electrical contracting service business plan

Electrical Contractor Business Plan Template

Written by Dave Lavinsky

Electrical Contractor Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their electrical contracting businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an electrical contractor business plan template step-by-step so you can create your plan today.

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What is an Electrical Contractor Business Plan?

A business plan provides a snapshot of your electrical contractor business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for an Electrical Contracting Business

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

Sources of Funding for Electrical Contractor Businesses

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

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

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

Executive Summary

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

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

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

Company Analysis

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

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

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

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

Include answers to question such as:

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

Industry Analysis

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

While this may seem unnecessary, it serves multiple purposes.

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

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

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

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

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

Customer Analysis

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

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

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

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

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

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Competitive Analysis

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

Direct competitors are other electrical contractor businesses.

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

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

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

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

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

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

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

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

Marketing Plan

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

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

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

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

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

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

Operations Plan

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

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

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

Management Team

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

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

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

Financial Plan

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

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

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

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

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

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

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

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

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

Electrical Contracting Business Plan FAQs

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

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

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

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

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Electrical Contracting Business Plan

Soaring demands, high-profit margins, and a recurring revenue model make starting an electrical contracting business a lucrative and rewarding profession.

The market for electrical contractors is highly saturated. If you want to capitalize on the opportunity and make a profitable business venture out of it, you need a detailed business plan that can help raise the funds.

Need help writing a business plan for your electrical contracting business? You’re at the right place. Our electrical contracting business plan template will help you get started.

Free Business Plan Template

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

• Fill in the blanks – Outline
• Financial Tables

How to Write An 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:

• Market Opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Marketing & Sales Strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial Highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to Action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

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

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2. Business Overview

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

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.
• Owners: List the names of your electrical contracting company’s founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission Statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Future Goals: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

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.

• Competitive Analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your electrical contracting services from them. Point out how you have a competitive edge in the market.
• Regulatory Environment: List regulations and licensing requirements that may affect your electrical contracting company, such as business registration, contractor license, permits, insurance, environmental regulations, state and federal regulations, etc.

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:

• Electrical installations
• Electrical repairs
• Electrical design services
• Maintenance and upgrades
• Electrical systems
• Fire alarm systems
• Security systems
• Data cabling – Telecommunication
• Home automation systems
• Additional Services: Mention if your electrical contracting company offers any additional services. You may include services like smart home integrations, renewable energy installations, etc.

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:

• Pricing Strategy: Describe your pricing strategy—how you plan to price your contracting services and stay competitive in the local market. You can mention any entry offers you plan on offering to attract new customers to your contracting service.
• Marketing Strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, Google ads, brochures, email marketing, content marketing, local marketing, and print marketing.
• Sales Strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include direct sales calls, partnering with related businesses like real estate companies, offering referral programs, etc.
• Customer Retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, discounts on annual membership, proactive service and maintenance, personalized service, etc.

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: Mention your contracting business’s staffing requirements, including the number of employees, i.e. electrical engineers, electricians, and office administrative staff needed. Include their qualifications, the training required, and the duties they will perform.
• Operational Process: Outline the processes and procedures you will use to run your electrical contracting business. Your operational processes may include project planning, making installations, logistics, procuring materials, acquiring new clients, and billing and collection.

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: Mention the founders and CEO of your electrical contracting company, and describe their roles and responsibilities in successfully running the business.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation Plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.

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: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement . Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance Sheet: Create a projected balance sheet documenting your electrical contracting business’s assets, liabilities, and equity.
• Financing Needs: Calculate costs associated with starting an electrical contracting business, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

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.

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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

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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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

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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November 1979 - September 2023

How To Write an 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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A handy electrical contractor business plan template to help you launch your company

Creating a business plan is an impactful milestone when launching any new business. If you’re looking to become an electrical contractor or offer electrical services as part of your own business, this handy guide will take you through the process of writing an electrical contractor business plan.

What are the benefits of writing a business plan?

All small businesses need a business plan. Business plans guide small business owners through the research and market analysis process. The document helps entrepreneurs figure out their:

• Pricing strategy
• Target market
• Marketing strategy
• Business goals
• Financial plans

For electricians, in particular, creating an electrical contracting business plan can help you determine and finalize:

• Which types of electrical work to focus on
• Which electrical services you’ll offer (residential or commercial electrical services)
• Who your target customers are (homeowners, general contractors, etc.)
• Who you might partner with (i.e., a non-competitive construction company or contracting company)
• Which marketing strategies for electricians you’ll use

How to write a business plan for an electrical contractor

Here are some essential steps to create an effective electrical contracting business plan that sets your electrical contractor company up for success.

• Do your research. Find out what other electricians in your market are doing and identify the opportunities and risks for you.
• Clearly communicate your findings and ideas. Depending on who may read this business plan — potential investors, partners, lenders, team members or your future self — you want to put together a plan that’s engaging, informative and easy to understand.
• Be thorough and detailed. If you do it right, your business plan could help guide your overall strategy for years to come.
• Get help. If your expertise lies in offering electrical services but not all the aspects of a full business plan, consider hiring outside resources to help you. They can walk you through developing a marketing plan, knowing which social media channels to use, outlining business operations, preparing balance sheets and calculating your expected profit margin.

