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Electrical Contractor Business Plan Template

Written by Dave Lavinsky

Electrical Contractor Business Plan

You’ve come to the right place to create your Electrical Contractor business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Electrical Contractor companies.

Below is a template to help you create each section of your Electrical Contractor business plan.

Executive Summary

Business overview.

Oak City Electric, located in Raleigh, NC, is a newly established family owned and operated electrical contracting company. The company provides electrical contracting services to the local metropolitan area and its surrounding communities. With an emphasis on customer service and rapid response time, Oak City Electric is set to establish itself as one of Raleigh’s most trusted and reliable electrical contractors.

Oak City Electric was founded by Randy Wallace. Randy Wallace has been an electrician in the community for over 40 years. Although he has worked for several local competitors, Randy Wallace has always wanted to own and operate his own electrical contracting company. He finally saved up enough money and built up a large enough client base to make his dream come true. Randy’s education, experience, and skill set will quickly make Oak City Electric the #1 electrical contracting company in the area.

Product Offering

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

  • Residential Electrical
  • Commercial Electrical
  • Industrial Electrical
  • Safety Inspections
  • Fixture, Smoke Detector, And Carbon Monoxide Detector Installation
  • Smart Home Installation
  • Security Systems
  • Home Theater Installation
  • Camera Systems

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

Customer Focus

Oak City Electric will primarily serve the residents living within Raleigh, NC, and the surrounding areas. About 51% of the city owns their own homes and will likely need electrical work at some point. There are also thousands of businesses in the area and over 1 million square feet of industrial/warehouse space. Many of the city’s residents and businesses are underserved when it comes to electrical services, so our services will be in high demand.

Management Team

Oak City Electric is led by Randy Wallace, a local electrician who has worked for the largest electrical contractor companies in Raleigh for over 40 years. Randy Wallace is fully licensed and bonded and has gained an impressive reputation as the most reliable and trustworthy electrician in the market. As a project manager that oversaw hundreds of projects, Randy has the proper knowledge and experience to own, manage, and operate his own electrical contracting company. He also has built a loyal client base, with many clients promising to use his services once the company is fully running.

Success Factors

Oak City Electric will be able to achieve success by offering the following competitive advantages:

  • Technology: Oak City Electric will be able to provide the latest advancements in electrical contracting.
  • Price: Oak City Electric is able to offer their services at the best and most competitive price.
  • Community Relations: Oak City Electric will be a pillar in the community and be heavily involved in family-related activities in the area. It will sponsor events and provide free electrical services (for small jobs) to non-profit organizations and area schools.
  • Highly Trained and Experienced Staff: Oak City Electric will be led by Randy Wallace who has decades of experience as an electrician and project manager.

Financial Highlights

Oak City Electric is seeking $400,000 in debt financing to launch. The funding will be dedicated to securing office space and build-out and purchasing the necessary equipment and tools. Funding will also be dedicated toward three months of overhead costs, including payroll, rent, and marketing costs. The breakout of the funding is below:

  • Office space build-out: $100,000
  • Equipment, tools, and supplies: $50,000
  • Three months of overhead expenses (payroll, rent, utilities): $150,000
  • Marketing costs: $50,000
  • Working capital: $50,000

Oak City Electric Financial Projections

Company Overview

Who is oak city electric.

Randy Wallace has saved his wages for the necessary down payment to receive local bank financing. He has also located a prime spot for the lease of the company headquarters where the equipment and vehicles will be kept. Due to his experience and reputation in the electrical contractor industry, Randy has been able to receive written commitments from large development companies in Raleigh for them to be the preferred electrical subcontractor for their upcoming projects.

Oak City Electric’s History

Once his market analysis was complete, Randy began surveying the area for an available office space with plenty of surface parking to house the company’s large fleet of vans and trucks. Randy incorporated Oak City Electric as a Limited Liability Corporation in April 2023.

Once the lease is acquired for the space, light construction can begin to build out the company’s headquarters and small office.

Since incorporation, the Company has achieved the following milestones:

  • Located an office space that would be ideal for the company
  • Developed the company’s name, logo, and website
  • Hired a general contractor for the build-out of the warehouse, small office, and parking area
  • Determined equipment and necessary supplies
  • Determined how many vehicles necessary for the fleet
  • Began recruiting key employees

Oak City Electric’s Services

Industry analysis.

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

Over the next five years , industry revenue is expected to grow at a faster rate, largely as a result of pent-up demand. As the economy booms, the value of nonresidential construction and per capita disposable income are both anticipated to increase and contribute to industry revenue growth. In addition, the industry is projected to benefit from continued renovation and retrofitting activity, particularly green upgrades, such as energy-efficiency projects and smart home technologies. According to Arizton, these factors are expected to help boost the electrical contractor industry by a CAGR of 3.94% from now until 2028. Therefore, this is the perfect time to establish a new electric contracting company as there is a great demand for these services.

Customer Analysis

Demographic profile of target market.

Oak City Electric will serve the community residents of Raleigh, NC, and its surrounding areas.

The community of Raleigh has thousands of single family homes that will likely require electrical work. There are also a number of businesses and industrial parks that require regular lighting and other electrical services.

The demographics of the area in which we will operate are as follows:

Customer Segmentation

The Company will primarily target the following three customer segments:

  • Contractors

Competitive Analysis

Direct and indirect competitors.

Oak City Electric will face competition from other companies with similar business profiles. A description of each competitor company is below.

Wallmore Electrical Contractors

Established in 1977, Wallmore is Raleigh’s largest and most requested electrical contractor. The company has grown itself to be the premier electrical contractor as it has completed dozens of projects over the years and has grown its workforce to over 100 employees and electricians.

The company was formed as a small family company and later acquired another electrical company in the area to allow itself to grow and add more services. They also have a very capable fleet of vans and trucks that are able to travel not just around the city, but across the state as well.

The company specializes in electrical lighting systems, such as LED retrofit, residential, commercial, industrial, and landscape lighting. They are also a preferred subcontractor to numerous large general contractors to complete their electrical projects for them. The projects range in size from residential developments to commercial remodeling and warehouse improvements.

We-Do-It-All Electrical & Mechanical Contractors

We-Do-It-All Electrical & Mechanical Contractors offers a complete electrical company to commercial industrial customers. The company offers a quick response to proposals and system installation services. Their team of well-trained and experienced electricians are capable of performing complicated projects with precision under tight time constraints.

The company has a lead industrial electrical contractor and commercial electrician that provides the design and implementation that is required for the project. He focuses on communicating with the client through the entire process; from initial planning and design to final implementation and testing. We-Do-It-All also places an emphasis on safety as they offer incentives for safe performance for all of their licensed electricians on staff.

Gamma Ray Electrical & Mechanical Contractors

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

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

Competitive Advantage

Oak City Electric enjoys several advantages over its competitors. These advantages include:

Marketing Plan

Brand & value proposition.

Oak City Electric seeks to position itself as a respectable, upper-middle-market competitor in the electrical contracting market. Customers can expect high-quality electrical work and customer service.

The Oak City Electric brand will focus on the company’s unique value proposition:

  • Complete list of electrical services
  • Licensed with the latest technology
  • Highly trained and capable staff of electricians
  • Large fleet of vehicles that is ready to be dispatched at a moment’s notice 24/7
  • Affordable pricing

Promotions Strategy

The promotions strategy for Oak City Electric is as follows:

Website/SEO  

Oak City Electric will invest heavily in developing a professional website that displays all of the services the company will be able to provide. It will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.

Social Media Marketing

Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The company will use social media to develop engaging content, such as educational content about electrical work and about the services the Company offers.

Word of Mouth Marketing

Oak City Electric will encourage word-of-mouth marketing from loyal and satisfied clients. The company will use recommendations and word-of-mouth marketing to grow its customer base through the network of its existing customers. The company will incentivize its existing customer base to encourage friends to call Oak City Electric to help them with all their electrical needs.

Special Offers

Offers and incentives are an excellent approach to assisting businesses in replenishing the churn in their customer base that they lose each year. The company will introduce special offers to attract new consumers and encourage repeat purchases, which will be quite advantageous in the long run.

Oak City Electric’s pricing will be moderate so clients feel they receive great value when utilizing the company’s electrical contracting services.

Operations Plan

Operation Functions:

The following will be the operations plan for Oak City Electric.

  • Randy Wallace will be the Owner, President, and Manager of Oak City Electric. He will be in charge of the general operations of the company. He will also provide customer service and provide electrical work for his customers until he hires a large staff of electrical contractors.
  • He is assisted by his long-time friend, Jack Taylor, who will be the Vice President of the company. He will assist with the marketing and administrative aspects of the business.
  • Randy will also hire several electrical contractors to provide electrical services to his long list of clients.

Milestones:

Oak City Electric expects to achieve the following milestones in the following months:

  • 7/202X Finalize lease agreement
  • 8/202X Design and build out
  • 9/202X Hire and train initial staff
  • 10/202X Kickoff of promotional campaign
  • 11/202X Launch Oak City Electric
  • 12/202X Reach break-even

Financial Plan

Key revenue & costs.

Oak City Electric’s revenues will come primarily from its electrical contracting services. The company will provide a range of electrical contracting services to the community and its surrounding areas. As the company’s revenues increase, it will look to gain a wider distribution area.

The warehouse lease, equipment, supplies, fleet of vehicles, and labor expenses will be the key cost drivers of Oak City Electric. Ongoing marketing expenditures are also notable cost drivers for Oak City Electric.

Funding Requirements and Use of Funds

Key assumptions.

Below are the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

  • Monthly rent: $1,500

Financial Projections

Income statement, balance sheet, cash flow statement, electrical contractor business plan faqs, what is an electrical contractor business plan.

An electrical contractor business plan is a plan to start and/or grow your electrical contractor business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Electrical Contractor business plan using our Electrical Contractor Business Plan Template here .

What are the Main Types of Electrical Contractor Businesses?

There are a number of different kinds of electrical contractor businesses , some examples include: Commercial Electrical Contractor, Residential Electrical Contractor, and Industrial Electrical Contractor.

How Do You Get Funding for Your Electrical Contractor Business Plan?

Electrical Contractor businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start an Electrical Contractor Business?

Starting an electrical contractor business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop An Electrical Contractor Business Plan - The first step in starting a business is to create a detailed electrical contractor business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your electrical contractor business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your electrical contractor business is in compliance with local laws.

3. Register Your Electrical Contractor Business - Once you have chosen a legal structure, the next step is to register your electrical contractor business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your electrical contractor business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Electrical Contractor Equipment & Supplies - In order to start your electrical contractor business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your electrical contractor business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful electrical contractor business:

  • How to Start an Electrical Business

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How to Write a Business Plan for a Electrical Contractor

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  • September 14, 2022
  • Small Businesses

business plan in electrical

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?

business plan in electrical

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.

business plan in electrical

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.

business plan in electrical

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.

business plan in electrical

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.

business plan in electrical

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.

business plan in electrical

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

business plan in electrical

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)?

business plan in electrical

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.

business plan in electrical

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.

business plan in electrical

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.

business plan in electrical

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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Electrical Contracting Business Plan

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Free Business Plan Template

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  • Fill in the blanks – Outline
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How to Write An Electrical Contracting Business Plan?

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

1. Executive Summary

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

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

Introduce your Business:

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

Market Opportunity:

Products and services:.

Highlight the electrical contracting 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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business plan in electrical

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 electrical contracting company you run and the name of it. You may specialize in one of the following electrical contracting businesses:

  • Residential contracting
  • Commercial contracting
  • Industrial contracting
  • Specialty contracting
  • Describe the legal structure of your electrical contracting company, whether it is a sole proprietorship, LLC, partnership, or others.
  • Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

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

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 electrical contracting business plan:

  • Conduct market research, industry reports, and surveys to gather data.
  • Provide specific and detailed information whenever possible.
  • Illustrate your points with charts and graphs.
  • Write your business plan keeping your target audience in mind.

4. Products And Services

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

Describe your services:

Mention the electrical contracting services your business will offer. This list may include services like,

  • Electrical installations
  • Electrical repairs
  • Electrical design services
  • Maintenance and upgrades

Describe your domain:

List down electrical systems for which you shall offer contracting services. This list may include,

  • Electrical systems
  • Fire alarm systems
  • Security systems
  • Data cabling – Telecommunication
  • Home automation systems

Quality measures

: This section should explain how you maintain quality standards and consistently provide the highest quality service.

Additional Services

In short, this section of your electrical contracting plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

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

Overall, this section of your electrical contractor business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your electrical contracting business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & machinery:.

Include the list of equipment and machinery required for electrical contracting, such as testing and measuring tools, hand and power tools, heavy machinery, safety equipment, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your electrical contracting business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

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 electrical contracting services, highlighting how you have the perfect team to succeed.

8. Financial Plan

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

Profit & loss statement:

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 electrical contracting industry, user demographics, and industry trends.
  • Include any legal documents such as permits, licenses, and contracts.
  • Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

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

Remember, the appendix section of your electrical contracting business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

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This sample electrical contracting business plan will provide an idea for writing a successful electrical contracting plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our electrical contracting business plan pdf .

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Frequently asked questions, why do you need an electrical contracting business plan.

A business plan is an essential tool for anyone looking to start or run a successful electrical contracting business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your electrical contracting company.

How to get funding for your electrical contracting business?

There are several ways to get funding for your electrical contracting business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

  • Bank loan – You may apply for a loan in government or private banks.
  • Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
  • Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
  • Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

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

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

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

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

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

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

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

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

Indeed. A well-crafted electrical contracting business will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

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

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

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

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

About the Author

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Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How To Write an Electrical Contracting Business Plan

Electrical Contracting Business Plan

Kat Boogaard

If you’re ready to take the leap into business ownership, we’ll help you to get started with researching your electrical contractor business target market. With that information in your back pocket, you’ll be ready to dive into business planning and then launch your new contracting company.

Getting Started with Your Business Plan

You’ve been mulling over your business ideas for a while and now it’s time to make it happen. The word “startup” may give you mental images of Silicon Valley, but every business has to begin somewhere and yours is no exception. 

As an electrical contractor, you understand that frameworks are the only way to make a project successful, so think of your business plan as the blueprint that you’ll be working from as you prepare to launch and grow. 

There are plenty of business plan templates out there so that you don’t have to start from scratch, but we’re going to run through a few key areas that you’ll want to include in your research and planning stages. Below, we’ll cover a few nuts and bolts business plan sections: 

  • Competitive analysis
  • SWOT analysis
  • Target market research
  • Financing and cash flow

Sound overwhelming? It doesn’t need to be. Let’s walk through the details of each of these. 

Electrical Contracting Competitors

You need to know who else is operating in your space to plan how you’re going to stand out from the crowd. 

It’s likely that you already have an extensive network of fellow electrical contractors like other electricians, subcontractors, project managers, and general contracting firms in the local area. Take a look at their websites and research the services they offer to their clients. 

Is there a gap in your local market for residential or commercial services that your new business could fill? What do their customer reviews say? By knowing what your competition looks like, you can make informed decisions about the type of business you want to run and how your unique offers could attract potential customers.

