What you Get With Electrical Contractor Business Plan Package
| 6 Chapter Business Plan Template in MS Word | Free Pitch Deck Template in PPT |
| 5 Year Financial Model Template in MS Excel | Free Financial Dashboard Template in MS Excel |
| Immediate Download After Purchase | MAC &PC Compatible, Unlocked, NO VBA Macro |
| Bank/Investor/Grant Ready Package | No Accounting Or Financial Knowledge Needed |
I.- Executive Summary
Problem
As the demand for electrical services continues to grow, so too does the need for a trustworthy and reliable electrical contracting business in the Atlanta area. Despite the increasing demand, there is currently a lack of qualified companies providing quality electrical services at a reasonable price. Connected Electrical Contractors fill the void in the market by offering high quality services, excellent customer support, and affordable pricing to meet the needs of the local community.
Solution
Connected Electrical Contractors will provide a comprehensive solution to customers’ electrical needs. We offer a wide range of services, from the installation of wiring and switches, to the complete construction of entire electrical systems for businesses and homes, as well as complete residential and commercial system design and installation services. We will also feature a line of home automation products that will enable our customers to have complete control over their home electrical systems. Additionally, our team will offer a line of solar panel systems to enable customers to save money on their energy bills.
Our highly qualified technicians are dedicated to providing reliable and efficient services at competitive prices. Our staff is knowledgeable and experienced, and committed to providing excellent customer service and the highest quality workmanship.
Target Market
Connected Electrical Contractors is committed to providing customers with excellent electrical solutions and customer support guarantee. Our services will be aimed at both residential and commercial customers who are looking for reliable and efficient electrical solutions. We understand that our customers come from a diverse range of backgrounds and have varied needs, and we are prepared to address their needs with our comprehensive range of electrical services. We will target customers who are looking for convenience, cost savings and efficiency from their electrical solutions. This includes customers looking for solar panel installations, residential and commercial systems design and installation, or even home automation products. Our pricing structure will be competitive to ensure that our services are both affordable and of the highest quality. We will also strive to provide further services such as maintenance and repair to ensure that our customers can rely on us for all their needs.
Competition
Connected Electrical Contractors will face stiff competition in the electrical services market in the city of Atlanta and the surrounding areas. There are many local alternatives that offer similar services to ours, some of which are well established and well known in the area. It is our goal to provide a superior solution that offers customers high quality services, exceptional customer service and affordable pricing. We believe that by focusing on these areas, Connected Electrical Contractors can gain an advantage over competitors and ultimately become the preferred choice for electrical contracting services in the area.
Financial Summary
The financial plan of the Connected Electrical Contractors business plan outlines the following key highlights:
- Outlining the total costs associated with launching the business, such as fees for licenses, insurance, and equipment.
- Gauging projected revenue streams from services, such as installation of wiring and solar panels, as well as home automation products.
- Analyzing programmatic costs such as salary for experienced professionals.
- Calculating estimated profits for the business for the opening year and into the future.
- Implementing future growth strategies for additional revenue streams.
The financial plan for Connected Electrical Contractors provides evidence of the viability and sustainability of the business and its commercial potential in the Atlanta area.
Funding Requirements
Connected Electrical Contractors is dedicated to providing the ideal electrical solutions for both commercial and residential clients. In order to ensure that our operations run smoothly, the following funding must be allocated:
- Working capital for the purchase of materials and supplies necessary for electrical installation and repair services
- Investment for marketing campaigns to promote the business locally and regionally
- Capital to invest in hiring the best electrical engineers and technicians in the market
- Funds to acquire certifications and licenses required by local and state regulations
- Money to procure a high-end system of home automation products
- Investments to acquire the necessary tools and machines for designing and installing solar panel systems
Milestones and Traction
Connected Electrical Contractors seeks to open in 2023 with a roadmap table plan to track progress along the way. This plan includes milestones such as obtaining the necessary licensing, building a strong team of experienced professionals, operating a profitable business model, and rolling out home automation services. The success of the business will depend on these milestones and continued traction.
