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Electrical Contractor Business Plan

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Premiere Electric

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

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

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

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

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

Competition

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

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

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

Expectations

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

Financial Highlights by Year

Financing needed.

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

Problem & Solution

Problem worth solving.

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

Our Solution

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

Target Market

Market size & segments.

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

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

COMMERCIAL CONSTRUCTION FORECAST

RETAIL STORES AND MALLS

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

COMMERCIAL WAREHOUSES

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

MULTIFAMILY HOUSING

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

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

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

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

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

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.

Our biggest savings of the year

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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 Business Plan PDF

You can download our electrical business plan PDF to help you get started on your own business plan.

If you are looking for the quickest and easiest way to complete your business plan, Growthink’s Ultimate Business Plan Template has numerous features not available in the free template including its financial projections template which automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements.

Don’t you wish there was a faster, easier way to finish your electrical business plan?

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Electrical Contracting Business Plan

Soaring demands, high-profit margins, and a recurring revenue model make starting an electrical contracting business a lucrative and rewarding profession.

The market for electrical contractors is highly saturated. If you want to capitalize on the opportunity and make a profitable business venture out of it, you need a detailed business plan that can help raise the funds.

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

Free Business Plan Template

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• Fill in the blanks – Outline
• Financial Tables

How to Write An Electrical Contracting Business Plan?

Writing an electrical contracting 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 entire 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. This section may include the name of your electrical contracting business, its location, when it was founded, the type of electrical contracting business (E.g., residential contracting, commercial contracting, industrial contracting, maintenance and repair contracting), etc.
• Market Opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Products and Services: Highlight the electrical contracting services you offer your clients. The USPs and differentiators you offer are always a plus. For instance, you may include planning and designing, installation, maintenance, repairs, and upgrades as services and mention expertise in specialty systems and renewable energy installations as some of your USPs.
• Marketing & Sales Strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial Highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to Action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

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:

• Residential contracting
• Commercial contracting
• Industrial contracting
• Specialty contracting
• Describe the legal structure of your electrical contracting company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.
• Owners: List the names of your electrical contracting company’s founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission Statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Business History: If you’re an established electrical contracting service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc. Additionally, If you have received any awards or recognition for excellent work, describe them.
• Future Goals: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

This section should provide a thorough understanding of your business, its history, and its future 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: Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers. For instance, residential townships and homeowners would be an ideal target audience for a residential electrical contracting business.
• Market size and growth potential: Describe your market size and growth potential and whether you will target a niche or a much broader market. For instance, Electrical contracting is a 225-billion-dollar industry as a whole with huge growth potential. However, it’s crucial to define how narrow or broad you target your market to identify your SOM(serviceable obtainable market).
• Competitive Analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your electrical contracting services from them. Point out how you have a competitive edge in the market.
• Market Trends: Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends. For instance, smart home electrical contracting has a booming market; explain how you plan on dealing with this potential growth opportunity.
• Regulatory Environment: List regulations and licensing requirements that may affect your electrical contracting company, such as business registration, contractor license, permits, insurance, environmental regulations, state and federal regulations, etc.

Here are a few tips for writing the market analysis section of your electrical contracting 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 products and services section should include the following:

• Electrical installations
• Electrical repairs
• Electrical design services
• Maintenance and upgrades
• Electrical systems
• Fire alarm systems
• Security systems
• Data cabling – Telecommunication
• Home automation systems
• Quality measures: This section should explain how you maintain quality standards and consistently provide the highest quality service. This may include compliance with regulations and codes, quality assurance processes, and training and education.
• Additional Services: Mention if your electrical contracting company offers any additional services. You may include services like smart home integrations, renewable energy installations, etc.

In short, this section of your electrical contracting 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): Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies. For example, IoT and smart home integrations and energy management solutions could be some of the great USPs for a residential electrical contracting company.
• Pricing Strategy: Describe your pricing strategy—how you plan to price your contracting services and stay competitive in the local market. You can mention any entry offers you plan on offering to attract new customers to your contracting service.
• Marketing Strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, Google ads, brochures, email marketing, content marketing, local marketing, and print marketing.
• Sales Strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include direct sales calls, partnering with related businesses like real estate companies, offering referral programs, etc.
• Customer Retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, discounts on annual membership, proactive service and maintenance, personalized service, etc.