SWOT Analysis

SWOT is an acronym that stands for strengths, opportunities, weaknesses, and threats. This type of analysis is an important part of the business planning process. 

Like with your competitor research (which can be used to make up the “threats” part of this analysis), this is where you’ll have the opportunity to jot down what you do well, where you need to improve, and what opportunities there are in your market that you could leverage. 

You’ll also want to think about the type of business structure you want to have at this stage. You can change this later on if you need to, but mapping out your vision for the future of your business now can help you to save time down the road.

While this is definitely an aspect to consider before you launch, a SWOT analysis is something that you should be working on as the business owner at least twice a year, if not quarterly. If this is the first time you’ve ever worked on one, you can find templates online to help you get started.

Target Market Research

To build a successful electrical business, you need to know what your target market looks like. As an electrician, you’ve likely worked with a range of customers across all kinds of projects, but now that you’re running your own business , you need to decide who exactly you want to serve. 

Research your service area and what the demographics look like—is it mainly commercial businesses who might need ongoing electrical work like electrical systems maintenance, or are there a large number of homeowners that could be looking for residential electrical services in your community? Is there a contracting company that’s building a new development nearby that could be looking to hire an electrician for multiple HVAC or electrical installations on their new properties?

Finding new clients to provide you and your team with consistent work is one of the biggest challenges of entrepreneurship, but doing your research ahead of time will help you to build out your new business in a way that works for both you and your potential customers.

Financing and Cash Flow

You can’t get a business off the ground without funding! Understanding your cash flow and bottom line, both ahead of launching and during the day-to-day operations of your electrical contractor business, is vital in ensuring that your business will survive. 

As most electrical contractors use equipment supplied by their company, you may not have much of your own to get started. If you’re hiring a team, you’ll also be responsible for supplying them with everything they might need on a jobsite, along with any necessary insurance , including workers’ comp . 

Your costs are going to vary greatly, but here’s a rough estimate for each of these items:

  • Liability insurance : $600 per year
  • Equipment: $1,000-$5,000 depending on what you need
  • Employees or subcontractors: $15-$100 per hour
  • Workers’ comp insurance : This one’s a little trickier, since rates vary so much depending on location, payroll amount, classification of workers, and your prior injury history. Use this formula to estimate the workers' comp rate for each employee you hire:
(Employee Gross Salary x Workers' Comp Insurance Rate)/$100 = Annual Rate

To get you up and running, you might be considering taking a small business loan. The U.S. Small Business Administration , or SBA, is a great resource for helping you find loan providers that make sense for your situation. You could also be a candidate for small business grants , which are worth looking into when you’re getting started. 

Pricing your services correctly will also be important, and this is where your competitor analysis can come in handy. See what the average rates are for electrical contractors in your service area (Indeed reports that electrical contractors earn an average of $23.22 per hour ), but also consider what kind of profit margin you want to make after you’ve run payroll, paid back any loans, and settled outstanding bills. This will be one of the most important parts of your business plan, so be sure to take enough time to work on this before you open your business to the public.

Marketing Strategies for Your Electrical Contracting Business

You’ve got your business mapped out on paper and fully funded, but now you need to let the world know that your new electrical company is ready to start working! That’s where your marketing plan comes in. It’s one thing to understand exactly who your target audience is, but it’s another to have a plan in place for how you’re going to reach them.

Marketing strategies don’t have to be complicated and can be broken down into three distinct categories–digital, traditional, and referrals.

Digital Marketing

For many of your customers, the first place that they’ll go when searching for an electrical company is Google. When they do, you want your website to be one of the first results that they find. 

One of the best methods to do this is to use a strategy called search engine optimization, or SEO. It may seem overwhelming at first but there are plenty of small tweaks that you can make to your website that can hugely improve your visibility online—such as using clear and intuitive headings on your webpages (like “California Electrical Contractor”). 

Setting up a Google My Business profile will also be useful. This will help your business show up in Google Maps listings, as well as make your phone number, and open hours easily accessible for any potential customers.

Using social media to connect with your market is also a helpful digital marketing strategy. You might consider hiring a freelancer to help create your social media content and manage your online communities, particularly when you first launch, as this can be a significant amount of work to manage alongside your other responsibilities as the business owner.

Traditional Marketing

It’s easy to think that everyone is online these days but, particularly if you work with residential customers, you’ll find that certain demographics may not have the access or inclination to use digital communications. 

Leaving business cards at other local businesses or with a customer after a job is completed is still a great way to get your name out there and keep your business top-of-mind when someone needs an electrical company. 

Direct mail pieces that can be delivered throughout your service areas can also be helpful in letting the local community know that your new business is in town and ready to take on new projects.

Referrals and Word of Mouth

One of the best ways that small businesses can grow is through word-of-mouth referrals from previous and existing customers. After all, they have first-hand experience of working with you and can give potential customers an idea of what your quality of work is really like.

If you can, gather testimonials and reviews from clients as soon as you finish a job with them. Encourage them to leave a review on your Google My Business profile (that’s great for your SEO too!) that you can then reuse on your own website and post on social media. Make the customer experience excellent from beginning to end and you’ll start to see those five-star reviews coming in in no time.

Launching and Growing Your Electrical Contracting Business

You planned carefully and now your business is thriving. At this point, you might be thinking about hiring some electrical contractor employees. 

Your first hires will probably be more experienced workers like a master electrician, journeyman, or estimator. These individuals have been in the electrical construction industry for a while and know how to work independently on a jobsite. But you should also consider how you can support the future of the industry.

Apprenticeships and training programs require hands-on experience and someone has to be willing to give these up-and-comers a chance. As the business owner, you have decision making authority to bring in new trainees during the early years of their career and mold them into dream employees. Not only are you helping to keep your industry a thriving career prospect, but you’re also ensuring the future stability and growth of your new business.

Running A Successful Electrical Contracting Business

Owning and running a business full-time is hard work, but it’s also incredibly rewarding. 

A firm business plan will help you stay on top of the many moving pieces that make up your new venture, while giving you the opportunity to understand your market and competition in a way that pushes you toward your success.

‍Becoming a business owner is a lifelong dream for many people. If you have the entrepreneurial bug and an interest in construction , starting your own electrical contracting business could be the right move for you. 

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Electrical Contractor Business Plan [& Free Template]

Whether you’re a new electrical contractor launching your startup business or a veteran electrician looking to expand , define business goals, or obtain funding, you need a business plan. And if you created a business plan when you first started in the industry, but haven’t updated it since, it’s time for a revamp. 

Ready to write or improve your electrical business plan? Read on for information on what to include in an electrician business plan and a free electrical contractor business plan template to get started. 

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What Is a Business Plan for Electrical Contractors?

A business plan is a comprehensive document that outlines the company’s operations, goals, strategies, and financial projections. It serves as a roadmap for the business owner and potential stakeholders by detailing how the business will be structured, managed, and grown. 

A business plan is a fluid document that should be reviewed and refined annually to reflect goals that have been met or have changed. If an established business decides to move in a new direction, perhaps adding services or acquiring a smaller electrical outfit and expanding their service areas, they may create a new business plan.

Why Do Electrical Contractors Need a Business Plan?

In addition to serving as a roadmap for the company, electrical contractors need a business plan for the following reasons.

Reason #1: Raise Funding

New or expanding businesses often need to raise capital from lenders or investors. Before investing or providing a loan, lenders and investors want to see a detailed plan that demonstrates the company’s potential for success and how it intends to use the funds. Lenders want to know the company will be solvent enough to make regular debt payments.

The main sources of funding for an electrical business include personal funds, credit cards, bank loans, and investors. Personal savings and bank loans are the most common funding paths for electrical companies.

Reason #2: Define Business Goals and Reduce Risks

A business plan serves as your company’s blueprint. By setting up goals and ways to measure success, you’ll know if your business is on track. Your business plan should also outline risks, including competitors and market changes. By knowing business threats ahead of time, you can prepare plans for reducing or addressing them.

When it comes to measuring goals, a field management software with reporting capabilities provides the data electrical companies need to make informed business decisions. For example, ServiceTitan’s field reporting software offers a dynamic dashboard that allows business owners to customize the fields to display KPIs that matter most to them, including revenue, missed opportunities, and conversion rates.

The technician scorecard gives managers a report on overall technician performance, as well as the opportunity to drill down into metrics for each individual tech, including generated revenue, memberships sold, customer satisfaction, and billing efficiency. With this information in hand, managers can reward outstanding technician performance and find coaching opportunities.

Similarly, a CSR scorecard allows users to review incoming calls, conversions, and other CSR metrics as clients and potential customers call your business. The recorded calls can be used for CSR training or to re-engage with missed opportunities.  

How to Write an Electrical Contractor Business Plan [with Template]

An electrical contractor business plan should be tailored to the specific goals of your business and provide a realistic and achievable roadmap for its success. To help electricians know exactly what information to include in a business plan, ServiceTitan created an electrical company business plan template for you to download and fill in.

>> Download our free electrical business plan template. Save the PDF to your desktop as a new file. From there, you can customize it for your business.

Ready to get started? Include the following sections in your electrical business plan.

1. Industry Analysis

First, provide an overview of the electrical contracting industry. This market research should inform your business strategy. It also shows investors and lenders you did your due diligence. When preparing this section, consider:

Market strength

Market size

Competitors

Industry trends

2. Executive Summary

The executive summary is a condensed version of your full business plan where you include everything you would cover in a five-minute sales pitch about your business. Put simply, all the hard work and research you put into your business plan should inform the critical information you include in the executive summary. Even though this is in the front of the business plan, it’s best to complete this section last. 

Use the executive summary to concisely explain the fundamentals of the business. For example, what is your product or service? Who are your customers? Who are the business owners and financial investors? What are your goals and objectives?

If you’re applying for funding, make sure to specify the amount, how you plan to use it, and more importantly, how it will increase your profit margins. The executive summary needs to be professional, enthusiastic, and succinct. 

3. Business Overview

The company overview is where you start to dig into the details of your electrical contracting business. In short, it explains what your electrical business will do, and how you will achieve your objectives. The section often begins with a mission statement—typically 30 words or less—where you explain your company’s guiding principles and business philosophy.

Make sure to cover the following components in the business overview:

Goals and objectives : All successful businesses need to establish goals, objectives, and key performance indicators (KPIs). Make sure to elaborate on how you’ll set up your electrical shop for success .

Marketplace : Define your core customer base and explain how you’ll market your services, including the marketing channels you plan to use. Keep it brief. You’ll elaborate in the marketing plan section of your business plan.

Strengths and core competencies : Use this section to expand on the specific factors that will help your company succeed. Include what strengths set you apart from the competition and how you’ll prepare staff to succeed.

4. Services Analysis

Use this section to provide more detail about your specific products and electrical services. 

For example, (Electrical contractor name) offers residential and commercial electrical installation, service, and repair, including new installations, safety inspections, whole-home rewires, troubleshooting and servicing electrical issues, and more.  

Include any factors that give you a competitive advantage over other electrical contractors in your service area. For example, do your technicians possess advanced skills that enable them to work on high-tech electrical systems? Other examples of key service differentiators include:

Service guarantee 

Repair guarantee 

Replacement guarantee

Next, mention the pricing, fee, or leasing structures of your products or services. Will you price electrical jobs by the hour, or offer flat-rate pricing? You’ll want to examine the wage rate in your area to ensure you pay your employees a competitive salary. Also include the hourly rate, how you’ll account for drive time, and the billable amount for every job or service you offer.

5. Market Analysis

Include a market, or competitor, analysis. Identify and evaluate key competitors to define your company’s unique value proposition and capitalize on market opportunities. The analysis should include information on competitors’ strengths, weaknesses, market share, pricing strategies, and technological advancements.

Look for gaps in the market, whether there are services not being offered or service areas not being sufficiently served. These gaps create business opportunities . 

6. Customer Analysis

The customer analysis section of a business plan is where you focus on understanding your target customers. This includes describing your target market’s characteristics, needs, and behaviors to tailor your offerings effectively. Start by identifying your primary and secondary customer groups, considering factors like demographics (age, gender, location), psychographics (interests, values), and buying behaviors (how they make purchasing decisions). 

This analysis equips you to tailor your business strategies to meet customer demands effectively. By knowing your customers’ wants and pain points and leveraging customer experience software , you can create a strong foundation for building lasting customer relationships and achieving sustainable growth. 

ServiceTitan enables electrical contractors to provide their customers with a modern sales and service experience, which includes:

Scheduling options : Give leads the ability to schedule jobs whatever way works best for them, whether through web chats, texts, calls, or booking directly online. 

Detailed customer history : A robust CRM allows service techs to view complete customer information before arriving on the job site. Knowing the customer's name and job history helps techs and CSRs personalize the customer experience and provide better customer service.

Text messaging communication : Text appointment reminders and technician bios so customers know who and what to expect when your service truck arrives. Allow for two-way SMS communication, so customers can confirm appointments, reschedule appointments, or ask questions right from their phone. 

Live tracking : Allow customers to track your techs on a map, so they can better predict arrival times.

On-site estimates : Today’s customers don’t want to wait for estimates. With ServiceTitan Mobile , techs can build and display branded, digital estimates with good, better, and best options in just a few taps.  

Financing options: Working with your clients on payment options helps build loyal, repeat customers. With ServiceTitan customer financing, customers can apply for financing right from your tech’s phone or iPad, choose from different plans, and receive instant approval.

7. Marketing Plan

All businesses depend on marketing to promote their companies, generate new business, and grow repeat customers. If your electrical shop’s promotions or sales feel stagnant, it’s probably a good time to look at your marketing metrics and reevaluate your promotions and marketing channels. 

When it comes to marketing strategies , electricians typically utilize an omnichannel approach. If your target audience leans younger, you may want to invest heavily in digital marketing such as search engine optimization (SEO), Google ads, and social media marketing, while home mailers and direct mail may be more effective with older homeowners. Bottom line: You want to reach as many potential customers as possible, so don’t be afraid to try different marketing strategies.

Break down how you plan to spend marketing dollars by promotion channel, such as:

Direct mail (%)

Newspaper (%)

Television (%)

Search engine marketing (SEM) (%)

Social media marketing (%)

Your strategy should also include the average cost to acquire a new customer, and take into account other marketing drivers, such as club memberships and word-of-mouth referral programs.

Consider how your business will execute and track ROI of marketing strategies. For example, ServiceTitan offers data-driven marketing solutions to help you attract, convert, and retain customers, in addition to providing valuable insights into the performance of your campaigns.

8. Operations Plan

Expand on and explain the daily operation of your electrical contracting business, its location, equipment, people, processes, and surrounding environment.

Production : How and where are your products or services produced? Make sure to include production techniques and costs, quality control, customer service, inventory control, and product development.

Location : What requirements do you need in a physical location? Mention the amount of space, type of building, zoning, and utilities.

Legal : Include information related to licensing and bonding requirements, permits, environmental regulations, industry-specific regulations, zoning or building code requirements, liability insurance, and any trademarks, copyrights, or patents.