How can I get a free business plan template?

You can use the following components to help build your business plan. Use this as a template to define your business, outline your strategy, develop your marketing plan and present your financial projections.

1. Executive summary

In this section, you will summarize key highlights and findings from the rest of your business plan. It includes an overview of your company and business goals, your market analysis and financial outlook.

Although this section appears first within business plan templates, you will probably fill in this part last after you’ve completed the other areas. Think of this section as the key takeaways someone needs to know if they don’t bother reading the entire plan, the 30-second elevator pitch of what you’re hoping to accomplish that draws your audience in to learn more.

2. About the company

This is where you introduce your company to the readers of your business plan. This section should present:

• Your company name
• Your mission statement — your company’s purpose and reason for being
• Your business goals
• What type of company you are creating (LLC, S-Corp, etc.)
• Your team members (if any)
• The electrical services you plan to offer

3. Market analysis

This section should include your market research and cover the following key areas.

3.1 Industry analysis

What is the financial outlook for the overall construction industry? What’s the market size in your area and the potential for a new electrician or construction company in your market?

3.2 SWOT analysis

What are the potential strengths (competitive advantages), weaknesses, opportunities and threats for a new business like yours?

3.3 Target audience

Who are your target customers (residential or commercial or property managers, renters or homeowners)? What are their demographics?

3.4 Four P’s of marketing (product, place, promotion and price strategy)

This section should cover the following four P’s of marketing, essential to any marketing plan.

• Product: List the electrical services you plan to offer
• Place: Define the market or service area you plan to operate in
• Promotion: Go into detail about your marketing strategy — which marketing channels and tactics do you plan to use? How do you plan to reach, attract and convert new customers? Through word-of-mouth, social media or other methods?
• Price strategy: How do you plan to price your electrical services?

4. Financial plan

In this section, you should be prepared to include tables, charts and graphs and provide supporting financial statements for each of the key financials:

• Starting balance sheet
• Startup costs
• Projected cash flow — your financial projections for your income and expenses for the first three years
• Expected profit margin

5. Conclusion

Depending on the intended audience for this business plan, you may include a specific call-to-action. Direct them to your website to learn more or provide contact information for scheduling a meeting to learn about investing in your business.

What should your business plan cover? Top three questions your electrical contractor business plan should answer

Here are the critical questions you should answer in your business plan.

1. How do electrical contractors get clients?

Your electrical contractor business plan should include your electrician marketing plan , detailing how you plan to get clients, which channels you plan to use (social media, paid advertising, etc.) and your marketing budget.

2. Are electrical businesses profitable?

Your business plan should include a financial plan that lists your financial projections and spells out how you plan to have your own business become profitable. Include your:

• Projected cash flow
• Profit margins

3. What are the risks of being an electrical contractor?

Your business plan should include a SWOT analysis that details the potential strengths, weaknesses, opportunities and threats of starting an electrical contracting business. By proactively identifying risks, your audience will know you have done your homework.

Grow your electrical contractor business with Broadly

If you already run your own business or are looking to start a new business, Broadly is here to help you achieve all of your key milestones. From launching your small business website to growing your small business , Broadly’s suite of marketing tools can take care of your reputation management needs as your business expands.

Ready to see why Broadly is the technology partner of choice for small business owners and entrepreneurs in the home services industry?

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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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Electrical Contracting Business Plan: How to Write an Effective Plan?

• Last Updated: Aug 5, 2022

The population of the United States as of 2022 is estimated at 332,403,650 as of January 1. And the figure is ever-growing, and so are the consumer demands for new properties, residences, and commercial spaces. 

As of 2020, over 67.9% of Americans own a home in the United States . Among all the other demands and necessities, there is and will forever be the necessity for electrical installations and amendments across the country. 

Every need of consumers can be a business opportunity for entrepreneurs. And an electrical contracting business is one of the most profitable ideas for anyone to start their career in the United States. 

But what does it need for someone to run a successful business in this industry? Probably, an electrical contracting business plan with complete elaborations on futuristic goals and expectations will be of great help.

Table of Content

Tips to Write Electrical Contracting Business Plan

Fieldcamp craves to fulfill your business goals with digitized approach.

You have already analyzed the demand rate in your locality and know how the industry will help you earn profits. So, as you have decided to start an electrical contractor business, you should also be ready to comply with all specific standards stated by the industry.

An electrical contracting business plan will probably be of good help to let you meet all of the legal standards and compliance requirements in your business. Most people use a business plan as a guide to mentor themselves in running and optimizing the firm’s operations. But, the worth of an electrical contractor’s business plan is much more than that. 

You can seek investments from banks and investors on behalf of your business plan. And if you haven’t specified how your electrical business is meeting all of the required standards and compliance, the investment will probably be rejected. 