We plan to implement a rigorous and intent marketing plan, which will include word of mouth, online and offline advertising, and engaging industry events. We will also focus on customer satisfaction by providing quality services and exceptional customer support. Furthermore, we plan to implement an efficient and organized business model, which will further drive our growth prospects and ensure a healthy bottom line.
We are confident that our plan to prioritize customer service, quality of work and affordable pricing will result in Connected Electrical Contractors becoming the number one choice of electrical contractors in Atlanta and the surrounding areas.
II.- Products & Services
Problem
Atlanta is home to a wide array of electrical contractors, but many fall short in providing a premium level of service, quality, or affordability. Connected Electrical Contractors aims to fill this gap in the market and provide customers with a comprehensive electrical services experience. We understand the needs of our customers and strive to develop solutions that meet those needs, while maintaining a level of service, quality, and affordability that is second to none.
We recognize that there are a plethora of electrical services that must be performed and that many areas of Atlanta’s electrical system infrastructure remain outdated and in need of improvement. Connected Electrical Contractors is here to provide the necessary services that will bring these areas up-to-date, while ensuring that the customer is receiving the best value for their money.
Solutions
Connected Electrical Contractors provides a wide range of services and products to meet the needs of our customers. Our services include the installation of wiring and switches, system design and installation services, and residential and commercial solar panel systems. We offer these services with a commitment to customer service, quality workmanship, and affordable pricing.
We believe in providing the best possible electrical solutions to every job that we accept. Our team of experienced professionals will be dedicated to finding the best possible solution for each and every customer we serve. We also offer a line of home automation products that allow customers to have complete control over their home electrical systems. Finally, we offer solar panel systems that enable customers to save money on their energy bills.
Our commitment to customer service, quality workmanship, and affordable pricing make Connected Electrical Contractors the best choice for electrical contracting services in the Atlanta area. We are confident that our solutions will provide the best value for money and ensure the customers' satisfaction.
Validation of Problem and Solution
Connected Electrical Contractors is aware of the current demands in the electrical contracting market in the city of Atlanta and the surrounding areas. We have conducted an extensive market research and interviewed numerous industry professionals to understand the needs of our customers. The data and feedback collected have effectively validated the need for a high quality electrical contracting service business.
Our team has also conducted an analysis of our competitors to evaluate their strengths and weaknesses. The data collected shows that the local market is open to a high quality electrical contracting business that offers innovative and reliable services. We believe that by providing superior customer service and excellent quality of work at an affordable price, we will become the premier provider of electrical services in the area.
Finally, to confirm the viability of our products and services, our team has conducted a number of tests of our home automation systems as well as our solar panel systems. The results of these tests have been extremely positive and have confirmed the reliability and effectiveness of our products and services.
Product Overview
Connected Electrical Contractors offers a comprehensive range of electrical services, ranging from the installation of wiring and switches to the construction of entire electrical systems. Our team of experienced professionals are dedicated to providing the best possible electrical solutions to each and every job to ensure the highest level of safety and accuracy. Our range of products and services also include a line of home automation products, to give our customers full control over their home electrical systems, as well as a line of solar panel systems to help customers save money on energy bills.
Our commitment to customer service, quality workmanship, and affordable pricing has enabled us to become a respected and trusted brand for electrical services in Atlanta and the surrounding areas. We strive for excellent customer support, and always prioritize the satisfaction of our clients.
Competition
Although there are many existing electrical services providers in the Atlanta area, Connected Electrical Contractors offers a unique set of offerings that will help set us apart from the competition. In addition to our highly experienced team of professionals, we will offer a line of home automation products, solar panel systems, and complete residential and commercial system design and installation services. These offerings are highly specialized and are not available in all other electrical services providers in the area.
Moreover, Connected Electrical Contractors' commitment to customer service and affordability will be a major distinguishing factor. We will strive to provide quality services and flexible pricing to ensure that we are the preferred option for electrical services in the Atlanta area.
Roadmap for Products & Services
Connected Electrical Contractors is committed to providing exceptional electrical services and customer satisfaction. Our roadmap consists of key steps we have taken, and plan to continue to take to ensure our success.
