan for electrical pdf

Electrical Contractor Business Plan Template

Written by Dave Lavinsky

Electrical Contractor Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their electrical contracting businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an electrical contractor business plan template step-by-step so you can create your plan today.

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What is an Electrical Contractor Business Plan?

A business plan provides a snapshot of your electrical contractor business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for an Electrical Contracting Business

If you’re looking to start an electrical contractor business, or grow your existing electrical contractor business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your electrical contractor business in order to improve your chances of success. Your electrical contracting business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Electrical Contractor Businesses

With regards to funding, the main sources of funding for an electrical contractor business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the electrical contractor will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for electrical contractor businesses.

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How to write a business plan for an electrical contracting business.

If you want to start an electrical contracting business or expand your current one, you need a business plan. Below are the details for each section of your electrical contractor business plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of electrical contractor business you are operating and its status. For example, are you a start-up, do you have an electrical contractor business that you would like to grow, or are you operating a chain of electrical contractor businesses?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the electrical contractor industry. Discuss the type of electrical contractor business you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of electrical contractor business you are operating.

For example, you might operate one of the following types of electrical contractor businesses:

• Commercial Electrical Contractor : this type of electrical contractor business will focus on developing outdoor spaces such as college campuses, parks, gardens and more.
• Residential Electrical Contractor: this type of electrical contractor business collaborates with homeowners to design and/or install electrical and electronic systems.
• Industrial Electrical Contractor: this type of electrical contractor business works on large projects for manufacturers or warehouse facilities.

In addition to explaining the type of electrical contractor business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the electrical contractor industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the electrical contractor industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your electrical contractor business plan:

• How big is the electrical contractor industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your electrical contractor business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your electrical contractor business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: homeowners, businesses, general contractors, developers, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of electrical contractor business you operate. Clearly, a homeowner would respond to different marketing promotions than a local government, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most electrical contractor businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target audience. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other electrical contractor businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes in-house electricians and homeowners who do minor electrical work themselves. You need to mention such competition as well.

With regards to direct competition, you want to describe the other electrical contractor businesses with which you compete. Most likely, your direct competitors will be electrical contractors located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of projects do they specialize in?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide a wider array of services?
• Will you provide special discounts or perks for returning customers?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an electrical contractor business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of electrical contracting business that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to installing traditional electrical systems, will you also install smart home control systems or fire and security systems?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your electrical contractor company. Document your location and mention how the location will impact your success. For example, is your electrical contractor business located in a growing community with a booming construction sector, etc.  Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your electrical contractor marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your business operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your electrical contractor business, including marketing your business, working on current projects, prepare for upcoming projects, and overseeing the entire project.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to install your 500 th electrical system, or when you hope to reach $X in revenue. It could also be when you expect to expand your electrical contractor business to a new city.  

Management Team

To demonstrate your electrical contractor business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing electrical contractor businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in overseeing construction projects or successfully running their own electrical contractor businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you work on 1 project at a time or will you oversee multiple projects at any given time? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your electrical contractor business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing an electrical contractor business:

• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or contracts for upcoming projects.  

Putting together a business plan for your electrical contractor business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the electrical contractor industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful electrical contractor business.  

Electrical Contracting Business Plan FAQs

What is the easiest way to complete my electrical contractor business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Electrical Contractor Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of electrical contractor business you are operating and the status; for example, are you a startup, do you have an electrical contractor business that you would like to grow, or are you operating a chain of electrical contractor businesses?

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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.

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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.

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Electrical Contractor Business Plan

Start your own electrical contractor business plan

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 Business Plan Template PDF

A successful electrical business is based on a solid business plan. To help you out, we've designed a business plan template PDF specifically for your electrical business.

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For help completing your electrical business plan, read our guide .

How can an electrical business plan template help you?

• A solid electrical business plan acts as your strategy guide for building a successful electrical business.
• Whether you're an existing electrical business or just starting out, a business plan helps you get organised.
• Use an electrical business plan to help secure funding for your business.

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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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Electrical Contractor Business Plan [& Free Template]

Whether you’re a new electrical contractor launching your startup business or a veteran electrician looking to expand , define business goals, or obtain funding, you need a business plan. And if you created a business plan when you first started in the industry, but haven’t updated it since, it’s time for a revamp. 

Ready to write or improve your electrical business plan? Read on for information on what to include in an electrician business plan and a free electrical contractor business plan template to get started. 

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What Is a Business Plan for Electrical Contractors?

A business plan is a comprehensive document that outlines the company’s operations, goals, strategies, and financial projections. It serves as a roadmap for the business owner and potential stakeholders by detailing how the business will be structured, managed, and grown. 

A business plan is a fluid document that should be reviewed and refined annually to reflect goals that have been met or have changed. If an established business decides to move in a new direction, perhaps adding services or acquiring a smaller electrical outfit and expanding their service areas, they may create a new business plan.

Why Do Electrical Contractors Need a Business Plan?

In addition to serving as a roadmap for the company, electrical contractors need a business plan for the following reasons.

Reason #1: Raise Funding

New or expanding businesses often need to raise capital from lenders or investors. Before investing or providing a loan, lenders and investors want to see a detailed plan that demonstrates the company’s potential for success and how it intends to use the funds. Lenders want to know the company will be solvent enough to make regular debt payments.

The main sources of funding for an electrical business include personal funds, credit cards, bank loans, and investors. Personal savings and bank loans are the most common funding paths for electrical companies.

Reason #2: Define Business Goals and Reduce Risks

A business plan serves as your company’s blueprint. By setting up goals and ways to measure success, you’ll know if your business is on track. Your business plan should also outline risks, including competitors and market changes. By knowing business threats ahead of time, you can prepare plans for reducing or addressing them.

When it comes to measuring goals, a field management software with reporting capabilities provides the data electrical companies need to make informed business decisions. For example, ServiceTitan’s field reporting software offers a dynamic dashboard that allows business owners to customize the fields to display KPIs that matter most to them, including revenue, missed opportunities, and conversion rates.

The technician scorecard gives managers a report on overall technician performance, as well as the opportunity to drill down into metrics for each individual tech, including generated revenue, memberships sold, customer satisfaction, and billing efficiency. With this information in hand, managers can reward outstanding technician performance and find coaching opportunities.

Similarly, a CSR scorecard allows users to review incoming calls, conversions, and other CSR metrics as clients and potential customers call your business. The recorded calls can be used for CSR training or to re-engage with missed opportunities.  

How to Write an Electrical Contractor Business Plan [with Template]

An electrical contractor business plan should be tailored to the specific goals of your business and provide a realistic and achievable roadmap for its success. To help electricians know exactly what information to include in a business plan, ServiceTitan created an electrical company business plan template for you to download and fill in.

>> Download our free electrical business plan template. Save the PDF to your desktop as a new file. From there, you can customize it for your business.

Ready to get started? Include the following sections in your electrical business plan.

1. Industry Analysis

First, provide an overview of the electrical contracting industry. This market research should inform your business strategy. It also shows investors and lenders you did your due diligence. When preparing this section, consider:

Market strength

Market size

Competitors

Industry trends

2. Executive Summary

The executive summary is a condensed version of your full business plan where you include everything you would cover in a five-minute sales pitch about your business. Put simply, all the hard work and research you put into your business plan should inform the critical information you include in the executive summary. Even though this is in the front of the business plan, it’s best to complete this section last. 

Use the executive summary to concisely explain the fundamentals of the business. For example, what is your product or service? Who are your customers? Who are the business owners and financial investors? What are your goals and objectives?

If you’re applying for funding, make sure to specify the amount, how you plan to use it, and more importantly, how it will increase your profit margins. The executive summary needs to be professional, enthusiastic, and succinct. 

3. Business Overview

The company overview is where you start to dig into the details of your electrical contracting business. In short, it explains what your electrical business will do, and how you will achieve your objectives. The section often begins with a mission statement—typically 30 words or less—where you explain your company’s guiding principles and business philosophy.

Make sure to cover the following components in the business overview:

Goals and objectives : All successful businesses need to establish goals, objectives, and key performance indicators (KPIs). Make sure to elaborate on how you’ll set up your electrical shop for success .