Not just that, but if your business needs a partner at some point, you need to pitch them with your electrical contractor business plan . If they like it, they will surely come on board. Before you get along with the tips to write a proficient business plan, you should know what it is worth. So, here are a few evident reasons why an electrical contracting business plan is important for your company:

• Proving your seriousness about starting an electrical business .
• Establishing milestones for your electrical contracting business.
• A better understanding of competition. 
• A better understanding of target customers.
• Assessing the feasibility of your electrical contractor business.
• Documentation of revenue model.
• Determining financial needs.
• Reducing the risk of going along with any wrong business opportunity. 
• Acquiring knowledge about the industry market and its growth potential.
• Attracting the management team and employees to join.
• Positioning of the brand.
• Judging the business success.

These are just a few evident ways that explain the potential of an electrical contractor’s business plan for success and growth of an electrical company . Business planning is very important for any entrepreneur to kick start their career. Without it, the success ratio will drop, and the company will have to bear losses. 

So, as you are willing to build a successful electrical business, here are the tips you must follow to create a perfect electrical contractor’s business plan:

1. Know what to include in your electrical contractor’s business plan

First things first! You need to know what sections you must include in your business plan. Local government sets standards for every business plan that rolls out to be a legal description of the company. 

By that, the sections that you must add to your electrical contractor’s business plan:

• Executive summary
• Company summary
• Marketing analysis of the electrical contractor industry
• Marketing strategy for the electrical contractor business
• Personnel plan (Company staff and average salary compensation)
• Financial plan (profit margin, gross margin, projected cash flow, expected revenue, and business ratios)

These are important sections that comprise a business plan for electrical contracting businesses. You need to do your research and maths to fill these sections with informative updates. 

Stress upon determining the values of your financial plan before including them in your electrical contracting business plan . You might mention your monthly and yearly profit expectations and gross margin. A financial plan is considered effective only if it covers all the minute monetary details of the electrical contractor business. 

2. Your ‘Executive Summary’ should be catchy and understandable enough 

This section will briefly explain your business, its management policies, and the target customers. 

You must mention the licensing, certification, and insurance of your company in the starting lines of the executive summary. Following that, you need to mention the expertise of your employees and management team to ensure quality work execution at job sites. 

As a business owner, you need to explain the motive of your company in one line before explaining further about it. Try mentioning the motto of your electrical contractor business for attaining customer satisfaction. 

In the next paragraph of the same section, you can write about the management process of your electrical contractor business. Mention the intensive planning you had to go through before starting the company. 

An electrical contractor’s business plan should prove that you have left no area of error in building the business. Mention the software and database that you use to conduct business tasks and store essential details of service and customers. 

In the next paragraph, explain the target audience and how your business aims to reach out to them to extend a helping hand. You can mention the survey statistics you obtained to realize the demand for an electrical contractor business in that area. 

3. The language must be clear and concise

You don’t have to use strong words or jargon in your electrical contractor’s business plan. You can use simple and concise words to make it understandable to everyone who reads it, irrespective of their language proficiency. 

When any business owner prefers to write long and complex business plans, there is less chance that they would serve the purpose for which they were written. If not, your business plan will mostly be forgotten or unread by the stakeholders, investors, and potential partners. 

Keep it short, precise, and to the point. In that way, the readers of your business plan will immediately get the point of your business right from the start. 

4. Explain why people should care about your business

Be bold about why you think this business should work and why it is the need of the hour. The way you believe and trust your plans with the company, pass it on to the readers of your business plan. 

Try explaining your purpose and mission of starting with the business. Let the investors and potential partners know about the target market and your aim to solve the real problems. Try mentioning the same in the executive and company summary to make an initial impact. 

5. Add all of the supporting documents to strengthen the business plan

One must add all of the supporting documents that one thinks would improve the efficacy of the business plans. You must add the CVs of your electrical engineers or staff members along with the customer personas, survey reports, and others. 

You are explaining your business structure in the form of a plan. So, any investor or probable partner needs to see the entire operational structure before they can join your venture. Therefore, it becomes important to explain everything with available documented evidence. 

A person investing in a local electrical contractor business would think of analyzing the employee qualifications and expertise to validate if the investment will turn out to be fruitful or not. Similarly, the survey reports will prove that you have done the research work needed before picking the target audience and target market. 

6. Demonstrate the difference between your company and the competitors

As a business owner, you must explain how your business operations are better than your competing electrical contractors. Your pitch on the differentiating factors should be convincing enough for the investors to approve your small business loan. 

Suppose you cannot convince them that your electrical company is better than the competitors in the target market. In that case, they will find you incapable of convincing the target audience. Do not pull back on differentiating factors that can give you a leading edge for getting small business loans or acquiring a good business partner. 

You must also mention the marketing strategies that you have implemented for reaching out to potential customers. The sales strategy, digital marketing, and traditional marketing plan should be elaborated in brief in a competitive tone that would state how your brand is working harder in terms of getting business opportunities than other electrical contractors in the industry. 