Personnel : List the number of employees, type of labor (skilled, unskilled, and professional), recruiting efforts, pay structure, training programs, and job descriptions.

Inventory and suppliers : Include the kind of inventory (raw materials, supplies, finished goods), the estimated value, and your top suppliers.

Credit policies : Will you sell your services on credit? If so, how will you approve customers or determine creditworthiness?

9. Management Summary

Mention the key roles that will manage the business on a day-to-day basis, including the general manager, operations manager, and other management team roles. What experience do they bring to the business? Do they hold special or distinctive competencies? Is there a plan for continuation of the business if leadership is lost or incapacitated?

If you employ more than 10 employees in your business structure, create an organizational chart showing the management hierarchy and who is responsible for key functions. Include descriptions for each position or employee.

You should also list professional and advisory support, including:

Board of directors

Management advisory board

Insurance agent

Consultant(s) 

Mentors and key advisors

10. Financial Plan

The financial plan typically includes a 12-month profit-and-loss projection, a cash-flow projection, a projected balance sheet, and a break-even calculation. Together, they present a reasonable estimate of your electrical contracting business's financial projections and business value . More importantly, the process of thinking through the financial plan will improve your insight into the inner financial workings of your company.

Include personal financial statements for each owner and major stockholder, showing assets and liabilities held outside the business and personal net worth. Owners will often have to draw on personal assets to finance the business, and these statements will show what is available. Bankers and investors usually want this information as well.

Over to You

ServiceTitan’s cloud-based, all-in-one electrical software gives business owners the technology they need to do the work efficiently, the data and reporting they need to do it smartly, and a wide array of resources to guide them as they grow toward achieving the goals outlined in their electrical contracting business plan.

>> Want to start your own electrical business or revitalize and grow an established business? Download this electrical business plan template to get started.

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Business Plan Template for Electrical Contractors

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Running an electrical contracting company can be a juggling act, with so many moving parts to manage and compete in a crowded market. That's where ClickUp's Business Plan Template for Electrical Contractors comes in handy!

Our template is designed to help electrical contractors:

  • Outline clear goals, strategies, and financial projections to secure funding and attract clients
  • Streamline marketing plans to target the right audience and stand out from the competition
  • Ensure successful operations by tracking budgets, schedules, and project milestones

With ClickUp's Business Plan Template, you'll have all the tools you need to power up your electrical contracting business and achieve long-term success. Get started today and watch your business thrive!

Business Plan Template for Electrical Contractors Benefits

A Business Plan Template for Electrical Contractors offers numerous benefits to electrical contracting companies:

  • Provides a clear roadmap for achieving business goals and objectives
  • Helps secure funding by showcasing the company's potential and financial projections
  • Attracts clients by demonstrating the company's professionalism and strategic approach
  • Guides effective resource allocation, ensuring efficient operations and profitability
  • Assists in identifying and addressing potential risks and challenges in the electrical industry
  • Enables strategic marketing planning, targeting the right audience and maximizing outreach
  • Facilitates collaboration among team members, aligning everyone towards a common vision
  • Allows for regular performance tracking and adjustments to ensure business success in a competitive market.

Main Elements of Electrical Contractors Business Plan Template

ClickUp's Business Plan Template for Electrical Contractors provides a comprehensive framework for success in the electrical industry. Here are the main elements of this template:

  • Custom Statuses: Track the progress of each section of your business plan with statuses like Complete, In Progress, Needs Revision, and To Do.
  • Custom Fields: Include important details in your plan such as Reference, Approved, and Section to ensure accuracy and organization.
  • Custom Views: Explore different perspectives with views like Topics, Status, Timeline, Business Plan, and Getting Started Guide to easily navigate and manage your business plan.
  • Document Collaboration: Collaborate seamlessly with your team by using ClickUp's Docs feature to write, edit, and comment on your business plan.
  • Task Management: Break down your business plan into actionable tasks, assign them to team members, set due dates, and track progress.
  • Goal Tracking: Set goals, define key metrics, and track your progress towards achieving them with ClickUp's Goals feature.
  • Gantt Chart: Visualize your business plan timeline using the Gantt chart view to ensure smooth project management and timely execution.
  • Integration: Integrate with other essential tools like spreadsheets, accounting software, and communication apps to streamline your workflow and enhance productivity.

How To Use Business Plan Template for Electrical Contractors

If you're an electrical contractor looking to create a comprehensive business plan, you're in the right place. Follow these six steps to effectively use the Business Plan Template for Electrical Contractors in ClickUp:

1. Define your vision and goals

Start by clarifying your vision for your electrical contracting business. What do you want to achieve? Are you aiming to become a leader in your industry, expand your services, or increase your market share? Clearly define your long-term goals and how you plan to achieve them.

Use the Goals feature in ClickUp to set and track your business goals, such as increasing revenue by a certain percentage or expanding into new markets.

2. Analyze the market and competition

Conduct a thorough analysis of the electrical contracting market in your area. Identify your target customer base, assess the demand for your services, and analyze your competition. Understanding the market landscape will help you identify opportunities and create strategies to differentiate your business.

Use the Table view in ClickUp to organize and analyze market research data, including customer profiles, competitor analysis, and market trends.

3. Develop your service offerings

Outline the specific services you will offer as an electrical contractor. Consider both your core services, such as electrical installations and repairs, as well as any specialized services you may provide. Clearly define the value proposition of your services and how they meet the needs of your target customers.

Create tasks in ClickUp to define and document your service offerings, including the scope of work, pricing, and any unique selling points.

4. Create a marketing and sales strategy

Develop a comprehensive marketing and sales strategy to promote your electrical contracting business. Identify the most effective channels to reach your target audience, such as online advertising, social media, or local networking events. Outline your pricing strategy, sales tactics, and customer acquisition plan.

Use the Automations feature in ClickUp to streamline your marketing and sales processes, such as automatically sending follow-up emails to leads or tracking the effectiveness of your marketing campaigns.

5. Plan your operations and resources

Determine the operational aspects of your electrical contracting business, such as the equipment, tools, and resources you will need. Consider factors like staffing requirements, training and certifications, safety protocols, and project management processes. Develop a detailed plan to ensure smooth operations and efficient resource allocation.

Use the Gantt chart and Calendar view in ClickUp to schedule and manage your projects, allocate resources, and track progress.

6. Monitor and revise your business plan

Once your business plan is complete, it's important to regularly monitor its progress and make necessary revisions. Keep track of key performance indicators (KPIs) and financial metrics to assess the success of your strategies. Adjust your plan as needed to adapt to market changes, customer feedback, or new opportunities.

Create recurring tasks and set reminders in ClickUp to review and update your business plan on a regular basis, ensuring its relevance and effectiveness.

By following these steps and utilizing the Business Plan Template for Electrical Contractors in ClickUp, you'll be well-equipped to create a comprehensive and actionable plan for your electrical contracting business.

Get Started with ClickUp’s Business Plan Template for Electrical Contractors

Electrical contracting companies can use this Business Plan Template for Electrical Contractors to outline their goals, strategies, financials, and marketing plans, helping them secure funding, attract clients, and ensure successful operations in the competitive electrical industry.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a comprehensive business plan:

  • Use the Topics View to organize your business plan into different sections, such as Executive Summary, Market Analysis, Financial Projections, etc.
  • The Status View will help you track the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do
  • The Timeline View will provide a visual representation of the deadlines and milestones for each section of your business plan
  • The Business Plan View will give you an overview of the entire plan, allowing you to easily navigate and make updates
  • The Getting Started Guide View will provide step-by-step instructions on how to use the template and create a successful business plan
  • Utilize the custom fields Reference, Approved, and Section to add additional information and track the status of each section
  • Collaborate with team members to gather input, feedback, and insights to create a comprehensive and effective business plan.
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1. Don't worry about finding an exact match

We have over 550 sample business plan templates . So, make sure the plan is a close match, but don't get hung up on the details.

Your business is unique and will differ from any example or template you come across. So, use this example as a starting point and customize it to your needs.

2. Remember it's just an example

Our sample business plans are examples of what one business owner did. That doesn't make them perfect or require you to cram your business idea to fit the plan structure.

Use the information, financials, and formatting for inspiration. It will speed up and guide the plan writing process.

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To create a plan that fits your needs , you need to know what you intend to do with it.

Are you planning to use your plan to apply for a loan or pitch to investors? Then it's worth following the format from your chosen sample plan to ensure you cover all necessary information.

But, if you don't plan to share your plan with anyone outside of your business—you likely don't need everything.

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How to Start an Electrical Business

start an electrical business

Starting an electrical business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful electrical business.

Importantly, a critical step in starting an electrical business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start an Electrical Business :

  • Choose the Name for Your Electrical Business
  • Develop Your Electrical Business Plan
  • Choose the Legal Structure for Your Electrical Business
  • Secure Startup Funding for Your Electrical Business (If Needed)
  • Secure a Location for Your Business
  • Register Your Electrical Business with the IRS
  • Open a Business Bank Account
  • Get a Business Credit Card
  • Get the Required Business Licenses and Permits
  • Get Business Insurance for Your Electrical Business
  • Buy or Lease the Right Electrical Business Equipment
  • Develop Your Electrical Business Marketing Materials
  • Purchase and Setup the Software Needed to Run Your Electrical Business
  • Open for Business

1. Choose the Name for Your Electrical Business

The first step to launching an electrical business is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally, you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your electrical business:

  • Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
  • Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
  • Think about marketing . Come up with a name that reflects the desired brand and/or focus of your electrical business.

2. Develop Your Electrical Business Plan

One of the most important steps in starting an electrical contracting business is to develop your business plan. The process of creating your electrical contractor business plan ensures that you fully understand your local market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

  • Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your electrical business.
  • Company Overview – this section tells the reader about the history of your electrical business and what type of electrical business you operate. For example, are you an electrical contractor, electrical manufacturer, or an electrical wholesaler?
  • Industry Analysis – here you will document key information about the electrical industry. Conduct market research and document how big the industry is and what trends are affecting it.
  • Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing services like the ones you will offer?
  • Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
  • Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
  • Product : Determine and document what products/services you will offer 
  • Prices : Document the prices of your products/services
  • Place : Where will your business be located and how will that location help you increase sales?
  • Promotions : What promotional methods will you use to attract customers to your own electrical contracting business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
  • Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
  • Management Team – this section details the background of your company’s management team.
  • Financial Plan – finally, the financial plan answers questions including the following:
  • What startup costs will you incur?
  • How will your electrical business make money?
  • What are your projected sales and expenses for the next five years?
  • Do you need to raise funding to launch your business?

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3. choose the legal structure for your electrical business.

Next you need to choose a legal structure for your own electrical business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the business owner and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the business owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small business owners. It is an agreement between two or more people who want to start an electrical business together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for an electrical business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for an electrical business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your own business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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Not only does BusinessRocket have a 4.9 out of 5 rating on TrustPilot (with over 1,000 reviews) because of their amazing quality…but they also guarantee the most affordable incorporation packages and the fastest processing time in the industry.

4. Secure Startup Funding for Your Electrical Business (If Needed)

In developing your electrical business plan, you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for an electrical business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in an electrical business that they believe has high potential for growth.

5. Secure a Location for Your Business

When starting an electrical business, you’ll need to find the right location. There are a few things you’ll want to keep in mind when choosing a location:

  • The area should be zoned for commercial businesses.
  • The location should be accessible and easy to find.
  • It’s important to find a space that’s big enough to accommodate your business operations.
  • Check the cost of rent and utilities in the area.
  • The neighborhood should be safe and have good infrastructure.
  • Make sure you have enough parking available.

6. Register Your Electrical Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your electrical business’ name. This process is fairly simple and involves the following steps:

  • Identify and contact the bank you want to use
  • Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
  • Complete the bank’s application form and provide all relevant information
  • Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your electrical business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

In order to start an electrical company, you will need a business license, a trade name registration, and a general contractor’s license. You may also need a specialty contractor’s license, depending on the services you plan to offer.

10. Get Business Insurance for Your Electrical Business

The type of insurance you need to operate an electrical business will depend on the scope of business operations. 

Some business insurance policies you should consider for your new electrical business include:

  • General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
  • Auto insurance : If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
  • Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
  • Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
  • Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
  • Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs. 

11. Buy or Lease the Right Electrical Business Equipment

To run your electrical business, you will need a variety of equipment, including tools, testing equipment, and safety gear. Ensure everything you need before starting your business. You may also want to consider purchasing a vehicle or trailer to transport your equipment.

12. Develop Your Electrical Business Marketing Materials

Marketing materials will be required to attract and retain customers to your electrical business.

The key marketing materials you will need are as follows:

  • Logo : Spend some time developing a good logo for your electrical business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
  • Website : Likewise, a professional electrical business website provides potential customers with information about the services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
  • Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your electrical business.

13. Purchase and Setup the Software Needed to Run Your Electrical Business

You’ll need electrical estimating software to help you price out jobs and materials. You’ll also need a Computer-Aided Design (CAD) program to create wiring diagrams and other designs. Billing and invoicing software can help you keep track of payments and customers. Finally, a project management tool can help you stay on top of jobs from start to finish.

14. Open for Business

You are now ready to open your electrical business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

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How to Start an Electrical Business FAQs

Is it hard to start an electrical business.

No, it is not hard to start an electrical business. You will need to have a good understanding of the electrical code, and how to safely install and repair electrical systems.

How can I start an electrical business with no experience?

There are a few ways to start an electrical business with no experience. One way is to find an experienced electrician who is willing to mentor you. Another way is to take classes or attend seminars that will teach you the basics of the trade. You can also watch instructional videos online or read books about electrical work. Make sure you are well-informed and prepared before starting your own business.

What type of electrical business is most profitable?

The type of electrical business that is most profitable is a business that provides services such as repair, installation, and maintenance. Providing these services can be a lucrative business, as there is a lot of demand for them. Additionally, other small business owners that provide residential electrical services often have low overhead costs, which can help to increase profits.

How much does it cost to start an electrical business?

The cost to start an electrical business varies depending on the size and scope of the business. However, on average, starting an electrical business can cost between $10,000 and $30,000. This includes licensing, permits, insurance, and equipment costs .

What are the ongoing expenses for an electrical business?

The ongoing expenses for an electrical business can vary greatly, depending on the size of the business, the services offered, and the location. Some of the most common expenses include utilities, labor costs for electrical workers , materials and electrical supplies, marketing and advertising, and insurance.

How does an electrical business make money?

Professional electricians make money by completing electrical jobs for their customers. This could be by installing or repairing electrical equipment, or providing a consultation service.

Is owning an electrical business profitable?

Yes, owning an electrical business can be profitable because there is a consistent need for these kinds of services. Electrical businesses are necessary for both residential and commercial properties, so they are always in demand. Additionally, as technology advances, more homes and businesses will require updated electrical systems, providing greater opportunities for electrical business owners.

Why do electrical businesses fail?