Marketplace : Define your core customer base and explain how you’ll market your services, including the marketing channels you plan to use. Keep it brief. You’ll elaborate in the marketing plan section of your business plan.

Strengths and core competencies : Use this section to expand on the specific factors that will help your company succeed. Include what strengths set you apart from the competition and how you’ll prepare staff to succeed.

4. Services Analysis

Use this section to provide more detail about your specific products and electrical services. 

For example, (Electrical contractor name) offers residential and commercial electrical installation, service, and repair, including new installations, safety inspections, whole-home rewires, troubleshooting and servicing electrical issues, and more.  

Include any factors that give you a competitive advantage over other electrical contractors in your service area. For example, do your technicians possess advanced skills that enable them to work on high-tech electrical systems? Other examples of key service differentiators include:

Service guarantee 

Repair guarantee 

Replacement guarantee

Next, mention the pricing, fee, or leasing structures of your products or services. Will you price electrical jobs by the hour, or offer flat-rate pricing? You’ll want to examine the wage rate in your area to ensure you pay your employees a competitive salary. Also include the hourly rate, how you’ll account for drive time, and the billable amount for every job or service you offer.

5. Market Analysis

Include a market, or competitor, analysis. Identify and evaluate key competitors to define your company’s unique value proposition and capitalize on market opportunities. The analysis should include information on competitors’ strengths, weaknesses, market share, pricing strategies, and technological advancements.

Look for gaps in the market, whether there are services not being offered or service areas not being sufficiently served. These gaps create business opportunities . 

6. Customer Analysis

The customer analysis section of a business plan is where you focus on understanding your target customers. This includes describing your target market’s characteristics, needs, and behaviors to tailor your offerings effectively. Start by identifying your primary and secondary customer groups, considering factors like demographics (age, gender, location), psychographics (interests, values), and buying behaviors (how they make purchasing decisions). 

This analysis equips you to tailor your business strategies to meet customer demands effectively. By knowing your customers’ wants and pain points and leveraging customer experience software , you can create a strong foundation for building lasting customer relationships and achieving sustainable growth. 

ServiceTitan enables electrical contractors to provide their customers with a modern sales and service experience, which includes:

Scheduling options : Give leads the ability to schedule jobs whatever way works best for them, whether through web chats, texts, calls, or booking directly online. 

Detailed customer history : A robust CRM allows service techs to view complete customer information before arriving on the job site. Knowing the customer's name and job history helps techs and CSRs personalize the customer experience and provide better customer service.

Text messaging communication : Text appointment reminders and technician bios so customers know who and what to expect when your service truck arrives. Allow for two-way SMS communication, so customers can confirm appointments, reschedule appointments, or ask questions right from their phone. 

Live tracking : Allow customers to track your techs on a map, so they can better predict arrival times.

On-site estimates : Today’s customers don’t want to wait for estimates. With ServiceTitan Mobile , techs can build and display branded, digital estimates with good, better, and best options in just a few taps.  

Financing options: Working with your clients on payment options helps build loyal, repeat customers. With ServiceTitan customer financing, customers can apply for financing right from your tech’s phone or iPad, choose from different plans, and receive instant approval.

7. Marketing Plan

All businesses depend on marketing to promote their companies, generate new business, and grow repeat customers. If your electrical shop’s promotions or sales feel stagnant, it’s probably a good time to look at your marketing metrics and reevaluate your promotions and marketing channels. 

When it comes to marketing strategies , electricians typically utilize an omnichannel approach. If your target audience leans younger, you may want to invest heavily in digital marketing such as search engine optimization (SEO), Google ads, and social media marketing, while home mailers and direct mail may be more effective with older homeowners. Bottom line: You want to reach as many potential customers as possible, so don’t be afraid to try different marketing strategies.

Break down how you plan to spend marketing dollars by promotion channel, such as:

Direct mail (%)

Newspaper (%)

Television (%)

Search engine marketing (SEM) (%)

Social media marketing (%)

Your strategy should also include the average cost to acquire a new customer, and take into account other marketing drivers, such as club memberships and word-of-mouth referral programs.

Consider how your business will execute and track ROI of marketing strategies. For example, ServiceTitan offers data-driven marketing solutions to help you attract, convert, and retain customers, in addition to providing valuable insights into the performance of your campaigns.

8. Operations Plan

Expand on and explain the daily operation of your electrical contracting business, its location, equipment, people, processes, and surrounding environment.

Production : How and where are your products or services produced? Make sure to include production techniques and costs, quality control, customer service, inventory control, and product development.

Location : What requirements do you need in a physical location? Mention the amount of space, type of building, zoning, and utilities.

Legal : Include information related to licensing and bonding requirements, permits, environmental regulations, industry-specific regulations, zoning or building code requirements, liability insurance, and any trademarks, copyrights, or patents.

Personnel : List the number of employees, type of labor (skilled, unskilled, and professional), recruiting efforts, pay structure, training programs, and job descriptions.

Inventory and suppliers : Include the kind of inventory (raw materials, supplies, finished goods), the estimated value, and your top suppliers.

Credit policies : Will you sell your services on credit? If so, how will you approve customers or determine creditworthiness?

9. Management Summary

Mention the key roles that will manage the business on a day-to-day basis, including the general manager, operations manager, and other management team roles. What experience do they bring to the business? Do they hold special or distinctive competencies? Is there a plan for continuation of the business if leadership is lost or incapacitated?

If you employ more than 10 employees in your business structure, create an organizational chart showing the management hierarchy and who is responsible for key functions. Include descriptions for each position or employee.

You should also list professional and advisory support, including:

Board of directors

Management advisory board

Insurance agent

Consultant(s) 

Mentors and key advisors

10. Financial Plan

The financial plan typically includes a 12-month profit-and-loss projection, a cash-flow projection, a projected balance sheet, and a break-even calculation. Together, they present a reasonable estimate of your electrical contracting business's financial projections and business value . More importantly, the process of thinking through the financial plan will improve your insight into the inner financial workings of your company.

Include personal financial statements for each owner and major stockholder, showing assets and liabilities held outside the business and personal net worth. Owners will often have to draw on personal assets to finance the business, and these statements will show what is available. Bankers and investors usually want this information as well.

Over to You

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A handy electrical contractor business plan template to help you launch your company

Creating a business plan is an impactful milestone when launching any new business. If you’re looking to become an electrical contractor or offer electrical services as part of your own business, this handy guide will take you through the process of writing an electrical contractor business plan.

What are the benefits of writing a business plan?

All small businesses need a business plan. Business plans guide small business owners through the research and market analysis process. The document helps entrepreneurs figure out their:

• Pricing strategy
• Target market
• Marketing strategy
• Business goals
• Financial plans

For electricians, in particular, creating an electrical contracting business plan can help you determine and finalize:

• Which types of electrical work to focus on
• Which electrical services you’ll offer (residential or commercial electrical services)
• Who your target customers are (homeowners, general contractors, etc.)
• Who you might partner with (i.e., a non-competitive construction company or contracting company)
• Which marketing strategies for electricians you’ll use

How to write a business plan for an electrical contractor

Here are some essential steps to create an effective electrical contracting business plan that sets your electrical contractor company up for success.

• Do your research. Find out what other electricians in your market are doing and identify the opportunities and risks for you.
• Clearly communicate your findings and ideas. Depending on who may read this business plan — potential investors, partners, lenders, team members or your future self — you want to put together a plan that’s engaging, informative and easy to understand.
• Be thorough and detailed. If you do it right, your business plan could help guide your overall strategy for years to come.
• Get help. If your expertise lies in offering electrical services but not all the aspects of a full business plan, consider hiring outside resources to help you. They can walk you through developing a marketing plan, knowing which social media channels to use, outlining business operations, preparing balance sheets and calculating your expected profit margin.

How can I get a free business plan template?

You can use the following components to help build your business plan. Use this as a template to define your business, outline your strategy, develop your marketing plan and present your financial projections.

1. Executive summary

In this section, you will summarize key highlights and findings from the rest of your business plan. It includes an overview of your company and business goals, your market analysis and financial outlook.