7. Purpose of the business plan

You must determine the purpose of the business plan while elaborating the financial plan section. It is crucial before you carry out market research and industry analysis. Determine if you are writing the electrical contractor’s business plan for attracting investment, providing direction, or aligning teams. 

The financial projections of the business plan should elaborate on profit numbers for attracting investment, and it should elaborate on employee compensations and incentives on profit earnings for building a good team. 

Apart from that, it can also highlight the loose financial ends for guidance to the dedicated team members for correcting and improvising it in the right direction. Your business plan will have a competitive advantage over others with the right defined purpose. 

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The most important part of an electrical contractor’s business plan is the ‘Executive Summary’. It is the first section that the readers will come through. Therefore, it should cover all the important touchpoints that the plan will explain further in detail.

Elaborate on business details, potential customers, marketing plan, and sales strategy to ensure that the investors or readers get the plot of your electrical contractor business and what to expect further in the plan.

Here are some of the things that you should not add to your electrical contractor’s business plan:

• Unrealistic projections of financial figures such as cash flow, profit margin, and gross margin. 
• Poor market research results should not be added to the business plan. 
• Do not over-hype your business with long phrases about your potential and efficacy. Be true to what you have to offer. 
• Do not hide your weaknesses but positively explain them. 
• Do not add too much information about anything. 
• Do not add services that you are not offering at the moment.

We introduce FieldCamp, the most proactive service scheduling software in the industry. It promises to digitize over 90% of your business tasks. You do not need to organize training programs to educate your employees about the use of it, as the interface and navigation are pretty easy on FieldCamp. 

You might have to mention the use of electrical contracting software in your business plan to make a positive impact. In 2022, the companies digitizing their field operations management are being praised by consumers and generating better revenue. 

With FieldCamp, you can schedule your available electrical engineer to any available job request right after a customer puts it up. You just need a few clicks to drag and drop the service request to the assigned employee as per the date. All upcoming projects can be listed on FieldCamp, and scheduling and dispatching can be done on priority. 

You can also create invoices and store customer details on FieldCamp. In short, we are offering you a complete package of digitizing the field operations of your electrical business. You will track the service progress in real-time and can also request feedback. Moreover, you don’t have to find another database software for storing your customer contacts. You can do it on FieldCamp itself. 

There is more to what FieldCamp has to offer, and you should get into the software functionality and check out the features for yourself. Take a 7-Day FREE trial to get complete access to the service features. Your self-realization of how digitization will help your business will help you understand how you could direct its growth. 

Gaurang Bhatt

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Steps to starting a successful electrical contracting business

Bryan Simmons Content Writer

May 27, 2024

Perhaps you’re good at working with electrics, or you’ve been working for another electrician for a while and now you’re ready to branch out on your own. Starting your own electrical contracting business can be a great way to earn a steady income and work with your hands. 

But like every service business , you need to set it up in the right way so that it can grow and thrive. This includes determining the business structure that best suits your needs, getting the proper licenses and insurance to operate an electrical company legally, developing a business plan, and attracting customers. 

Read on to learn what’s involved in starting your own electrical contracting business. 

Laying the groundwork for your electrical contracting business

The first step to starting your electrical contracting business is choosing a business structure. The two most common options for small electrical businesses are sole proprietorship or LLC . As a sole proprietor, you alone own and operate the business, taking on personal liability. An LLC provides liability protection, but involves more paperwork. Each has its pros and cons regarding taxes and cash flow. 

Next, develop a business plan to outline your strategy and goals. A good business plan will help you obtain funding and guide your growth. You’ll also need business insurance, and to register your business and obtain the necessary permits and licenses to perform electrical work in your city or state. 

To attract potential customers, build a professional website highlighting your experience, services, and credentials. Social media profiles and online listings can also help you establish credibility and connect with new clients. With the groundwork in place, you’re ready to start your electrical contracting business. 

Creating a business plan for your electrical company

Starting an electrical contracting business requires careful planning. The first step is to develop a solid business plan to outline your vision and the steps to make it a reality.

Deciding on your electrical service

A good business plan will help you define your target market and decide which services to provide. Are you focusing on residential or commercial electrical work, or both? Pinpoint which specific electrical services you want to offer. This will help determine the licenses and certifications you need, and guide you in promoting your new business.

Developing a financial plan

A financial plan will map out how you’ll fund your startup costs and keep cash flowing as you grow your business. Determine how much it will cost to properly equip your team and market your services. Calculate your overhead costs and how much you need to charge to turn a profit. Find ways to keep costs low, especially when you’re first starting out. Using free resources like social media to market your business can help.

Creating a marketing plan

Focus your marketing on the specific services you provide and the value to potential customers . Use your website and social media to educate people about your business, showcase your experience, and build trust in your brand. Offer promotions and discounts to attract new clients. Satisfied customers will become your best source of repeat business and referrals.

With a solid plan in place, you’ll be well on your way to launching a successful electrical contracting business. Keep tweaking and improving your plan as you start your business, and you’ll be able to grow sustainably over the long run.