So far, we have invested in the necessary workforce and equipment to provide a wide range of electrical services. We have also identified a line of high quality home automation products that our customers can use to gain complete control over their home electrical systems. Additionally, our team has researched and sourced the supplies necessary to offer complete residential and commercial system design and installation services.
Moving forward, our planned steps involve partnering with trusted local suppliers to secure the best materials for our projects. We will also look for opportunities to expand our services with the addition of solar panel systems, to further enable our customers to save money on their energy bills. Finally, through marketing and customer outreach, we strive to make Connected Electrical Contractors the number one choice for electrical contracting services in the city of Atlanta and the surrounding areas.
III.- Market Analysis
Market Segmentation
Connected Electrical Contractors will cater to both residential and commercial customers. Both customer groups have distinct needs, preferences and budgets when it comes to electrical services. For example, residential customers may be looking for quality and affordability when selecting a contractor while commercial customers may be more focused on certain system designs or automation products.
To better understand our potential customer base, segmentation will be used to group customers by certain characteristics. The following table provides a quick overview of potential customer segments and an example representative found in each segment.
Table 1: Potential Customer Segments
| Segment | Characteristics | Example |
|---|---|---|
| Residential | Homeowners looking for quality and affordable services | Mr. and Mrs. Smith, searching for a reliable contractor to install wiring in a new home |
| Commercial | Businesses looking for system design or automation products | Mr. Johnson, owner of a retail store looking for a complete design of electrical systems |
Target Market Segment Strategy
Our ideal customer is any individual, business, or organization in need of electrical contracting services. Our company is outfitted to provide service to many different sectors, including commercial establishments, government institutions, healthcare facilities, and industrial sites. Our target market segment is the tri-state region of Oregon, Washington, and Idaho, as well as the northern California region. We are particularly interested in targeting new and existing construction projects, as well as existing facilities in need of repair or redesign work. We have the capacity to work with small- and medium-sized projects as well as with larger, more complex projects.
Key Customers
Our ideal customers are building contractors, sub-contractors, project managers, and other individual electrical jobs. These customers are looking for an electrical contractor that understands their specific needs and ensures timely completion of jobs. Our customers are looking for an experienced and reliable contractor who can provide quality work at a reasonable price. With our years of experience and our state-of-the-art tools, we guarantee our customers will be satisfied with our work.
Our primary customer archetype is a professional contractor responsible for managing commercial or residential projects. They have multiple electrical aspects to manage, so they are looking for a competent partner who can understand each of those needs. To fulfill this requirement, we offer a suite of services and innovative solutions to fit the customer's project specifications.
This customer archetype is ideal for our business as they generally require multiple projects to be completed and are frequent customers who can help build a long-term relationship. We plan to target these customers with our marketing efforts to ensure they are aware of our quality service and competitive pricing.
Future Markets
The market analysis section has provided a snapshot of the potential opportunities for an electrical contracting business. With this knowledge and the proposed business strategy, the business is well-positioned to take advantage of these opportunities and reach its targets. This is achievable primarily through the establishment of a successful brand and developing a loyal customer base through excellent customer service.
Given the local market demand for electrical contractors, there is potential for the business to grow within this field and capture new opportunities. Together with the targeted marketing strategy, the potential for the business to expand within the local area is strong. Further, the ability to provide additional services and reach into new areas, creates additional pathways to further grow the business.
Therefore, by leveraging a combination of market analysis and the proposed business strategy, the business can tap into the current and future market opportunities and position itself to continue to provide exceptional service to its customers.
Competition
Connected Electrical Contractors faces competition in the market, including both local and national electrical contractor companies. To better visualize and analyze this competition, we have created a table of potential competitors, which includes their services and pricing.
The table is based on market research conducted within the local Atlanta city limits and its surrounding areas to determine the rate at which electrical contractors are able to operate. This research includes publicly available data from the local and state government and from individual and corporate documentation.
Additionally, the table provides information on relative cost and services of the top competitors in the area. The data indicates that there is no one single provider that dominates the market, which provides an opportunity to create a strong foothold and become a leader in the industry.