Although this section appears first within business plan templates, you will probably fill in this part last after you’ve completed the other areas. Think of this section as the key takeaways someone needs to know if they don’t bother reading the entire plan, the 30-second elevator pitch of what you’re hoping to accomplish that draws your audience in to learn more.

2. About the company

This is where you introduce your company to the readers of your business plan. This section should present:

• Your company name
• Your mission statement — your company’s purpose and reason for being
• Your business goals
• What type of company you are creating (LLC, S-Corp, etc.)
• Your team members (if any)
• The electrical services you plan to offer

3. Market analysis

This section should include your market research and cover the following key areas.

3.1 Industry analysis

What is the financial outlook for the overall construction industry? What’s the market size in your area and the potential for a new electrician or construction company in your market?

3.2 SWOT analysis

What are the potential strengths (competitive advantages), weaknesses, opportunities and threats for a new business like yours?

3.3 Target audience

Who are your target customers (residential or commercial or property managers, renters or homeowners)? What are their demographics?

3.4 Four P’s of marketing (product, place, promotion and price strategy)

This section should cover the following four P’s of marketing, essential to any marketing plan.

• Product: List the electrical services you plan to offer
• Place: Define the market or service area you plan to operate in
• Promotion: Go into detail about your marketing strategy — which marketing channels and tactics do you plan to use? How do you plan to reach, attract and convert new customers? Through word-of-mouth, social media or other methods?
• Price strategy: How do you plan to price your electrical services?

4. Financial plan

In this section, you should be prepared to include tables, charts and graphs and provide supporting financial statements for each of the key financials:

• Starting balance sheet
• Startup costs
• Projected cash flow — your financial projections for your income and expenses for the first three years
• Expected profit margin

5. Conclusion

Depending on the intended audience for this business plan, you may include a specific call-to-action. Direct them to your website to learn more or provide contact information for scheduling a meeting to learn about investing in your business.

What should your business plan cover? Top three questions your electrical contractor business plan should answer

Here are the critical questions you should answer in your business plan.

1. How do electrical contractors get clients?

Your electrical contractor business plan should include your electrician marketing plan , detailing how you plan to get clients, which channels you plan to use (social media, paid advertising, etc.) and your marketing budget.

2. Are electrical businesses profitable?

Your business plan should include a financial plan that lists your financial projections and spells out how you plan to have your own business become profitable. Include your:

• Projected cash flow
• Profit margins

3. What are the risks of being an electrical contractor?

Your business plan should include a SWOT analysis that details the potential strengths, weaknesses, opportunities and threats of starting an electrical contracting business. By proactively identifying risks, your audience will know you have done your homework.

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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?

Form an LLC in your state!

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.

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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 write a business plan for an electrical company?

Putting together a business plan for an electrical company can be daunting - especially if you're creating a business for the first time - but with this comprehensive guide, you'll have the necessary tools to do it confidently.

We will explore why writing one is so important in both starting up and growing an existing electrical company, as well as what should go into making an effective plan - from its structure to content - and what tools can be used to streamline the process and avoid errors.

Without further ado, let us begin!

In this guide:

Why write a business plan for an electrical company?

• What information is needed to create a business plan for an electrical company?
• How do I build a financial forecast for an electrical company?

The written part of an electrical company business plan

• What tool should I use to write my electrical company business plan?

Being clear on the scope and goals of the document will make it easier to understand its structure and content. So before diving into the actual content of the plan, let's have a quick look at the main reasons why you would want to write an electrical company business plan in the first place.

To have a clear roadmap to grow the business

It's rarely business as usual for small businesses. The economy follows cycles where years of growth are followed by recessions, and the business environment is always changing with new technologies, new regulations, new competitors, and new consumer behaviours appearing all the time...

In this context, running a business without a clear roadmap is like driving blindfolded: it's dangerous at best. That's why writing a business plan for an electrical company is essential to create successful and sustainable businesses.

To write an effective business plan, you will need to take stock of where you are (if you are already in business) and where you want the business to go in the next three to five years.

Once you know where you want your electrical company to be, you'll have to identify:

• what resources (human, equipment, and capital) are needed to get there,
• at what pace the business needs to progress to get there in time,
• and what risks you'll face along the way.

Going through this process regularly is beneficial, both for startups and existing companies, as it helps make informed decisions about how best to allocate resources to ensure the long-term success of the business.

To get visibility on future cash flows

If your small electrical company runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your electrical company's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your electrical company business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your electrical company's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

A detailed business plan becomes a crucial tool when seeking financing from banks or investors for your electrical company.

Investing and lending to small businesses are very risky activities given how fragile they are. Therefore, financiers have to take extra precautions before putting their capital at risk.

At a minimum, financiers will want to ensure that you have a clear roadmap and a solid understanding of your future cash flows (like we just explained above). But they will also want to ensure that your business plan fits the risk/reward profile they seek.

This will off-course vary from bank to bank and investor to investor, but as a rule of thumb. Banks will want to see a conservative financial management style (low risk), and they will use the information in your business plan to assess your borrowing capacity — the level of debt they think your business can comfortably handle — and your ability to repay the loan. This evaluation will determine whether they'll provide credit to your electrical company and the terms of the agreement.

Whereas investors will carefully analyze your business plan to gauge the potential return on their investment. Their focus lies on evidence indicating your electrical company's potential for high growth, profitability, and consistent cash flow generation over time.

Now that you recognize the importance of creating a business plan for your electrical company, let's explore what information is required to create a compelling plan.

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Information needed to create a business plan for an electrical company

Drafting an electrical company business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for an electrical company

As you consider writing your business plan for an electrical company, conducting market research becomes a vital step to ensure accurate and realistic financial projections.

Market research provides valuable insights into your target customer base, competitors, pricing strategies, and other key factors that can significantly impact the commercial success of your business.

Through this research, you may uncover trends that could influence your electrical company.

Your electrical company's market research may reveal that customers may be looking for more energy-efficient products. Additionally, customers might be interested in products that offer more convenience, such as smart home devices.

Such market trends play a significant role in forecasting revenue, as they offer valuable data about potential customers' spending habits and preferences.

By incorporating these findings into your financial projections, you can present investors with more accurate information, helping them make informed decisions about investing in your electrical company.

Developing the marketing plan for an electrical company

Before delving into your electrical company business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of an electrical company

As you embark on starting or expanding your electrical company, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

The staffing costs for an electrical company might include wages for electricians, engineers, and administrative staff. They may also need to pay for additional training for their staff. The equipment costs might include items such as electrical wiring, tools, power supplies, and safety gear. The company may also need to invest in vehicles and other transportation costs in order to reach their customers and job sites.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

What goes into your electrical company's financial forecast?

The objective of the financial forecast of your electrical company's business plan is to show the growth, profitability, funding requirements, and cash generation potential of your business over the next 3 to 5 years.

The four key outputs of a financial forecast for an electrical company are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

The projected P&L statement for an electrical company shows how much revenue and profit your business is expected to make in the future.

A healthy electrical company's P&L statement should show:

• Sales growing at (minimum) or above (better) inflation
• Stable (minimum) or expanding (better) profit margins
• A healthy level of net profitability

This will of course depend on the stage of your business: numbers for a startup will look different than for an established electrical company.

The projected balance sheet of your electrical company

The balance sheet for an electrical company is a financial document that provides a snapshot of your business’s financial health at a given point in time.

It shows three main components: assets, liabilities and equity:

• Assets: are resources owned by the business, such as cash, equipment, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors and other entities, such as accounts payable (money owed to suppliers) and loans.
• Equity: includes the sums invested by the shareholders or business owners and the cumulative profits and losses of the business to date (called retained earnings). It is a proxy for the value of the owner's stake in the business.

Examining the balance sheet is important for lenders, investors, or other stakeholders who are interested in assessing your electrical company's liquidity and solvency:

• Liquidity: assesses whether or not your business has sufficient cash and short-term assets to honour its liabilities due over the next 12 months. It is a short-term focus.
• Solvency: assesses whether or not your business has the capacity to repay its debt over the medium-term.

Looking at the balance sheet can also provide insights into your electrical company's investment and financing policies.