Overall, this section of your electrical contractor 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 electrical contracting business, 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: Mention your contracting business’s staffing requirements, including the number of employees, i.e. electrical engineers, electricians, and office administrative staff needed. Include their qualifications, the training required, and the duties they will perform.
• Operational Process: Outline the processes and procedures you will use to run your electrical contracting business. Your operational processes may include project planning, making installations, logistics, procuring materials, acquiring new clients, and billing and collection.
• Equipment & Machinery: Include the list of equipment and machinery required for electrical contracting, such as testing and measuring tools, hand and power tools, heavy machinery, safety equipment, etc. 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 electrical contracting business’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: Mention the founders and CEO of your electrical contracting company, and describe their roles and responsibilities in successfully running the business.
• Key managers: Introduce your management and key members of your team, and explain their roles and responsibilities. It should include, key executives(e.g. COO, CMO.), senior management, and other department managers (e.g. project managers, operations manager, customer services manager.) involved in the electrical contracting business operations, including their education, professional background, and any relevant experience in the electrical industry.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation Plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.
• Advisors/Consultants: Mentioning advisors or consultants in your business plans adds credibility to your business idea. 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 electrical contracting 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: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement . Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance Sheet: Create a projected balance sheet documenting your electrical contracting business’s assets, liabilities, and equity.
• Break-even point: Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal. This exercise will help you understand how much revenue you need to generate to sustain or be profitable.
• Financing Needs: Calculate costs associated with starting an electrical contracting business, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

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 electrical contracting 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 electrical contracting 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 electrical contracting business plan will provide an idea for writing a successful electrical contracting 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 electrical contracting business plan pdf .

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Frequently Asked Questions

Why do you need an electrical contracting business plan.

A business plan is an essential tool for anyone looking to start or run a successful electrical contracting business. 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 electrical contracting company.

How to get funding for your electrical contracting business?

There are several ways to get funding for your electrical contracting business, 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.

How do I write a good market analysis in an electrical contracting business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry. We can categorize the process of writing a good market analysis section into the following steps:

• Stating the objective of your market analysis—e.g., investor funding.
• Industry study—market size, growth potential, market trends, etc.
• Identifying target market—based on user behavior and demographics.
• Analyzing direct and indirect competitors.
• Calculating market share—understanding TAM, SAM, and SOM.
• Knowing regulations and restrictions
• Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

How detailed should the financial projections be in my electrical contracting business plan?

The level of detail of the financial projections of your electrical contracting business may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a comprehensive view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

Can a good electrical contracting business plan help me secure funding?

Indeed. A well-crafted electrical contracting business 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.

What's the importance of a marketing strategy in an electrical contracting business plan?

Marketing strategy is a key component of your electrical contracting business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having an impactful marketing strategy:

• It provides your business an edge over your competitors.
• It helps investors better understand your business and growth potential.
• It helps you develop products with the best profit potential.
• It helps you set accurate pricing for your products or services.

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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Electrician Business Plan Template & PDF Example

• September 4, 2024

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

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

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

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

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

Electrician Business Plan Template (Download)

Fully editable 30+ slides Powerpoint presentation business plan template.

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

Executive Summary

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

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

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

Electrician Business Plan Executive Summary Example

Business Overview

In the  business overview  section of an executive summary, the focus is on presenting a clear picture of the company’s operational model, services offered, and any unique aspects that distinguish the business from its competitors.

This section is crucial as it conveys to investors and partners what the business does, how it operates, and what makes it special. It should include details such as the range of services, location, operational hours, and any specialized offerings.

For a service-based business like an electrician service, this section would also highlight qualifications, certifications, and specific areas of expertise. The goal is to succinctly inform stakeholders about the core aspects of the business, setting the stage for understanding its place in the market.

Example: For a company like Electricity Plus, the business overview would detail its comprehensive range of electrical services, its strategic location for efficient service delivery, and its commitment to using advanced technology and eco-friendly solutions. This overview would emphasize the company’s ability to meet diverse electrical needs, from routine maintenance to emergency repairs.

Market Overview

The  market analysis  section of an executive summary provides an overview of the industry in which the business operates. It should include information about the  market size , growth rate,  key trends , and  competitive landscape .

This section is important because it gives context to the business’s operational environment, showing how the company fits within the broader industry.

It should identify the primary drivers of demand in the market, any regulatory considerations, and how the business is positioned relative to its competitors. For investors and partners, this section helps assess the market opportunity and the company’s potential to capture market share.

Example: In the case of Electricity Plus, the market analysis would cover the size and growth rate of the U.S. electrical services market, highlighting trends such as the increasing demand for smart and energy-efficient solutions. It would also address the competitive landscape, showing how Electricity Plus stands out with its specialized services and technological expertise.

Management Team

This section of the executive summary outlines the composition and background of the management team, emphasizing their relevant experience and skills.

It’s crucial because the capabilities and track record of the management team are often key determinants of a business’s potential for success.

This section should highlight each member’s industry experience, areas of expertise, and their roles within the company. For investors and partners, understanding who is behind the business and their qualifications can provide confidence in the company’s ability to execute its business plan.