IV.- Marketing and Sales Plan
Marketing Plan
Connected Electrical Contractors plans to utilize various advertising channels to reach our target customer base, including digital and social media outlets, print media, radio, and television advertisements. We will also engage potential customers through direct mail, cold calling, and numerous other methods. Our customer outreach program also includes comprehensive market research to ensure our services are tailored to each customer’s unique electrical needs, while being cost-effective and budget-friendly.
Our goal is to generate customer inquiries as quickly and efficiently as possible, as well as to create a strong, recognizable brand. To accomplish these objectives, we plan to hire a marketing firm to assist in developing an effective and comprehensive marketing strategy, with the goal of increasing awareness of Connected Electrical Contractors’ services in the local Atlanta market.
We plan to employ the following strategies:
- Introduce our services through radio and television advertising spots, as well as print advertisements in local newspapers, magazines and trades.
- Establish and maintain a presence on all relevant social media platforms, including Facebook, Twitter, LinkedIn, and Instagram.
- Launch an email and direct mail campaign targeting potential customers in the Atlanta area.
- Set up and maintain a website that provides information on available services, customer testimonials, contact information, and a blog.
Our marketing budget for the first year of operation is estimated at $50,000. As we grow, we plan to increase our marketing efforts to ensure our brand remains strong and recognizable.
Sales Plan
We anticipate making substantial sales over the course of the next year. Our estimate is based on market conditions, our capacity to fulfill orders, our pricing strategy, and our ambition to expand our customer base. We estimate that we can generate around 100 sales from our current customers, increase sales from new customers by 20%, introduce new products to capture 5% of the market, and grow our market share by 10%. In total, we estimate that we will make around 230 sales this year.
Location and Facilities
Connected Electrical Contractors is pleased to announce that we will be located in Atlanta, Georgia with our operations center based at ___ (enter address). Being located in this vibrant city will grant us access to incredible resources. We are confident that our team will be able to utilize those impressive resources to give our customers nothing less than the best of our services.
We have secured the necessary permits and licenses for the operation of our business, among which are a valid contractor's license, an electrical contractor's certificate of fitness and a general liability insurance policy. Additionally, we also have established a reliable network of suppliers and subcontractors to ensure that our services continue to be of the highest quality.
Our facilities are very well-equipped, with the necessary tools, materials, and utilities that our team needs to carry out its diverse electrical projects. Additionally, we have also set up an office space in the heart of the city that will be used to coordinate our operations.
Technology
Our electrical contractor business has adopted the latest electrical engineering tools, technologies and materials to ensure that our services are fully up to date and always of the highest quality. By utilizing all the latest tools and technologies, we can provide the most efficient and reliable service available to our clients. We strive to stay ahead of the curve by always being one step ahead of the newest advancements in equipment, systems and practices. This allows us to consistently bring better quality results to our customers.
We use a number of specialized software and computer applications to help our engineers and technicians create the most accurate and efficient electric plans and layouts. This helps us expedite our processes and get even better quality results. We also believe in using the most up to date materials and products when it comes to completing our work. This allows us to keep up with the newest advancements in electrical systems and components, furthermore providing the highest safety standards to our clients.
Equipment and Tools
For the operation of our electrical contracting business, we require certain tools and equipment to ensure we are capable of providing the highest quality services. We will acquire the following in order to stay up to date with industry standards:
| Equipment / Tool | Cost (Purchase / Rental) |
|---|---|
| Safety Gloves | $150 (Purchase) |
| Safety Goggles | $50 (Purchase) |
| Voltmeter | $500 (Purchase) |
| Thermal Gun | $20 (Rental) |
| Wire Cutters | $450 (Purchase) |
V.- Management and Organization
Organizational Structure
An effective organizational structure is one of the most crucial foundations for achieving success in the electrical contractor industry. This organizational chart for our prospective electrical contractor business provides an overview of its structure. It includes roles and responsibilities of specific employees as well as the flow of information between levels of the organization.
Each individual section, from the Board of Directors down to the project teams, will be managed according to the personalized workflow and established job responsibilities. In this way, communication and governance between each level are kept organized, professional and efficient.
