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Electronic Engineering Business Plan

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Rosafarbenes Nilpferd & Sons Engineering, Inc.

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.">.

Rosafarbenes Nilpferd & Sons Engineering, Inc. (RNSE) has established a strong foothold in a niche technology market for Product Category One* devices. The potential market demand of 180 million units far outstrips the capacity of present suppliers and is growing at a rate of 22% annually. RNSE’s success in taking advantage of this boom market is evidenced by its recent growth in sales and profitability. Sales are projected to grow from the first quarter of Year 1 total of $280,000 to $1,600,000 by the end of the first year, and to exceed $14 million by the end of the third year of operations. A similar growth pattern will cause before tax profits to rise significantly by the end of Year 1 and continue increasing through the end of Year 3. These results will be achieved without large additions to fixed assets. A relatively small banking facility will be needed in the form of a line of credit of $150,000-$200,000 to support the necessary growth in current assets, half of which will represent prime corporate receivables.

*Note: Propriety and confidential information has been disguised or removed from this sample plan.

1.1 Objectives

While working to develop Rosafarbenes Nilpferd & Sons Engineering’s image as the premier maker of Product Category One devices with the latest cutting-edge technology, the measurable objectives are:

• Complete work to make RNSE’s products compatible with at least five of the most popular first-tier operating systems (by end Month 5, Year 1), and at least three others within one year. 
• Complete a thorough website redesign and get out a quality mailer to 300 Value Added Resellers (VARs) (by end Month 6, Year 1). 
• On the basis of a professional media analysis, arrange an effective advertising campaign in trade publications designed to target the telecommunications, industrial automation, and instrumentation sectors (by end Month 7, Year 1). 
• Through networking and partnering with operating system developers, technology manufacturers, and other industry players, arrange at least five banners/links on a reciprocal basis with key market-related websites.

1.2 Mission

Rosafarbenes Nilpferd & Sons Engineering’s mission is to develop cutting-edge Product Category 1 solutions for appliance and equipment makers who, due to the fast pace of technology, are under pressure to get their products to the market quickly. RNSE achieves this by maintaining a small “think tank” style technical team, outsourcing the manufacturing, and keeping a marketing offering which caters to the more demanding Product Category One requirements, leaving the simpler high-volume and price-sensitive market needs to the competition.

Note: Proprietary and confidential information has been disguised or omitted from this sample plan.

1.3 Keys to Success

The demand and growth potential is so overwhelming that success in selling Product Category 1 devices is virtually assured provided a few key aspects are kept in mind:

• There is no problem in contract manufacturing the devices, provided a ready stock of components is available. Careful planning in ordering sensitive components is essential, and sufficient financing must be in place to support long inventory periods. 
• Avoid time-consuming inquiries originating from outside the chosen market targets. Everyone is interested in Technology 1. It is important to weed through the inquiries and respond to those that fall within sales and marketing parameters (needs between 100 and several thousand units, designed for use with high-ticket sophisticated equipment). 
• Move quickly to build a brand awareness for cutting-edge reliability. The market need for Product Category 1 devices is potentially so large that more competitors can be expected. It will be more difficult to build an image later.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Rosafarbenes Nilpferd & Sons Engineering solely owned by Becket Nilpferd, has been in the high-tech business since 1992. To capitalize on the growing demand for the Product Category 1 devices, the company recently shifted from offering consulting services to the development of the Technology 1 hardware and software.  Its first prototype has been vastly popular with its clients and the company soon will start shipping the improved version of its device. The company positions itself as a developer of high-end devices and selectively targets telecommunications companies, as well as smaller industrial automation and instrumentation companies, that have strong demand for the high performance Product Category 1 devices.

2.1 Company History

Rosafarbenes Nilpferd & Sons Engineering was solely service-based for seven years, but as the market for Technology 2 systems began to appear, RNSE shifted its emphasis from consulting to the development of Technology 2 hardware and software. This explains why the Past Performance Table does not show inventory or accounts receivable in years 1997 and 1998. Consulting revenue dropped in 1998 as RNSE limited its consulting activities and began ramping up to produce its first product line which was introduced in 1999. Since then, earnings have increased dramatically from approximately $4,000 in 1998 to nearly $80,000 in 1999 which grew to over $110,000 in the first quarter of 2000.

2.2 Company Ownership

Rosafarbenes Nilpferd & Sons Engineering was incorporated as a “C” corporation in the state of Freedonia in 1992.  Becket Nilpferd is the founder, owner, and sole stockholder.  The company is not publicly traded at the time of this writing.

2.3 Company Locations and Facilities

Rosafarbenes Nilpferd & Sons Engineering presently operates from two large offices located in Fezzaewyg, Freedonia.  All manufacturing is out-sourced to contract manufacturers.

Rosafarbenes Nilpferd & Sons Engineering’s products are off-the-shelf ready platforms containing all the necessary infrastructure for Technology 1, so that appliance makers can immediately focus just on their own specific product applications.

3.1 Product Description

Rosafarbenes Nilpferd & Sons Engineering occupies an important segment of the “Technology 2 system” market.  A Technology 2 system is any system that is physically incorporated into a product that performs a dedicated function or specific application.  Consumer examples include kitchen appliances and home entertainment systems, whereas commercial examples are point-of-sale terminals, industrial process controls, etc.  The button you press which toggles back and forth between total miles travelled and the trip mileage is an example of the many Technology 2 systems found in new cars.

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RNSE makes these Technology 1 devices.  The basic device (here called Product Wrasse), about the size of a credit card, is comprised of:

• A central processing unit (CPU).  This is a very powerful chip supplied by Technology Manufacturer 1 which represents the computing brain. 
• FLASH chip.  This is memory capacity that does not die when power is turned off. 
• SDRAM chip.  Normal memory capacity. 
• A Controller.  This governs the data flow from the satellites to the server. 
• RNSE’s proprietary Product Blennie.
• Other elements like voltage regulators, electrical conduits to connect chips and external hook-ups.

The Product Wrasse, described above, would be bought by original equipment manufacturers (OEMs) to incorporate into their appliance (such as an odometer).  The unit might also be bought by an “integrator” who takes a basic odometer, plus the Product Wrasse, and adds some software to end up with a “smart” odometer which the market integrator then tries to sell to companies with fleets of vehicles that might have good need for this specialized product.  RNSE would configure the Product Wrasse so that it is compatible with the operating system used in the appliance, and would build in whatever FLASH and SDRAM capacity are needed for the designed purpose of the smart odometer.

RNSE’s third product is an add-on to the basic Product Wrasse and is called the Product Damselfish.  Going back to the odometer example: If the company with the fleet of vehicles would like to be able, once a certain mileage had been reached, to tell the driver: “Time for an oil change,” then the Technology 2 device would need to have audio capability.  Some applications might even need a video screen and a keyboard (like an ATM) for user interface.  These capabilities are available through Product Damselfish.

3.2 Competitive Comparison

OEMs who want to benefit from the trend toward Product Category One their products, typically outsource their needs.  This allows the OEMs to concentrate on the design and application of their specific appliance without having to worry about the Product Category One aspect.  Outsourcing this part saves the OEM in development costs, and more importantly, saves time in getting the appliance to the market.

The attached table is a schematic of the main recipients of this outsourcing and the major features of the Product Category One devices offered by each. 

• Outsource Provider 1.  The processor used is somewhat slower and parts costs are higher than with Technology Manufacturer 1’s CPU chip.  This company, by virtue of its parent being a contract manufacturer-assembler of smart devices, is primarily hardware-focused.  It would not be easy for Outsource Provider 1 to switch from Technology Manufacturer 2’s chip to Technology Manufacturer 1’s. 
• Outsource Provider 2.  This company seems to be market-segmenting to concentrate more on the multi-media market represented mainly by ATMs and kiosks (such as betting kiosks) which require a keyboard and a screen for user interface. 
• Outsource Provider 3.  This company moved in the wrong direction from the start by using their own proprietary software which is built into their devices.  This puts them at a real disadvantage.  Their devices are the slowest, and the least flexible, but still fine for certain non-demanding purposes.  The company has done some work for the HVAC market.  Their lower price reflects their limitations. 
• Outsource Provider 4.  This company, located in Vancouver, in close proximity to Software Manufacturer 1, is primarily a software company made up probably of ex-Software Manufacturer 1 people.  This explains their emphasis on the Technology 2 software.  Despite Software Manufacturer 1’s operating system dominance in one market, the Technology 2 market is different.  There are many widely-used Technology 2 operating systems.  This company buys their hardware from Outsource Provider 1. 
• Outsource Provider 5.  Outsource Provider 5 is a European-based company.  Its products are distributed and supported in America by a separate corporation in California.  This extra layer may explain the added price.  Specs are similar to those of Outsource Provider 1. 
• Rosafarbenes Nilpferd & Sons Engineering.  RNSE has made a considered effort to offer the fastest CPU chip and to build in the widest range of capacity (from low amounts of FLASH and SDRAM up to high amounts).  RNSE tries to make its units compatible with all the major top-tier Technology 2 world operating systems and will work with the second- and third-tiers as well.

3.3 Sales Literature

See the appendices for product data sheets.

** Appendix materials omitted in this sample plan.

3.4 Sourcing

The chips and other basic building blocks used in Rosafarbenes Nilpferd & Sons Engineering’s Product Category One platforms can be purchased from a number of large distributors.  Sourcing is not a problem, but order scheduling must be given careful attention.  Shortages can occur, making it necessary to order well in advance and to stockpile in order to make certain that sales does not outstrip production.

3.5 Technology

Technology is moving at a rapid pace.  The first commercial computer in the early 1970’s had a speed, measured in megahertz, of only 0.1 Mhz.  Now computers are on the market that race at 1,000 Mhz.  Although the speed may still increase, a bigger area for growth involves Technology 2 systems, (rather than personal computers) and especially the Technology 1 use of those Technology 2 systems.  In a speech by Hewlett Packard CEO, Carly Fiolani, aired on television 4/18/2000, in the future nearly….”every appliance, yes, even the toaster, will be connected to the Internet.” Ms.  Fiolani’s vision includes an “Information Utility” which, in her opinion, would work in a similar manner to the gas company, the electric or the water and sewer utility.  For all of the 20th century, manufacturers have produced their appliances under a certain protocol of “assumed power.” They have taken it for granted that every consumer has a Power Service Provider (PSP) that supplies 110 AC to wall sockets all through the house.  The appliance makers simply include a power cord and an appropriately sized plug.  The consumer merely plugs the unit in and pays for whatever power he actually uses.  The emerging technology now refers to another protocol of “assumed communication.”

Product Category One appliances are not going to be reserved for simple on/off features.  Now available on the market are many very sophisticated appliances such as a printer, a sewing machine with computerized embroidery capability, or data stream music.  At the moment these are PC-dependent.  Take a high-tech sewing machine like a Pfaff Model 7570.  This machine with its Technology 2 system can perform complex sequences of operations including executing pre-programmed patterns and monograms and fonts.  The difficult operations which are very user-interface intensive can be performed by the general-purpose PC into which the sewing machine (like a printer peripheral) is plugged instead of by the sewing machine’s Technology 2 system.  If this user-interface capability had to be built into the Technology 2 system of the sewing machine, the cost of that machine would skyrocket.  Likewise, the MP3 player (data stream music) is extremely CPU-intensive.  At the moment the encoding takes place on the general-purpose PC which allows the music player to have much lower requirements for CPU and memory.  These devices are essentially one step removed from the Internet.  Technology is moving quickly to remove the PC intermediary thus making the devices able to communicate directly with a content provider.  Those capabilities of the general-purpose PC will be replaced by the Internet itself thus making the appliances more flexible, more portable, and less expensive.  PCs themselves will metamorphose into very light-weight, very inexpensive units without hard disks and without extensive memory.  All these aspects will be provided by the Internet itself.

