Electrical Contractor Business Plan Template

Electrical Contractor Business Plan Template

If you want to start an Electrical Contractor business or expand your current Electrical Contractor business, you need a business plan.

The following Electrical Contractor business plan template gives you the key elements to include in a winning Electrical Contractor business plan.

You can download our Electrical Contractor business plan template (including a full, customizable financial model) to your computer here.
 

Sample Electrical Contractor Business Plan Template

I. Executive Summary

Business Overview

[Company Name], located in [insert location here], is a local 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, [Company Name] is set to establish itself as one of [Location]’s most trusted and reliable electrical contractors.

[Company name] was founded by [Founder’s Name]. [Founder] has been an electrician in the community for over 40 years. [Founder] has always wanted to own and operate his own electrical contracting company for many years now, but wanted to wait until his sons were old enough and attained their electrician’s license. He knew the company would be his legacy and offer his sons and their families a reliable and reputable career. Through his knowledge and ability to follow through to address each of his clients issues, [Founder] has gained an immense following and is the most requested electrical contractor in the greater [location] area.

Services Provided

[Company Name] will provide a variety of different electrical contractor services. The services include Smart Home installation, Security Systems, Home Theater Installation, Camera Systems, LED Lighting Retrofit, Residential Electrical, Commercial Electrical, Industrial Electrical, Audio Visual Solutions, Lighting Control, and Network Systems.

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

Customer Focus

[Company Name] will primarily serve the residents within a 1 to 50-mile radius of our location. The demographics of these residents are as follows:

• 862,989 residents
• Average income of $36,000
• 59.3% married
• 41% in Management/Professional occupations
• Median age: 39 years

Of the above-mentioned residents, there are about 76% of single family homes that will likely require electrical work. There are also over 1 million square feet of industrial and warehouse space and there is another 1 million in the planning stages of development for another industrial park to be built.

Management Team

[Company Name] is led by [Founder’s Name], a local electrician who has worked for the largest electrical contractor company in [location] for over 40 years. [Founder] 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, [Founder] has the proper knowledge and experience to own, manage, and operate his own electrical contracting company.

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

• The company will be providing electrical contracting services to the local market that its competition does not yet provide.
• The company will have a full fleet of vans and trucks to be able to properly and professionally serve [location] and its surrounding communities.
• The owner has a positive reputation in the community and is widely requested for electrical projects of all sizes.
• The pricing model is competitive with other electrical contractor companies.
• [Company Name] is fully licensed, bonded, and insured.

Financial Highlights

[Company Name] is seeking a total funding of $625,000 of debt capital to open its electrical contracting company.

• Warehouse design/build-out: $100,000
• Equipment and fleet of vehicles: $300,000
• Initial inventory: $100,000
• Working capital: $125,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

 

II. Company Overview

Who is [Company Name]?

[Company Name], located in [insert location here] is a newly established family owned and operated electrical contracting company. The company will provide a full range of electrical services to not just [location], but the surrounding towns. [Company Name] will provide electrical services for residences, businesses, industrial projects, and newly developed homes and warehouses. [Company Name] will be centrally located in town to allow its fleet of vehicles and electricians to be dispatched at a moment’s notice and be able to reach the requested destination in a timely manner. With the ever-changing technological landscape for homes and businesses, [Company Name] is in a unique position to succeed as it will be providing smart home and security solutions that other older already established electrical companies do not yet provide.

[Company Name] was founded by [Founder’s Name], a local electrical contractor who has worked at a large electrical and mechanical contractor company for over 40 years. [Founder] has overseen contracting projects of all sizes and has managed crews of dozens of contractors. [Founder] has realized that more skilled and technological electrical needs are now required for modern homes and warehouses that the local electrical contracting companies do not provide. His priority is to train all of his employees in the new technological electrical advancements so that they will become the premier electrical contracting company in the area.

[Founder] 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 a warehouse and company headquarters where the equipment and vehicles will be kept. Due to his experience and reputation in the electrical contractor industry, [Founder] has been able to receive written commitments from large development companies in [location] for them to be the preferred electrical subcontractor for their upcoming projects.