Obtaining licenses, permits, and insurance for electrical work

Starting an electrical contracting business requires obtaining the proper licenses, permits, and insurance to legally and safely perform electrical work. These steps legitimize your electrical business and instill customer confidence.

Licenses and permits

To perform electrical work, you’ll need to obtain an electrical contractor’s license for your state. Requirements vary, but usually involve passing an exam, paying licensing fees, and having a certain amount of experience. You’ll probably also need permits for each electrical job you do, which your local municipality will issue once you provide details about the work.

Business insurance

General liability insurance protects you if a customer is ever injured on the job site or if there is property damage. As an electrical contractor, you’ll want at least $1 million in coverage. You’ll also want workers’ compensation insurance if you have any employees. These policies can be expensive, but are necessary to operate legally and avoid major financial risks.

Attracting customers and growing your electrical services

Now that you have the legal aspects of starting an electrical contracting business out of the way, it’s time to attract new customers and grow your business. As a new electrical company, tapping into your target market of residential and commercial property owners looking for electrical work is key.

Develop a business website

Create a professional website to tell potential customers about your electrical services and experience. Make sure to include full information about the services that you provide, which area you cover, and your pricing. Optimize for search to rank higher in Google , and consider writing blog posts that share useful advice for customers to cut their electricity bills and maintain their electrical items.

Build your online presence

Create social media profiles for your electrical contracting business on platforms like Facebook, Instagram, and Google My Business. Post updates, share photos of your work, and engage with your followers. This helps raise awareness of your new electrical services business and connects you with potential customers. 

Provide high-quality electrical work

Your reputation depends on the electrical work you provide. Focus on high-quality installations and repairs to build a loyal customer base. Ask clients to leave reviews on your website and profiles to build social proof. Happy customers will refer others to your electrical contracting business.

Join your local chamber of commerce and electrical contractors association to connect with others in the industry. Attend events and meetings to spread the word about your electrical contracting business. People will often refer good contractors to their friends and neighbors, so make personal connections whenever you can.

Expand your business carefully

As your reputation grows, so will the demand for your electrical contracting business. Over time, you can hire additional electricians and expand into new services or locations. But for now, keep costs low, be diligent about cash flow , and market aggressively to new customers. Success will come from dedication and word-of-mouth.

Managing finances and operations for a successful electrical business

To start an electrical contracting business, you’ll need to establish solid financial and operational foundations. As a business owner, it’s up to you to manage the business’ cash flow, accounting, and daily operations.

Set up reliable bookkeeping and accounting processes

Track your income, expenses, accounts receivable, and payable to monitor your company’s financial health. Many small electrical businesses use affordable bookkeeping software like QuickBooks to automate record keeping. 

Monitor your financials

Review your financial statements monthly to catch any issues early. Many bookkeeping tools and business management platforms like vcita can generate easy-to-read reports that allow you to check up on your financial situation at a glance. 

Pay attention to cash flow

To keep your business running, you need positive cash flow. Keep costs low, especially when you’re first starting out. Pay close attention to the financial aspects of each job to ensure you’re making a profit. Over time, as you gain more experience, you can charge higher rates.

Your thriving electrical contracting company is on the horizon

Starting an electrical contracting business requires effort and patience. But by laying the right foundation, registering properly, and focusing on growth, you’ll be well on your way to owning a thriving company. With diligent financial management , marketing, and customer service, you can establish a successful electrical company. Review how your business is doing regularly, and make changes as needed to ensure steady growth over the years.

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How to Grow Your Electrical Business in 2024 | The Ultimate Guide to Operations, Marketing, and More

Electrical business owners looking to grow their business can come across a lot of conflicting advice online. To help electrical business owners find useful strategies to grow their businesses and increase their bottom line, ServiceTitan spoke to a range of highly successful home service industry experts and users of our electrical service management software.

From these conversations, we have assembled this collection of strategies and tactics for growing an electrical business, whether you're a startup or an established small business.

In this guide to growing your electrical business and creating an electrical contracting business plan, we help you position your electrical company to survive any disruptions and be prepared to grow and adapt to the changes and fluctuations of the home service industry in the future. 

Below, we’ll cover the following strategies and tactics:

Putting together a comprehensive electrical business plan

Training your qualified team of electricians

Investing in a great company culture and cross-team communication

How ServiceTitan’s processes improved communication at one electrical company

Applying systems, checks, and balances across your organization

How ServiceTitan helps electrical businesses implement consistent processes and systems

Getting your current electrical business right before diversifying

Using electrical marketing to target the right audience

How ServiceTitan optimizes your electrical marketing strategy

Email marketing tool

Direct mail tool

Focusing your digital marketing strategy

How ServiceTitan’s tools boost your online electrical marketing plans

Implementing effective field service management software

Knowing your reason for growing your business

ServiceTitan’s software has driven the growth of thousands of electrical businesses by providing tools to improve their marketing and operations. To get more details about how these features can help you grow your electrician business,  schedule a demo here .

Create an Electrical Business Plan Based on the Electrical Business You Want to Be in the Future

Find a mentor who’s doing what you want to do.