Need to use “Winword”? Just log onto the Internet and download the program or any other software you want.  And, it will always be the latest version.

Need file capacity? That too, can be provided by the Internet.  A user can move around the globe and access his/her files from a very portable laptop.  If the laptop is lost or damaged there will not be a crisis.  Simply buy another (for maybe $100).  All your files are safe, located elsewhere. 

Forrester Research predicts that by 2002 43% of all “smart” products will be non-PC devices.  According to International Data Corporation of Framingham, MA. by the year 2004 such appliances will exceed PCs. 

Market Analysis Summary how to do a market analysis for your business plan.">

The market for Product Category One devices is keyed to the production of Technology 2 microprocessors.  Over 180 million 32-bit microprocessors are being delivered annually.  Conservative estimates have the market growing at 22% annually.  Some estimates are much higher.  Market trends indicate that most, if not all, of these microprocessors will be wanting Technology 1.  At the present time, the number of makers of off-the-shelf Product Category One devices is limited and unlikely to be able to fill the demand.

4.1 Market Segmentation

Statistics related to Product Category One devices are very difficult to find, and when found, usually outdated.  A number of industry newsletters (Technology 2 Processor Watch, Microprocessor Report, Technology 2 Systems Programming) will give dollar figures from time to time for the total embedded market.  In 1999 the market was quoted to be $3.5 billion and expected to grow to $9 billion by 2003.  The Product Category One devices sold by RNSE are connected to this total Technology 2 product market.  The more products that are produced, the greater the demand for Technology 1.  According to Jim Turley, Editor-in-chief of Technology 2 Processor Watch…  “in 1997, more than 180 million Technology 2 32-bit microprocessors were shipped.  This does not include the 32-bit microprocessors placed in the 80 million PCs, the three million MACs, or the approximately one million work stations.” Mr. Turley’s article goes on to state that if the low-end 4-bit and 8-bit microprocessors were included, the totals would be more than doubled.  He estimates that there now exist about 35 low-end microprocessors in every middle-class North American home.  It is, however, the 32-bit sector that is growing fastest.  It is this sector that is most meaningful in projecting the market for RNSE’s products.  Of this total of 180 million 32-bit microprocessor units, the market research firm of Information Architects, claims that the market is broken up roughly into thirds:

• Office Automation (34%).  This included laser printers, faxes, feature phones, etc.
• Consumer (33%).  Includes video games, portable games, CD players, and high-end audio visual equipment.
• Communications (28%).  Includes network hubs, routers, switches, telephone infrastructure equipment.
• Automotive (3%).
• Military (1%).
• Other (1%).

Since the total dollar market is predicted to grow from $3.5 billion to $9 billion in the five years 1999-2003, we will assume a 22% annual growth rate over the next three years.  Although the 180 million shipped 32-bit microprocessor data was for 1997, we have not made any growth assumptions for the period 1997-1999, but will apply the 22% annual growth during the next three years to the 1997 data.  It is however highly likely that the market has grown substantially over that period 1997-1999.

In addition to the new Technology 2 microprocessors, there are hundreds of millions of older 4-bit, 8-bit and 16-bit boards that have already been sold.  These too, although ignored in the market study, represent a potential demand for Product Category One devices retrofitted into many of those microprocessors.

The 33% consumer share of the market is characterized by high production runs and price-sensitivity.  VCRs and MP3 players are good examples of products in this consumer market segment.  Similar comments can be made concerning the office automation market segment as well.

The third large sector of the market, telecommunications (28%) does not appear to be as price sensitive nor are production runs as large.  It is this sector that has so far accounted for the majority of Rosafarbenes Nilpferd & Sons Engineering’s sales.

The other category, representing only 1% of the total, probably includes various industrial automation products as well as testing and instrumentation.  These fields, although small in relation to the three major categories, still accounts for over two million microprocessors placed in high-ticket equipment, nearly all of which will need Internet connectivity.

The chart and table below summarize estimated domestic market potential for the RNSE’s products.  As stated above, RNSE will selectively focus on the telecommunications and other customer segments.

4.2 Target Market Segment Strategy

Rosafarbenes Nilpferd & Sons Engineering plans to concentrate on the telecommunications segment of the market (28% of total market) as well as the industrial automation and testing and instrumentation segments (1% of total) as these sectors are most likely to have more demanding requirements which are suited to RNSE’s premier, cutting-edge of technology architecture.  These sectors are most likely to be installing the Product Category 1 devices into high-ticket item instruments and appliances, thus making these clients less price-sensitive in relation to the high-volume consumer (MP3 players, Palm Pilots, etc).  VARs and OEMs (Fortune 500 as well as venture capital start-ups) connected with these market sectors are the most attractive target customers for RNSE.

4.2.1 Market Needs

4.2.2 market trends.

The market trend is to add Technology 1  to just about everything, leading eventually to a view of the future well-expressed by the CEO of Hewlett-Packard (see the section on Technology).  The trend is moving so quickly that the market is having problems keeping pace with the demand.  Reports of component shortages among chip makers have been in the business news.  For the foreseeable future, we can expect Technology 1 products to be a sellers’ market.

4.2.3 Market Growth

The market for 32-bit microprocessors totalled $3.5 billion in 1999 and is expected to grow to $9 billion by 2003.  This amounts to a 22% annual growth rate (see the section on Market Segmentation).  In 1997 180 million 32-bit microprocessors were delivered, not counting those that were used in computers and work stations.  A 22% growth rate comes to an additional 40 million annually.  Nearly all of these (180 million plus 40 million annually) will need Technology 1.  The total unit sales projected for Rosafarbenes Nilpferd & Sons Engineering in the third year will amount to only .00014 of that.  In the absence of more specific market data, we have projected market growth at 22% for every segment of the Technology 1 market, although it is likely that some segments will grow faster than 22% annually and others perhaps less.

4.3 Industry Analysis

The industry encompassing Technology 2 microprocessors, the operating systems housed in them, the makers of components used to build them, and the people developing software to make special applications possible is quickly mushrooming into one of the world’s largest industries.  To be successful in marketing a Product Category One device it is essential to understand the patterns and major players in the industry.

4.3.1 Competition and Buying Patterns

Currently, demand for the Product Category One devices outstrips supply.  With the trend of adding Technology 1 to almost any appliance, demand will continue to grow.  The variety of offered platforms and configurations of such devices lead to the market fragmentation where no incumbent company holds a major market share.  For low-end devices, pricing is one of the major factors.  However, for high-end devices, such as the products supplied by Rosafarbenes Nilpferd & Sons Engineering, high technical specification and flexibility with major operation systems are more important.

4.3.2 Main Competitors

The main competitors for Rosafarbenes Nilpferd & Sons Engineering’s products are listed in the section on Competitive Comparison.  The listed competition is unlikely to even come close to satisfying a small portion of the demand for Product Category One devices indicated by market research.  One hundred, eighty million 32-bit microprocessors being delivered annually with a projected growth rate of 22% is a huge market for Technology 1, not to mention the billions of microprocessors already delivered in stock configuration.  Obviously, much of the Technology 1 will be done by internal engineering.  But this option has serious drawbacks for the company trying to develop this feature on its own.  First, its engineers have to examine hardware and software options, which, given the number to choose from, could take months.

• Will the component support the input/output (I/O) requirements needed by the product?
• Do separate add-on components need to be designed and manufactured?
• Which operating system vendors support the component?
• Does the hardware vendor support the operating system (O/S) vendor?
• What about integration of the hardware and software?

After months of evaluation, and spending $25,000 on a leading real-time operating system (plus another $10,000-$20,000 buying and building hardware), more months will pass building, debugging, and integrating the operating system with the software.  More time is spent writing the application.  An engineer (who is an expert in the chosen operating system) will need to be hired, and each year another $5,000 will need to be spent in O/S upgrades and software.  Keeping up with protocols and standards will also take time away from development efforts.  In the end, hundreds of thousands of dollars can easily have been spent just on the task of adding Technology 1 to the product internally.  The end product, now including Technology 1, will have been delayed getting to market by six to nine months.  This delay to market aspect is the strongest deterrent to attempting to engineer one’s own Product Category One device.

4.3.3 Industry Participants

There are several major components in the industry:

Microprocessor Manufacturers The sheer variety and quantity of microprocessors is huge in relation to desktop computers.  There are only a few choices with desktop computers as Technology Manufacturer 1’s MMMM architecture increasingly dominates.  But with microprocessors there are NNNN, PPPP, QQQQ, MMMM, and RRRR which represent only a tiny fraction of the total volume of microprocessors shipped each year.  Even if we restrict the count to only 32-bit chips, there are more than 100 different microprocessors currently on sale.  This does not take count of the all the different speed grades or packaging options.  These 100 different microprocessors represent more than a dozen instruction-set architectures and more than 30 different vendors worldwide.  Some of these manufacturers have large sales forces and large marketing budgets.  The ability to attract the attention of one of these large manufacturers is key to marketing Product Category One devices.  If the Product Category One device uses an Technology Manufacturer 1 chip, Technology Manufacturer 1 has a vested interest in pushing its CPU customers to use that particular device.

Operating Systems Microprocessors must have an operating system in order to function.  Again, unlike the desktop market where DDDD dominates, there are many competing operating systems.  So many in fact that they are graded as “First Tier,” “Second Tier,” etc.  When a manufacturer of an automated milling machine chooses an Product Category One device, he will want one that is compatible with his chosen Technology 2’s operating system.  In fact, the first time he hears about a particular Product Category One device it is likely to be through the salesman who sold him his operating system.  If the operating system is GGGG, marketed by Software Manufacturer 2, for example, the salesman will recommend only Technology 1 devices that are compatible with GGGG.

Market Integrators Market Integrators are often referred to as value added resellers (VARs).  There are countless VARs who develop special applications which are usually industry-specific.  For example, Reseller 1 is a VAR engaged in software related to building maintenance.  This involves Product Category One thermostats and other building maintenance connected equipment in large office buildings.  These VARs are heavy users of Product Category One devices.

OEMs Original Equipment Manufacturers have quickly recognized the importance of adding the power of the Internet to their equipment, for example, the manufacturer of an automatic scale for use in a production line.  The scale will weigh every packet of tea passing along the belt to check that the weight is within certain tolerances.  If not, the packet is removed from the line by compressed air.  By adding Technology 1 to the scale, the scale’s activity no longer needs to be visually monitored by a human in the production hall, but can be remotely monitored from a central location.  This is especially interesting for a factory with a dozen production lines.  The same evolution is having an impact on almost every type of equipment.  The OEMs are important customers for Product Category One devices as the device adds very little cost relative to the ticket price of the equipment.