[Company Name]’s History

Once his market analysis was complete, [Founder’s Name] began surveying the local vacant warehouse space and decided on an available space with plenty of surface parking to house the company’s large fleet of vans and trucks. [Founder’s Name] incorporated [Company Name] as a Limited Liability Corporation on [date of incorporation].

Once the lease is acquired for the warehouse 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 a vacant warehouse that would be ideal for the company
• Developed the company’s name, logo, and website located at [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
• Attained Letters of Intent from large industrial clients
• Began recruiting key employees that are licensed and trained as electrical contractors

[Company Name]’s Products/Services

Below are [Company Name]’s product offerings:

1. Smart Home Installation
2. Security System Installation
3. Home Theater Installation
4. Camera System Installation
5. LED Lighting Retrofit
6. Residential Electrical
7. Commercial Electrical
8. Industrial Electrical
9. Audio Visual Solutions
10. Lighting Control
11. Network System Installation

 

III. Industry Analysis

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

Over the next five years, industry revenue is expected to grow at a faster rate, largely as a result of pent-up demand. As the economy booms, the value of nonresidential construction and per capita disposable income are both anticipated to increase and contribute to industry revenue growth. In addition, the industry is projected to benefit from continued renovation and retrofitting activity, particularly green upgrades, such as energy-efficiency projects and smart home technologies.

 

IV. Customer Analysis

Demographic Profile of Target Market

[Company Name] will serve the community residents of [company location] and its surrounding areas.

The community of [company location] has thousands of single family homes that will likely require electrical work. There are also a number of 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:

1. Residences: There are a number of residences that will require electrical work as there are a large amount of homes that are over 20 years old. These jobs are small but frequent.
2. Industrial Parks: Warehouses regularly require lighting and wiring electrical work.
   Large General Contractors: The company will target developers and/or general contractors for them to be the preferred subcontractor for all electrical work.

 

V. Competitive Analysis

Direct & Indirect Competitors

The following businesses are located within a 30-mile radius of [Company Name], thus providing either direct or indirect competition for customers:

Wallmore Electrical Contractors

Established in 1977, Wallmore is [location]’s largest and most requested electrical contractor. The company has grown itself to be the premier electrical contractor as it has completed dozens of projects over the years and has grown its workforce to over 100 employees and electricians. The company was formed as a small family company and later acquired another electrical company in the area to allow itself to grow and add more services. They also have a very capable fleet of vans and trucks that are able to travel not just around the city, but across the state as well. The company specializes in electrical lighting systems, such as LED retrofit, residential, commercial, industrial, and landscape lighting. They are also a preferred subcontractor to numerous large general contractors to complete their electrical projects for them. The projects range in size from residential developments to commercial remodeling and warehouse improvements.

We-Do-It-All Electrical & Mechanical Contractors

We-Do-It-All Electrical & Mechanical Contractors offers a complete electrical company to commercial industrial customers. The company offers a quick response to proposals and system installation services. Their team of well-trained and experienced electricians are capable of performing complicated projects with precision under tight time constraints. The company has a lead industrial electrical contractor and commercial electrician that provides the design and implementation that is required for the project. He focuses on communicating with the client through the entire process; from initial planning and design to final implementation and testing. We-Do-It-All also places an emphasis on safety as they offer incentives for safe performance for all of their licensed electricians on staff.

Gamma Ray Electrical & Mechanical Contractors

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

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

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. Those advantages include:

• Technology: [Company Name]’s will be able to provide the latest advancements in electrical contracting.
• Price: [Company Name] is able to offer their services at the best and most competitive price.
• Community Relations: [Company Name] 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: [Company Name] will be led by [Founder] and his sons. They will employ a staff that has all the necessary training and licenses for all types of electrical work.

 

VI. Marketing Plan

You can download our Electrical Contractor business plan template (including a full, customizable financial model) to your computer here.

[Company Name] seeks to position itself as a high-quality electrical contractor in the industry. Consumers can expect to receive high quality electrical services from skilled contractors in [location] who are trained and certified in the latest electrical technological advancements.

The [Company Name] Brand

The [Company Name] 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

[Company Name] expects its target market to be family households and general contractors living and working within a 20-30-mile radius of its location. [The Company’s] promotion strategy to reach these individuals includes:

Social Media

[Company Name] will invest heavily in a social media advertising campaign. The company will hire a brand manager to create the company’s social media accounts and invest in ads on all social media accounts. It will use targeted marketing to appeal to the target demographics.