Shadow your mentor on the job; ask for electrical business ideas.

Go find 10 more mentors, and do it all over again.

Listen to electrician podcasts for tips and inspiration.

Read books on how to grow your electrical contractor business.

Tommy Mello,  The Home Service Expert , says he wished he’d found a mentor before starting his own garage-door business 15 years ago. He could have emulated their best business practices, instead of figuring things out on his own.

“You’ve got to act like the business you want to become, and I didn’t know that back then,”  says Mello, owner of A1 Garage Door Service, which topped $30 million in revenue last year.

“If I would have listened to a mentor tell me, ‘This is why you shouldn’t do this,’ or ‘This is why you should,’ it would have definitely fast-forwarded the business.”

Find a role model who’s doing what you want to do and is willing to share everything you need to know. Shadow them on the job. Ask tons of questions. Then go find 10 more mentors, Mello advises, and do it all over again.

He also suggests reading or listening to books to grow your business, such as  The E-Myth  by Michael Gerber,  The 7-Power Contractor  by Al Levi,  The Ultimate Sales Machine  by Chet Holmes,  Essentialism  by Gary Keller, or his own book,  Home Service Millionaire .

“Reading has been a big part of my success, and hanging out with successful people,”  Mello says.

Mario Campirano, owner of Express Electrical Services, gives thanks to  Service Sales Coach Joe Crisara  for pointing him in the right direction when he decided to switch from commercial electrical work to residential in the midst of the Great Recession.

“He took me under his wing and taught me how to not take no for an answer,”  says Campirano, who now runs an $8 million electrical company in Los Angeles.

With lessons learned and high ambitions, Campirano started knocking on homeowners’ doors. He says it even got to the point where he visited local home improvement stores to find potential customers.

“Now I didn't have a sign like, ‘Will work for food,’ but you have to get smart,”  Campirano says.  “You go into Home Depot and you start looking at the people buying an electrical item, you start hitting them up, ‘Hey, you've got an electrician to do that?’ And then you start just going, going, going.”

“You’ve got to be hungry for it, at the end of the day. If you're not hungry for it, if you can't go knock on somebody's door, I don't know what to tell you, but that changed my life. That gave me a reality wake-up call.”

Grow Your Electrical Contractor Business by Investing in Recruiting and Training a Qualified Workforce

Build a strong company foundation.

Outline a fully developed organizational chart.

Always be recruiting , and establish a thorough interviewing process.

Provide extensive training for every employee.

Offer performance pay as an incentive to grow.

Remember that pesky  trade worker shortage  before the COVID-19 outbreak? That problem didn’t disappear overnight.

Electrical contracting business owners, like others in the skilled trades, struggle to find qualified employees in a climate rife with high demand. They also worry about investing time and money in training, only to see those electricians leave to go off on their own or work for another company.

“Focus instead on building a strong company foundation in the first place, with a fully developed organizational chart,”  Mello says. That means creating clear job descriptions and expectations for every position, providing extensive training to set up every employee for success, and using performance pay as an incentive to help employees grow.

“Some people say, ‘always be closing.’ I say, ‘always be recruiting,’”  says Mello, who gives employees $1,500 for referring a new hire.

“I think a lot of us just don’t start the business right,”  he adds.  “Give it such a strong foundation, there’s nowhere to grow but up.”

Gold Shield Services , based northwest of Chicago in Des Plaines, Ill., built a strong company foundation using the  ServiceTitan mobile software for electricians . The company services about 70% commercial customers and 30% residential customers.

Director of Operations Derek Baer says the ServiceTitan software helped the business streamline and operate more efficiently. Six months after he joined Gold Shield in 2018, he says the software helped him generate more revenue, manage money better, build a $40,000 home office, and still end the year with a profit.

For 2020, Gold Shield offered health insurance to its employees for the first time. The move, Baer says, positions the company for growth, especially as Gold Shield opens its new headquarters in Algonquin, Ill.

Gold Shield also focused its efforts in 2020 on growing the home services side of the business and training electrical techs to understand that business model.

“The commercial side is paying the bills and helping us grow,”  he says.  “The residential side is going to put us in a whole other department.”

Need Better Electrical Branding? Start by Building a Great Company Culture

Value your company’s number 1 asset: Your employees.

Invest as much time in recruiting and training as you do on electrical service sales.

Increase electrical branding and engage potential applicants by sharing insight into your company’s culture.

Share your team’s success stories regularly to motivate and inspire everyone. Happy employees typically mean more productive employees, no matter the industry. Give your electrical staff more than just a steady paycheck by building a  company culture  that really shows them how much you value their work. They can help spread the word to potential new applicants.

Trades consultant Ben Stark advises keeping techs and other employees involved in the process, and making sure they know their role in growing your electrical contracting business. Let them own a piece of it, and you’ll likely get complete buy-in and increased cash flow.  “Employees are your number 1 asset,”  Stark says.

When crises or setbacks occur in the home services industry, don’t stop hiring for your company or marketing to expand your customer base.