In particular, stakeholders can compare the value of equity to the value of the outstanding financial debt to assess how the business is funded and what level of financial risk has been taken by the owners (financial debt is riskier because it has to be repaid, while equity doesn't need to be repaid).

The cash flow forecast

A projected cash flow statement for an electrical company is used to show how much cash the business is generating or consuming.

The cash flow forecast is usually organized by nature to show three key metrics:

• The operating cash flow: do the core business activities generate or consume cash?
• The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
• The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your electrical company business plan to pay close attention to your cash flow forecast.

Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the electrical company is appropriately funded.

The initial financing plan

The initial financing plan, also known as a sources and uses table, is a valuable resource to have in your business plan when starting your electrical company as it reveals the origins of the money needed to establish the business (sources) and how it will be allocated (uses).

Having this table helps show what costs are involved in setting up your electrical company, how risks are shared between founders, investors and lenders, and what the starting cash position will be. This cash position needs to be sufficient to sustain operations until the business reaches a break-even point.

Now that you have a clear understanding of what goes into the financial forecast of your electrical company business plan, let's shift our focus to the written part of the plan.

The written part of an electrical company business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Throughout these sections, you will seek to provide the reader with the details and context needed for them to form a view on whether or not your business plan is achievable and your forecast a realistic possibility.

Let's go through the content of each section in more detail!

1. The executive summary

In your electrical company's business plan, the first section is the executive summary — a captivating overview of your plan that aims to pique the reader's interest and leave them eager to learn more about your business.

When crafting the executive summary, start with an introduction to your business, including its name, concept, location, how long it has been running, and what sets it apart. Briefly mention the products and services you plan to offer and your target customer profile.

Following that, provide an overview of the addressable market for your electrical company, current trends, and potential growth opportunities.

Next, include a summary of key financial figures like projected revenues, profits, and cash flows.

Finally, in the "ask" section, detail any funding requirements you may have.

2. The presentation of the company

As you build your electrical company business plan, the second section deserves attention as it delves into the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide valuable insights into the legal structure of the business, the identities of the owners, and their respective investments and ownership stakes. This level of transparency is vital, particularly if you're seeking financing, as it clarifies which legal entity will receive the funds and who holds the reins of the business.

Moving to the location part, you'll offer a comprehensive view of the company's premises and articulate why this specific location is strategic for the business, emphasizing factors like catchment area, accessibility, and nearby amenities.

When describing the location of your electrical company to a third party financier, you could emphasize its proximity to a major highway, its potential access to a large customer base, and the potential for growth in the area. You might also mention the potential for cost savings due to the lower cost of living in the area, as well as the potential to find talented employees in the local labor market. Finally, you could highlight the potential for diversifying the customer base by tapping into nearby industry clusters.

Lastly, you should introduce your esteemed management team. Provide a thorough explanation of each member's role, background, and extensive experience.

It's equally important to highlight any past successes the management team has achieved and underscore the duration they've been working together. This information will instil trust in potential lenders or investors, showcasing the strength and expertise of your leadership team and their ability to deliver the business plan.

3. The products and services section

The products and services section of your electrical company business plan should include a detailed description of what your company sells to its customers. 

For example, your electrical company might offer wiring and installation services, such as for electrical outlets, lighting fixtures, and safety inspections. It might also offer repair and maintenance services, like for circuit breakers, thermostats, and generators. Finally, it might offer energy solutions, such as solar panel installation, energy audits, and energy efficiency upgrades. These services provide customers with reliable and efficient electrical solutions for their homes and businesses, as well as the assurance that they are safe and compliant with local codes.

The reader will want to understand what makes your electrical company unique from other businesses in this competitive market.

When drafting this section, you should be precise about the categories of products or services you sell, the clients you are targeting and the channels that you are targeting them through. 

4. The market analysis

When outlining your market analysis in the electrical company business plan, it's essential to include comprehensive details about customers' demographics and segmentation, target market, competition, barriers to entry, and relevant regulations.

The primary aim of this section is to give the reader an understanding of the market size and appeal while demonstrating your expertise in the industry.

To begin, delve into the demographics and segmentation subsection, providing an overview of the addressable market for your electrical company, key marketplace trends, and introducing various customer segments and their preferences in terms of purchasing habits and budgets.

Next, shift your focus to the target market subsection, where you can zoom in on the specific customer segments your electrical company targets. Explain how your products and services are tailored to meet the unique needs of these customers.

For example, your target market might include young professionals who are interested in energy efficiency. This segment likely values the latest technology and gadgets and is willing to pay a premium for high-end products. They are likely to be tech-savvy and interested in products that help them reduce their energy consumption and save money.

In the competition subsection, introduce your main competitors and explain what sets your electrical company apart from them.

Finally, round off your market analysis by providing an overview of the main regulations that apply to your electrical company.

5. The strategy section

When crafting the strategy section of your business plan for your electrical company, it's important to cover several key aspects, including your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, clearly explain what sets your company apart from competitors. This is particularly critical if you're a startup, as you'll be trying to establish your presence in the marketplace among entrenched players.

The pricing strategy subsection should demonstrate how you aim to maintain profitability while offering competitive prices to your customers.

For the sales & marketing plan, outline how you plan to reach and acquire new customers, as well as retain existing ones through loyalty programs or special offers.

In the milestones subsection, detail what your company has achieved thus far and outline your primary objectives for the coming years by including specific dates for expected progress. This ensures everyone involved has clear expectations.

Lastly, in the risks and mitigants subsection, list the main risks that could potentially impact the execution of your plan. Explain the measures you've taken to minimize these risks. This is vital for investors or lenders to feel confident in supporting your venture - try to proactively address any objection they might have.

Your electrical company could face a number of risks. For example, it may be exposed to financial risks due to fluctuations in the market or changes in interest rates. It could also face operational risks such as power outages, equipment malfunctions, or cyberattacks. These risks could have the potential to cause financial losses, reputational damage, or operational disruptions. It is important for your electrical company to be aware of the risks it may face and take proactive steps to mitigate them.

6. The operations section

The operations of your electrical company must be presented in detail in your business plan.

Begin by addressing your staff, specifying the main roles and your recruitment plan to support the anticipated growth. Outline the qualifications and experience needed for each role and discuss your recruitment strategies, which may involve using job boards, referrals, or headhunters.

Next, clearly state your electrical company's operating hours, allowing the reader to gauge the adequacy of your staffing levels. Additionally, mention any considerations for varying opening times during peak seasons and your approach to handling customer queries outside regular operating hours.

The key assets and intellectual property (IP) required to run your business should also be highlighted. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, ensure they are well-documented in this section.

You may have key assets such as specialized tools and equipment necessary for electrical processes, as well as intellectual property such as blueprints and patents for specific designs. These assets and IP could be integral to running your electrical company, allowing you to produce products and services that may bring value to your customers.

Finally, provide a comprehensive list of suppliers you intend to collaborate with, along with a breakdown of their services and main commercial terms, such as price, payment terms, break clauses and contract duration. Investors often seek insight into the reasons behind your supplier choices, which may include a preference for higher-quality products or established relationships from past ventures.

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of an electrical company business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my electrical company's business plan?

In this section, we will be reviewing the two main options for writing an electrical company business plan efficiently:

• Using specialized software,
• Outsourcing the drafting to the business plan writer.

Using an online business plan software for your electrical company's business plan

Using online business planning software is the most efficient and modern way to create an electrical company business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your electrical company's business plan

Outsourcing your electrical company business plan to a business plan writer can also be a viable option.

These writers possess valuable experience in crafting business plans and creating accurate financial forecasts. Additionally, enlisting their services can save you precious time, enabling you to concentrate on the day-to-day operations of your business.

It's important to be mindful, though, that hiring business plan writers comes with a cost. You'll be paying not just for their time but also for the software they use, and their profit margin.

Based on experience, a complete business plan usually requires a budget of at least £1.5k ($2.0k) excluding tax, and more if revisions are needed after initial meetings with lenders or investors - changes often arise following these discussions.