Major Publications

We will also invest in advertising in selected larger publications until we have achieved significant brand awareness. Advertisements such as billboards and commercials will be shown during peak TV watching time and the billboards will be placed in highly trafficked areas.

Website/SEO

[Company Name] will invest heavily in developing a professional website that displays all 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.

Community Events

The company will have tables and booths set up at local community events to hand out free flyers, brochures, and other promotional materials to get the word out about the new company.

Sponsorships

[Company Name] will also invest in sponsoring certain nonprofit events so that their banners and collateral material are displayed all over the event where numerous clients will potentially be.

Networking Events

[Company Name] will attend all networking events related to business, real estate development, and general contracting. It will become a member of the community’s chamber of commerce and the sons will network with the decision makers of large companies who have either committed to be a client or will be a potential client.

Pricing Strategy

[Company Name]’s pricing will be moderate, so clients feel they receive great value when utilizing the company’s electrical contracting services.

 

VII. Operations Plan

Functional Roles

[Company Name] will carry out its day-to-day operations as an electrical contractor company. There will also be numerous administrative functions involved.

In order to execute on [Company Name]’s business model, the Company needs to perform several functions. [Company Name] anticipates using the services of X employees, divided into the following roles.

Service Functions

• Team of electrical contractors
• Electrical contractor leads (project managers)

Administrative Functions

• General and administrative functions including legal/compliance, marketing, bookkeeping, etc.
• Hiring and training staff
• Scheduling and dispatching of staff to projects
• Brand management/social media
• Inventory and supply management

Milestones

The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

 

VIII. Management Team

Management Team Members

[Company Name] is owned by [Founder’s Name], a local electrical contractor who has worked at a large electrical and mechanical contractor company for over 40 years. [Founder] has overseen contracting projects of all sizes and has managed crews of dozens of contractors. [Founder] has realized that more skilled and technological electrical needs are now required for modern homes and warehouses that the local electrical contracting companies do not provide. His priority is to train all of his employees in the new technological electrical advancements so that they will become the premier electrical contracting company in the area.

[Founder] will employ his two sons to also be part of the management team of [company name]. They will be responsible for networking with clients, organizing projects, managing staff, and overseeing the quality of work that is performed by the staff of electrical contractors.

Hiring Plan

[Founder] will serve as the Owner and Manager of [Company Name]. In order to launch, he needs to hire the following personnel:

• Operations Manager: 2 full-time employees to manage the day-to-day electrical contractor duties and assist [Founder] with managerial duties.
• Electrical Contractor staff: 5-6 full-time licensed electricians who will work every day from 8:00 am – 5:00 pm and occasionally on-call for off-hours projects.
• Office staff: 3–4 employees who will manage the phone calls, scheduling, accounting, marketing, clerical, bookkeeping, billing, and any administrative task required.
• Brand manager: 1 full-time employee who will be responsible for developing and launching the brand; manage the website, and social media accounts.
• Janitorial staff: 2 employees who will clean the warehouse once it has closed for the day. This may be outsourced to a third party cleaning company.

 

IX. Financial Plan

Revenue and Cost Drivers

[Company Name]’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 [Company Name]. The major cost drivers for the company’s operation will consist of:

• Salaries
• Electrical supplies and equipment
• Fuel for business vehicles
• Business Insurance
• Lease on warehouse and utilities
• Taxes

Ongoing marketing expenditures are also notable cost drivers for [Company Name].

Capital Requirements and Use of Funds

[Company Name] is seeking total funding of $625,000 of debt capital to open its manufacturing facility. The capital will be used for funding the warehouse lease for the company headquarters, equipment, supplies, fleet of vehicles, hiring initial employees, marketing and branding expenses, and working capital.

Specifically, these funds will be used as follows:

• Warehouse design/build-out: $100,000
• Equipment and fleet of vehicles: $300,000
• Initial inventory: $100,000
• Working capital: $125,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model:

 
5 Year Annual Income Statement

 
5 Year Annual Balance Sheet

 
5 Year Annual Cash Flow Statement