Example: For Electricity Plus, this section would focus on the credentials and experience of the CEO and COO, detailing their backgrounds in electrical work and business operations. It would highlight their complementary skills in project management, customer relations, and strategic business development.

Financial Plan

The financial plan overview in an executive summary presents the key financial targets and objectives of the business, such as revenue goals and profit margins.

This section is important as it provides a snapshot of the financial health and ambitions of the company. It should give a clear picture of the expected financial performance over a specific period, including any significant financial strategies or initiatives. For stakeholders, this section helps assess the viability and profitability of the business, as well as the feasibility of the financial projections.

Example: In Electricity Plus’s financial plan overview, the focus would be on achieving specific revenue and profit margin targets by a certain year. This would include their strategies for growth, such as expanding service offerings or targeting new market segments, and how these strategies are expected to impact financial performance.

Services & Fees

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

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

Industry Size & Growth

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

Key Market Trends

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

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your electrician business in the market and its key competitors; it’s also a fundamental component of your business plan.

This analysis helps identify your electrician business’s unique selling points, which are essential for differentiating your business in a competitive market.

In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying Your Competitors in the Electrical Services Industry

The first phase of the analysis involves pinpointing direct and indirect competitors in the local market. Direct competitors might include other local electricians, electrical contracting firms, or companies specializing in specific electrical services such as home automation or solar panel installations. Indirect competitors could be handymen offering electrical services or larger companies that provide a range of home maintenance solutions.

Utilizing tools like Google Maps can assist in mapping out the geographic distribution of competitors. Online platforms like Angie’s List or HomeAdvisor can provide customer reviews and ratings, offering valuable insights into competitors’  strengths and weaknesses . For instance, if “Bright Sparks Electrical” receives high praise for prompt service and expertise in rewiring homes, this indicates a significant strength to consider.

Electrician Business Competitors’ Strategies

Analyzing competitors’ strategies involves a multi-faceted approach:

• Service Offerings:  Evaluate the range of services provided by competitors. For instance, if “EcoTech Electrical” emphasizes eco-friendly electrical solutions like energy-efficient lighting or sustainable wiring, it signifies a  market trend  toward environmentally conscious services.
• Technological Adaptation:  Consider the integration of technology in service delivery. An electrician firm like “SmartWired Solutions” might specialize in smart home installations, catering to a distinct customer segment compared to traditional electricians.
• Pricing Models:  Compare pricing structures with competitors. Are your rates aligned with those of “ValueVolt Electric,” or do they mirror the premium  pricing strategies  of “Precision Power Services”?
• Marketing Approaches:  Assess how competitors market their services. Do they leverage digital  marketing channels  effectively or rely more on traditional advertising methods?
• Customer Experience:  Analyze the customer experience provided by competitors. For example, “Swift Sparks Electric” might be known for exceptional after-service support and a user-friendly appointment scheduling system, contributing to a positive customer experience.
• Operational Efficiency:  Observe competitors’ operational strategies. Are there innovative processes, like efficient scheduling systems or transparent pricing models, that distinguish them in the market?

What’s Your Electrician Business’s Value Proposition?

Reflect on your electrician business’s  unique value proposition . Perhaps your company specializes in emergency services, providing 24/7 support, or maybe it focuses on commercial electrical maintenance for local businesses.

Identify gaps in the market through client feedback and industry trends. For instance, with the increasing demand for energy-efficient solutions, there might be an opportunity to introduce specialized energy audits or green technology installations if competitors are not addressing this need.

Consider your location: An electrician business situated in an area with older homes might emphasize expertise in historical electrical systems, while one in a tech-savvy neighborhood could highlight proficiency in smart home installations.

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

Marketing Plan

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

Marketing Channels

Leveraging diverse marketing channels amplifies your reach and engagement with potential clients.

Digital Marketing

• Optimize Online Presence:  Ensure your website is not just informative but also user-friendly and mobile-responsive. Implement search engine optimization (SEO) strategies to improve visibility in local search results for electrical services.
• Social Media Engagement:  Engage with your audience by sharing informative content, safety tips, project showcases, and client testimonials on platforms like Facebook, Instagram, LinkedIn, and Twitter. Encourage interactions and respond promptly to inquiries or comments.
• Email Marketing:  Develop an email list through your website or networking events. Send regular newsletters with valuable content, industry updates, and exclusive offers to keep your audience engaged.

Local Advertising

• Direct Community Engagement : Apart from online efforts, invest in local directories, business listings, and community-specific publications. Sponsor local events or participate in neighborhood initiatives to foster a stronger local presence.
• Educational Workshops:  Offer free workshops or seminars on electrical safety, energy-saving tips, or smart home technology in collaboration with community centers or local organizations. This not only showcases expertise but also builds trust among potential customers.