4.3.4 Distribution Patterns

There are large established distributors of microprocessor chips, and other components.  It is possible that one, or all, of these distributors may consider offering an Product Category One device soon with a few limited configurations.  However, the main distribution channel for RNSE’s products is direct.  The buyer may have heard about RNSE through an Technology Manufacturer 1 salesman, or through an operating system salesperson, but the sale would be handled directly.  Most inquiries come initially via telephone or email over RNSE’s website.

Strategy and Implementation Summary

Rosafarbenes Nilpferd & Sons Engineering’s marketing strategy will be to concentrate on the large telecommunication sector of the market (28% of 180 million units annually), as well as the smaller industrial automation, and the instrumentation sectors.  In keeping with RNSE’s trim organizational structure, growth in sales will be closely keyed to success in its partnering relationships with Technology Manufacturer 1 (its main component maker), developers of operating systems, as well as with suitable VARs.  It will be necessary to augment sales staff.  This “push” marketing will be supported by some “pull” marketing in the form of advertising in specialized trade publications.  At the moment supplying Product Category One devices is a sellers’ market, however, with demand projected to outstrip supply, more makers of these devices are likely to spring up.  It is important for RNSE to leverage its present ground-floor position in the supply of Technology 1 devices by building a market image that will make it difficult for later entrants to make in-roads into RNSE’s target market sectors.

5.1 Competitive Edge

Rosafarbenes Nilpferd & Sons Engineering’s competitive edge stems from the high technical specifications of its products.  The company develops top-of-the-line Product Category One devices that can work with all the major operating systems available in the market.  Further, RNSE has developed a very favorable partnership with Technology Manufacturer 1, who not only provides the chips but is also interested in promoting RNSE’s products.  Moreover, RNSE’s compatibility with all the first- and second-tier operating systems provides a unique opportunity to capture the market share.

5.2 Marketing Strategy

Rosafarbenes Nilpferd & Sons Engineering will concentrate on the more demanding sectors of the market and, in doing so, build an image for the highest cutting-edge technology among the various makers of Product Category One devices.  Pricing on the high side is consistent with that image, and alignment with Technology Manufacturer 1 (the premier CPU maker), and the first-tier developers of operating systems will further enlarge that image.  In addition, an investment should be made in image-bolstering advertising in targeted trade publications serving the chosen market segments.

5.2.1 Positioning Statement

Rosafarbenes Nilpferd & Sons Engineering’s positioning statement is to stay on the cutting edge of Product Category One device technology by constantly improving its products ahead of the competition with such features as the Product Blennie for Technology Manufacturer 1’s product.  RNSE will target customers in the demanding telecommunications, industrial automation, and instrumentation sectors rather than to market-segment a narrower field with lower Technology 1 requirements which tend to be more price-sensitive.

5.2.2 Pricing Strategy

For projection purposes, pricing has been based on production costs at 40% of sales price, which is in line with the historical COGS of 38% for the first quarter 2000.  This pricing scheme seems to put Rosafarbenes Nilpferd & Sons Engineering’s products on the high end of the ball park with the competition (see the section on Competitive Comparison), which is consistent with the image RNSE wants to build for its products.  Product Category One devices are not yet perceived as “all-the-same” commodities, with price being the only deciding feature.  In line with RNSE’s positioning statement, RNSE’s market sectors are the more demanding ones (telecommunications, industrial automation, and instrumentation).  These customers are installing RNSE’s devices into sophisticated, expensive equipment, and are more likely to make a choice based on which Product Category One device has the highest technical specifications and flexibility in respect to operating system compatibility, choices in configuration, etc., rather than price.

5.2.3 Promotion Strategy

Although Rosafarbenes Nilpferd & Sons Engineering does have sales positions in the personnel plan, RNSE’s promotion strategy will stress “partnering” as its main means of getting the word out concerning its products.  The importance of partnering with major industry players (see the section on Industry Participants) is explained below:

Partnering with Technology Manufacturer 1 Technology Manufacturer 1 has a large sales force and is the industry leader with its CPU chips.  All of RNSE’s products contain this chip, which is a good foundation for Technology Manufacturer 1 wanting to promote RNSE’s products wherever possible over other Technology 1 devices that use Technology Manufacturer 2’s chip.  RNSE is already working directly with several direct-sales people from Technology Manufacturer 1 who are referring high volume Fortune 100 customer’s to RNSE.  In addition, RNSE is receiving calls from Technology Manufacturer 1 reps who have lower volume opportunities.  RNSE will be placed on Technology Manufacturer 1’s website as a member of its third party program.  This is expected to result in increased volume of inquiries to RNSE’s website, and help build the desired image.

RNSE has awakened a great deal of special interest in Technology Manufacturer 1 by developing a Product Blennie for their product.  Technology Manufacturer 1 visited RNSE recently and expressed interest in using some of RNSE’s products internally, or in some sort of joint-venture.

Partnering with Real Time Operating System (RTOS) Developers As mentioned elsewhere in this plan, compatibility with existing operating systems is key to Product Category One device sales.  The following is a list of most of the first- and second-tier operating systems:

O/S Vendor Compatibility with RNSE Products

• JJJJ ready within one year.

Some of these top echelon O/S developers have hundreds of salespersons which translates into sizeable promotional activity, as virtually all customers for operating systems have Technology 1 in their plans.  Partnering with the first tier O/S developers will also serve to build that all-important image for RNSE products.

Partnering with Market Integrators Market Integrators are heavy users of Product Category One devices.  Hundreds of these VARs have sprung up who have developed software, and attached hardware designed to address problems, or save time and money for a specific industry.  Most, if not all, of these VARs utilize Technology 1 as part of their value added offering.  Special instrumentation or monitoring devices which attach to hospital beds that can sense wet sheets or patient body temperature are good examples.  These devices all require satellites units located at each bed have a Technology 1 device like RNSE’s Product Wrasse.  Considering the number of hospital beds alone, it is easy to see why the VARs represent prime customers for Product Category One devices.  These VARs may first hear about RNSE’s products through one of the operating system developers or via a search through the Web.  In addition, RNSE plans to get out a direct mailing to a list of 300 VARs.

5.2.4 Distribution Strategy

There are no immediate plans to wholesale Rosafarbenes Nilpferd & Sons Engineering’s products.  There might be opportunities to distribute some Technology 1 devices to one of the major component wholesalers, but this could only be possible in limited configurations.  All sales are expected to be direct sales.  This should be qualified as many major customers out-source their manufacturing.  XYXY, for example, is a customer of RNSE, but they subcontract to SRSR who actually purchases the enabling devices from RNSE.  In the case of VARs, they would purchase from RNSE and install them in the equipment being sold to someone else.  The target market customers addressed in RNSE’s positioning statement should have unit requirements of 100-10,000.  With annual sales volume projected reaching 30,000 in the third year, direct sales should not be a problem logistically.

5.2.5 Marketing Programs

The most important element in Rosafarbenes Nilpferd & Sons Engineering’s marketing game plan is to complete programming of its products to be compatible with the top tier operating systems (see the section on Promotion Strategy).  Completion is planned for the end of May 2000.  As soon as this has been done, partnering activity with those operating systems developers can begin in earnest.  Informational releases via email to O/S sales forces containing data specifications should be encouraged.  Opportunities to speak at O/S developers’ sales meetings should be sought.  This will be coordinated by the new sales manager position.

In conjunction with the above activities, a direct mailing to VARs should be undertaken.  An up-to-date list of 300 VARs can be obtained through Software Manufacturer 1.  A budget of $1,000 has been provided for in the cash flow projections.

Since many first impressions of RNSE’s products are made by a visit to its website, it is important to give RNSE’s website a face lift.  The Cyber Design Group as well as other professional website designers are being considered.  A budget of $15,000 has been provided for in the projections.  This is the shop window first seen by potential Technology 1 device customers.  The website design must put the desired image at the top of its priorities.  Included in this budget are some ad agency costs, as most Web designers are really technicians who have little knowledge of the art of image building.  The website technician and the advertising specialist need to work together to get the right result.

To help increase awareness of and build the desired image for RNSE’s products, advertising should be done in targeted trade publications.  A media specialist should be consulted to help in selection.  In keeping with RNSE’s positioning statement, trade publications which reach OEMs in the telecommunication, industrial automation, and testing and instrumentation sectors of the market should be favored.  It is important to provide an adequate budget to make certain of attracting notice.  A media specialist can examine the “noise level” (the amount of competing ads) to suggest how much needs to be spent to break through the noise level and be heard.  Until a proper media analysis can be done, a budget will be initially set for year 2000 at $50,000 growing to $250,000 in year 2002. 

5.3 Sales Strategy

The general sales strategy is to concentrate efforts on those sectors of the more demanding 32-bit microprocessor market that have volume needs of 100 to several thousand.  Despite the dramatic increase in visits to Rosafarbenes Nilpferd & Sons Engineering’s website, a more proactive policy needs to be taken by directly approaching heavy users of Product Category One devices. Calls must be made on selected VARs, and OEMs who fit the parameters set by RNSE’s marketing strategy.  Referrals from RNSE’s partnering program (operating system partners, Technology Manufacturer 1, and other industry players) will be stressed. RNSE plans to add a sales manager as well as other sales personnel (see the section on Personnel Plan).

5.3.1 Sales Forecast

Over 400 units of Rosafarbenes Nilpferd & Sons Engineering’s first generation product were sold in the first quarter of 2000 without any dedicated sales staff other than the owner and an administrative assistant.  In keeping with RNSE’s need to stay on the cutting edge of technology, a faster, smarter, smaller improved product is now ready which should easily succeed in reaching the company’s sales goal of 1040 units by the end of the year, increasing to 3000 and 9000 in the second and third year respectively.  This is not an unrealistic achievement considering the market demand for this product, as evidenced by RNSE’s actual sales growth in the past year and the growth in visits to RNSE’s website which have grown from a few thousand a year ago to over 30,000 website visits monthly as of May 2000.  With sales prices set at 2.5 times variable costs, gross profits are expected to reach nearly $1 million in the first year and nearly $9 million in the third year.

The sales projections forecast three RNSE products, made up of a main product (Product Wrasse) and two other products (Product Parrotfish and Product Damselfish) each of which constitute the main product with several add-ons (see the section on Product Description). 

Within these three products, customers have several choices in the configuration in respect to the amount of FLASH (from 1 Mb up to 32 Mb) as well as SDRAM (8 Mb up to 64 Mb).  Depending on the configuration options, the costs of materials range as follows:

• Product Damselfish: $150.10 up to $211.85.

To simplify projections, we will assume only one configuration for all three products.  This configuration is with 32 MB DRAM and 4 MB of FLASH.  The costing then will have the following breakdown for the basic product, the Product Wrasse:

The Product Parrotfish starts with the basic Product Wrasse ($165.85) and adds Technology 1 components ($27.00), a modem module ($35.00) and several other minor parts ($16.50), bringing the cost up to $244.35.

The Product Damselfish starts with the basic Product Wrasse ($165.85) and adds an audio interface ($10.00), Technology 2 components and connectors ($10.00), bringing the cost up to $183.85.

See the section on Pricing Strategy for explanation of pricing policy.