When seeking investment, be cautious about spending too much on consulting fees. Investors prefer their funds to contribute directly to business growth. Thus, the amount you spend on business plan writing services and other consulting services should be negligible compared to the amount you raise.

Another aspect to consider is that while you'll receive the output of the business plan, you usually won't own the actual document. It will be saved in the consultant's business plan software, which will make updating the plan challenging without retaining the consultant on a retainer.

Given these factors, it's essential to carefully weigh the pros and cons of outsourcing your electrical company business plan to a business plan writer and decide what best suits your business's unique needs.

Why not create your electrical company's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write an electrical company business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my electrical company business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

• Word processors don't include instructions and examples for each part of your business plan
• Word processors don't update your numbers automatically when they change in your forecast
• Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating an electrical company business plan for some entrepreneurs, it is by far not the best or most efficient solution.

• Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
• A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
• A business plan has 2 main parts: a financial forecast outlining the funding requirements of your electrical company and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your electrical company business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.

Also on The Business Plan Shop

• How to write a business plan to secure a bank loan?
• What is the price of a business plan?
• How to present your sales and marketing strategy in your business plan?
• Internal business plan guide
• Key steps to write a business plan?
• Top mistakes to avoid in your business plan

Do you know entrepreneurs interested in starting or growing an electrical company? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Electrical Contractor Business Plan Sample

Dec.30, 2020

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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.

excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

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

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Home » Sample Business Plans » Wholesale & Retail

How to Write an Electrical Shop Business Plan [Sample Template]

Are you about starting an electrical shop? If YES, here is a detailed sample electrical shop business plan template & FREE feasibility report. Businesses that are worth going for are businesses that you are certain people would need your services or products regularly.

An electrical shop falls into this category. Part of what you need to do to make headway in this line of business is to ensure that your store is intentionally positioned and you a have good business relationship with construction contractors and key players in the real estate industry.

One good thing about this type of business is that you don’t need to enroll in a conventional school to learn how to start and run this type of business; you just require basic business skills such as knowledge of electric equipment, customer service, accounting skills, bargaining skills, people skills cum networking skills and of course overall business management skills.

Over and above, if you have decided to start an electrical shop business, then you should ensure that you carry out your feasibility studies and also market survey. Below is a sample electrical shop business plan template that can help you to successfully write your own with little or no difficulty.

A Sample Electrical Shop Business Plan Template

1. industry overview.

Electrical store business is part of the Electrical Equipment Wholesaling industry and this industry consists of businesses that are into the sale and supply of wiring, lighting fixtures and light bulbs, relay and industrial controls, switchgear and switchboard apparatus, motors and generators, power and distribution transformers and other electrical equipment.

On the average, an electrical supply company distributes electrical construction materials, such as wiring supplies, electrical light fixtures, light bulbs, security systems, electrical power equipment, switchboards, circuit breakers and fuses to construction companies. Hence, demand from building, developing and general contracting largely determines industry revenue growth.

In addition, demand for many of the industry’s products depends on industrial production and electrical power consumption. As manufacturing activity in the economy increases and those companies invest in equipment, they purchase industry goods to both outfit their factories and to act as intermediary components.

If you are a close watcher of the Electrical Equipment Wholesaling industry, you will agree that over the past five years, the Electrical Equipment Wholesaling industry has struggled to rebuild itself, even as the overall economy strengthens.

Industry goods are purchased by professional contractors and consumers engaged in remodeling and construction projects. Rising consumer confidence and household income have helped ignite remodeling activity forestalled during the recession, providing additional demand for electrical equipment used in home improvement projects. Even so, rising competition from large home improvement stores has stifled revenue growth for electrical supply stores.

Statistics has it that in the united states of America alone, there are about 17,709 registered and licensed electrical supply stores responsible for employing about 226,258 people and the industry rakes in a whooping sum of $179 billion annually. The industry is projected to grow at 2.2 percent annual growth within 2013 and 2018. It is important to state that The Electrical Equipment Wholesaling industry has no companies with major market shares.

A recent report published by IBISWORLD shows that over the past five years, the Electrical Equipment Wholesaling industry has grown by 2.2 percent to reach revenue of $179bn in 2018. In the same timeframe, the number of businesses has grown by 0.7 percent and the number of employees has grown by 3.6 percent.

The Electrical Equipment Wholesaling industry is highly regulated in the United States of America and anyone who aspires to start an electrical supply business must apply and obtain a license before they can legally operate in the industry.

If you are contemplating opening an electrical shop business in the United States, you should ensure that you carry out a thorough market survey and feasibility studies so you that you will be able to get the ideal location to launch your electrical shop business. The truth is that, if you get some key factors wrong before starting your own business, then you are likely going to struggle to stay afloat.

2. Executive Summary

Allan Pearson® Electrical Shop, Inc. is a registered electrical equipment store business that will be located in one of the busiest streets in Kansas City – Missouri. We have been able to lease a facility that is big enough (a 5 thousand square foot facility) to fit into the kind of standard electrical equipment store that we intend launching and the facility is located in the heart of Kansas City – Missouri.

Allan Pearson® Electrical Shop, Inc. will retail electrical equipment and materials, such as wiring supplies, electrical light fixtures, light bulbs, security systems, electrical power equipment, switchboards, circuit breakers and fuses et al to customers. We are set to service a wide range of clientele in and around Kansas City – Missouri.

We are aware that there are several electrical equipment stores all around Missouri, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors. We have an online – service option for our customers, and our outlet has various payment options.

Allan Pearson® Electrical Shop, Inc. will ensure that all our customers are given first class treatment whenever they visit our electrical equipment store. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they may grow to. We will ensure that we get our customers involved in the selection of brands that will be in our store and also when making some business decisions.

Allan Pearson® Electrical Shop, Inc. is a family business that is owned by Allan Pearson and his immediate family members. Allan Pearson has a B.Sc. in Business Administration, with over 10 years’ experience in the electrical equipment wholesaling industry, working for some of the leading brands in the United States. Although the business is launching out with just one outlet in Kansas City – Missouri, but there is a plan to open other outlets around major cities in the United States of America.

3. Our Products and Services

Allan Pearson® Electrical Shop, Inc. is in the electrical equipment wholesaling industry to service a wide range of clients which is why we will ensure we make available a wide range of electrical equipment from top manufacturing brands in the United States and other countries of the world.

We will do all that is permitted by the law of the United States to achieve our aim and ambition of starting the business. Some of the products in our store are listed below;

• Wiring/cables
• Lighting fixtures and light bulbs
• Relay and industrial controls
• Switchgear and switchboard apparatus
• Motors and generators
• Power and distribution transformers
• Major appliance
• Microcontroller
• Programmable logic controller
• Small appliances
• Other electrical equipment.

4. Our Mission and Vision Statement

• Our vision is to become the leading brand in the electrical equipment wholesaling industry in Missouri and to establish a one stop electrical equipment store chains in Kansas City and in other key cities in the United States of America.
• Our mission is to establish a world – class electrical equipment store that will make available a wide range of electrical equipment from top electrical manufacturing brands at affordable prices in Kansas City – Missouri and other key cities in the United States of America via franchising.

Our Business Structure

Allan Pearson® Electrical Shop, Inc. is looking towards building a standard business that can be listed among the top – flight electrical supply stores not just in Kansas City – Missouri but throughout the United States of America. For that singular reason, we will make sure that establish the business on a solid structure.

We will ensure that we hire people who are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders. 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 ten years or more.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Store Manager
• Human Resources and Amin Manager

Merchandize Manager

Sales and Marketing Manager

• Accountants / Cashiers
• Customer Services Executive

Truck and Van Drivers

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
• 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 fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• 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 induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.