The electrical contractor business will be composed of the following main levels of management:
- Board of Directors
- Executive Management Team
- Project Leaders/Managers
- Project Team Members
The figure below illustrates the organizational structure:
Management Team
At the launch of our electrical contractor business, we anticipate needing to fill the following high-level management roles: chief executive officer (CEO), chief financial officer (CFO), and chief operating officer (COO). Our CEO will be responsible for leading our team and overseeing all areas of the operation. The CFO will manage our financial transactions and cash management. The COO will oversee daily operations and developing our strategy.
A table of potential candidates for each management role is provided below:
| Position | Candidate | Experience |
|---|---|---|
| CEO | Simon Smith | 15+ years of professional experience in business leadership, operations, and management. |
| CFO | Michelle Jones | 20+ years of experience in accounting, financial analysis, and business planning. |
| COO | Lilly Thompson | 10+ years of experience working in electrical contracting. |
We believe that with their combined experience and expertise, our management team is fully prepared to lead our electrical contractor business to success.
Management Team Gaps
We currently do not have candidates ready to fill certain positions or areas of expertise needed to operate our electrical contractor business. These include system-level engineers for developing electrical installations, project managers for supervising personnel, and sales and accounting personnel for understanding customer billing and invoicing. All of these roles are essential for the success of our business, and we are actively seeking experienced professionals to fill these roles.
Personnel Plan
In order to run an effective electrical contractor business, we need to determine the personnel requirements in order to carry out everyday operations. This section will provide a table of potential positions that the business may require in order to function. This list is not exhaustive and may be amended as the business evolves.
Table 1: Potential Personnel Requirements
| Position | Description |
|---|---|
| Business Owner | Responsible for the overall operations and management of the business. |
| Contractors | Responsible for completing customer requests related to the electrical services. |
| Office Personnel | Handle customer service inquiries, coordinate orders, and manage online customer accounts. |
| Accounting | Maintain financial records and accounts, process invoices and payments, and supervise budgets. |
| Administrative | Organize paperwork, manage customer data, and handle filing. |
Company History and Ownership
Connected Electrical Contractors (CEC) has been founded by two professional electricians with over 20 years of combined experience in the electrical contracting industry. Ariel Flores and Robert Lopez have assembled a team of highly experienced professionals who bring a wealth of knowledge in commercial and residential electrical contracting. With their extensive experience in providing reliable and safe electrical services, CEC is committed to becoming the premier electrical contracting company in the Atlanta metro area.
CEC has spent the past year researching the local market and gathering feedback from customers to better understand the specific needs of clients. Robert and Ariel realized quickly that customer service was the number one priority and they have built their team to reflect that commitment. CEC is committed to providing the highest quality electrical services, excellent customer support, and affordable pricing to ensure that CEC remains the top choice for electrical services.
Milestones
As your electrical contractor business grows and develops, it is beneficial to have benchmarks in place to track and measure your progress. We have outlined our key performance indicators, goals and objectives in a detailed roadmap that identifies specific milestones, timeline and outcomes. This roadmap, presented in table format in the following page, helps to outline our plans for managing and steering the business. By tracking our progress step-by-step and monitoring performance we can identify areas of success, uncover problem areas and determine if modifications to our strategy should be implemented.
Key Metrics
To gauge the overall performance and health of our electrical contractor business, we have identified key performance indicators (KPIs) that we measure regularly. These KPIs include metrics associated with customer service, such as response times, customer satisfaction ratings, completion times, and number of jobs per day. Additionally, we measure operational metrics such as profits, losses, and expenses. Regular evaluation of these KPIs provides us with insight into our business’s overall performance and health and helps us make adjustments to ensure continued success.