5.3.2 Sales Programs

The most important sales program is the program based on “partnering” (see the section on Promotion Strategy).  By constantly being in touch with the activities of Technology Manufacturer 1, and the operating system developers, and by developing relationships with their extensive sales teams, referrals can be expected to VARs and OEMs who fit the parameters set in the marketing strategy.

Once a solid sales prospect has been identified in this manner, more specific action can be taken directly with the prospect.  This action would include more technical discussions between Rosafarbenes Nilpferd & Sons Engineering and the prospect’s engineers.  “Starter Kits” can be arranged which make it very easy for the prospect to integrate hardware and software between the Technology 1 devices and the appliance.  Once a starter kit has been sold, telephone follow-up is necessary to convert the original opening into a substantial sale of 100 or more units.

5.4 Strategic Alliances

As already explained (see the section on Promotion Strategy), strategic alliances between Rosafarbenes Nilpferd & Sons Engineering and Technology Manufacturer 1, the chip manufacturer, and the top tier operating system developers like WWWW, XXXX, or LLLL are essential to success in selling large quantities of enabling devices.  Partnering leads to referrals which can be filtered as to needs, and many referrals can be expected to transform into completed sales. 

The prospects for a deeper strategic alliance with Technology Manufacturer 1 is possible as a result of Technology Manufacturer 1’s recent visit to RNSE.  Technology Manufacturer 1 is especially interested in RNSE’s development of a Product Blennie for the Technology Manufacturer 1 product.  Technology Manufacturer 1 expressed an interest in working together to exploit the product.

5.5 Milestones

The attached table lists the major milestones in the first year that are key to the success of the company’s overall market strategy.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The management of Rosafarbenes Nilpferd & Sons Engineering is led by the owner/founder, Becket Nilpferd, who has extensive technical experience in consulting to the industry.  A profitable track record indicates the presence of business acumen.  Important additions to sales and marketing staff should round out the needs of the company to achieve the projected goals set by the sales and marketing strategy.

6.1 Organizational Structure

Rosafarbenes Nilpferd & Sons Engineering plans to increase the number of employees to five in the second year and to ten by the third year.  Half of these with be sales staff reporting to a sales manager who reports to the owner, Becket Nilpferd.  Two relatively low-level technicians will be included to deal with repairs and testing of returns.  Rather than depend completely on outside consultants for software engineering, an engineer will be hired by 2002.  The technicians will report to Becket Nilpferd, but there will be a good deal of interaction with the administration manager as well as with the sales manager.  The software engineer will, like the outside consultants, report directly to Mr.  Nilpferd.

6.2 Management Team

The major members of the management team are Becket Nilpferd, owner and founder, his administrative assistant, Ms. Beda Fomm, and two independent consultant-engineers, who, as is common in the industry, prefer to remain independent rather than become full-time employees.  This team will be augmented by a sales manager who will coordinate the activities of those responding to telephone and website inquiries with direct sales efforts to VARs and OEMs referred through the partnering program, and a full-time software engineer.

6.3 Management Team Gaps

It is vital that a more proactive approach to selling be initiated to take full advantage of the partnering program which leverages the connections with operating system developers.  There are about 300 VARs which certainly justifies a dedicated sales person.  The number of original equipment manufacturers is also high enough to warrant employing someone with experience in dealing with large OEMs.  A sales manager should first be employed to oversee these sales efforts and to coordinate the involvement of media specialists and ad agency work.

The Personnel Plan projects the addition of this staff.

6.4 Personnel Plan

The founder and owner, Becket Nilpferd, during his years spent as a consultant to the industry, has many contacts among software and hardware engineers.  He has utilized them on a contractual basis for much of the software engineering during the development of Rosafarbenes Nilpferd & Sons Engineering’s product line.  He will still use them and their cost can be seen on the income statement under the heading “Contract Consultants” rather than in the Personnel Plan.

In addition to the owner/founder (Becket Nilpferd) and the office manager (Beda Fomm), it will be necessary to add this year:

Sales Manager The primary duties of the sales manager will be to coordinate the activity of media people to make certain the correct amount of advertising is spent in the most suitable trade publications and that the campaign adequately meets the goals of RNSE’s positioning statement.  The sales manager should be engaged as soon as possible.  A starting salary of $60,000 is budgeted with increases to reward sales growth.

Sales Staff Reporting to the sales manager will be salespersons who will work primarily via telephone and email.  One to concentrate on VARs and another to concentrate on OEMs.  One each will be added by the end of 2000 after the sales manager is in place.  Starting salary projected at $40,000 annually with increases connected to sales success. 

Two more will be added in the third year.

Technicians Beginning in year 2002 two low-level technicians need to be added to deal with returns, repairs, testing, etc.  Salary of each is projected at $45,000.

Software Engineer Despite the excellent success that RNSE has had with independent consulting engineers, it will be advisable by 2002 to hire a permanent in-house software engineer at a salary of $80,000.

Financial Plan investor-ready personnel plan .">

Rosafarbenes Nilpferd & Sons Engineering’s dramatic growth in sales poses substantial financing needs for receivables as well as inventory.  In 2001 and 2002 virtually all of this need can be supported by accumulated earnings. RNSE will need a line of credit to provide cash in the first year until accounts receivables begin to turn over into cash. Projections indicate a need for a line of approximately $135,000 which could stretch to $200,000.  As the receivables are projected to be high in the first year, and stem from prime quality customers, commercial banking lines of credit (or A/R factoring) should be easily obtainable supported by this current asset without a need for reliance on inventory.

7.1 Important Assumptions

Interest rate is assumed to be 10% if a commercial line of credit is obtained.  Should it be necessary to arrange for factoring of the receivables, interest expense would increase.  In the first year, factoring would add an additional cost of $10,000-$12,000.

The federal tax rate on corporate profits is graduated, beginning at 15% on profits up to $50,000.  The average weighted federal tax rate on profits up to $335,000 works out to 34%.  On profits in excess of $335,000 the federal tax rate is 34%.  To this an additional 9.5% has been added for Freedonia state corporate taxes.

The period of 45 days for receivables is not unusual, but the inventory turn-over is projected to be slow due to a need to keep higher levels than was necessary only a few years ago.  The growth in demand for components has put pressure on suppliers to keep up with the demand.  The risk of maintaining inadequate stocks of certain key components must be minimized by larger than normal forward purchasing.

7.2 Break-even Analysis

In the first quarter of year 2000 the first generation of Technology 1 devices sold an average of 133 units monthly.  The second generation (smaller, faster, smarter) will be ready by early June.  Many customers for Rosafarbenes Nilpferd & Sons Engineering’s products are holding back their orders awaiting the newer version.  The break-even analysis, below, indicates monthly sales needed to break even.

7.3 Projected Profit and Loss

Projected gross profits for year 2000 will be strong and will climb even further in the second and third year.  Despite substantial investments in marketing (primarily advertising and sales staff), net profits before taxes are projected to  be high.

Explanations for projected expenses are outlined below:

Advertising The actual expenditures were used for January, February and March.  This expense averaged $817 for 1999.  An additional $50,000 is budgeted for advertising during 2000, $150,000 in 2001, and $250,000 in year 2002.

Documentation Printing This relates to the specification sheets and manuals that are included with sold products.  We project this expense in year 2000 at the same rate ($96 monthly) as 1999.  In years 2001 and 2002 we have increased this expense to reflect the projected increased sales.  We have assumed, with increased volume of sales, some efficiencies can be had in per unit printing costs.

Electronic Testing Equipment The actual expenditures were recorded for the first quarter of 2000.  This is a significant expense which came to $1,430 in 1999, but will increase to $500 monthly in 2000 and to $650 monthly in 2001 and $750 monthly in year 2002.

Merchant Services These services relate to fees paid to credit card companies when credit cards are accepted as cash payment for a sale.  These fees are about 3% (some more, some less) of the sales price.  Actual figures were used for the first quarter, thereafter, we’ll assume fees to be 3% of cash sales.

Computer Parts Actual figures are given for the first quarter.  Thereafter, the historical monthly average of $542 is used for projection purposes.

Professional Fees These include accounting ($95/month), legal and miscellaneous outside services such as photography, etc.  Actual figures are given for the first quarter, then $500 monthly is projected, increasing in years 2001 and 2002 to reflect increased sales. 

Computer Software Actual expenditure is given for the first quarter 2000.  Thereafter, an average monthly figure of $200 is projected.

Office Supplies The actual figures are given for the first quarter, and $350 monthly is projected thereafter.

Travel Travel is kept at historical levels for 2000 but will double in years 2001 and 2002.

Miscellaneous Included here are professional books, minor bank charges, Massachusetts annual report, etc.  Projected at $200 monthly, increasing in years 2001 and 2002.

Leased Equipment These expenses relate to a computer that is on lease.  They are expected to continue at the same rate.

Online Services Kept at historical levels.

Telephone Actual figures are given for the first quarter.  Thereafter at $250/month increasing in years 2001 and 2002.

Utilities Averaging $100 per month.  Are expected to increase as new space is acquired to accommodate staff hires.  Includes gas and electricity.

Insurance Insurance related to a business policy which is expected to increase as additional office space is acquired.

Depreciation Fixed assets are represented by such items as a printer and an iMAC computer plus some software.  Net capital assets are a bit over $4,000 as of 12/31/99.  Assume depreciation at $1,000 annually.

Rent Currently two offices are rented. With the increase in staff, additional space will be acquired.

Health Care This relates to the health care plan for the two current members and is projected at present actual cost.  It will increase proportionally as new employees are hired.

Contract/Consultants These expenses are paid to independent computer technicians who regularly perform services for the company.  They charge $45/hr.  The actual costs for the first quarter are given.  The costs are projected at $2,200 per month, increasing as sales increase.

7.4 Projected Cash Flow

The current borrowing of $14,866 outstanding at the end of 1999 was fully repaid in the first quarter 2000.

The cash flow reflects success in obtaining a line of credit in the range of $150,000-$200,000 which is drawn down and repaid in accordance with need during 2000 leaving a balance of $135,000 at the end of 2000 which is then repaid over the next two years.

7.5 Projected Balance Sheet

Of the long-term liabilities, $12,000 relates to a family loan with no specific repayment schedule.  It carries an interest rate of 7%, although in the projections all LTD has been calculated at 10%.

7.6 Business Ratios

The following table outlines important business ratios for the electrical and electronic engineering industry, as described by the standard industry classification (SIC) index 8711.9905.

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Electrical Engineering Business Plans Samples For Students

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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.

Download our Ultimate Business Plan Template here >

What Is a 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

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

Sources of Funding for Electrical Contractor Businesses

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

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

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

Executive Summary

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

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

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

Company Analysis

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

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

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

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

Include answers to question such as:

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

Industry Analysis

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

While this may seem unnecessary, it serves multiple purposes.

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

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

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

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

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

Customer Analysis

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

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

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

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

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

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Competitive Analysis

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

Direct competitors are other electrical contractor businesses.

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

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

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

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

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

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

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

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

Marketing Plan

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

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

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

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

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

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

Operations Plan

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

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

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

Management Team

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

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

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

Financial Plan

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

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

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

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

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

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

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

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

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

Electrical Contracting Business Plan FAQs

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

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

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

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

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How to Write a Business Plan for a Electrical Contractor

• September 14, 2022
• Small Businesses

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your electrical contractor company, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in the business plan of your electrical contractor business. Use this template to create a complete, clear and solid business plan that get you funded.