There are a number of reasons some electrical businesses fail. One reason may be that the business does not have a solid business plan and marketing strategy. Other reasons may include competition from larger businesses, bad customer service, lack of qualified electricians, or not enough capital to sustain the business.

Other Helpful Business Plan Articles & Templates

Business Plan Template & Guide For Small Businesses

ProfitableVenture

Electrical Contractor Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Construction & Engineering

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

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

A Sample General Electrical Contractor Business Plan Template

1. industry overview.

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

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

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

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

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

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

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

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

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

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

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

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

2. Executive Summary

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

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

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

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

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

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

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

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

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

3. Our Products and Services

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

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

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

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

4. Our Mission and Vision Statement

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

Our Business Structure

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

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

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

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

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

Electrical Engineers and Electricians

Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

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

Head, Technical Services (Senior Electrical Engineer):

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

Admin and HR Manager

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

Sales and Marketing Manager

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

Accountant / Cashier:

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

6. SWOT Analysis

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

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

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

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

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

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

  • Opportunities:

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

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

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

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

7. MARKET ANALYSIS

  • Market Trends

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

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

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

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

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

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

8. Our Target Market

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

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

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

Our Competitive Advantage

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

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

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

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

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

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

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

9. SALES AND MARKETING STRATEGY

  • Sources of Income

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

10. Sales Forecast

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

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

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

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

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

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

  • Marketing Strategy and Sales Strategy

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

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

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

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

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

11. Publicity and Advertising Strategy

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

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

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

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

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

12. Our Pricing Strategy

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

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

  • Payment Options

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

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

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

13. Startup Expenditure (Budget)

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

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

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

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

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

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

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

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

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

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

14. Sustainability and Expansion Strategy

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

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

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

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

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

Check List / Milestone

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

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How to Start a Profitable Electrical Business [11 Steps]

Nick

By Nick Cotter Updated Feb 02, 2024

electrical business image

Business Steps:

1. perform market analysis., 2. draft a electrical business plan., 3. develop a electrical brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for electrical., 6. open a business bank account and secure funding as needed., 7. set pricing for electrical services., 8. acquire electrical equipment and supplies., 9. obtain business insurance for electrical, if required., 10. begin marketing your electrical services., 11. expand your electrical business..

Starting an electrical business requires a thorough understanding of the current market to identify opportunities and challenges. A comprehensive market analysis will guide your business strategy, helping you to make informed decisions and tailor your services to meet the needs of your target customers. Here are key steps to take when performing a market analysis:

  • Research the local demand for electrical services by assessing the number of residential and commercial properties in your target area.
  • Analyze your competitors by studying their services, pricing, and customer reviews to determine your competitive edge.
  • Examine industry trends, such as smart home technology and energy-efficient solutions, to identify growing markets and potential niches.
  • Understand regulatory requirements and standards in the electrical sector to ensure compliance and identify any barriers to entry.
  • Assess the availability of suppliers and workforce to ensure you can source materials and hire qualified electricians.
  • Conduct surveys or focus groups to gather feedback about potential customers' needs and preferences.

electrical business image

Are Electrical businesses profitable?

Yes, depending on the type of electrical business, they can be very profitable. Electrical businesses such as wiring and maintenance services, solar installation, or data wiring can be very profitable. Additionally, depending on the location, some businesses may have an advantage due to a higher demand for certain types of services.

Embarking on an electrical business venture requires a well-thought-out plan to navigate the complexities of the industry and set a course for success. A comprehensive business plan will serve as a roadmap for your operations, financial management, and growth strategies. Here's a guide to drafting your electrical business plan:

  • Begin by defining your business objectives, mission statement, and the services you'll offer.
  • Conduct a market analysis to understand your competition and identify your target customer base.
  • Outline your organizational structure, detailing the roles and responsibilities of your team members.
  • Develop a marketing strategy that highlights your unique selling points and how you'll attract clients.
  • Prepare a detailed financial plan including startup costs, pricing strategy, sales forecasts, and projected cash flow.
  • Consider the legal and regulatory requirements for your electrical business, including licenses, insurance, and safety standards.
  • Establish operational procedures for project management, customer service, and quality control to ensure efficiency and professionalism.
  • Set short-term and long-term goals with measurable milestones to track your progress and make adjustments as necessary.

How does a Electrical business make money?

An electrical business typically makes money by providing electrical services such as installation, repair, and maintenance of electrical systems, wiring, and equipment. The business may also earn revenue from the sale of electrical supplies and components.

Developing a brand is essential in creating an identity for your electrical business that resonates with your target audience. It's about crafting a memorable image and a promise of quality that customers will come to recognize and trust. Here are some key steps to guide you through the branding process:

  • Define Your Brand Values: Determine what your business stands for, including reliability, innovation, or sustainability. These values should resonate with your customers and be apparent in every aspect of your business.
  • Create a Unique Brand Name and Logo: Your brand name and logo are often the first things a customer will see. Make sure they are distinctive, professional, and reflective of the brand's personality and values.
  • Establish Brand Voice and Messaging: The way your business communicates should be consistent across all platforms, from your website to customer service. A clear and consistent brand voice helps build a strong connection with your audience.
  • Design a Visual Identity: Choose colors, fonts, and imagery that align with your brand and make it stand out. Consistent visual elements make your brand more recognizable and memorable.
  • Build an Online Presence: In today's digital age, having a professional website and active social media accounts are crucial for brand visibility and customer engagement.

How to come up with a name for your Electrical business?

Coming up with the perfect name for your electrical business can be a difficult task. Brainstorming words that relate to electricity and the services that you offer can be a great place to start. Consider using words from different languages, rhymes, or alliterations to make your name more memorable. Finally, be sure to check that the name isn’t already taken or too similar to another business in your area.

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Starting an electrical business requires formalizing your business registration to ensure legal compliance and to protect your personal assets. This step is crucial as it establishes your business as a legitimate entity in the eyes of the law and allows you to operate officially. Below are the key points to consider when formalizing your business registration:

  • Choose a business structure that suits your needs, such as a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each has its own legal and tax implications.
  • Register your business name with the appropriate state authority. If you're using a name other than your own, you may need to file a 'Doing Business As' (DBA) registration.
  • Obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) for tax purposes, especially if you plan to hire employees.
  • Apply for the necessary permits and licenses specific to electrical contracting in your state or locality, which may include a master electrician's license, electrical contractor license, and business license.
  • Consider purchasing insurance policies such as general liability insurance, workers' compensation, and professional liability insurance to protect your business from potential risks.
  • Comply with local zoning laws and building codes to ensure your business location is appropriate for an electrical services operation.
  • Register for state and local taxes as required to ensure you are set up to pay sales, payroll, and other business taxes.

Resources to help get you started:

Uncover vital resources perfect for electrical entrepreneurs aiming for insights on market trends, operational excellence, and strategic growth:

  • Electrical Trends Report: Annual insights into market trends and technology shifts in the electrical industry. No direct link available.
  • Electrical Contractor Magazine: Offers news, latest tech reviews, and business management tips. www.ecmag.com
  • IE3 Media: Provides a wealth of resources, from best practices to governmental policy impacts on the electrical trade. www.ie3media.com
  • Electric Smarts Network: A digital market network providing industry news, webinar trainings, and product information. www.electricsmarts.com
  • NECA (National Electrical Contractors Association): Offers resources for electrical contracting operational practices, business development, and education. www.necanet.org

Starting an electrical business requires careful attention to legal requirements. Licenses and permits are essential for operating legally and ensuring the safety of your services. Here is a quick guide to help you acquire the necessary documentation:

  • Check with your local city or county government office for specific electrical business licenses. Each locality may have different requirements.
  • Obtain an Electrical Contractor's License, which typically requires passing an exam that covers electrical codes, standards, and safety practices.
  • Make sure to have a General Business License, which allows you to operate a business in your city or county.
  • Apply for specialized permits for any specific services you offer, such as fire alarm or low voltage systems installation.
  • Consider professional liability insurance to protect your business against potential claims related to your electrical work.
  • Stay informed about renewals to ensure your licenses and permits remain valid and avoid any legal complications.

What licenses and permits are needed to run a electrical business?

Depending on the jurisdiction, a variety of licenses and permits may be required to operate an electrical business. These may include a professional license from a state licensing board; certification from the relevant authority for specific types of electrical work such as residential wiring, commercial wiring, or fire alarm systems; electrical permits from the local building department; and insurance coverage for liability.

Securing your financial foundation is a crucial step when starting an electrical business. A dedicated business bank account will help you manage your finances effectively, and securing the necessary funding will ensure you have the capital needed to cover startup costs and maintain operations. Follow these guidelines:

  • Choose the right bank: Research and compare different banks to find one that offers favorable terms for small businesses, such as low fees, easy access to funds, and good customer service.
  • Prepare the required documents: You will typically need your business registration details, EIN (Employer Identification Number), and personal identification to open a business bank account.
  • Understand your funding needs: Calculate the initial costs of starting your electrical business, including equipment, licensing, insurance, and working capital.
  • Explore funding options: Investigate various funding sources such as small business loans, lines of credit, grants, or investors. Consider the pros and cons of each to determine the best fit for your business.
  • Build a strong business plan: A detailed business plan is essential when seeking funding as it demonstrates to lenders or investors that you have a clear path to profitability.
  • Maintain good credit: Ensure that both your personal and business credit histories are in good standing to increase your chances of securing favorable loan terms.

Setting the right prices for your electrical services is crucial to ensuring the success of your business. It's important to find a balance that reflects the value of your work, covers your costs, and remains competitive in the marketplace. Here are some key points to consider when setting your pricing:

  • Costs: Calculate all your costs, including materials, labor, overhead, and any other expenses. Make sure your prices cover these costs and provide a reasonable profit margin.
  • Market rates: Research what other electricians in your area are charging for similar services. This will help you set competitive rates and understand what clients are willing to pay.
  • Value-based pricing: Consider the value you provide to your clients and set prices that reflect your expertise, certifications, and the complexity of the services offered.
  • Pricing models: Decide whether you will charge by the hour, by the project, or a combination of both. Fixed pricing for common services can simplify the decision-making process for potential clients.
  • Transparent pricing: Be upfront about your prices to build trust with clients. Consider providing detailed quotes and invoices that break down costs.

What does it cost to start a Electrical business?

Initiating a electrical business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $35500 for launching such an business. Please note, not all of these costs may be necessary to start up your electrical business.

Starting an electrical business requires careful selection of high-quality electrical equipment and supplies. This step is crucial as it ensures that your services meet industry standards and safety regulations. Here's how to go about acquiring the tools and materials needed for your electrical business:

  • Research and select reputable suppliers who offer quality products and warranties. Consider both local distributors and online vendors for competitive pricing.
  • Make a comprehensive list of essential tools, such as multimeters, wire strippers, pliers, and screwdrivers, as well as safety gear like insulated gloves and goggles.
  • Purchase inventory based on common electrical components such as wires, cables, connectors, switches, and circuit breakers, keeping in mind to stock various sizes and types.
  • Consider investing in advanced diagnostic tools and equipment if your budget allows, to provide specialized services.
  • Look for opportunities to buy in bulk to reduce costs, but ensure you have adequate storage space for your inventory.
  • Stay updated with new technologies and tools in the electrical industry to continuously improve your services and offerings.

List of Software, Tools and Supplies Needed to Start a Electrical Business:

  • Electrical tools, such as wire strippers, screwdrivers and power drills
  • Safety equipment, such as hard hats, safety glasses and work gloves
  • Electrical supplies, such as wire, conduit, circuit breakers and light fixtures
  • Electrical testing equipment, such as multimeters and voltage testers
  • Software, such as electrical CAD drawing programs and accounting software
  • Vehicles, such as trucks, vans or trailers
  • Marketing materials, such as business cards and brochures

Starting an electrical business involves managing risks that come with the trade. Obtaining the right business insurance not only protects your investment but also provides peace of mind for you and your customers. Here's what you need to consider:

  • General Liability Insurance: This is essential for any business, covering accidents or injuries to non-employees that occur as a result of your business activities.
  • Professional Liability Insurance: Also known as Errors and Omissions (E&O) insurance, it protects your business against claims of negligence or harm due to professional services provided.
  • Workers' Compensation Insurance: If you have employees, this insurance covers medical costs and lost wages for work-related injuries and illnesses.
  • Commercial Auto Insurance: If your business uses vehicles, this insurance covers damages from accidents or other vehicle-related incidents.
  • Tool and Equipment Insurance: This covers the repair or replacement of stolen, lost, or damaged tools and equipment.
  • Bonding: Surety bonds can be required to guarantee the completion of a job and the payment of suppliers and subcontractors.

Consult with an insurance agent specializing in business policies for the electrical industry to ensure you have adequate coverage for your specific needs.

Now that you've laid the groundwork for your electrical business, it's time to attract customers through strategic marketing. Here are some effective ways to promote your services and build a strong client base.

  • Develop an Online Presence: Create a professional website and maintain active social media profiles to showcase your work, share customer testimonials, and provide easy contact information.
  • Local SEO: Optimize your website for local search terms to ensure that potential customers in your area can find you easily when they need electrical services.
  • Networking: Join local business groups, attend trade shows, and partner with related businesses like home builders or real estate agents to gain referrals.
  • Advertising: Consider using Google Ads, social media advertising, and traditional methods such as flyers, local newspaper ads, or sponsoring community events.
  • Customer Reviews: Encourage satisfied clients to leave positive reviews on platforms like Google My Business and Yelp to build your reputation.
  • Offer Promotions: Provide introductory discounts or special offers to new customers to encourage them to choose your services over competitors.

Expanding your electrical business is a pivotal stage that requires strategic planning and careful execution. As you grow your operations, consider various avenues for development that align with your business goals and market demand. Here are some key steps to help you scale your electrical business effectively:

  • Diversify Services: Offer a wider range of services such as smart home automation, renewable energy solutions, or specialized commercial services to attract a broader client base.
  • Hire Skilled Technicians: As your workload increases, recruit qualified electricians to maintain high-quality service and customer satisfaction.
  • Invest in Marketing: Enhance your online presence with a professional website and engage in digital marketing to reach a larger audience.
  • Networking: Build relationships with contractors, suppliers, and other tradespeople to find new opportunities and partnerships.
  • Training and Development: Continuously train your staff on the latest technologies and safety protocols to stay competitive.
  • Expand Geographically: Consider opening new locations or offering services in neighboring areas to capture more market share.
  • Improve Operational Efficiency: Adopt new technologies and business management software to streamline operations and reduce costs.

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Electrical Business

Back to All Business Ideas

How to Start an Electrical Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on January 6, 2022 Updated on March 13, 2024

How to Start an Electrical Business

Investment range

$3,250 - $23,100

Revenue potential

$130,000 - $1,000,000 p.a.

Time to build

1 – 3 months

Profit potential

$100,000 - $260,000 p.a.

Industry trend

​​Electricity is something that nearly everyone in the United States uses every day of their lives, one way or another. Electrical services are so important that the electrician industry is valued at over $200 billion. Electricians are highly skilled and are able to do work that is dangerous for the layperson to attempt, which is why they are in high demand. You can start an electrical business and tap into that demand and build a lucrative business.