Store Manager:

• Responsible for managing the daily activities in the store/warehouse
• Ensures that proper records of electrical equipment are kept and warehouse does not run out of products
• Ensures that the store facility is in tip top shape and goods are properly arranged and easy to locate
• Interfaces with electrical equipment manufacturers
• Controls electrical equipment distribution and supply inventory
• Supervises the workforce in the electrical equipment sales floor.
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure consistent quality of electrical equipment are purchased and retailed/supplied in good price that will ensure we make good profit
• Responsible for the purchase of electrical equipment for the organizations
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• 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 purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization
• Assists in loading and unloading goods/electrical equipment
• Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
• Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
• Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
• Collects and verifies delivery instructions
• Reports defects, accidents or violations

Client Service Executive

• 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 customers on the phone, uses every opportunity to build client’s interest in the company’s products
• Manages administrative duties assigned by the human resources and admin manager 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 customers when they make enquiries

6. SWOT Analysis

Any profitable business or a business with prospects is bound to be competitive and as a new business, you must be ready to compete in the industry and competing in the industry means that you must follow due process in establishing a business.

We are quite aware that there are several electrical equipment stores all over Kansas City and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Allan Pearson® Electrical Shop, Inc. employed the services of an expert HR and Business Analyst with bias in supply store chain business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our goals and objectives. This is the summary of the SWOT analysis that was conducted for Allan Pearson® Electrical Shop, Inc.;

Our business is located in a city with heavy construction and real estate activities and also, we can boast of having good business relationship with top manufacturers in the electrical equipment manufacturing industry and construction contractors in and around Kansas City – Missouri.

A major weakness that may count against us is the fact that we don’t have our own electrical equipment production plant, we are a new electrical equipment store and we don’t have the financial capacity to compete with multi – million dollars electrical equipment stores when it comes to retailing electrical equipment at a rock bottom price.

• Opportunities:

The fact that we are going to be operating our electrical equipment store in one of the busiest construction locations in Kansas City – Missouri provides us with unlimited opportunities to sell our electrical equipment to a large number of construction contractors.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they order electrical equipment from us; we are well positioned to take on the opportunities that will come our way.

A major threat that we are going to face as an electrical supply business operating in the United States of America is uncertainty in government policies as it relates to price control and influx of electrical equipment manufactured outside the United States of America.

When the prices charged by manufacturers to wholesalers’ decline, wholesalers typically have to reduce their selling prices to retailers. This results in subdued revenue growth for wholesalers, even if demand expands.

7. MARKET ANALYSIS

• Market Trends

If you are conversant with the electrical equipment stores Industry, you will quite agree that the changes in disposable income, consumer sentiment, ever changing trends and of course the rate of homeownership are major growth drivers for this industry.

A massive rise in consumer confidence has also contributed in helping the industry experience remarkable growth, but uneven performance in these drivers has led to slightly constrained revenue growth.

So also, the rising demand for both building renovations, as a result of increasing disposable income and consumer sentiment, will result in revenue growth, but profit margins will stagnate as electrical equipment stores keep prices low to attract more sales amid growing competition.

A close watch of industry activities reveals that, the retail market for electrical equipment was hit hard by the recent economic downturn and experienced a decline in revenue in recent time. The construction of new homes is a primary market for industry products, so as housing stats increase, demand tends to follow.

Moreover, as home builders have increased their use of electronics, demand for complementary electrical equipment has risen. In 2018, housing stats increased, presenting a potential opportunity for the industry. As part of marketing strategies, electrical equipment stores partner with key players in the construction and real estate industry. They are in the best position to offer you electrical equipment supply contract.

8. Our Target Market

We have positioned our electrical equipment store to service the construction industry in Kansas City – Missouri. We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us. We are in business to supply a wide range of electrical equipment to the following;

• Construction Companies
• Construction Contractors
• Home Remodeling Companies
• Facility managers
• Households in and around our store locations

Our Competitive Advantage

A close study of the industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiff competition and we are prepared to compete favorably with other leading electrical equipment stores in Kansas City – Missouri and throughout the United States.

Allan Pearson® Electrical Shop, Inc. is launching a standard electrical equipment store that will indeed become the preferred choice for key players in the construction cum real estate industry in Kansas City – Missouri. Our electrical equipment store is located in a corner piece property in the largest electrical equipment market in Kansas City – Missouri. We have enough parking space that can accommodate over 10 cars/trucks per time.

One thing is certain, we will ensure that we have a wide range of electrical equipment available in our store at all times. It will be difficult for customers to visit our store and not see the type of electrical equipment that they are looking for.

One of our business goals is to make Allan Pearson® Electrical Shop, Inc. a one stop electrical equipment shop for customers at all levels. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Allan Pearson® Electrical Shop, Inc. will retail a wide range of electrical equipment to businesses in Kansas City – Missouri. We are in the electrical equipment wholesaling industry to maximize profits and we are going to ensure that we achieve or business goals and objectives.

Allan Pearson® Electrical Shop, Inc. will generate income by;

10. Sales Forecast

One thing is certain when it comes to electrical equipment stores, if your store is stocked with various types of electrical equipment and centrally positioned, you will always attract customers cum sales and that will translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Kansas City – Missouri and we are quite optimistic that we will meet our set target of generating enough income/profits from our first six months of operation and grow the business and our clientele base.

We have been able to examine the electrical equipment wholesaling industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for Allan Pearson® Electrical Shop, Inc., it is based on the location of our business and other factors as it relates to electrical equipment stores startups in the United States;

• First Fiscal Year:  $350,000
• Second Fiscal Year:  $550,000
• Third Fiscal Year:  $750,000

N.B : This projection was 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 retailing same electrical equipment and customer care 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

Before choosing a location for Allan Pearson® Electrical Shop, Inc., we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for key players in the industry in Kansas City – Missouri. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the electrical equipment stores industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Kansas City – Missouri.

In summary, Allan Pearson® Electrical Shop, Inc. will adopt the following sales and marketing approach to win customers over;

• Open our electrical equipment store in a grand style with a party for all.
• Introduce our electrical equipment store by sending introductory letters alongside our brochure to construction companies, construction contractors, home remodeling companies and other key stake holders in Kansas City – Missouri
• Ensure that we have a wide range of electrical equipment from different manufacturing brand at all times.
• Make use of attractive hand bills to create awareness and also to give direction to our electrical equipment store
• Position our signage/flexi banners at strategic places around Kansas City – Missouri
• Position our greeters to welcome and direct potential customers
• Create a loyalty plan that will enable us reward our regular customers
• List our business and products on yellow pages ads (local directories)
• Leverage on the internet to promote our business
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Despite the fact that our electrical equipment store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our electrical equipment store.

Allan Pearson® Electrical Shop, Inc. has a long – term plan of opening outlets in various locations all around Missouri and key cities in the United States which is why we will deliberately build our brand to be well accepted in Kansas City before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Allan Pearson® Electrical Shop, Inc.;

• Place adverts on community – based newspapers, radio and TV stations
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms and other platforms to promote our business.
• Ensure that our we position our banners and billboards in strategic positions all around Kansas City – Missouri
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Advertise our electrical equipment store business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and trucks and ensure that all our staff members wear our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Aside from quality, pricing is one of the key factors that gives leverage to electrical equipment stores, it is normal for consumers to go to places where they can get electrical equipment at cheaper price which is why big players in the industry attract loads of clients.

We know we don’t have the capacity to compete with multi – million dollar electrical equipment supply stores but we will ensure that the prices and quality of all the electrical equipment that are available in our store are competitive with what is obtainable amongst stores within our level.

• Payment Options

The payment policy adopted by Allan Pearson® Electrical Shop, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America. Here are the payment options that Allan Pearson® Electrical Shop, Inc. will make available to her clients;

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

In view of the above, we have chosen banking platforms that will enable our client make payment for purchase of our electrical equipment without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for products purchased.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget for establishing a standard electrical equipment supply business in Kansas City – Missouri and here are the key areas where we will spend our startup capital;

• The total fee for registering the Business in Kansas City – Missouri – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
• Marketing promotion expenses for the grand opening of Allan Pearson® Electrical Shop, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• The cost for hiring Business Consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $65,600.
• The cost for shop/warehouse remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for start-up inventory (stocking with a wide range of electrical construction materials, such as wiring supplies, electrical light fixtures, light bulbs, security systems, electrical power equipment, switchboards, circuit breakers and fuses) – $250,000
• The cost for counter area equipment – $9,500
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost of purchase and installation of CCTVs – $10,000
• The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost of launching a Website – $600
• Miscellaneous – $10,000

We would need an estimate of $450,000 to successfully set up our electrical equipment store in Kansas City – Missouri.