1. Electrical Business Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire plan.

Why do you need a business plan for an electrical business?

The purpose of a business plan is to secure funding through one of the following channels:

• Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
• Obtain private investments from investment funds, angel investors, etc.
• Obtain a public or a private grant

How to write an executive summary for an electrical business?

Provide a precise and high-level summary of every section that you have included in the business plan of your electrical business. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately.

Also make sure that the executive summary doesn’t exceed 2 pages in total: it’s supposed to be a summary for investors and lenders who don’t have time to scroll through 40-50 pages, so keep it short and brief.

The executive summary usually consists of 5 major sub-sections:

• Business overview : start by introducing your proposed electrical contracting firm, where it is located, the services you will offer, and the pricing strategy you want to implement. Mention what sets you apart from other businesses. For example, you may be a master electrician with a decade of experience in designing electrical systems.
• Market analysis : summarise the market where you will operate and provide a brief about your target market , target audience, spending capability, etc. Also give certain data points about the electrical contractor business industry in the area where you want to operate (size and growth), as well as an overview of the main competitors, etc.
• People : introduce your electrical business’ management and employee structure. Provide a brief (no more than a couple of sentences each) of the knowledge and experience of the team. Also, mention how the company will be structured (management roles and reporting lines)
• Financial plan: how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? You can include here a chart with your key financials (revenue, gross profit, net profit )
• Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?

2. Electrical Business Overview

In this segment of the business plan, you will provide details about your proposed electrical contracting firm.

You must answer here some important questions that potential investors and lenders often ask about your business and operations. Here are some examples of questions you must answer:

• What is the rationale behind your opening an electrical contractor business today?
• In which location will you operate and why?
• What type of services will you offer?
• Are there specific types of services and/or industries that you specialize in?
• What will be your pricing strategy and why?
• What will be the legal structure of your company?

a) History of the Project

Any business overview must start with explaining the history of the project. There are 2 components here:

• Passion & experience of the business owner
• Rationale behind starting an electrical business today

Passion & experience

You must display your passion while at the same time, you must also showcase your experience. For instance, you may have 10 years of journeyman experience, or you may be a master electrician with the ability to design ground-breaking electrical systems.

Is there a certain problem (or perhaps, a set of problems) that your electrical contracting firm will try to solve when it comes into existence?

For example, there may be a steady increase in demand for commercial electrical contracting firms but there are only a few unorganized service providers incapable of efficiently handling commercial contracts.

The rationale behind your project must be backed up by a thorough analysis of the industry in the area where you plan to open your electrical contractor business. This is what we will cover under Market Overview further below.

b) Business Model

This section of the Business Overview should explain the model you want to adopt for your electrical contractor business. For example:

• Which target audience segment you will focus on and why?
• Is there enough demand for that segment in your focus area?
• What type of services you will offer?

What are the different types of e lectrical contractor companies?

You may choose one of the following:

• Residential Electrical Contractors: They usually collaborate with homeowners to design or install electrical systems
• Commercial Electrical Contractors : They usually focus on commercial and outdoor spaces like malls, shops, college campuses, gardens, parks, etc.
• Industrial Electrical Contractors : They usually focus on larger products like industrial manufacturing areas, warehouses, etc.

No matter what you select, you must ensure that there is enough demand for the type of electrical contracting firm you want to open and the range of services you will offer.

c) Services

The services you offer will depend on the type of customers you will serve and also on the skills you have. Provide a quick list of the major services that you will offer. Some services may include things like:

• Exterior and interior lighting
• Installation of safety systems & electronic appliances
• Electrical wiring and transmission line installation
• Repairs & upgrades, etc.

d) Pricing Strategy

This is where you will provide an overview of your pricing strategy. For instance, you may charge higher than your competitors because you may have a team of highly experienced electricians and also because you use high-quality wires and other materials than your competitors.

Similarly, you may decide to charge lower than your competitors because of the bulk purchase of products like wires, switches, etc., which allows you to bring down the cost of your services.

Whatever the case is, explain your pricing strategy and the logic behind it.

Pricing table

While it may not be possible to provide a proper pricing table for all services that you will offer, it is still a great idea to provide a table that gives an overview of your pricing structure.

Providing individual pricing for all services may not be possible, however, you may provide a range. For example:

• Smart systems installation: $75 to $150 per hour (depending on the system and area)
• Repair and upgrades: $80 to $120 per hour

However, don’t go into extreme details because potential investors are not interested in the nitty-gritty of your pricing. They just need the big picture to assess the profitability, because they will tie your pricing strategy with your financial projections later on.

e) Company Legal Structure

Finally, your business overview section should specify what type of business structure you want. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

3. Electrical Business Market Overview

A complete understanding of the market where you want to operate is important for the success of your business. That’s also something you must showcase in your business plan.

For example, if there is a high demand for residential and commercial electrical contractors but you want to focus on industrial customers despite a very small market size , it may not be a great business decision.

Therefore, you must cover here 3 important areas:

• Market size & growth : how big is the electrical contractor business industry in your area? What is its growth rate (or decline rate) and what are the factors contributing to its growth or decline?
• Competition overview : how many competitors are there? What type of customers do they serve? What type of projects do they specialize in? How do they compare vs. your business? How can you differentiate yourself from them?
• Customer analysis : who is your target audience? How frequently do they require electrical contractor services? What is their yearly spending on electrical contractor services?

a) Electrical Contractor Industry Size & Growth

How big is the electrical contractor industry in the us.

In 2021 there were over 70,000 electrical contracting firms in the US employing about 650,000 electrical workers.

As per the National Electrical Contractors Association (NECA) the industry is worth $202 billion: that’s an average annual turnover of $2,800,000 per company! 

Also, the vast majority of electrical contractors are small businesses: over 80% of all businesses had less than 10 employees.

How big is the electrical contractor industry in your area?

After getting a clear picture of the electrical contractor business industry in the US as a whole, narrow down to your location. It’s very likely that you won’t find the number anywhere (at least not for free).

In that case, you can use our guide to estimate the TAM, SAM, and SOM for your business. Here is an example of how to do it:

We already know that the average annual turnover for electrical contracting firms in the US is $2.8 million. Therefore, if the area where you will operate (a city for example) has a total of 30 electrical contractors, the electrical service industry in the area is worth approximately $84 million.

What’s the market growth of the electrical contractor industry in your area?

Next on our list is market growth: is the industry growing or declining in your area?

US market growth can be a great addition to your business plan, yet it doesn’t necessarily help to assess the industry in your area of service. For example, the industry might be growing in the US, but declining in your region for a number of reasons (for example, the large commercial market may be contracting because businesses are shutting down due to losses, resulting in the closure of electrical contractor businesses that focused on the commercial market).

As you likely won’t find this information online, you can instead rely on the number of electrical contractor businesses in the location to calculate the average growth rate of the industry in your area.

For example, if the region had only 27 electrical contractor businesses in 2019 and 30 in 2021, you can assume that the average annual growth rate of the electrical contractor businesses industry in the area is around 5-6%.

b) Competition Overview

Studying your competitors’ business models is vital. You need to understand what makes them successful or why they fail. A clear understanding of their business model, the products they sell, their marketing strategies, etc., will allow you to provide a better service.

If your competitors are offering nearly the same services, then what is their market share and how do they market their products & services to attract new customers?

It is always a good idea to do some research (if necessary, you may consider physically visiting your competitors without revealing your business intentions) and create a comparative table summarizing their service offerings, marketing strategies, target audience, etc.

Here is a sample table that you can use:

Electrical Business SWOT Analysis

SWOT stands for Strength, Weakness, Opportunities, and Threats. This analysis will help lenders and investors better understand how you compare vs. competitors as well as the overall risk and reward profile of your business.

Here is a sample that you can use as a reference:

• Strengths : 12 years of experience as a master electrician in a popular electrical contractor company
• Weaknesses : Startup cost, no initial brand reputation
• Increased construction of residential apartments due to demand spike in rental housing and builders are looking for skilled electricians for wiring everything (backup with data for population and real estate boom)
• Growth in retail stores and malls (because of population influx), which in turn has increased the demand for electricians for installation and maintenance (provide data)
• Increased commercial warehouse construction because of increased regional distribution centers by e-commerce retailers that require electrical installations (provide data and explain why there is an increase in commercial warehouse construction – for example, increased demand and hence imports of cheaper products)
• Threats : Big brands like Helix Electric, Bergelectric, & Cupertino Electric, Inc. are all eyeing the growing market

c) Customer Analysis

Finally, we need to look at your customers.

However, the first thing you must do is clearly define the target audience. For instance, you may serve individual households, commercial establishments, or even industrial establishments.

Some important points that you must include in your customer analysis include:

• How much do your target customers spend on electrical services per year?
• How frequently do they need electrical contractors?
• What type of electrical services do they usually require (fresh installations, inspections, repairs, etc.)?
• What type of electrical contractors do they usually hire (big brands, small contractors, individual electricians, etc.)?
• What do they dislike about the existing electrical contractors in the area (for example, slow response time)?

4. Sales & Marketing Strategy

This is the section where you outline your customer acquisition strategy. Try to answer here the following questions:

What is your Unique Selling Proposition (USP)?

• What are the different marketing strategies you will use?
• How do you intend to track the success of your marketing strategy ?
• What is your CAC or customer acquisition cost?
• What is your marketing budget?
• What introductory promos and offers do you intend to provide for attracting new customers?
• What marketing channels do electrical businesses use?

What marketing strategies do electrical contractors use?

A few marketing channels that electrical businesses typically use are:

• Signages, vehicle branding
• PPC ads (Google local services ads)
• Social media platforms
• Flyers & pamphlets
• Word of mouth, recommendations

It is not necessary to use all channels. Instead, you can start by focusing on a few of them, and include other marketing strategies later.

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.

A few examples of USPs are:

• Response Time : you may respond within 30 minutes (whatever you can commit to), which is faster than any competitor 
• Emergencies : you may have years of experience dealing with electrical emergencies that can potentially cause immense damage to life and property
• Free inspection : you may offer one free inspection of wiring and other installations once every quarter

Your USP will depend on your business model, competitor analysis , and target audience. Whatever your USP be, it should be clear and appealing to your target audience.

5. Management & People

You must address two things here:

• The management team and their experience
• The organization structure : different team members and who reports to whom?

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your electrical business.

Describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.

It is also important that you explain how their experiences and qualifications help you in implementing the electrical business you are proposing. If they have specialized training and experience (master electrician or journeyman electrician for 8 years in a reputed electrical contractor firm), add that information.

Organization Structure

Even if you haven’t already hired electricians, trainees, managers, drivers, accountants, and other relevant staff members, you must provide a flowchart of the organizational structure defining hierarchy and reporting lines.

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan for an electrical contractor company.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your electrical contractor company is an attractive investment.

There should be 2 sections to your financial plan section:

• The startup costs of your company
• The 5-year financial projections

a) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project.

For an electrical contractor company, startup costs are all the expenses you incur before you start making sales. These expenses typically are limited especially for small businesses and include:

• The lease deposit (if you rent an office and/or warehouse for your equipment)
• Electrical equipment, tools, etc.
• License & permits, business insurance, etc.