Starting an electrical business will have challenges and require hard work and knowledge to be successful. This step-by-step guide has all the information and insight that you need to be on your way to start your entrepreneurial journey.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting an electrical business has pros and cons that you should consider before deciding if the business is right for you.

  • High Demand – Electrical services are in demand by consumers and businesses
  • Valuable Service – Provide essential services and safety to customers
  • Good Profit – Electricians command high rates
  • Education – You need to complete education to become licensed
  • Odd Hours – Customers may require emergency service at odd hours

Electrical industry trends

Rising new home construction has contributed to the growth of the US electrician industry. 

Industry size and growth

  • Industry size and past growth – Market analyst IBISWorld values the US electrician industry at nearly $205 billion in 2022. The industry has grown over 35% in the last decade.(( https://www.ibisworld.com/industry-statistics/market-size/electricians-united-states/ ))  
  • Growth forecast – Pent-up demand will contribute to robust growth over the five years to 2026, according to IBISWorld.(( https://www.ibisworld.com/united-states/market-research-reports/electricians-industry/ )) 
  • Number of businesses – There are nearly 225,000 electricians in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/electricians-united-states/ ))
  • Number of people employed – The industry employs over a million people.(( https://www.ibisworld.com/industry-statistics/employment/electricians-united-states/ )) 

electrical industry size and growth

Trends and challenges

Some trends in the industry include:

  • Demand for energy efficiency is rising, which is increasing the demand for electrical upgrades. New technologies, including energy storage technologies, are emerging to increase efficiency. Electricians will need to stay up to date on these technologies.
  • Sustainably made materials are also in demand, including recycled parts.

Some challenges also exist in the electrical industry which include:

  • There is a shortage of licensed electricians which will present a challenge for electrical companies looking to hire.
  • Liability issues exist if mistakes are made that jeopardize safety. Electricians must work with extreme caution. 

electrical industry Trends and Challenges

What kind of people work as electricians?

  • Gender – More than 95% of electricians are male and the rest are female.(( https://www.zippia.com/electrician-jobs/demographics/#gender-statistics ))
  • Average level of education – 32% of electricians finished high school while 30% hold an associate degree. It’s a good idea to earn professional certifications as electricians.(( https://www.zippia.com/electrician-jobs/education/ ))
  • Average age – Electricians are mostly under 45 years old.(( https://www.zippia.com/electrician-jobs/demographics/#age-statistics ))

electrical industry demographics

How much does it cost to start an electrical business?

Startup costs for an electrical business range from just over $3,000 to nearly $25,000. The low end assumes that you are already licensed and are going to run your business as a solopreneur from home. The high end includes the cost of training and setting up an office and shop. 

You’ll need a handful of items to successfully launch your electrical business. Here’s a list to get you started:

  • Screwdrivers and nut drivers
  • Wire strippers
  • Fishing tools
  • Measuring devices
  • Labeling machines
  • Power drills and drivers, hammer/drills

How much can you earn from an electrical business?

The average electrical contractor usually charges $75 to $100 per hour.  Working from home, your profit margin should be about 80%. In your first year or two, you could work from home 25 hours a week at $100 per hour, bringing in $130,000 in annual revenue. This would mean over $100,000 in profit, assuming that 80% margin. 

As your brand gains recognition, sales could climb to jobs that take 200 hours per week. At this stage, you would have a shop and office and staff, including other electricians, reducing your profit margin to around 25%. With expected annual revenue of over $1,000,000, you would make over a quarter-million dollars.

Electrical business earnings forecast

What barriers to entry are there?

There are a few barriers to entry for an electrical business. Your biggest challenges will be:

  • You need to be a licensed electrician or go through the process to become licensed
  • Finding other qualified electricians to work for you may be challenging

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Step 2: refining your business concept, in-depth market research:.

Comprehensive market research is foundational for any successful business. This includes analyzing local electrical services, understanding customer demands, and identifying gaps in the market. For example, is there a demand for eco-friendly electrical services or advanced home automation installations? Such insights can help you differentiate your business right from the start.

Service Portfolio Development:

Detail the range of services you plan to offer. Will your focus be on residential electrical issues, commercial electrical systems, or specialized services like smart home installations or renewable energy solutions? Clarify your expertise areas and consider offering unique services that are in demand but not widely available in your area.

Pricing and Profitability

Competitive pricing strategy:.

Set your service rates competitively, typically between $75 to $100 per hour. Factor in costs for parts, potential markups, and overhead charges. A solo operation should aim for a higher profit margin (around 80%), while a business with a team and office should adjust to a lower margin (around 25-30%). Regularly review and adjust your pricing to stay competitive and profitable.

Cost Management:

Use tools like our profit margin calculator to fine-tune your pricing strategy. Keep track of all expenses, including materials, labor, and overhead, to ensure your pricing covers costs and yields a healthy profit margin.

Identifying Your Target Market

Market segmentation:.

Your services should align with the needs of your target market. For residential services, focus on homeowners, offering maintenance, repairs, and upgrades. For commercial services, target businesses requiring installations, inspections, and energy-efficient solutions. Use platforms like Facebook, LinkedIn, and local community forums to connect with potential clients.

Setting Up Your Business Location

Starting small and scaling up:.

Initially, operating from home can significantly reduce overhead costs. As your business expands, look for commercial spaces that cater to your growing needs. Key factors for choosing a space include accessibility, adequate space and ventilation, natural lighting, and a flexible lease. Utilize online resources like Craigslist or Crexi to find suitable locations.

Infrastructure Needs:

Consider the necessary infrastructure for your business, such as storage for tools and materials, a workspace for small repairs, and an office area for administrative tasks. Ensure the space can be adapted as your business grows.

electrical business idea rating

Step 3: Brainstorm an Electrical Company Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

  • Short, unique, and catchy names tend to stand out
  • Names that are easy to say and spell tend to do better 
  • Name should be relevant to your product or service offerings
  • Ask around — family, friends, colleagues, social media — for suggestions
  • Including keywords, such as “electric” or “electrical”, boosts SEO
  • Name should allow for expansion, for ex: “Jim’s Electric” over “Jim’s Wiring”
  • Avoid location-based names that might hinder future expansion
  • Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create an Electrical Contractor Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

  • Executive Summary: Summarize your electrical contractor business’s mission to provide high-quality, reliable electrical installation and maintenance services for residential, commercial, and industrial clients.
  • Business Overview: Describe your business’s focus on offering electrical services, including wiring installations, repairs, inspections, and upgrades for a variety of projects.
  • Product and Services: Detail the range of electrical services offered, such as new construction wiring, electrical system upgrades, safety inspections, and emergency repair services.
  • Market Analysis: Evaluate the demand for electrical contracting services, considering factors like construction trends, local business growth, and home renovation activities.
  • Competitive Analysis: Compare your business to other local electrical contractors, focusing on your strengths like specialized skills, quick response times, or competitive pricing.
  • Sales and Marketing: Outline your strategy for attracting clients, using methods like local advertising, building partnerships with construction firms, or creating an online presence.
  • Management Team: Highlight the qualifications and experience of your team, particularly in electrical work, project management, and customer service.
  • Operations Plan: Describe the operational aspects, including project bidding, job scheduling, staff management, and compliance with safety standards.
  • Financial Plan: Provide an overview of financial aspects, covering startup costs, pricing strategy, and revenue projections.
  • Appendix: Include supplementary documents such as licenses, certifications, project portfolios, or detailed market research to support your business plan.

what to include in a business plan

If you’ve never created a business plan yourself before, it can be an intimidating task. Consider hiring an experienced business plan writer to create a professional business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to electrical businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your electrical business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

  • Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
  • Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
  • Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
  • C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
  • S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

types of business structures

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

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business plan in electrical

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

business plan in electrical

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

  • Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
  • SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
  • Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
  • Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
  • Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
  • Personal: Self-fund your business via your savings or the sale of property or other assets.

Personal financing or friends and family financing may be your best bets, or you might be able to get a bank loan for your training.

types of business financing

Step 8: Apply for Electrical Contractor Licenses and Permits

Starting an electrical business requires obtaining a number of licenses and permits from local, state, and federal governments. You need to be a licensed electrician in your state. Check your state’s website for requirements. An electrician’s license is considered a specialty contractor’s license.

Federal regulations, licenses, and permits associated with starting your business include doing business as, health license and permit from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level licenses and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. You could also check this SBA guide for your state’s requirements. 

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

For peace of mind and to save time, we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state, and provide them to you to make sure you’re fully compliant.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account . Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your electrical business as a sole proprietorship. 

Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

  • General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
  • Business Property: Provides coverage for your equipment and supplies.
  • Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
  • Worker’s compensation: Provides compensation to employees injured on the job.
  • Property: Covers your physical space, whether it is a cart, storefront, or office.
  • Commercial auto: Protection for your company-owned vehicle.
  • Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
  • Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

types of business insurance

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You can use industry-specific software, such as ServiceTrade , connecteam , or ServiceTitan , to manage your pricing, bids, scheduling, dispatching, and to monitor your key performance indicators (KPIs).

  • Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
  • If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.

Here are some powerful marketing strategies for your future business:

  • Local Partnerships and Sponsorships: Forge partnerships with local businesses, contractors, or community events. Sponsoring local events or sports teams can increase brand awareness and position your electrical business as an integral part of the community.
  • Targeted Social Media Advertising: Leverage social media platforms like Facebook and Instagram to run targeted advertising campaigns. Focus on specific demographics and geographic areas to reach potential customers who are more likely to need electrical services.
  • Customer Referral Programs: Encourage your satisfied customers to refer your services to others by implementing a referral program. Offer discounts or incentives for each successful referral, turning your happy clients into brand ambassadors.
  • Seasonal Promotions: Introduce seasonal promotions or discounts during peak times when homeowners are likely to undertake electrical projects, such as the spring and fall. This can create a sense of urgency and attract more business during high-demand periods.
  • Educational Workshops: Host workshops or webinars in your local community to educate homeowners on electrical safety, energy efficiency, or DIY tips. Position yourself as an expert, and participants are more likely to turn to your business for their electrical needs.
  • Vehicle Branding: Ensure your service vehicles are branded with your logo, contact information, and a brief service offering. These moving advertisements not only enhance your professional image but also serve as mobile billboards, promoting your business wherever you go.
  • Online Reviews and Testimonials: Actively encourage satisfied customers to leave positive reviews on popular review sites like Google, Yelp, or industry-specific platforms. Positive reviews build trust and credibility, influencing potential clients to choose your services.
  • 24/7 Emergency Service Promotion: Highlight your ability to provide 24/7 emergency electrical services. Create targeted marketing materials that emphasize your quick response times during urgent situations, positioning your business as a reliable and responsive service provider.
  • Loyalty Programs: Implement a loyalty program for repeat customers. Offer discounts or special perks for clients who consistently choose your services, fostering long-term relationships and customer loyalty.
  • Branded Merchandise Giveaways: Distribute branded merchandise such as pens, notepads, or even small electrical tools at local events or as part of a promotion. This creates brand visibility and serves as a constant reminder of your services.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your electrical business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your electrical business could be: 

  • Eco-friendly electrical services to increase your energy efficiency
  • 24/7 on-call electrical services
  • Reliable electrical services for small businesses

unique selling proposition

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running an electrical business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in electric for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in electrical businesses. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for an electrical business would include:

  • Electricians – provide electrical services
  • Dispatcher – take calls and dispatch electricians
  • General Manager – staff management, supply ordering, accounting

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run an Electrical Business – Start Making Money!

Electricians are in high demand. The industry is worth over a shocking $200 billion in the United States alone!  You can start your own electrical business and get just a few watts of that market to make a healthy profit. Even working by yourself from your home, you’ll be doing well since you can charge $100 per hour or even more. 

Your skills are valuable, and you’ll be performing an essential service as well. Now that you’ve added more knowledge to your toolbelt, you’re ready to start wiring up a successful electrical business!

  • Electrical Business FAQs

Electricians generally charge between $75 to $100 per hour plus parts. Some also charge a markup on parts and an extra charge to cover the company overhead.

Every state has its own requirements to become licensed. Some require a certain number of hours or years working with a licensed electrician, and some require more formal training. You also may have to pass an exam.

To get customers for your electrical business, you can focus on developing a strong online presence through social media, search engine optimization, and online advertising. You can also network with other professionals in the industry, such as contractors and real estate agents, to generate referrals and build relationships with potential clients. 

Generally, electrical businesses that focus on providing high-quality services, building strong customer relationships, and staying up-to-date with the latest industry trends and technologies are more likely to be profitable over the long term.

As an electrical business, you can offer a wide range of services to clients, including installation, repair, and maintenance of electrical systems in residential, commercial, and industrial settings. Specific services may include wiring and rewiring, lighting installation, electrical panel upgrades, generator installation, and energy efficiency upgrades.

You can emphasize your commitment to safety, reliability, and sustainability, and showcase your qualifications and certifications to demonstrate your expertise and credibility in the industry. 

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  • Decide if the Business Is Right for You
  • Refining Your Business Concept
  • Brainstorm an Electrical Company Name
  • Create an Electrical Contractor Business Plan
  • Register Your Business
  • Register for Taxes
  • Fund your Business
  • Apply for Electrical Contractor Licenses and Permits
  • Open a Business Bank Account
  • Get Business Insurance
  • Prepare to Launch
  • Build Your Team
  • Run an Electrical Business - Start Making Money!

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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.

Get your copy today!

Download The Template  

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

Electrician with business plan template

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.

Get your free electrical business plan PDF!

Created by tradify - the easiest way to manage your electrical business..

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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.

electrician businesss plan template

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

online editor for electrician business plan template

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.).

cover page and table of contents for the electrician business plan template by The Business Plan Shop

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)

executive summary for electrical company business plan sample

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

company overview included in electrician business plan template

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

product and services description of the electrician business plan example

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

market analysis section of the electrical company business plan template

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

electrician business plan example: stragtegy section

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

electrician business plan template: operations section

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

electrician business plan forecasted P&L

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: monthly cash flow forecast

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.

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electrician owner using our business plan template

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.

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Electrical Contractor Business Plan Sample

DEC.30, 2020

Electrical Contractor Business Plan Sample

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:

3 Years Profit Forecast - Electrical Contractor Business Plan

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.

Startup Cost - Electrical Contractor Business Plan

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:

Marketing Segmentation - Electrical Contractor Business Plan

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

Sales Monthly - Electrical Contractor Business Plan

6.4 Sales Yearly

Sales Yearly - Electrical Contractor Business Plan

6.5 Sales Forecast

Unit Sales - Electrical Contractor Business Plan

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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.

Brake-even Analysis - Electrical Contractor Business Plan

8.3 Projected Profit and Loss

8.3.1 profit monthly.