“Resist the reactionary,”  Stark advises.  “I’ve gone through a recession, a crisis...we put on the accelerator (for marketing and hiring), and we have always come out on the positive side.”

Express Electric’s Campirano says he tries to keep his employees motivated by leading with a cup-half-full mentality. Showing fear just leads to more of the same, he shared during a  ServiceTitan webinar .

Instead, Campirano tells his employees they’re heroes. He pumps up his employees and makes them feel valued with a specific message:  “Let's go out there and be humans. Let’s help other humans in need. We can do this together — as a team.”

“Employees who feel valued also work harder,”  says Tom Howard, ServiceTitan’s Vice President of Customer Experience and owner of multiple home service businesses. He thinks electrical companies need to spend as much time  attracting and retaining employees  as they do trying to sell electrical services to new or existing customers.

How ServiceTitan’s Processes Improved One Electrical Business’s Communication and Company Culture

After implementing ServiceTitan across its business in 2020,  The Happy Outlet , an electrical services company based in Carson City, Nev., found communication between team members much easier. This improved the overall company culture of focusing on keeping both employees and customers happy, as its name suggests. 

ServiceTitan gave Happy Outlet’s techs and office staff access to job information, call history, and customer communication details in a single interface, available anywhere.

“We’re able to be more productive as a company because everything is all in one system,”  says Rebecca Tenorio, Dispatcher and Client HAPPYness Representative for The Happy Outlet.  “With ServiceTitan, it’s all at our fingertips, no matter where we are.”

Following the switch to ServiceTitan, the company grew by an estimated 50%, now employs 14 team members, and expects to generate $3 million in revenue in 2022. Tenorio attributes that success to the new software system.  “It’s allowing us to focus more on training and the future,”  she says.

“All the information is in one program where everybody can access it,”  Tenorio says.  “It’s very convenient. It’s made so many things a lot easier.”

Read the full Happy Outlet case study here.

Build Your Electrical Contracting Business Using Systems, Checks and Balances

Gain efficiency with a well-defined organizational chart and operating manuals.

Include checks and balances for each department to ensure accountability.

Automate with field-service software to improve your electrical business.

Control and track inventory with custom reporting in real time .

Most successful electrical contracting businesses run effortlessly with a well-defined operating system. This includes checks and balances for every department, such as comparing your CSR booking rates to actual jobs completed by your techs, or comparing inventory controls to parts used on each job.

Mello says Art Levi,  The 7-Power Contractor  author and home services expert ,  taught him the importance of establishing a good system for running his garage-door business.

“An in-depth organization chart clearly defines each employee’s role, the management hierarchy allows only five direct reports to any one manager, and various operating manuals outline proper procedures for just about everything. It’s a recipe for success,”  Mello says, and  “one used by big players in other industries.”

“Look at McDonald’s or KFC, they open a new store every four to six hours. It’s this master plan to go in and everything’s the same, there’s a system, and checks and balances around every single aspect. That’s how they create success,”  Mello says.

How ServiceTitan Gives Electrical Teams Easy-to-Follow Processes and Systems

When implementing ServiceTitan, electrical companies get a simple and easy-to-follow way to implement systems and processes. These cover the following areas:

Call booking systems: ServiceTitan’s software for call booking provides your customer service reps with the caller’s name, job history and contact details as soon as each call comes in. Your reps can then welcome customers by using their names and ask them about any previous electrical work your company has done. Using ServiceTitan’s drop-down menus, CSRs gather all the information before sending an electrician to do the work. Reps can concentrate on the conversation with the caller, which improves the customer experience, and take down all the details your electricians will need when they arrive.

Documents saved to the cloud: With ServiceTitan, you can store all of your electrical business documents and forms in a cloud-based repository. Anyone with permission can access these documents from wherever they are. When electricians are out on a job, they can easily find job notes, estimates, invoices, and appointment details — which are easily lost when you rely on a paper-based, or office-based, system. Using ServiceTitan Mobile , they can access all of these documents right from the cloud and be certain that they are looking at the latest information for each customer. You no longer need to make extra copies of any documents to distribute to electricians, or have them make specific visits to the office to drop off paperwork from their appointments.

Create Forms: ServiceTitan allows electricians and managers to build custom forms to take down information while out on jobs. Each form can be a required step in a process, and the next step is only unlocked when the previous form is completed. When forms are required to be completed on jobs, electricians make fewer mistakes and don’t have to call customers back to get missing details. If an electrician is working on a certain type of job, such as an electrical inspection, specific forms can be triggered during these jobs. These forms may need to be completed for your electrician to close out a job and allow ServiceTitan to issue an invoice, for example. ServiceTitan’s forms give your electricians guidance in the steps to be followed while out on a job. This makes their work easier and more efficient while ensuring a better level of customer service.

Templates for every stage of an electrical job: ServiceTitan provides a range of templates that give electricians a framework for presenting customers with proposals, estimates, pricing, invoices, and more. ServiceTitan’s templates have been made deliberately simple to fill out, while still looking professional. Plus, these templates can also include your electrical business branding. The documents produced using our templates can easily be shown to customers on the electrician’s tablet, or sent via email.