Of course, the startup costs depend on a number of factors, like the size of your business (employees), the services you plan to offer (which will dictate what equipment you may need), etc.

b) Financial Projections

In addition to startup costs, you will also need to build a solid 5-year financial model in the business plan of your electrical company.

Note that your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

• How much revenue do you expect to generate over the next 5 years?
• When do you expect to break even?
• How much cash will you burn until you get there?
• What’s the impact of a change in pricing (say 10%) on your margins?
• What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

• The number of contracts (customers) over time ;
• Your expected revenue ;
• Operating costs to run the business ;
• Capex (cost to buy the equipment and vehicles, etc.)

When projecting your financials, make sure to sensitize sales volume (customers), pricing as well as the expenses (inventory, salaries, etc.). Indeed, a small change in these assumptions may have a significant impact on your revenues, and most importantly, your profits.

7. Use of Funds

This is the last section of the business plan of your electrical contractor company. Now that we have explained what your business model is, what type of services you offer, how you get customers, etc., this section must now answer the following questions:

• How much funding do you need?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

• What percentage of the total funding the loan represents?
• What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

• What percentage ownership are you selling as part of this funding round?
• What is the corresponding valuation of your business?

Use of Funds

Any business plan for an electrical contractor company should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment in paying your employees’ salaries and the COGS (inventory)? Or will it cover mostly the cost for acquiring the equipment and machines?

For the use of funds, we also recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

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• Business plans

Electrical Contractor Business Plan

Used 4,920 times

This Electrical Contractor Business Plan template include information about the services you offer, who your target consumers are, why they should prefer you over your opponents and how much capital you require to get started.

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Electrical Contractor Business Plan Template

Created by:

​ [Contractor.FirstName] [Contractor.LastName] ​

​ [Contractor.Company] ​

Introduction

This business plan is for an electrical contracting company, [Contractor.Company] that will offer a range of services to residential, commercial, and industrial clients. [Contractor.Company] will be owned and operated by [Contractor.FirstName] [Contractor.LastName] , who has (insert number) years of experience in the electrical industry.

Company Description

​ [Contractor.Company] will be located in [Contractor.City] , [Contractor.State] and will serve the surrounding area. The company will be registered as a (insert business structure, e.g., LLC, corporation, or partnership) and will have (insert number) employees at the start, including the owner. The company will offer services such as electrical installation, repair, and maintenance for residential, commercial, and industrial clients. The company will also provide energy efficiency consultations and solar panel installation.

Market Analysis

The electrical contracting industry is expected to grow at a rate of (percentage) over the next five years. The demand for electrical services is driven by population growth, construction activity, and the need for energy efficiency improvements. [Contractor.Company] will target residential, commercial, and industrial clients in the [Contractor.City] area, focusing on high-quality service and customer satisfaction.

Marketing Strategy

​ [Contractor.Company] will use a combination of traditional and digital marketing techniques to reach potential clients. This will include advertising in local newspapers and industry publications, as well as utilizing social media platforms and email marketing to promote services and specials. The company will also rely on word-of-mouth referrals from satisfied customers.

​ [Contractor. Company] will have a team of qualified electricians who will be responsible for completing projects in a timely and professional manner. The company will have a project manager who will oversee all projects and ensure that they are completed to the highest standards. The company will maintain a well-stocked warehouse with a variety of electrical supplies and equipment to ensure that projects can be completed efficiently.

Financial Plan

​ [Contractor.Company] will generate revenue through the sale of electrical services to residential, commercial, and industrial clients. The company will also generate revenue through the sale of electrical supplies and equipment. The company will have operating expenses, including payroll, rent, utilities, and insurance. The company expects to generate (Amount) in revenue in the first year, with a projected growth rate of (Percentage) per year.

​ [Contractor.Company] is well-positioned to take advantage of the growing demand for electrical services in the [Contractor.City] area. With a team of experienced electricians, a focus on high-quality service, and a commitment to customer satisfaction, the company is confident that it will be successful in the competitive electrical contracting market.

​ [Client.FirstName] [Client.LastName] ​

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Electrical Business Plan Template PDF

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

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

How can an electrical business plan template help you?

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

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Engineering Consulting Business Plan

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write An Engineering Consulting Business Plan?

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

1. Executive Summary

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

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

Introduce your Business:

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

Market Opportunity:

Engineering consulting services:.

Highlight the engineering consulting services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

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

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2. Business Overview

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

Business Description:

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

Describe what kind of engineering consulting company you run and the name of it. You may specialize in one of the following engineering consulting businesses:

• Civil engineering consulting
• Mechanical engineering consulting
• Electrical engineering consulting
• Industrial engineering consulting
• Describe the legal structure of your engineering consulting company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established engineering consulting service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals

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.

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive Analysis:

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.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your engineering consulting firm 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. Engineering Consulting Services

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

Describe your consulting services:

Mention the engineering consulting services your business will offer. This list may include services like,

• Engineering design & analysis
• Project management & planning
• Sustainable engineering solutions
• Technology consulting & innovation

Describe each service:

Additional services.

In short, this section of your engineering consulting 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.

Pricing Strategy:

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

Overall, this section of your engineering consulting 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 engineering consulting 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:

Operational process:, equipment & software:.

Include the list of equipment and software required for engineering consulting business, such as communication tools, project management software, field equipment, financial & accounting software, etc.

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 engineering consulting 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:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

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

8. Financial Plan

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

Profit & loss statement:

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

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

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

9. Appendix

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

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

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

Remember, the appendix section of your engineering consulting 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

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This sample engineering consulting business plan will provide an idea for writing a successful engineering consulting 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 engineering consulting business plan pdf .

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Frequently asked questions, why do you need an engineering consulting business plan.

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

How to get funding for your engineering consulting business?

There are several ways to get funding for your engineering consulting 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.

Where to find business plan writers for your engineering consulting business?

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

What is the easiest way to write your engineering consulting business plan?

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

How do I write a good market analysis in an engineering consulting 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.

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Electrical Contractor Business Plan Sample

DEC.30, 2020

Electrical Contractor business plan for starting your own business

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

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

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

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

Executive Summary

2.1 the business.

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

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

2.2 Management of Electrical Contractor

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

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

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

2.3 Customers of Electrical Contractor

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

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

2.4 Business Target

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

Company Summary

3.1 company owner.

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

3.2 Why the electrical contractor is being started

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

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

3.3 How the electrical contractor will be started

Step1: Creating A Business Plan

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

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

Step2: Acquiring Required Licenses & Permits

Step3: Leasing Property, Equipment & Hiring Managers

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

Step4: Establishing Company’s Database & Website

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

Step5: Hiring & Training Staff

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

Step6: Marketing & Advertisement

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

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

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

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

Areas Of Expertise:

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

Marketing Analysis of Electrical Contractor

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

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

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

5.1 Market Trends

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

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

5.2 Marketing Segmentation

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

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

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

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

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

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

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

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

This category will also be acquiring our wiring services.

5.3 Business Target

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

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

5.4 Product Pricing

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

Marketing Strategy

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

6.1 Competitive Analysis

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

6.2 Sales Strategy

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

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

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

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Personnel plan

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

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

7.1 Company Staff

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

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

7.2 Average Salary of Employees

Financial plan.

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

8.1 Important Assumptions

8.2 brake-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

Download Electrical Contractor Business Plan Sample in pdf

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

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

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Electrical Business Plan Template & Guidebook

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

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

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

How to Write a Electrical Business Plan in 7 Steps:

1. describe the purpose of your electrical business..

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

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

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

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

2. Products & Services Offered by Your Electrical Business.

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

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

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

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

3. Build a Creative Marketing Stratgey.

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

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

Target market

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

Customer base 

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

Product or service description

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

Competitive analysis

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

Marketing channels

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

Form an LLC in your state!

4. Write Your Operational Plan.

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

In it, you should list:

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

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

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

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

5. Management & Organization of Your Electrical Business.

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

This section will cover all of the following:

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

6. Electrical Business Startup Expenses & Captial Needed.

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

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

Startup Costs

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

Running & Operating Costs

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

Marketing & Sales Expenses

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

7. Financial Plan & Projections

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

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

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

Frequently Asked Questions About Electrical Business Plans:

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

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

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

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

Can you write a electrical business plan yourself?

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

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

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

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

Electrician business plan template

Download this electrician business plan template in PDF or Word format, or tailor it to your project directly in our business plan software.

Discover our electrician business plan template

Our electrician business plan template gives you the structure to write a professional plan.

Not accustomed to writing business plans? Our electrician business template will turn a typically challenging process into a total breeze.

Modelled on a complete business plan of an electricial business in Normandy, our template features both the financial forecast and the written part that presents the project, its team, the local market and the business strategy implemented by the management.

Cast your eyes on this template to achieve a better understanding of what your bank and investors would like to see, so that you can create a business plan that meets their expectations.

7 day free trial. No credit card required. Electrician business plan template available with paid plans only.

How to use this electrician business plan template

Edit the electrician business plan template online, or download it.

There are 3 ways to use this template:

• Edit it online: you can adapt this template to your business idea by changing the text or the financial forecast directly in our business planning software
• Download in PDF: if you're just after a little inspiration, you can download the electrician business plan template in PDF to read over it
• Download in Word format: want to edit your plan on Word? Simply export the electrician business plan template to Ms Word (.docx) format

Electrician shop business plan template content

This template includes a complete electrician business plan example, with a financial forecast and the following sections:

• Executive summary: the executive summary gives the reader a clear and concise overview of your business idea
• Company: this section lays out the structure of your business, including its location, management team and legal form
• Products and services: here, you'll give an overview of the services or products offered by the company
• Market analysis: the market analysis is where you’ll demonstrate that there is a strong demand for your products and services through a thorough assessment of the industry (customer profile, hot trends, regulation, competition, etc.)
• Strategy: this section highlights the company's game plan when it comes to pricing, marketing and mitigating risks along the way
• Operations: this step lays out the company's operational organisation, including the recruitment plan
• Financial plan: the financial plan includes a table of sources & uses (initial funding plan), and complete financial statements (P&L, balance sheet and cash flow statements).
• Appendices: this part provides the opportunity to include multiple financial appendices generated by our software (debt maturity profile, monthly financial statements, financial analysis, etc.).

Executive summary of the electrician's business plan

The executive summary gives the reader a clear and concise overview of your business idea.

Our electrician business plan example's executive summary is formed of the following subsections:

• Business overview: in this subsection, we outline who the electrician founders are, what legal form they've chosen for the business, and the rationale behind the choice of their location
• Market overview: in this subsection, we summarize the conclusions of the market analysis performed by the electricial business' owners and explain who they aim to target (homeowners, tenants with repair needs etc.)
• Financial highlights: in this subsection, we give an overview of the forecasted financial performance of the electrician over the first 3 years of operation
• Our ask: in this subsection, we outline the amount of financing required to start the electrician and how it's going to be funded (the founders are seeking a bank loan to start their electricial business)

Company overview included in our electrician business plan sample

This section lays out the structure of your business, including its location, management team and legal form.