Profit Monthly - Electrical Contractor Business Plan

8.3.2 Profit Yearly

Profit Yearly - Electrical Contractor Business Plan

8.3.3 Gross Margin Monthly

Gross Margin Monthly - Electrical Contractor Business Plan

8.3.4 Gross Margin Yearly

Gross Margin Yearly - Electrical Contractor Business Plan

8.4 Projected Cash Flow

Projected Cash Flow - Electrical Contractor Business Plan

8.5 Projected Balance Sheet

8.6 business ratios.

Download Electrical Contractor Business Plan Sample in pdf

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Home » Sample Business Plans » Wholesale & Retail

How to Write an Electrical Shop Business Plan [Sample Template]

Are you about starting an electrical shop? If YES, here is a detailed sample electrical shop business plan template & FREE feasibility report. Businesses that are worth going for are businesses that you are certain people would need your services or products regularly.

An electrical shop falls into this category. Part of what you need to do to make headway in this line of business is to ensure that your store is intentionally positioned and you a have good business relationship with construction contractors and key players in the real estate industry.

One good thing about this type of business is that you don’t need to enroll in a conventional school to learn how to start and run this type of business; you just require basic business skills such as knowledge of electric equipment, customer service, accounting skills, bargaining skills, people skills cum networking skills and of course overall business management skills.

Over and above, if you have decided to start an electrical shop business, then you should ensure that you carry out your feasibility studies and also market survey. Below is a sample electrical shop business plan template that can help you to successfully write your own with little or no difficulty.

A Sample Electrical Shop Business Plan Template

1. industry overview.

Electrical store business is part of the Electrical Equipment Wholesaling industry and this industry consists of businesses that are into the sale and supply of wiring, lighting fixtures and light bulbs, relay and industrial controls, switchgear and switchboard apparatus, motors and generators, power and distribution transformers and other electrical equipment.

On the average, an electrical supply company distributes electrical construction materials, such as wiring supplies, electrical light fixtures, light bulbs, security systems, electrical power equipment, switchboards, circuit breakers and fuses to construction companies. Hence, demand from building, developing and general contracting largely determines industry revenue growth.

In addition, demand for many of the industry’s products depends on industrial production and electrical power consumption. As manufacturing activity in the economy increases and those companies invest in equipment, they purchase industry goods to both outfit their factories and to act as intermediary components.

If you are a close watcher of the Electrical Equipment Wholesaling industry, you will agree that over the past five years, the Electrical Equipment Wholesaling industry has struggled to rebuild itself, even as the overall economy strengthens.

Industry goods are purchased by professional contractors and consumers engaged in remodeling and construction projects. Rising consumer confidence and household income have helped ignite remodeling activity forestalled during the recession, providing additional demand for electrical equipment used in home improvement projects. Even so, rising competition from large home improvement stores has stifled revenue growth for electrical supply stores.

Statistics has it that in the united states of America alone, there are about 17,709 registered and licensed electrical supply stores responsible for employing about 226,258 people and the industry rakes in a whooping sum of $179 billion annually. The industry is projected to grow at 2.2 percent annual growth within 2013 and 2018. It is important to state that The Electrical Equipment Wholesaling industry has no companies with major market shares.

A recent report published by IBISWORLD shows that over the past five years, the Electrical Equipment Wholesaling industry has grown by 2.2 percent to reach revenue of $179bn in 2018. In the same timeframe, the number of businesses has grown by 0.7 percent and the number of employees has grown by 3.6 percent.

The Electrical Equipment Wholesaling industry is highly regulated in the United States of America and anyone who aspires to start an electrical supply business must apply and obtain a license before they can legally operate in the industry.

If you are contemplating opening an electrical shop business in the United States, you should ensure that you carry out a thorough market survey and feasibility studies so you that you will be able to get the ideal location to launch your electrical shop business. The truth is that, if you get some key factors wrong before starting your own business, then you are likely going to struggle to stay afloat.

2. Executive Summary

Allan Pearson® Electrical Shop, Inc. is a registered electrical equipment store business that will be located in one of the busiest streets in Kansas City – Missouri. We have been able to lease a facility that is big enough (a 5 thousand square foot facility) to fit into the kind of standard electrical equipment store that we intend launching and the facility is located in the heart of Kansas City – Missouri.

Allan Pearson® Electrical Shop, Inc. will retail electrical equipment and materials, such as wiring supplies, electrical light fixtures, light bulbs, security systems, electrical power equipment, switchboards, circuit breakers and fuses et al to customers. We are set to service a wide range of clientele in and around Kansas City – Missouri.

We are aware that there are several electrical equipment stores all around Missouri, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors. We have an online – service option for our customers, and our outlet has various payment options.

Allan Pearson® Electrical Shop, Inc. will ensure that all our customers are given first class treatment whenever they visit our electrical equipment store. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they may grow to. We will ensure that we get our customers involved in the selection of brands that will be in our store and also when making some business decisions.

Allan Pearson® Electrical Shop, Inc. is a family business that is owned by Allan Pearson and his immediate family members. Allan Pearson has a B.Sc. in Business Administration, with over 10 years’ experience in the electrical equipment wholesaling industry, working for some of the leading brands in the United States. Although the business is launching out with just one outlet in Kansas City – Missouri, but there is a plan to open other outlets around major cities in the United States of America.

3. Our Products and Services

Allan Pearson® Electrical Shop, Inc. is in the electrical equipment wholesaling industry to service a wide range of clients which is why we will ensure we make available a wide range of electrical equipment from top manufacturing brands in the United States and other countries of the world.

We will do all that is permitted by the law of the United States to achieve our aim and ambition of starting the business. Some of the products in our store are listed below;

  • Wiring/cables
  • Lighting fixtures and light bulbs
  • Relay and industrial controls
  • Switchgear and switchboard apparatus
  • Motors and generators
  • Power and distribution transformers
  • Major appliance
  • Microcontroller
  • Programmable logic controller
  • Small appliances
  • Other electrical equipment.

4. Our Mission and Vision Statement

  • Our vision is to become the leading brand in the electrical equipment wholesaling industry in Missouri and to establish a one stop electrical equipment store chains in Kansas City and in other key cities in the United States of America.
  • Our mission is to establish a world – class electrical equipment store that will make available a wide range of electrical equipment from top electrical manufacturing brands at affordable prices in Kansas City – Missouri and other key cities in the United States of America via franchising.

Our Business Structure

Allan Pearson® Electrical Shop, Inc. is looking towards building a standard business that can be listed among the top – flight electrical supply stores not just in Kansas City – Missouri but throughout the United States of America. For that singular reason, we will make sure that establish the business on a solid structure.

We will ensure that we hire people who are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

  • Chief Executive Officer (Owner)
  • Store Manager
  • Human Resources and Amin Manager

Merchandize Manager

Sales and Marketing Manager

  • Accountants / Cashiers
  • Customer Services Executive

Truck and Van Drivers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Reports to the board

Admin and HR Manager

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Defines job positions for recruitment and managing interviewing process
  • Carries out induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversees the smooth running of the daily office activities.

Store Manager:

  • Responsible for managing the daily activities in the store/warehouse
  • Ensures that proper records of electrical equipment are kept and warehouse does not run out of products
  • Ensures that the store facility is in tip top shape and goods are properly arranged and easy to locate
  • Interfaces with electrical equipment manufacturers
  • Controls electrical equipment distribution and supply inventory
  • Supervises the workforce in the electrical equipment sales floor.
  • Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
  • Helps to ensure consistent quality of electrical equipment are purchased and retailed/supplied in good price that will ensure we make good profit
  • Responsible for the purchase of electrical equipment for the organizations
  • Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
  • Ensures that the organization operates within stipulated budget.
  • Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Models demographic information and analyze the volumes of transactional data generated by customer purchases
  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps to increase sales and growth for the company

Accountant/Cashier:

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the organization
  • Serves as internal auditor for the organization
  • Assists in loading and unloading goods/electrical equipment
  • Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
  • Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
  • Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
  • Collects and verifies delivery instructions
  • Reports defects, accidents or violations

Client Service Executive

  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products
  • Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
  • Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries

6. SWOT Analysis

Any profitable business or a business with prospects is bound to be competitive and as a new business, you must be ready to compete in the industry and competing in the industry means that you must follow due process in establishing a business.

We are quite aware that there are several electrical equipment stores all over Kansas City and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Allan Pearson® Electrical Shop, Inc. employed the services of an expert HR and Business Analyst with bias in supply store chain business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our goals and objectives. This is the summary of the SWOT analysis that was conducted for Allan Pearson® Electrical Shop, Inc.;

Our business is located in a city with heavy construction and real estate activities and also, we can boast of having good business relationship with top manufacturers in the electrical equipment manufacturing industry and construction contractors in and around Kansas City – Missouri.

A major weakness that may count against us is the fact that we don’t have our own electrical equipment production plant, we are a new electrical equipment store and we don’t have the financial capacity to compete with multi – million dollars electrical equipment stores when it comes to retailing electrical equipment at a rock bottom price.

  • Opportunities:

The fact that we are going to be operating our electrical equipment store in one of the busiest construction locations in Kansas City – Missouri provides us with unlimited opportunities to sell our electrical equipment to a large number of construction contractors.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they order electrical equipment from us; we are well positioned to take on the opportunities that will come our way.

A major threat that we are going to face as an electrical supply business operating in the United States of America is uncertainty in government policies as it relates to price control and influx of electrical equipment manufactured outside the United States of America.

When the prices charged by manufacturers to wholesalers’ decline, wholesalers typically have to reduce their selling prices to retailers. This results in subdued revenue growth for wholesalers, even if demand expands.

7. MARKET ANALYSIS

  • Market Trends

If you are conversant with the electrical equipment stores Industry, you will quite agree that the changes in disposable income, consumer sentiment, ever changing trends and of course the rate of homeownership are major growth drivers for this industry.

A massive rise in consumer confidence has also contributed in helping the industry experience remarkable growth, but uneven performance in these drivers has led to slightly constrained revenue growth.

So also, the rising demand for both building renovations, as a result of increasing disposable income and consumer sentiment, will result in revenue growth, but profit margins will stagnate as electrical equipment stores keep prices low to attract more sales amid growing competition.

A close watch of industry activities reveals that, the retail market for electrical equipment was hit hard by the recent economic downturn and experienced a decline in revenue in recent time. The construction of new homes is a primary market for industry products, so as housing stats increase, demand tends to follow.

Moreover, as home builders have increased their use of electronics, demand for complementary electrical equipment has risen. In 2018, housing stats increased, presenting a potential opportunity for the industry. As part of marketing strategies, electrical equipment stores partner with key players in the construction and real estate industry. They are in the best position to offer you electrical equipment supply contract.

8. Our Target Market

We have positioned our electrical equipment store to service the construction industry in Kansas City – Missouri. We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us. We are in business to supply a wide range of electrical equipment to the following;

  • Construction Companies
  • Construction Contractors
  • Home Remodeling Companies
  • Facility managers
  • Households in and around our store locations

Our Competitive Advantage

A close study of the industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiff competition and we are prepared to compete favorably with other leading electrical equipment stores in Kansas City – Missouri and throughout the United States.

Allan Pearson® Electrical Shop, Inc. is launching a standard electrical equipment store that will indeed become the preferred choice for key players in the construction cum real estate industry in Kansas City – Missouri. Our electrical equipment store is located in a corner piece property in the largest electrical equipment market in Kansas City – Missouri. We have enough parking space that can accommodate over 10 cars/trucks per time.

One thing is certain, we will ensure that we have a wide range of electrical equipment available in our store at all times. It will be difficult for customers to visit our store and not see the type of electrical equipment that they are looking for.

One of our business goals is to make Allan Pearson® Electrical Shop, Inc. a one stop electrical equipment shop for customers at all levels. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Allan Pearson® Electrical Shop, Inc. will retail a wide range of electrical equipment to businesses in Kansas City – Missouri. We are in the electrical equipment wholesaling industry to maximize profits and we are going to ensure that we achieve or business goals and objectives.

Allan Pearson® Electrical Shop, Inc. will generate income by;

10. Sales Forecast

One thing is certain when it comes to electrical equipment stores, if your store is stocked with various types of electrical equipment and centrally positioned, you will always attract customers cum sales and that will translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Kansas City – Missouri and we are quite optimistic that we will meet our set target of generating enough income/profits from our first six months of operation and grow the business and our clientele base.

We have been able to examine the electrical equipment wholesaling industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for Allan Pearson® Electrical Shop, Inc., it is based on the location of our business and other factors as it relates to electrical equipment stores startups in the United States;

  • First Fiscal Year:  $350,000
  • Second Fiscal Year:  $550,000
  • Third Fiscal Year:  $750,000

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

  • Marketing Strategy and Sales Strategy

Before choosing a location for Allan Pearson® Electrical Shop, Inc., we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for key players in the industry in Kansas City – Missouri. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the electrical equipment stores industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Kansas City – Missouri.

In summary, Allan Pearson® Electrical Shop, Inc. will adopt the following sales and marketing approach to win customers over;

  • Open our electrical equipment store in a grand style with a party for all.
  • Introduce our electrical equipment store by sending introductory letters alongside our brochure to construction companies, construction contractors, home remodeling companies and other key stake holders in Kansas City – Missouri
  • Ensure that we have a wide range of electrical equipment from different manufacturing brand at all times.
  • Make use of attractive hand bills to create awareness and also to give direction to our electrical equipment store
  • Position our signage/flexi banners at strategic places around Kansas City – Missouri
  • Position our greeters to welcome and direct potential customers
  • Create a loyalty plan that will enable us reward our regular customers
  • List our business and products on yellow pages ads (local directories)
  • Leverage on the internet to promote our business
  • Engage in direct marketing and sales
  • Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Despite the fact that our electrical equipment store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our electrical equipment store.

Allan Pearson® Electrical Shop, Inc. has a long – term plan of opening outlets in various locations all around Missouri and key cities in the United States which is why we will deliberately build our brand to be well accepted in Kansas City before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Allan Pearson® Electrical Shop, Inc.;

  • Place adverts on community – based newspapers, radio and TV stations
  • Encourage the use of word of mouth publicity from our loyal customers
  • Leverage on the internet and social media platforms and other platforms to promote our business.
  • Ensure that our we position our banners and billboards in strategic positions all around Kansas City – Missouri
  • Distribute our fliers and handbills in target areas in and around our neighborhood
  • Advertise our electrical equipment store business in our official website and employ strategies that will help us pull traffic to the site
  • Brand all our official cars and trucks and ensure that all our staff members wear our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Aside from quality, pricing is one of the key factors that gives leverage to electrical equipment stores, it is normal for consumers to go to places where they can get electrical equipment at cheaper price which is why big players in the industry attract loads of clients.

We know we don’t have the capacity to compete with multi – million dollar electrical equipment supply stores but we will ensure that the prices and quality of all the electrical equipment that are available in our store are competitive with what is obtainable amongst stores within our level.