Promotional Activities

Incorporate attractive promotional strategies to capture the attention of potential clients.

• Seasonal Deals:  Introduce seasonal promotions like discounted safety inspections before winter storms or special rates for lighting upgrades during the festive season.
• Referral Programs:  Incentivize your existing client base to refer friends, family, or colleagues by offering discounts or additional services for successful referrals. Word-of-mouth remains a potent marketing tool in the service industry.

Sales Channels

Implementing effective sales strategies ensures not just customer acquisition but also long-term satisfaction and loyalty.

Client Engagement During Service

• Upselling Opportunities:  While conducting electrical repairs or installations, recommend additional services or upgrades that enhance safety, efficiency, or convenience. For instance, suggest surge protectors, energy-efficient lighting, or smart home automation systems.
• Product Recommendations:  Provide insights into the best electrical products or devices suited to your clients’ needs. This could include guidance on choosing reliable appliances, recommending durable wiring materials, or suggesting eco-friendly solutions.

Online Booking and Sales

• Streamline Booking Processes:  Simplify appointment scheduling through an intuitive online booking system on your website or social media platforms. Offer incentives like priority scheduling or discounts for online bookings to encourage clients to use this convenient option.
• E-Commerce Integration:  Expand your revenue streams by selling electrical products, home automation devices, or safety equipment directly through your website. Offer expert advice or recommendations for products that align with your clients’ needs.

Membership and Loyalty Programs

Encourage Repeat Business: Develop programs that foster loyalty and encourage ongoing engagement.

• Membership Benefits:  Create membership or subscription plans offering discounted rates or exclusive benefits for regular clients requiring frequent electrical services or maintenance.
• Loyalty Rewards:  Implement a digital loyalty program where clients earn points for each service availed. These points can be redeemed for discounts, free services, or upgrades, encouraging repeat business and customer retention.

Strategy Timeline

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

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

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

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

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

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

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

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Electrical Contractor Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Construction & Engineering

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

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

A Sample General Electrical Contractor Business Plan Template

1. industry overview.

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

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

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

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

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

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

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

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

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

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

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

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

2. Executive Summary

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

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

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

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

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

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

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

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

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

3. Our Products and Services

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

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

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

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

4. Our Mission and Vision Statement

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

Our Business Structure

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

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

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

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

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

Electrical Engineers and Electricians

Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

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

Head, Technical Services (Senior Electrical Engineer):

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

Admin and HR Manager

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

Sales and Marketing Manager

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

Accountant / Cashier:

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

6. SWOT Analysis

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

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

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

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

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

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

• Opportunities:

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

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

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

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

7. MARKET ANALYSIS

• Market Trends

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

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

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

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

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

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

8. Our Target Market

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

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

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

Our Competitive Advantage

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

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

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

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

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

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

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

9. SALES AND MARKETING STRATEGY

• Sources of Income

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

10. Sales Forecast

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

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

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

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

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

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

• Marketing Strategy and Sales Strategy

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

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

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

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

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

11. Publicity and Advertising Strategy

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

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

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

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

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

12. Our Pricing Strategy

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

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

• Payment Options

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

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

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

13. Startup Expenditure (Budget)

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

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

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

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

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

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

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

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

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

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

14. Sustainability and Expansion Strategy

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

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

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

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

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

Check List / Milestone

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

Electrical Contractor Business Plan Template

Written by Dave Lavinsky

Electrical Business Plan

You’ve come to the right place to create your electrical contracting 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 businesses.

Sample Business Plan for an Electrical Contracting Business

Below is a business plan example to help you create each section of your electrical contracting business plan.

Executive Summary

Business overview.

Oak City Electric, located in Raleigh, NC, is a newly established family owned and operated electrical contracting business. The company provides electrical 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 contractor company.

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 services. Services offered 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 contracting businesses 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.

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.

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

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

Industry Analysis

The electrical contracting 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 electrical installations. 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 strategies 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 business operations. 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

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 who oversaw hundreds of projects, Randy has the proper knowledge and experience to own, manage, and operate his own electrical contracting firm. He also has built a loyal client base, with many clients promising to use his services once the company is fully running.

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, free sample electrical business plan pdf.

You can download our free electrical business plan PDF here . This is a sample business plan template you can use in PDF format. You can easily complete your Electrical Contractor business plan using our Electrical Contractor Business Plan Template here .

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 strategy and details your financial projections.

What are the Main Types of Electrical Contractor Businesses?

There are a number of different kinds of electrical 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 business 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 market research to determine your 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 business 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