Generating Funds/Startup Capital for Allan Pearson® Electrical Shop, Inc.

Allan Pearson® Electrical Shop, Inc. is a private business that is solely owned and financed by Allan Pearson and his immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from the bank

N.B: We have been able to generate about $150,000 (Personal savings $100,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

Part of the plans we have in place to sustain Allan Pearson® Electrical Shop, Inc. is to ensure that we continue to make available a wide range of electrical equipment, retail our products at competitive prices, improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers

From our findings, another factor that kills new business is financial leakages. In order to plug financial leakages, the management of Allan Pearson® Electrical Shop, Inc. adopt the use of payment machine and accounting software to run the business.

Allan Pearson® Electrical Shop, 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 re – training of our workforce is at the top burner.

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 Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the shop: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Purchase of initial supply of electrical construction materials, such as wiring supplies, electrical light fixtures, light bulbs, security systems, electrical power equipment, switchboards, circuit breakers and fuse: In Progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Compilation of our list of products that will be available in our store: Completed
• Establishing business relationship with vendors – manufacturers of electrical equipment and construction contractors: In Progress

More on Wholesale & Retail

Free PDF Business Plan Templates and Samples

By Joe Weller | September 9, 2020

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We’ve gathered the most useful collection of business plan PDF templates and samples, including options for organizations of any size and type.

On this page, you’ll find free PDF templates for a simple business plan , small business plan , startup business plan , and more.

Simple Business Plan PDF Templates

These simple business plan PDF templates are ready to use and customizable to fit the needs of any organization.

Simple Business Plan Template PDF

This template contains a traditional business plan layout to help you map out each aspect, from a company overview to sales projections and a marketing strategy. This template includes a table of contents, as well as space for financing details that startups looking for funding may need to provide. 

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Lean Business Plan Template PDF

This scannable business plan template allows you to easily identify the most important elements of your plan. Use this template to outline key details pertaining to your business and industry, product or service offerings, target customer segments (and channels to reach them), and to identify sources of revenue. There is also space to include key performance metrics and a timeline of activities. 

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Simple 30-60-90 Day Business Plan Template PDF

This template is designed to help you develop and implement a 90-day business plan by breaking it down into manageable chunks of time. Use the space provided to detail your main goals and deliverables for each timeframe, and then add the steps necessary to achieve your objectives. Assign task ownership and enter deadlines to ensure your plan stays on track every step of the way.

Download Simple 30-60-90 Day Business Plan Template

PDF | Smartsheet

One-Page Business Plan PDF Templates

The following single page business plan templates are designed to help you download your key ideas on paper, and can be used to create a pitch document to gain buy-in from partners, investors, and stakeholders.

One-Page Business Plan Template PDF

Use this one-page template to summarize each aspect of your business concept in a clear and concise manner. Define the who, what, why, and how of your idea, and use the space at the bottom to create a SWOT analysis (strengths, weaknesses, opportunities, and threats) for your business. 

Download One-Page Business Plan Template

If you’re looking for a specific type of analysis, check out our collection of SWOT templates .

One-Page Lean Business Plan PDF

This one-page business plan template employs the Lean management concept, and encourages you to focus on the key assumptions of your business idea. A Lean plan is not stagnant, so update it as goals and objectives change — the visual timeline at the bottom is ideal for detailing milestones. 

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One-Page 30-60-90 Day Business Plan Template

Use this business plan template to identify main goals and outline the necessary activities to achieve those goals in 30, 60, and 90-day increments. Easily customize this template to fit your needs while you track the status of each task and goal to keep your business plan on target. 

Download One-Page 30-60-90 Day Business Plan Template

For additional single page plans, including an example of a one-page business plan , visit " One-Page Business Plan Templates with a Quick How-To Guide ."

Small Business Plan PDF Templates

These business plan templates are useful for small businesses that want to map out a way to meet organizational objectives, including how to structure, operate, and expand their business.

Simple Small Business Plan Template PDF

A small business can use this template to outline each critical component of a business plan. There is space to provide details about product or service offerings, target audience, customer reach strategy, competitive advantage, and more. Plus, there is space at the bottom of the document to include a SWOT analysis. Once complete, you can use the template as a basis to build out a more elaborate plan. 

Download Simple Small Business Plan Template

Fill-In-the-Blank Small Business Plan Template PDF

This fill-in-the-blank template walks you through each section of a business plan. Build upon the fill-in-the-blank content provided in each section to add information about your company, business idea, market analysis, implementation plan, timeline of milestones, and much more.

Download Fill-In-the-Blank Small Business Plan Template - PDF

One-Page Small Business Plan Template PDF

Use this one-page template to create a scannable business plan that highlights the most essential parts of your organization’s strategy. Provide your business overview and management team details at the top, and then outline the target market, market size, competitive offerings, key objectives and success metrics, financial plan, and more.

Download One-Page Business Plan for Small Business - PDF

Startup Business Plan PDF Templates

Startups can use these business plan templates to check the feasibility of their idea, and articulate their vision to potential investors.

Startup Business Plan Template

Use this business plan template to organize and prepare each essential component of your startup plan. Outline key details relevant to your concept and organization, including your mission and vision statement, product or services offered, pricing structure, marketing strategy, financial plan, and more.

‌Download Startup Business Plan Template

Sample 30-60-90 Day Business Plan for Startup

Startups can use this sample 30-60-90 day plan to establish main goals and deliverables spanning a 90-day period. Customize the sample goals, deliverables, and activities provided on this template according to the needs of your business. Then, assign task owners and set due dates to help ensure your 90-day plan stays on track.

‌Download Sample 30-60-90 Day Business Plan for Startup Template 

For additional resources to create your plan, visit “ Free Startup Business Plan Templates and Examples .”

Nonprofit Business Plan PDF Templates

Use these business plan PDF templates to outline your organization’s mission, your plan to make a positive impact in your community, and the steps you will take to achieve your nonprofit’s goals.

Nonprofit Business Plan Template PDF

Use this customizable PDF template to develop a plan that details your organization’s purpose, objectives, and strategy. This template features a table of contents, with room to include your nonprofit’s mission and vision, key team and board members, program offerings, a market and industry analysis, promotional plan, financial plan, and more. This template also contains a visual timeline to display historic and future milestones.

Download Nonprofit Business Plan Template - PDF

One-Page Business Plan for Nonprofit Organization PDF 

This one-page plan serves as a good starting point for established and startup nonprofit organizations to jot down their fundamental goals and objectives. This template contains all the essential aspects of a business plan in a concise and scannable format, including the organizational overview, purpose, promotional plan, key objectives and success metrics, fundraising goals, and more.

Download One-Page Business Plan for Nonprofit Organization Template - PDF

Fill-In-the-Blank Business Plan PDF Templates

Use these fill-in-the-blank templates as a foundation for creating a comprehensive roadmap that aligns your business strategy with your marketing, sales, and financial goals.

Simple Fill-In-the-Blank Business Plan PDF

The fill-in-the-blank template contains all the vital parts of a business plan, with sample content that you can customize to fit your needs. There is room to include an executive summary, business description, market analysis, marketing plan, operations plan, financial statements, and more. 

Download Simple Fill-In-the-Blank Business Plan Template - PDF

Lean Fill-In-the-Blank Business Plan PDF

This business plan is designed with a Lean approach that encourages you to clarify and communicate your business idea in a clear and concise manner. This single page fill-in-the-blank template includes space to provide details about your management team, the problem you're solving, the solution, target customers, cost structure, and revenue streams. Use the timeline at the bottom to produce a visual illustration of key milestones. 

Download Fill-In-the-Blank Lean Business Plan Template - PDF

For additional resources, take a look at " Free Fill-In-the-Blank Business Plan Templates ."

Sample Business Plan PDF Templates

These sample business plan PDF templates can help you to develop an organized, thorough, and professional business plan.

Business Plan Sample 

This business plan example demonstrates a plan for a fictional food truck company. The sample includes all of the elements in a traditional business plan, which makes it a useful starting point for developing a plan specific to your business needs.

