I. Executive Summary
This Section's Contents
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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 Mgt./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:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