  • Payment Options

The payment policy adopted by Allan Pearson® Electrical Shop, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America. Here are the payment options that Allan Pearson® Electrical Shop, Inc. will make available to her clients;

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

In view of the above, we have chosen banking platforms that will enable our client make payment for purchase of our electrical equipment without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for products purchased.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget for establishing a standard electrical equipment supply business in Kansas City – Missouri and here are the key areas where we will spend our startup capital;

  • The total fee for registering the Business in Kansas City – Missouri – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
  • Marketing promotion expenses for the grand opening of Allan Pearson® Electrical Shop, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The cost for hiring Business Consultant – $2,500.
  • Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $65,600.
  • The cost for shop/warehouse remodeling (construction of racks and shelves) – $20,000.
  • Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • The cost for start-up inventory (stocking with a wide range of electrical construction materials, such as wiring supplies, electrical light fixtures, light bulbs, security systems, electrical power equipment, switchboards, circuit breakers and fuses) – $250,000
  • The cost for counter area equipment – $9,500
  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • The cost of purchase and installation of CCTVs – $10,000
  • The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
  • The cost of launching a Website – $600
  • Miscellaneous – $10,000

We would need an estimate of $450,000 to successfully set up our electrical equipment store in Kansas City – Missouri.

Generating Funds/Startup Capital for Allan Pearson® Electrical Shop, Inc.

Allan Pearson® Electrical Shop, Inc. is a private business that is solely owned and financed by Allan Pearson and his immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

  • Generate part of the startup capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from the bank

N.B: We have been able to generate about $150,000 (Personal savings $100,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

Part of the plans we have in place to sustain Allan Pearson® Electrical Shop, Inc. is to ensure that we continue to make available a wide range of electrical equipment, retail our products at competitive prices, improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers

From our findings, another factor that kills new business is financial leakages. In order to plug financial leakages, the management of Allan Pearson® Electrical Shop, Inc. adopt the use of payment machine and accounting software to run the business.

Allan Pearson® Electrical Shop, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check : Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Leasing of facility and remodeling the shop: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Printing of Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
  • Purchase of initial supply of electrical construction materials, such as wiring supplies, electrical light fixtures, light bulbs, security systems, electrical power equipment, switchboards, circuit breakers and fuse: In Progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business both online and around the community: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Compilation of our list of products that will be available in our store: Completed
  • Establishing business relationship with vendors – manufacturers of electrical equipment and construction contractors: In Progress

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How to Start an Electrician Business 

Attorney Portrait

You know you’re ready to go out on your own as an electrical contractor. But do you know how to start an electrician business? 

This article will walk you through critical steps, starting with market research and a business plan. Then, you’ll learn about marketing and building customer relationships. We’ll also discuss pricing strategies and how to increase your profit margin. 

Start with Market Research for an Electrician Business 

Before you hang out a shingle for your new business, you need to make sure there is enough demand for your services in your area. That means you must conduct some market research first. 

Some things you will need to know include: 

  • How many electrical contractors are already working in your area? 
  • Is there a shortage of electricians in your locale? 
  • What do local electricians typically charge for various services? 
  • What does the client base look like, and who is hiring electricians? 
  • Which niches are available where you could fill a gap in services? 

The last point is a particularly important one. Ideally, you want your business to have a unique value proposition or unique selling proposition (USP). 

Your USP is what differentiates you from your competitors. A well-defined USP gives you an edge in the market and helps you attract new customers. 

For instance, you might specialize in: 

  • High-tech and smart tech for homes 
  • Green and sustainable electrical solutions 
  • Installing outdoor and landscape lighting 
  • Security, surveillance, and fire suppression 
  • Residential electric vehicle charging stations 
  • Partnering with real estate agents for inspections 
  • Retrofitting older buildings for new offices 
  • Remodeling and renovating single-family homes 
  • Repairs and installations for rental properties 
  • Providing installation service for new home construction 

Generally speaking, the more populated the area you serve, the more specialized you need to be to stand out in your market. In rural areas, though, you probably need to provide a wider range of services. 

FROM ONE OF OUR PARTNERS:   How to Start a Small Electrical Contractor Business  

business plan in electrical

Write a Business Plan 

Once you’ve researched your local market and developed your USP, the next step is to draft a business plan. Your business plan serves two primary purposes: 

  • It guides you as you begin and as you grow, like a roadmap. 
  • It outlines your vision for the future of the business to obtain any needed funding. 

It can be challenging to secure loans from any lender. They will want to see that you have a well-developed business plan and have a good chance of success. Otherwise, you look like a financial risk. 

Notably,  18% of all small businesses  fail within one year. Half fail after five, and 65% within 10 years. Financial challenges are one of the top reasons businesses close. 

How do you write a business plan? Start with the following sections: 

Executive Summary 

This section provides a summary of your entire business plan. It should let the lender know what they’ll be seeing and establish an overall mission statement. 

Company Overview 

This section gives an overview of your business, goals, target market, and USP. Mention any experience you have in the industry going in to show an understanding of the market. 

Marketing Analysis and Strategy 

This is where you can show that you’ve done your homework. It outlines your customer demographics and how you can fill an untapped area of the market. Include your strategies for getting the word out about your new business. 

Management and Organization 

Explain how your company will be structured. Will you be a sole proprietor? An LLC? Will you have employees or hire independent contractors for each job? 

This section lists any services you plan to offer. It should also include your pricing structure. Will you be charging a flat rate or per hour? 

Financial Projections 

This is the meat and potatoes section for lenders. Include profit and loss (P&L) statements and how much revenue you need to break even. It’s recommended that you hire a certified public accountant (CPA) to help you with this section. 

If necessary, you can add an appendix for copies of any documents, like bank statements, licenses, or endorsements. 

business plan in electrical

Legal Considerations and Licensing Requirements for Electricians 

You will want to decide on a legal structure for your business, which means incorporating with your state. This step is necessary to obtain business loans and open a business bank account. 

Your CPA or a business attorney can help you with this. A lawyer can also assist you with any partnership or employment contracts. 

Electrical contracting involves a great deal of liability risk. So,  electrician licensing  is more highly regulated than other types of contracting. You will need to hold a license for your state of operation. However, some states may have reciprocity with others. 

Check with your state’s labor department on your requirements. Most licensing requires passing exams to demonstrate a deep understanding of your work. 

You will also need liability insurance for electricians. If you have employees, you may be required to carry workers’ compensation coverage, too. Bonds will likely be required to bid for municipal jobs. 

You may also elect to buy other types of insurance, such as: 

  • Business umbrella insurance to increase your liability cap 
  • Errors and omission insurance in case of mistakes on the job 
  • Property insurance for your headquarters and/or equipment 
  • Cyber insurance if you accept digital payments 
  • Loss of income insurance in case you are not able to operate 

Don’t forget that your personal auto insurance doesn’t cover any business vehicles. They will need an additional commercial policy. 

The Costs of Starting an Electrician Business 

By now, you may be keeping a list of the expenses involved in starting your electrician business. Here are some of the costs you can expect to cover: 

  • Accountant and legal fees for your business plan and incorporation 
  • State fees for registering your business 
  • Business license and certification fees 
  • Commercial insurance policies 
  • Buying or leasing a vehicle or fleet, if not using your own 
  • Fuel to travel to job sites 
  • Purchasing or financing tools and equipment 
  • Bulk supplies billed to clients (wire, tape, etc.) 
  • Rent or mortgage if setting up an office 
  • Computer and telephone equipment, plus software and SaaS fees 
  • Payroll for employees and contractors 
  • Your salary as owner to cover your personal expenses 

Fortunately, the outlook is good for electrical contractors if you have a solid business plan.  Demand for electricians is up , while the number of available workers is falling short. 

The average salary for an electrician in the U.S. is  $57,558 . However, salaries are higher in some states and lower in others. 

If you’re starting your own electrician business, presumably, you’re more experienced. You call the shots when it comes to business growth. 

So, you can expect to earn at the upper end of the pay scale. That’s  $79,000 to $120,000  on average across the country. 

The key to earning more is carefully calculating your gross and net profit margins. Gross is what you bring in before the cost of goods on a job. Net is what you make after subtracting the cost of goods plus overhead. 

Overhead includes expenses like fuel, insurance, and employee wages. These are the costs you need to operate every day. 

You need to ensure you’re earning enough profit on your jobs to cover your expenses and your salary. 

The average startup business  takes two to three years  to turn a profit. Keeping your overhead lean is one way to speed that up. But you may need a loan to cover your salary for the first year or two. 

Pricing jobs properly can also help decrease your time to profitability. 

Pricing Your Electrician Business 

You will need to determine a pricing structure for your business plan. And, of course, once you start seeing clients, you will want to have this worked out. 

Your business needs to charge enough to cover your overhead, like many of the expenses listed above. And it needs to pay employees, plus cover the cost of materials. 

There are different methods you can use for billing, but they’re not equally profitable. For example, you could charge by the hour. But this can work against you in two ways. 

First, imagine that a project takes longer than expected to complete. The customer may not be happy with your fee—even if you can justify it—if it’s much more than the going rate or your initial estimate. 

Second, you might be short-changing yourself if you complete jobs quickly. That’s why it makes sense to seriously consider flat rate pricing instead. 

Flat rate or per-project pricing has several benefits. You don’t have to bother keeping track of every minute on a job. And if you finish a job quickly, you make the same amount of money regardless. That improves your profit margin. 

The only downside to flat rate pricing is running into problems on a job that slow you down. It’s important to accurately assess the project conditions when you give an estimate to account for that possibility. 

For instance, say you are running electrical wiring in a renovation of a pre-war apartment building. Those structures tend to have thick concrete floors that are hard to penetrate. You may need special drilling tools or creative solutions to work around the floors. 

This requires extra time. In this case, a flat rate price may cost you money in the end. That’s a scenario where hourly pricing may serve you better. 

business plan in electrical

Tools and Equipment for Electricians 

We mentioned above that electrical contractors need their own tools and equipment. For small jobs, you may not charge clients for little parts like connectors. But these parts add up on larger jobs, so you may want to bill for them. 

Here are some common items you can expect to lease, buy, or finance as a startup: 

  • Safety gear: goggles, gloves, insulating matting, etc. 
  • Measuring and diagnostic tools: multimeters, circuit analyzers, etc. 
  • Hand tools: drills, hammers, pliers, crimpers, screwdrivers, etc. 
  • Toolboxes or bags: to hold small equipment and supplies 
  • Contracting equipment: ladders, tape measures, etc. 
  • Field service management software: management software, like  Service Fusion , to help streamline office tasks 

Many startup electrician businesses forget about software to help run the business side of their operation. But field service management software can help with: 

  • Fleet tracking and fuel costs 
  • Dispatching and routing 
  • Project scheduling and job site updates 
  • Customer calls and call tracking 
  • Generating quick and accurate estimates 
  • Monitoring leads and sales conversions 
  • Billing and invoicing for quicker payment 

RELATED ARTICLE:   3 Ways You Can Grow Your Business with Field Service Dispatch Software  

Marketing and Branding Your Electrician Business 

We mentioned your USP above. That’s part of the face your business puts forth to the world, or your “brand.” 

Your brand also includes your values, aesthetics (color palette, logo, artwork, etc.), and online presence. 

You only get one chance to make a first impression. So, you want to think carefully about marketing and branding when opening your business. 

Here are some ways you can market your company to your target audience. In doing so, you always want to be thinking about reinforcing your unique brand. 

Your Website 

Build a professional website that outlines your services and credentials. Be sure to make it responsive for mobile devices. And use search engine optimization (SEO) to help it rank higher on sites like Google. 

Email Capture 

Include an email capture bar on your website to collect the information of those interested in your services. Then, use an email management system to send personalized messages. 

You can first welcome people to your business. Then, move them along your sales funnel with email nurture campaigns. 

Social Media 

Set up a few social media accounts on platforms where your customers are most likely to spend time. If you have an older demographic, Facebook is a good choice. But TikTok might be better if you work with young people on a budget. YouTube is always a good choice for posting engaging content and useful tips that keep your business top of mind. 

Consider also using online ads to reach more people. Pay-per-click (PPC) ads are economical because you only pay when someone actually clicks on the ad. 

FROM ONE OF OUR PARTNERS:   Digital Marketing for Electricians  

Building Customer Relationships 

Marketing is closely related to customer relationship management. You want to develop rapport with clients in your local area to bring in new business. Here are some expert tips for meeting new people who can eventually become clients: 

Join Online Communities. 

Sign up for neighborhood groups like  Nextdoor  and  Facebook  community pages. You’ll find people looking for contractors there. And you can post that you’re available for work, which is free advertising. 

Network Locally. 

Join your town’s chamber of commerce, especially if you want to land any commercial projects. It’s a great way to network with other business owners. Small businesses often have bigger budgets for electrical contracting. This can be quite lucrative. 

Offer Workshops. 

Connect with community agencies for free how-to workshops. For example, electrical hazards contributed to  338,000 home fires  in 2021. Could you team up with your local fire department to offer a seminar on how to reduce the risk of electrical fires? You could leverage this type of workshop into video content to get extra mileage out of it. 

Request Online Reviews. 

Don’t underestimate the influence of reviews. Online reviews carry a lot of weight with people looking for electricians and other service professionals. 

Ask all customers to submit an online review on Google or Yelp after completing a project. Make it simple by including a QR code on your invoice or follow-up communications. Customers can scan it with their phone or device and link straight to your preferred review site. 

Follow up and thank them or address any reported issues promptly. 

First Steps to Starting an Electrician Business 

Ready to get going now that you know more about how to start an electrician business? Here are the top ways to get started today: 

Start Your Research. 

Begin your thorough market research and figure out your USP first. Take your time and get it right. That’s going to determine nearly everything else that comes after. You don’t want to start a business in a niche that’s already oversaturated. 

Secure Proper Licensing. 

Determine the licensing and insurance requirements for your state and municipality. Schedule classes and exams to obtain the right certifications for general electrical contracting and anything extra needed for your USP if necessary. You need to get this out of the way before taking on clients. 

Hire a CPA or Business Attorney. 

You need to create the best financial section of your business plan possible. Hiring a professional is worth the investment. You will likely need funding, and lenders want to see financial strength. They want to know you can lead a business, not just provide electrical contracting services. 

Select a Software Service. 

Explore field service business management software. It will help you get organized from the start. You can make the best use of your time by automating many tasks. Being able to devote more time to billable work and growth is yet another way to increase your profits. 

RELATED ARTICLE:   How to Grow and Run a Successful Electrical Business  

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  • Home Energy & Utilities

Compare Business Electric Rates in Texas

Setting up electricity for a business or commercial property adds a whole other layer of complexity to the Texas electric marketplace experience. We're here to help you make sense of it all.

business plan in electrical

  • 2013 Media Award Winner Issued by Press Club Long Island

business plan in electrical

The Dallas Texas skyline. 

The old cliche that "everything is bigger in Texas" seems to apply to energy choices too. 

Texas is deregulated , meaning most residents there have choice in energy providers -- more than 130 different retail electric companies to be exact, according to the Public Utilities Commission of Texas.  

The Texas energy choice market is unique but complicated. Some experts say it brings strong competition, lower prices and a wide variety of plans and unique billing options. Others believe Texas is "deregulation on steroids" -- meaning too many options and consumers can be inundated by choices leading to paying more for electricity.