Download Basic Business Plan Sample - PDF

Sample Business Plan Outline Template

Use this sample outline as a starting point for your business plan. Shorten or expand the outline depending on your organization’s needs, and use it to develop a table of contents for your finalized plan.

Download Sample Business Plan Outline Template - PDF

Sample Business Financial Plan Template

Use this sample template to develop the financial portion of your business plan. The template provides space to include a financial overview, key assumptions, financial indicators, and business ratios. Complete the break-even analysis and add your financial statements to help prove the viability of your organization’s business plan.

Download Business Financial Plan Template

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For more free, downloadable templates for all aspects of your business, check out “ Free Business Templates for Organizations of All Sizes .”

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Electronics Shop Business Plan

The advancement in technology is wild, and so is the upgradation of electronic appliances. Therefore, starting an electronics shop is a profitable venture.

Anyone can start a new business, but you need a detailed business plan when it comes to raising funding, applying for loans, and scaling it like a pro!

Need help writing a business plan for your electronics shop? You’re at the right place. Our electronics shop business plan template will help you get started.

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Download our Free Business Plan Template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write An Electronics Shop Business Plan?

Writing an electronics shop business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the whole business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Product offering:.

• For instance, you may include televisions, audio speaker sets, laptops, tablets, mobile phones, etc as some of your products.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information:

Describe what kind of electronics shop you run and the name of it. You may specialize in one of the following electronics shop businesses:

• Retail electronics store
• Online electronics store
• Specialized electronics store
• Wholesale electronics supplier
• Electronic repair shop
• Describe the legal structure of your electronics shop, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

• Additionally, If you have received any awards or recognition for excellent work, describe them.

Future Goals

This section should provide a thorough understanding of your business, its history, and its plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

• For instance, general consumers, tech enthusiasts, small business owners, or gamers would be an ideal target audience for a commercial electronics shop.

Market size and growth potential:

• For instance, the electronics shop industry was $159.6 billion in 2022, so it is crucial to define the segment of your target market and its growth potential.

Competitive Analysis:

Market trends:.

• For instance, smart home devices have a booming market; explain how you plan on dealing with this potential growth opportunity.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your electronic store business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Electronics shop’s products:

Mention the electronics shop products your business will offer. This list may include,

• Smartphones
• Audio speakers
• Televisions
• Smart home devices
• All other electrical appliances & accessories

Quality measures:

• This may include product authenticity & legitimacy, product inspection & testing, product warranty & guarantee, etc.

Additional Services

In short, this section of your electronics shop plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

• For example, expert staff & technical support, a wide product range, or competitive pricing could be some of the great USPs for a professional electronics shop.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your electronics shop business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your electronics shop, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & software:.

• Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your electronics shop’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

• It should include, senior management, and other department managers (e.g. operations manager, technical service manager.) involved in the electronics shop business operations, including their education, professional background, and any relevant experience in the industry.

Organizational structure:

Compensation plan:, advisors/consultants:.

• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your electronics shop services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your electronics shop business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample electronics shop business plan will provide an idea for writing a successful electronics shop plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our electronics shop business plan pdf .

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Frequently asked questions, why do you need a food distribution business plan.

A business plan is an essential tool for anyone looking to start or run a successful electronics shop. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your electronics shop.

How to get funding for your electronics shop?

There are several ways to get funding for your electronics shop, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your electronics shop?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your electronics shop business plan and outline your vision as you have in your mind.

What is the easiest way to write your electronics shop business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any electronics shop business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

Can a good electronics shop business plan help me secure funding?

Indeed. A well-crafted electronics shop business plan will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Steakhouse Business Plan PDF Example

• May 7, 2024
• Business Plan

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

This article not only breaks down the critical components of a steakhouse 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 food and beverage industry, this guide, complete with a business plan example, lays the groundwork for turning your steakhouse concept into reality. Let’s dive in!

Our steakhouse business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the steakhouse’s operations, marketing strategy , market environment, competitors, management team, and financial forecasts.

• Executive Summary : Provides an overview of your steakhouse’s business concept, market analysis , management, and financial strategy.
• Restaurant & Location: Describes the steakhouse’s design, location, and seating capacity. Details about the culinary focus on high-quality, ethically sourced meats are also highlighted.
• Operations: Covers the daily operations, supply chain management, and customer service approach.
• Key Stats: Shares industry size , growth trends, and relevant statistics for the steakhouse market.
• Key Trends: Highlights recent trends affecting the steakhouse sector, including the shift towards premium, sustainably sourced meats and enhanced customer engagement strategies.
• Key Competitors : Analyzes main competitors in the area and how your steakhouse differs from them.
• SWOT: Strengths, weaknesses, opportunities, and threats analysis.
• Marketing Plan : Strategies for attracting and retaining customers.
• Timeline : Key milestones and objectives from start-up through the first year of operation.
• Management: Information on who manages the steakhouse and their roles.
• Financial Plan: Projects the steakhouse’s 5-year financial performance, including revenue, profits, and expected expenses.

Steakhouse Business Plan

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Executive Summary

The Executive Summary introduces your steakhouse’s business plan, offering a concise overview of your restaurant and its offerings. It should detail your market positioning, the range of steak and other culinary offerings available, its location, size, and an outline of day-to-day operations.

This section should also explore how your steakhouse will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your steakhouse’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 steakhouse’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 steakhouse’s financial plan.

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

Dive deeper into Executive Summary

Business Overview

For a steakhouse, the Business Overview section can be concisely divided into 2 main slides:

Restaurant & Location

Our steakhouse features an elegant design and a warm ambiance, located conveniently near lively entertainment spots with ample parking. This prime location is ideal for attracting a diverse clientele, including business professionals and families looking for a premium dining experience.

Day-to-day operations focus on serving high-quality steaks and complementary dishes, maintaining rigorous standards from sourcing to presentation. Key staff include a head chef and a sommelier, supported by advanced reservation and point of sale systems to ensure efficient service and customer satisfaction.

Make sure to cover here _ Restaurant & Location _ Operations

Market Overview

Industry size & growth.

In the Market Overview of your steakhouse business plan, start by examining the size of the restaurant industry, specifically focusing on the premium dining and steakhouse segment, and its growth potential. This analysis is crucial for understanding the market’s scope and identifying opportunities for expansion.

Key Market Trends

Proceed to discuss recent market trends , such as the increasing consumer interest in high-quality, locally-sourced meats, the rise of farm-to-table dining experiences, and innovative culinary techniques. For example, highlight the demand for dishes that cater to specific dietary preferences and the growing popularity of gourmet and artisanal experiences.

Key Competitors

Then, consider the competitive landscape, which includes a range of dining establishments from high-end steakhouses to more casual grill-centric restaurants, as well as the rise of home-cooking and meal kit trends. For example, emphasize what makes your steakhouse distinctive, whether it’s through exceptional customer service, a unique range of menu offerings, or specialization in specific types of cuts or preparation methods. This section will help articulate the demand for premium dining services, the competitive environment, and how your steakhouse is positioned to thrive within this dynamic market.

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

Dive deeper into Key competitors

First, conduct a SWOT analysis for the steakhouse, highlighting Strengths (such as high-quality ingredients, skilled chefs, and a well-designed dining space), Weaknesses (including high operational costs or intense competition in the dining sector), Opportunities (for example, an increasing trend in premium dining experiences and a growing demand for locally-sourced meats), and Threats (such as economic downturns that may decrease consumer spending on high-end restaurants).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain customers through targeted advertising, promotional discounts, an engaging social media presence, and community involvement. Emphasize creating experiences that encourage customer loyalty and word-of-mouth referrals, such as wine pairing nights, chef’s special events, and loyalty rewards programs.

Finally, create a detailed timeline that outlines critical milestones for the steakhouse’s opening, marketing efforts, customer base growth, and expansion objectives, ensuring the business moves forward with clear direction and purpose. This timeline should include key dates for the launch of new menu items, the initiation of promotional campaigns, and the evaluation of customer feedback to refine dining experiences.

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

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the steakhouse’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 steakhouse toward its financial and operational goals.

For your steakhouse 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 yoursteakhouse’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 steakhouse 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

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