What you Get With Electrical Contractor Business Plan Package
| 6 Chapter Business Plan Template in MS Word | Free Pitch Deck Template in PPT |
| 5 Year Financial Model Template in MS Excel | Free Financial Dashboard Template in MS Excel |
| Immediate Download After Purchase | MAC &PC Compatible, Unlocked, NO VBA Macro |
| Bank/Investor/Grant Ready Package | No Accounting Or Financial Knowledge Needed |
VI.- Financial Plan and Metrics
Sales forecast
The projected sales for the three-year period of the Electrical Contractor Business Plan are outlined in the table below:
| Year | Revenues |
|---|---|
| Year 1 | $50,000 |
| Year 2 | $75,000 |
| Year 3 | $100,000 |
Electrical Contractor Financial Plan Key Inputs
Expenses
In order to successfully start and run an electrical contractor business, it is essential to consider both expected start-up costs as well as necessary operational expenses. The following tables detail the start-up costs and operational expenses associated with the venture.
Startup Costs
| Item | Price | Purpose |
|---|---|---|
| Business License | $20 | Required for operating as a business |
| Supplies & Equipment | $500 | Represents the cost of necessary tools and materials |
| Marketing Fees | $400 | Accounts for fees associated with startup marketing |
Operational Expenses
| Item | Price | Purpose |
|---|---|---|
| Insurance | $1000 per annum | Protects the business and customers in the event of an accident or injury |
| Utilities | Varies | Represents the cost of electricity, water, etc. |
| Maintenance & Repairs | Varies | Accounts for any repairs and maintenance required for continued operations |
Financial Plan
This part of the business plan is where you present the three main financial documents of any startup: the income statement, the cash flow statement, and the balance sheet. These documents provide detail on the financial position of the business. The income statement shows all the revenue and expenses for a particular period of time and also provides information about the net income of the business. The cash flow statement provides details of all the cash that is entering and leaving the business during the same period. Finally, the balance sheet reflects the value of the company’s assets, liabilities and equity at a particular point in time. All three of these documents provide important information to investors and lenders, allowing them to determine the financial health of the business.
Electrical Contractor Financial Plan Profit & Loss Statement
Electrical Contractor Financial Plan Cash Flow Statement
Electrical Contractor Financial Plan Balance Sheet Statement
Personnel Plan
Our electrical contracting business plan outlines our strategy for staffing the business. We plan to recruit motivated and skilled individuals with industry knowledge and experience. We have formulated strategies to ensure employees are compensated appropriately, and fit into our business operations. We intend to hire employees on a full time and part-time basis, as needed.
Compensation packages will vary depending on the role. We plan to offer competitive wages and employee benefits, including health and retirement plans. Employees in higher-level positions such as managers and project supervisors will receive incentives, such as bonuses and paid vacation time.
Employees will be given appropriate training to ensure they are up to date with industry standards and regulations. We will create a positive working environment with clear policies and hierarchies. We value communication and collaboration, and our team will be efficiently managed to optimize workflow and performance.
Capital Requirements and Use of Funds
The capital requirements for an electrical contractor business plan should reflect the amount of money that is needed to be raised, how it is going to be used, and how much investment is needed from outside sources. The use of funds will outline the specific purposes for which the money is necessary such as start-up costs, hiring more personnel, equipment costs, and other necessary aspects of the electrical business.
This financial plan will indicate how much money is needed upfront to get the business off the ground, and what timeline is required for repayment. This information should be transparently presented to potential investors or lenders to gain the trust necessary to receive their funds.
Exit Strategy
When starting an electrical contractor business, it is important to consider the eventual exit strategy. Depending on the size, stage of growth, and ownership of the business, the exit strategy may differ. As such, it is important to plan for it.
A potential exit strategy may involve selling the company, either partially or fully, to another individual or business. This can ensure that the business is passed on to someone who understands the company and its current conditions, and can ensure its future success. It is important to consider the needs of all involved when making the decision to sell the business, as well as any legal obligations.
Alternatively, it may be possible to pass the business on to a family member or employee. This can ensure the future of the business and maintain the individual or family's legacy. It is important to note, however, that this is not feasible for all electrical contractor businesses, depending on the size and stage of growth.
Ultimately, the exit strategy should be considered carefully and tailored to the individual business. The financial plan and metrics in this business plan should include a comprehensive exit strategy which can provide a clear path towards the future of the business.