Our electrician business plan template's company section is formed of the following subsections:

• Structure & Ownership: in this subsection, we outline who the electrician's shareholders are and what legal form they've chosen for the business
• Location: in this subsection, we present the area surrounding the location chosen for the business and the layout and main features of the premises
• Management Team: in this subsection, we give an overview of the background of each of the electrician's founders, explain how they met and why they decided to start a company together

Products and services offered by the electrician

The products and services section is where you will present the different types services offered by your electricial business.

In our electrician business plan template products and services section, we cover:

• Repair services: a choice between electrical installation repairs or emergency repairs (which are available 24/7)
• Renovation services: mainly for outdated electrical installations, helping bring them up to regulatory standards
• Installation services: for new builds that require significant electrical work done such as HVAC (heating, ventilation and air conditioning) or installing smoke detectors

Market analysis for the opening of the electricial business

The market analysis is where you’ll demonstrate that there is a strong demand for your products and services through a thorough assessment of the industry (customer profile, hot trends, regulation, competition, etc.).

Our electrician business plan example's market analysis section is formed of the following subsections:

• Demographics and Segmentation: in this subsection, we explore the market in depth. We look at the supply and demand sides both at the national and local level, analyse the hot trends perceived by the founders, and the key statistics that will help the founders build their positioning
• Target market: in this subsection, our founders explain who they view as their ideal customers (homeowners, tenants with repair needs etc.) and why they chose to target them
• Competition: in this subsection, we take a look at the direct (electricians nearby) and indirect (other ways of carrying out repairs) local competition to ensure we have a differentiated positioning and that the market is large enough to accommodate the arrival of new electricial business
• Regulation: in this subsection, we give an overview of the main regulation applicable to our electricial business

Setting the strategy for our electrician

This section highlights the company's game plan when it comes to pricing, marketing and mitigating risks along the way.

Our electrician business plan template strategy section is formed of the following subsections:

• Pricing: in this subsection, we explain how we set the prices of our main categories of services (repair, renovation, installation) and the rationale behind our choice
• Marketing plan: in this subsection, we explain what action we'll put in place to build awareness and loyalty among our customers
• Milestones: in this subsection, we give an overview of the main goals we set for ourselves for the next 3 years
• Risks and Mittigants: in this subsection, we perform an assessment of the medium and long-term risks that could jeopardize the financial viability of our electrical business and outline how we intend to mitigate them

Operations section of the electrician business plan template

This part lays out the company's operational organisation, including the recruitment plan.

Our electrician business plan example's operations section is formed of the following subsections:

• Personnel plan: in this subsection, we explain what our opening hours will be and explain the responsibilities of each of staff member in our electricial business
• Key assets and IP: in this subsection, we list the assets and intellectual property rights which are critical to our business operations and explain how we will secure and protect each of these
• Suppliers: in this subsection, we give an overview of the main suppliers we will use our what commercial terms have been negotiated with them

Financial plan included in our electrician business plan template

This section presents the expected financial performance of the electrician over the next 3 years.

Our electrician business plan example's financial plan is formed of the following subsections:

• Start-up funding: in this subsection, we list the cost of each item required to launch the electricial business
• Important assumptions: in this subsection, we explain the methodology and the main assumptions used to build the  electrician financial forecast
• Sales forecast: in this subsection, we detail the expected revenues and growth rate for our electricial business in the coming years
• Cost structure: in this subsection, we list all the expenses required for our electricial business to operate smoothly
• Projected Profit & Loss statement: in this subsection, we analyse our forecasted P&L and comment on the expected profitability of our electricial business over the next 3 years
• Projected cash flow statement: in this subsection, we analyse the expected cash generation of the electricial business
• Projected balance sheet: in this section we give an analysis of the liquidity and solvability implied from our balance sheet

Appendices of the electricial business plan template

This part provides the opportunity to include multiple financial appendices generated by our software (debt maturity profile, monthly financial statements, financial analysis, etc.).

Our electrician business plan template's appendices include:

• A maturity profile chart showing the principal repayments of their loans over the next 3 years
• A monthly cash flow forecast: showing how much cash is being generated or consumed each month over the first 3 years of operations

Electrician business plan template sample

Executive summary, business overview.

Elec Eco Repair will be an installation, renovation, and electrical repair company located at 25 Rue des Roquemonts, in the city of Caen. The business will be situated close to major roads, to facilitate easy travel.

We will specialise in energy-efficient renovations by offering regulated electrical radiators, thermodynamic water heaters, and much more. This will likely bring long-term benefits to homes within Caen.

Our industry accreditation means that we can guarantee our customers a high-quality service. This accreditation gives us credibility because it ensures that our installation complies with regulatory standards. Our customers will also benefit from subsidies provided by the government.

We will set up a limited company with a total share capital of €8,000. The business will be managed by Victor D. and Marie A.

Our managers both have complementary experience. Victor worked as an electrician for a large company for nearly 10 years. Marie worked at an electrical installation company, providing energy-efficient renovations for 8 years. 

Market Overview

National Market

Turnover of the sector

According to the CAPEB (Confederation of Small Construction Companies), small construction companies generated turnover worth €84.3 billion in 2019 - this represented 64% of the overall turnover that year for the construction industry.

Companies with fewer than 10 employees carried out most of the housing and non-housing work in 2017.

Non-housing work generally includes work for public buildings or businesses such as hotels, offices, shops, and restaurants.

Housing work includes the construction of new properties or renovations. In 2018, 43% of work was carried out on new builds, while the 57% remaining were for improvement or maintenance.

Number of companies, workforce, and employment

In 2018, there were 555,261 small businesses in the construction sector, with 98% of them employing fewer than 20 employees. Altogether, these businesses employed a total of 640,621 employees - representing 59% of the overall number of workers in the construction sector.

Small companies trained 55,370 apprentices in 2019, representing 79% of all apprentices in the construction sector.

In Europe, 97% of companies during the same year had fewer than 20 employees and they accounted for 80% of all construction turnover in the Europe.

Local Market

Figures for Normandy

According to The Regional Economic Unit for Construction, Normandy's construction sector was worth €10 billion in 2018 - a 4% growth in comparison to 2017 figures. The sector accounted for 6% of Normandy's total economy at the time.

There were 28,644 construction businesses in the region:

• 30% were companies employing between 1 and 9 employees 
• 64% were self-employed establishments
• 6% were companies employing more than 10 employees

The CAPEB report also indicates that companies employing fewer than 10 employees generated turnover worth €4.3 million in 2017, i.e. 43% of the regional turnover. There were 2,239 new construction companies created in 2017.

The counties of Seine-Maritime and Calvados accounted for the majority of turnover in the region in 2017. 

Figures for Calvados

The county of Calvados generated a turnover of €2.2 billion in 2017 and accounted for 21.2% of the region's turnover in the building and public works sector. 7,164 such businesses were operating in the region.

With the majority of businesses employing fewer than 10 employees (28%) and micro-businesses without employees (67%), the Calvados sector was predominantly occupied by small companies.

Financial Highlights

We expect to be profitable in our first year of activity with sales of €157,200 and an EBITDA of €6,112 (with a 3.89% margin) for year 1.

We expect to be able to continue to grow our business to reach €198,080 in sales and €15,952 in EBITDA (with a 8.05% margin) by year 3.

Operating cash flow generation is expected to be positive for the entire duration of the plan, and the company should be adequately capitalised to enable us to meet our loan repayments while retaining sufficient liquidity to deal with any unforeseen circumstances.

We estimate that we need a total of €28,000 to open our electrician.

Our partner will contribute €18,000 (64.2% of the total amount).

We would like to obtain a bank loan of €10,000 to complete this amount.

500,000+ entrepreneurs have already used The Business Plan Shop

Easy to get started with and well-guided throughout. Lots of business plan templates to help you and writing is easy because there are explanations at each step of the process.

Quite frankly excellent because I was able to finalize my business plan in less time than expected. This software offers a very coherent and complete approach to writing your project.

It is a very well designed software that allows you to visualise each step of your project, understand if the idea is viable or not and think about the steps needed to start your business.

The software is just impeccable. Of course, it meets the requirements of people starting a business. In addition to having a tool for putting together a proper financial forecast, there is also a tool to help write the business plan.

Try The Business Plan Shop before you buy

There’s only one way to make up your mind about a new service - by trying it out for free. So we’re offering a free trial run on our platform for 7 days.

Learn more about The Business Plan Shop

Electrician shop business plan template faq.

A electrician business plan is a written document that sets out the commercial, operational and financial objectives of the company over the next 3 to 5 years.

It consists of two main parts:

• A written part that presents, in detail, your electrician business, the team, your strategy, and your medium-term objectives.
• A financial forecast that highlights the expected profitability of the electrician and the initial funding requirements.

The lack of business planning is one of the main reasons why more than 50% of startups fail within 5 years. If you're starting a electrician, writing a business plan is a must-have in order to reduce the risk of failure of your project.

Business plans are also required by most lenders and investors in order to secure financing, therefore a business plan is also highly recommended if you're seeking a loan or equity investment for your electrician.

Writing a electrician business plan without The Business Plan Shop can be both error-prone and time-consuming - whether you're new to entrepreneurship or experienced:

• You'll need to research the structure of a business plan, what to include in each section, and what key elements investors and lenders expect to see
• You may encounter writer's block (especially if it's the first time you're writing a business plan for your electrical company)
• You'll need to create a financial forecast on a spreadsheet which requires a solid understanding of accounting and financial modelling in order to be done without error
• You'll need to spend hours formatting financial data on Excel or Sheets before it's ready to integrate into your business plan
• Any updates to your electrician business plan or financial forecast will need to be done manually

Luckily for you, The Business Plan Shop's online platform and electrician business plan template guide you through every stage of writing a business plan, so that you can spend more time managing and growing your business instead.

Our editor follows a best-in-class structure for professional business plans. Each section and subsection includes examples and instructions to help you, while our business plan templates provide further inspiration if you're stuck.

Our financial forecasting software helps you create a forecast and integrate it into your business plan with ease. Anytime you update your data, your business plan automatically updates.

And with our forecasting software all the calculations are done for you, without errors.

The budget to start and run an electricial business will depend on the exact concept and location.

A large electrical business operating in the heart of London would require much greater startup costs than one operating in Newcastle due to higher overhead costs (advertising, insurance, rent).

As an example, in our electrician business plan template the total initial funding requirement amounted to €28,000, with the founders contributing €18,000.

In order to assess the exact budget for your electrician idea, you need to do a financial forecast using a financial projection tool such as the one we offer .

The package we offer at The Business Plan Shop goes way beyond a simple blank template you need to fill. With our platform you get:

• Access to one of the best business plan software on the market
• Access to our electrician business plan template which contains a complete example of a written business plan and financial forecast to start an electricial business
• Access to our entire business plan templates library - giving you dozens of examples to take inspiration from
• Access to our financial planning and analysis platform so that you can track the actual performance of your business against what you had planned in your business plan and re-plan easily

But you shouldn't take our word for it: try our solution for free and make your own opinion!

The free trial enables you to try the software for free during 7 days in order to verify that it meets your requirements before buying.

Some features are limited during the free trial, the main limits are:

• You can only create one business plan
• The financials of the first year are visible, but data for other years are hidden
• You can export your plan in PDF but not in Word or CSV
• No access to our business plan templates

You can create your account and start your free trial here .