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We'll help you find the best electricity rates in your area

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"The complaints are usually about the clunkiness, the complexity, the sheer amount of choices," said Michael Kraten , director of accounting program initiatives at University of Houston's C.T. Bauer College of Business. "It's the same people who complain when they walk into a cookie aisle in a store. They say, 'I just want a package of Oreos,' and they find five dozen different options and no clear way to compare between them. It's a valid complaint. Yet, there is a valid reason for why the options are there."

While both arguments may be true, if you live in Texas or run a business there, the fact is, you have no choice but to make a choice in energy providers. 

Looking for commercial and business rate plans?

Get a free customized rate quote today.

Businesses and commercial properties can avoid overpaying for energy with a customized rate plan that is tailored to your property's usage profile. Start saving on your utility costs today with a free commercial energy consultation.

*SaveOnEnergy and CNET are both owned by RedVentures. We may receive a commission if you get a quote or make a purchase through this link. 

Comparing business and residential electric rate in Texas 

In a deregulated energy market, consumers can choose who provides the energy that powers their homes or businesses. While you're still locked into a utility in deregulated markets, theoretically the amount of energy providers competing for your business could lead to getting a better deal, although consumers must do their homework or risk paying more, as mentioned above.

According to the latest available data from the U.S. Energy Information Administration (EIA) , the average Texas commercial electricity rate is 8.85 cents per kilowatt-hour , lower than the national average of 12.39 cents per kWh. In comparison, the average Texas residential electricity rate is 14.58 cents per kWh , also lower than the national average of 15.73 cents per kWh.  

The reasons why Texans enjoy lower rates is clear: Unlike in many states that aonly llow a single utility to sell energy, the Lone Star State sees energy businesses competing for consumers. That means savings for consumers. Of course, it also means bad actors who may take advantage of consumers who don't read the fine print. As businesses typically consume more power than homeowners, savvy business owners and executives could use their leverage to work out better deals.

A chart showing the average retail monthly price for electricity in Texas

The average Texas commercial electricity rate has been consistently lower than residential rate for the last 20 years. 

Factors impacting business electricity rates in Texas

The two biggest differences with commercial energy rates versus home energy rates are the cost and enrollment process.

Shopping for a home electricity plan is fairly self-sufficient. In Texas, that means logging onto a comparison site like PowerToChoose or SaveOnEnergy , entering your ZIP code, then choosing between the options available in your area based on rate, type of plan, type of energy (such as renewables) and other factors. Then enrolling online or by phone. 

The higher energy consumption for a business is why rates are cheaper -- and also complicates the enrollment process. "The issue is not just the gross amount or absolute amount of power, but also when you need it, and what structure of price you've agreed to," Kraten said. "Those are all factors that are related to supply and demand that also affect what you would pay."

These are the factors that influence the cost and type plan you choose for a business or commercial property.  

Type of business

There's a big difference between a factory with electricity-run machinery versus a professional services office with most of its electricity coming from computers and lighting. The latter uses less energy, whereas the former, depending on its size, consumption and load factor could negotiate a deal for better rate and terms due its higher consumption. 

Consumption

Most businesses will use more energy than a home. Typically, the more energy predicted to be used, the more negotiating power you may have to get a cheaper rate per kilowatt hour . "If you're running a business, you take certain responsibilities on your shoulders to a greater extent," Kraten said. "As is the case with most other purchases that such businesses make, they have enough market clout that they can strike the round deal."

Load factor

When a business enrolls in an energy program, it will be bucketed into three categories: high, medium or low load factor. Each category describes how much demand your business is expected to pull from the grid and will also influence your overall costs in two ways:

High, medium or low load factor is how power companies plan how much energy it will need and when. The higher the load factor, the lower the demand, and therefore a cheaper price per kilowatt-hour. 

Load factor will affect how much a business will pay in demand charges which are separate from the rates per kilowatt-hour itself. A higher load factor, for example, means lower demand and will yield lower demand charges -- a tariff placed by a utility or ERCOT and is classified by its forecasted demand . 

High load factor: A business that uses energy efficiently, and in a predictable and consistent flow. An example of a high load factor-low demand is a grocery store or a school with long predictable hours of operation. This business type tends to get the cheaper energy rate and lower demand fees. 

Medium load factor: A business that has inconsistent demand where there are periods of high and low usage. Retail stores and health care offices may be medium factor and medium demand since they don't use a ton of electricity to operate. 

Low load factor: Uses power in high doses over short periods of time inconsistency. This type of load factor required high demand from a grid due to its unpredictability. Small businesses such as restaurants and houses of worship tend to be classified with low load factor and high demand since hours of operation are periodic and not consistent. Small businesses with low load factors tend to pay more in demand charges. 

This is an important factor across the country, but even more so in Texas, which is "so large and diverse, that it's a microcosm of the country," Kraten said. Each region of Texas serves different business interests, such as energy in Houston, agriculture in Dallas or technology in Austin. Therefore, Kraten said, energy providers in each region will go lengths to accommodate certain types of businesses.

Each regional distribution utility will come with its own taxes, demand fees and delivery costs as well. For example, your commercial rate for the supply of energy may be one price, but the overall costs of your energy may vary if your business is located in the Oncor versus Centerpoint utility service areas. 

Length of contract

Typically, the shorter the contract, the cheaper the rates. Longer contracts usually come with higher rates. Kraten said market factors cause electric companies to make long-term assumptions and calculate those risks in the rate itself. Consumers will pay more for the longer commitment to a certain rate price in a "catastrophically uncertain world," Kraten said. 

Market factors

The overall US or global economy can influence energy rates. The Russian war on Ukraine , for example, shifted oil and natural gas prices, which in turn has global implications on energy costs. Less obvious factors like the energy intensive crypto mining where it's surprising energy demand may be driving up energy costs. 

Government regulations

A state government entity could influence the overall cost of electricity if it raises or lowers utility fees and state tariffs. For example, the TDU fee -- the cost to deliver the electricity -- is regulated by the Public Utility Commission of Texas . 

Types of electricity plans for business in Texas

Fixed-rate plan.

These types of plans offer energy consumers some predictability. The price per kilowatt-hour is known in advance and remains mostly flat over the course of a contract. For businesses that need energy throughout the day and expect consistent bills, fixed-rate plans are worth considering.

Variable rate plan 

For business owners who want to go with the flow, variable rate plans come with no contract commitment and charge based on market conditions. These rates fluctuate -- typically monthly -- based on seasonal market shifts. Electricity may be more expensive in the summer and winter when demand is higher while businesses and homes are using heating and cooling. And conversely, rates tend to be cheaper in the fall and spring when less strain and demand takes place. 

Renewable energy plans

Texas is a big player in the renewable energy space . A business could choose a "green" plan where some or all of the electricity comes from solar , wind or hydro power. 

Businesses could opt into a REC program (renewable energy certificates) to showcase its green initiative. 

Time-of-use plans

Similar to variable rate plans, time-of-use plans mean that energy prices change depending on the time of day. Energy could be more expensive in the daytime when demand is high, fall during lunchtime, rise again then lower at night when demand shrinks. If your business can adjust the time it uses energy, it could lead to savings.

Demand response programs

Under demand response programs , energy providers will use financial incentives to encourage the shifting of electricity usage based away from peak demand hours. If a business elects to participate in a demand response program, it may be financially compensated for a high demand period or during a conservation event . 

Indexed rate plans

These plans can be similar to variable plans, in that energy prices can change. But instead of prices being based on demand, indexed rate plans are connected to a commodity index. Indexed rate plans are complicated and time consuming. Be sure to understand the math equations at work before signing up for these plans.

How to find the best electricity rate for your business 

If you want to get the best electric rate for your business, the first step is understanding how you use electricity. Break down your past year's energy usage by pouring over your bills and see what times of day you need electricity the most. Create a 12-month historical lookback and a 12-month prediction looking forward. With this information in hand, a commercial energy consultant can guide you into a plan that best suits your business consumption profile. 

Ask for multiple quotes with differing contract lengths from a few different providers. Ask for quotes in writing so you can see if others will price match. 

Why are electric rates for business lower than residential rates?

Electric rates are lower for businesses than residences because the commercial properties typically use more electricity, have differing load factors and demand profiles. When you buy in bulk, the price per unit typically drops. But you could pay more in demand charges if your usage is inconsistent. 

Why can't I shop for business rates online like I can with my home?

Because businesses typically consume more power than homes, there are too many factors at play to allow them to shop for rates online. Use this inquiry form to get connected to a business or commercial energy specialist for a free rate quote. 

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Hertz CEO Stephen Scherr resigns after EV push goes bust

Hertz ceo stephen scherr stepping down march 31.

Automotive expert Mike Caudill reacts to the Treasury secretary claiming the future for electric vehicles in America is very bright on The Bottom Line. 

Automakers pumping breaks on EVs, now talking about hybrids, says auto expert

Automotive expert Mike Caudill reacts to the Treasury secretary claiming the future for electric vehicles in America is very bright on The Bottom Line. 

Hertz, one of the four largest car rental companies in the world, is replacing its CEO after the company reversed its bet on electric vehicle (EV) rentals over increasing costs.

Stephen Scherr will step down as Hertz Global Holdings Inc.’s chief executive officer and member of the company’s Board of Directors effective March 31, the company announced Friday. Scherr led Hertz for just over two years after spending nearly three decades at Goldman Sachs.

Scherr’s resignation comes as the car rental company struggles with the higher repair costs and low demand for EV rentals.

In January, Hertz announced in financial filings  that it had made the "strategic decision" to sell approximately 20,000 EVs from its U.S. fleet, or about one-third of its global EV fleet, and to instead invest in gas-powered cars.

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Stephen Scherr

Hertz CEO Stephen Scherr will resign March 31, the company announced Friday. (Christopher Goodney/Bloomberg via Getty Images / Getty Images)

The Biden administration has previously lauded Hertz for its investment in EVs as the president made an aggressive push to broadly electrify the transportation sector as part of his climate agenda.

Last month, Hertz announced its biggest quarterly loss since 2020 after its decision to pivot away from EVs.

Hertz GM EV partnership

Under Scherr, Hertz's push to invest in electrical vehicles failed over higher repair costs and low demand for rentals. (General Motors / Fox News)

Scherr, 59, joined Hertz as the company was emerging from bankruptcy and began betting big on EVs.

EVS MAY MAKE AIR DIRTIER THAN GAS-POWERED CARS AS CALIFORNIA PUSHES NEW MANDATES: STUDY

Hertz will replace Sherr with Gil West, the former Chief Operating Officer of Delta Airlines and  General Motors'  Cruise unit, effective April 1. 

Hertz

Gil West will replace Scherr as CEO of Hertz starting April 1. (REUTERS/Stephane Mahe/File Photo / Reuters Photos)

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Scherr is working with West over the coming weeks to ensure a smooth transition, the company said.

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Wind power turbines and electricity pylons

£58bn plan to rewire Great Britain expected to spark tensions along route

‘High-capacity electrical spine’ to run onshore from north-east Scotland to north-west England

A £58bn plan to rewire Great Britain’s electricity grid to connect up new windfarms off the coast of Scotland is expected to trigger tensions with communities along the route.

National Grid’s electricity system operator (ESO) has mapped out power “motorways” across Great Britain to allow for the biggest investment since the 1960s.

The new “blueprint” recommends a “high-capacity electrical spine” running onshore from the north-east of Scotland through to the north-west of England , alongside a complex collection of cables stretching along coastlines.

Four onshore windfarms would be connected on a route from Peterhead in northern Scotland to Torness in the south-east of the country. Undersea cabling would connect those windfarms to Lincolnshire and Kent.

In 2022, the ESO released a £54bn plan designed to connect 23GW of offshore wind. The new blueprint should enable a further 21GW, as a result of a leasing round for developers building projects on the seabed held by the crown estate Scotland, which manages land and property owned in Scotland by the monarchy. Profits generated are passed on to the Scottish government .

Policymakers are attempting to revamp the grid in the face of long-term shifts in where power is generated in Great Britain. The grid was formed in 1935 around a coal-focused system centred on industrial powerhouses in Yorkshire, Nottinghamshire and the north-east, with nuclear later playing a significant part.

A drive towards low carbon power and the growth of the offshore wind industry have necessitated greater need for strong connections between the east coast of Scotland and the urban centres of England, where demand is greatest.

Scotland already generates nearly 15GW of renewable power, far outstripping the peak winter Scottish demand of 5GW, and the government has suggested offering reduced bills to areas where demand is lower than supply.

Late last year, the government said properties closest to new transmission infrastructure could receive up to £1,000 a year off electricity bills over 10 years.

The ESO welcomed government plans to allow communities hosting energy projects to have “financial incentives”. However, there are questions over whether this would quell local opposition.

The network revamp threatens to have political ramifications. The Labour leader, Keir Starmer, has vowed to “get tough” on local people who oppose onshore wind turbines, while Labour’s goal to decarbonise the grid by 2030 relies on projects being connected swiftly. The government hopes to hit the same target by 2035.

Tom Burke, the chair of the E3G thinktank, does not believe the incentives will make a difference. “People see their lifestyle and their economics differently. Look at HS2 – ultimately you cannot do things that people do not want without some political price,” he said.

Josh Buckland, a partner at the consultancy Flint Global and former energy adviser at the Department for Business, Energy and Industrial Strategy, said: “I do not think financial incentives alone will be enough to prevent local opposition.”

The Guardian revealed last month that the ESO was working on the blueprint, which also suggests a “connections hub” off the coast of Lincolnshire to reduce the impact on protected marine areas off East Anglia, where opposition to electricity projects has been vociferous .

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The ESO said three times as much undersea cabling would be laid than onshore infrastructure by 2035 and estimated its blueprint would add £15bn to the economy, creating 20,000 jobs a year.

The bulk of the ESO’s plan will be carried out by the three transmission companies: National Grid Electricity Transmission, SP Transmission and Scottish and Southern Energy Networks Transmission.

There is growing debate over the cost of decarbonising the grid and reaching net zero, as the renewables industry faces supply chain upheaval and rising costs .

The energy regulator, Ofgem, last week voiced concern that the costs associated with achieving net zero would hit lower-income households hardest.

Buckland said any future government would have to decide how the costs of large infrastructure investment would be met, whether through taxes or consumer bills, and whether “protection” would be given to vulnerable households. Between £20 and £30 a year is now spent on network costs through consumer bills.

Burke added: “If you do smart things – like prioritising insulating homes, community schemes and embracing battery technology – then bills go up a bit. If you do stupid things, like focusing on delayed nuclear power projects , then they go up more.”

Nick Winser, a commissioner at the National Infrastructure Commission who advised the government on accelerating new electricity infrastructure last year, said: “Transformational investment in the electricity network is needed to ensure we can make the most of low-cost, low-carbon wind power. Getting this right will help to reduce energy bills for consumers and enable the deployment of electric vehicles and heat pumps.

“It’s critical that this investment is delivered quickly.”

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