Access to our template is included with all our paid subscriptions.

Please visit our pricing page to learn about this in more detail.

Other business plan templates and resources to discover

Free Electrical Business Plan PDF Download | Electrical Shop Business Plan

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

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

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

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

Checklist for Starting a Business: Essential Ingredients for Success

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

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

The Single Most Important Ingredient for Business Success

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

Sounds exaggerated? Listen to this...

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

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

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

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

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

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

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

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

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

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

Success Tip: Setting Goals

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

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

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

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

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

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

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

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

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

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

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

1.1 Objectives

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

1.2 Mission

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

1.3 Keys to Success

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

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

2.1 Company Ownership

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

2.2 Company History

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

Table: Past Performance

3.0 Services

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

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

How to Organize Paperwork for Business

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

1. One-time mail system.

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

2. Categories for performing your work.

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

3. Prioritize your work within categories A and B.

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

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

5. Purge your files on a regular schedule.

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

6. Storing records.

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

7. Toss out stored documents on a regular schedule.

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

8. Color code your records.

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

9. Hot files.

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

10. Use out guides.

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

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How to write a business plan for your electrician services.

Starting an electrician services business is a great idea because it provides an essential service to the public and has the potential to be a very profitable venture.

Additionally, electricians are always in demand, so there is a consistent need for qualified professionals.

Don't start without having built a business plan though.

A business plan is essential for any new project, as it allows you to map out the goals of the project, identify potential challenges, and create a plan of action to ensure successful implementation. Having a clear plan in place will help you get off to a strong start and increase your chances of success.

In short, a good business plan will help make sure your electrician services is profitable .

What should you include in the business plan for an electrician services? What's the ideal arrangement for the structure? What are the important financial ratios to consider? How can I streamline the process of writing a business plan?

Please, find comprehensive answers to all these questions below.

One last thing, you don't have to start your business plan from scratch.

Instead, you can download our detailed business plan for an electrician services and tailor it to suit your requirements.

How to create a business plan for an electrician services

Is it worth considering a business plan for your electrician services.

Yes, you should consider creating a business plan for your electrician services to ensure success.

Formulating a comprehensive business plan will allow to:

• get familiar with the electrician services market
• stay abreast of emerging trends and apply them to your project
• highlight what makes an electrician services successful
• understand the electrical needs and concerns of residential and commercial clients
• find a great unique value proposition for your electrical contractor services
• assess competitor brand reputation
• find competitive advantages for your electrician services
• find a business model that maximizes revenue and minimizes costs
• implement a well-defined and tactical action plan for long-term prosperity
• assess potential risks involved in providing electrician services, such as electrical hazards, code compliance, and worker safety

Our team has drafted a business plan for an electrician services that is designed to make it easier for you to achieve all the elements listed.

How to outline a business plan for an electrician services?

Inside a business plan, you'll find many facts, numbers, and indicators. There should be a clear structure, to make easy to read and digest.

When we elaborated our business plan for an electrician services , we made sure to structure it propertly.

This document is comprised of 5 sections (Opportunity, Project, Market Research, Strategy and Finances).

1. Market Opportunity

The first section is titled "Market Opportunity."

Explore this section for a wealth of information and analysis on electrician services, including electrical systems, safety regulations, customer preferences, and industry trends, empowering entrepreneurs to establish reliable and efficient electrician service businesses.

We constantly update all the data to ensure it's always fresh.

2. Project Presentation

In the "Project" section, you can present your electrician services, outlining the types of electrical work you specialize in (e.g., installation, repair, maintenance), your qualifications and certifications, commitment to safety standards, emergency response capabilities, and the unique value proposition that ensures reliable and efficient electrical solutions for residential and commercial clients.

Remember to introduce yourself at the end of this section.

Discuss your experience in electrical services, your expertise in installations and repairs, and how you plan to provide reliable and efficient electrical solutions to clients. Highlight your knowledge of electrical systems, your adherence to safety regulations, and your dedication to delivering top-notch service that ensures proper functioning and optimal electrical performance in residential, commercial, and industrial settings through your electrician services.

Our business plan has text for you. Customize it to fit your concept.

3. Market Research

Then, there is the "Market Research" section.

In this section, you will find a market segmentation analysis for your electrician services.

It includes a study of competing electrician service providers in the area. Your services' expertise in electrical solutions and competitive advantages are also highlighted. A customized SWOT analysis is included.

4. Strategy

Within the "Strategy" section, a detailed plan spanning three years is outlined, specifying the necessary initiatives to make your electrician services highly profitable.

Furthermore, you can access a marketing plan, a strategy for managing risks, and a completed Business Model Canvas.

5. Finances

Lastly, the "Finances" section is dedicated to presenting all the financial data, tables, and visuals for your project.

How to make the Executive Summary for an electrician services?

The Executive Summary is a brief and condensed overview of the business plan of your electrician services.

Keep it short and to the point, no longer than 2 pages. Include only the vital details.

This document aims to capture the reader's interest and make them want to read your business plan.

In the Executive Summary of your electrician services, answer the following questions: what electrical services do you offer as an electrician? who is your target audience? are there other electrician service providers in the market? what is your required funding?

How to do the market analysis for an electrician services?

Analyzing the market for your electrician services allows you to gain insights into factors such as customer needs for electrical installations and repairs, competition within the electrical services industry, and emerging trends in energy-efficient solutions.

By conducting a comprehensive market study, an electrician services company can identify customer needs, provide reliable electrical solutions, optimize pricing strategies, and execute targeted marketing campaigns, ultimately leading to a loyal customer base, increased service requests, and a prominent position in the local electrical services industry.

This is what you'll find in the "Market Research" section of our business plan for an electrician services :

• interesting data points and market insights about electrician services, including electrical repair trends, energy-saving solutions, and demand
• a list of potential audiences for an electrician services
• the competitor study
• the potential competitive advantages for an electrician services

The key points of the business plan for an electrician services

What's the business model of an electrician services, business model of an electrician services.

An electrician services business model revolves around providing electrical installation, repair, or maintenance services to residential, commercial, or industrial clients. Revenue is generated through service fees charged for labor and materials.

The business model focuses on employing licensed and experienced electricians, ensuring compliance with electrical codes and safety standards, effective marketing to target clients in need of electrical services, and building strong customer relationships based on quality workmanship and reliability.

Success depends on technical expertise, delivering efficient and timely electrical solutions, maintaining licenses and certifications, fostering positive customer reviews and recommendations, and continuously staying updated with industry advancements and electrical regulations.

Business model vs Business plan

Don't get "business plan" and "business model" mixed up.

A business model describes how a company generates income and operates successfully.

In a business plan, you delineate your business model employing a resource called the Business Model Canvas.

Rest assured, there is a Business Model Canvas (already completed) in our business plan for an electrician services .

How do you identify the market segments of an electrician services?

Market segmentation for your electrician services involves dividing your potential clients into different groups based on their electrical needs, project scopes, and demographics.

These categories may include factors such as residential electrical services, commercial electrical services, electrical repairs, or clients seeking specific electrical solutions or expertise (e.g., lighting installation, electrical panel upgrades).

By segmenting your market, you can offer specialized electrician services and solutions that cater to each segment's specific requirements. For example, you might focus on residential electrical services and provide electrical installations, repairs, and upgrades for homeowners, offer commercial electrical services and handle electrical projects for businesses and commercial properties, specialize in electrical repairs and troubleshooting to address specific electrical issues or faults, or focus on specific electrical solutions or expertise such as lighting installation or electrical panel upgrades to meet the unique needs and preferences of each client segment.

Market segmentation allows you to effectively target your marketing efforts, communicate your expertise in electrical services, and provide reliable and safe electrical solutions that meet the unique needs and preferences of each client segment.

In the business plan for an electrician services , you will find a comprehensive market segmentation that will help you identify your potential customers.

How to conduct a competitor analysis for an electrician services?

It's evident that you won't be the only provider of electrician services. There are other professionals offering electrical installations, repairs, and maintenance to residential and commercial clients.

It's important to analyze your competitors thoroughly as part of your business plan. This means listing their traits, strengths, and weaknesses.

Be aware of their weaknesses (such as lack of specialized electrical knowledge, inconsistent service quality, or poor customer communication).

Why is it crucial to notice these aspects? Because these weaknesses can impact customer satisfaction when utilizing electrician services.

By focusing on these areas, you can provide skilled and licensed electricians, offer prompt and reliable electrical repairs and installations, and deliver transparent pricing and excellent customer service, positioning your electrician services as a trusted and preferred choice for electrical needs.

It's what we call competitive advantages—building them is key to standing out in the market.

Here are some examples of competitive advantages for electrician services: licensed and certified electricians, comprehensive range of electrical services, efficient and safe installations and repairs, reliable troubleshooting and diagnostics, competitive pricing, exceptional customer service, positive referrals and reviews.

How to draft a SWOT analysis for an electrical contractor?

A SWOT analysis can help identify potential risks and opportunities for an electrician services, enabling them to make informed decisions and plan for the future.

As you can guess, there is indeed a completed and editable SWOT matrix in our business plan for an electrician services

The strengths for an electrician services

The letter "S" in SWOT stands for Strengths, highlighting the project's positive attributes or capabilities.

For an electrician services, possible strengths include expert knowledge, excellent customer service, reliable services, and attention to detail.

The weaknesses for an electrician services

W stands for Weaknesses, referring to the project's areas or aspects that have room for improvement.

For an electrician services, potential weaknesses include lack of experience, limited resources, inadequate customer service, and limited geographic area.

The opportunities for an electrician services

The letter "O" denotes Opportunities in SWOT, signifying the potential advantages or beneficial external factors that can contribute to the project.

In the case of an electrician services, potential opportunities include installing and maintaining electrical systems, wiring appliances, inspecting and repairing electrical components, and providing emergency services.

The threats for an electrician services

When we use the "T" in SWOT, we're referring to Threats, which are the external risks or challenges that the project may encounter.

How to outline a marketing strategy for an electrical contractor?

A marketing strategy is a key element of a business plan as it explains how a business will capture customers and achieve sales targets.

Developing an effective marketing approach will help your electrician services gain visibility and appeal to homeowners and businesses in need of reliable electrical solutions.

Homeowners won't seek your electrician services without proper marketing; emphasizing your reliability and expertise is crucial.

Are you implementing effective marketing strategies for your electrician services? Consider optimizing your website for local search, offering educational content about electrical safety and energy efficiency, and attending home improvement or trade shows to showcase your expertise.

No need to worry if you have no clue about marketing and communication.

How to build a solid financial plan for an electrical contractor?

A comprehensive business plan requires a thorough analysis of financial data to ensure its success.

As part of your business planning process, you'll be required to predict the revenue for your electrician services.

To instill trust and confidence in potential investors, your business plan should have revenue projections that are reasonable and backed by sound assumptions.

Our financial plan for an electrician services is user-friendly, providing automated validations that allow you to rectify any assumptions swiftly. This guarantees the creation of credible projections with ease and assurance.

No doubt, you'll have to establish an initial budget for launching your electrician services. Pay attention to every expense and don't leave any out (our financial plan includes a complete list for your convenience).

The break-even analysis is also central in your financial plan as it indicates you whether your electrician services will generate profits or not.

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