Get Your Electrical Business Operating Right Before You Expand

Master your own electrical business before buying another.

Build your business to succeed without you.

Narrow your focus to what you do best, and shed the rest.

Are you a professional electrician who thinks they can do it all? Do you want to expand into other home services as soon as possible? Be careful not to spread yourself too thin.

Mello tried doing it all, from operating his warehouse and controlling inventory to buying all of his own trucks and fixing them on-site when they broke down. When his expenses exceeded revenue, he decided it was time to rein in some of his entrepreneurial activities.

“I just realized focus is everything,”  Mello says.  “Instead of being a jack-of-all-trades, you want to be a master of one… Focus on one, get so big at one, then you can take on a new branch.

” Sometimes life throws a few twists and turns, causing you to refocus on what’s best for the business. A little market research can save a lot of headaches.

Campirano decided commercial electrical work just wasn’t in the cards for him, especially after a fellow contractor filed bankruptcy and left him on the hook for nearly $300,000 in electrical supplies.

To get out of the mess, he negotiated a new payment schedule with his supply houses, dropped most of his commercial work, and began offering residential electrical services instead.

“Before 2008, I was working for a service company, and I was a good technician,”  Campirano says.  “Between that and me becoming a contractor and getting into this big construction industry because it was booming, I lost my road. I lost my roadmap of actually being a service technician. But I got back into it… I learned some systems, and I killed it, man.

” Think in terms of building your business as a commodity with shareholder value — and one that’s able to operate efficiently, even when you’re not around.

“A business that depends on you to work is not a business I want to buy,”  says Mello, who is an owner, partner, or investor in 14 other businesses. 

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Electrical Contracting Business Marketing Focused on the Right Audience

Identify your target audience with specific demographics.

Develop electrical business ideas to reach your target audience.

Don’t put all of your electrical branding eggs in one marketing basket.

Automate marketing campaigns for better efficiency.

Save on cost per lead with targeted email marketing.

For tracking purposes, use a unique phone number for each campaign.

Before deploying any type of marketing plan, know how to get your business name in front of the right target audience. Leaving business cards at other local businesses can help, but word of mouth and referrals alone won't cut it if you want to grow fast.

“The first thing I’m going to ask you is, ‘Who is your customer?’ If you say, ‘Anybody with an electrical system,’ I’m going to say, ‘This is the age, this is the gender, this is the average household income, this is their credit score.’ You should know more and more about who your real customers are, and then you focus on direct response… and branding.”

Campirano improved his company’s electrical branding by getting to know his neighbors — and potential customers. He simply knocked on doors and offered to install free Ring doorbells to protect against porch thieves when he moved his family to Downey, CA, to demonstrate that he was a qualified electrician.

He also took an unconventional approach to electrical services during the COVID-19 global pandemic. Realizing people may be trying to store food in a second refrigerator or freezer — a problem he experienced himself — Campirano changed his advertising strategy to meet those customers’ needs.

“We started getting calls like crazy,”  he says.

How ServiceTitan Drives Your Electrical Marketing Strategy

To boost your  electrical marketing strategies , ServiceTitan’s  Marketing Pro  is a comprehensive software solution that leverages customer data to bring in more higher-ticket calls, leads, and bookings to your electrical business.

Email Marketing for Electrical Businesses with ServiceTitan

Targeted email marketing is the most cost-effective strategy for keeping your brand front and center in the minds of customers, says Megan Bedford, who runs Mugyver Consulting to help small companies in the trades.

Not only is the cost cheaper for  targeted email marketing  — $12 or less per lead — it’s the type of communication customers prefer, as opposed to direct mail or a promotional text. The key, Bedford says, is to find the right tool to automate the process, then target the right audience with the right message.

ServiceTitan’s Marketing Pro gives you tools to manage your email marketing strategy for your  electrical business and helps you target specific customer profiles in your database. This means you can send out emails with special offers or discounts to specific customers that are likely to respond.

Sending an email out to all the customers who haven’t responded to estimates, for example, and providing them with a specific number to call can remind customers to get back to you and book the job.

Send reminders to all of your installation customers to carry out maintenance or a regular inspection. These emails can often recapture old leads and turn customers who have gone quiet into new revenue sources.

ServiceTitan also provides an extensive range of  email templates  so you can quickly and efficiently send out a campaign without hiring a designer, as shown in the image above. 

Choose an appropriate email template, adapt the default text to your email campaign strategy, and send it in an email blast to your selected customers.

After you’ve sent out the emails, ServiceTitan lets you check the campaign’s performance by tracking the exact ROI within the dashboard.

This detailed tracking information helps you decide which campaigns are successful, and which need more work to generate a better ROI.

How One Electrical Company Used ServiceTitan’s Marketing Pro to Boost Income

After receiving a free trial of  ServiceTitan’s Marketing Pro , Jupiter-Tequesta Air Conditioning, Plumbing & Electric ran its first email marketing campaign — targeting previous A/C customers with a one-time “We Miss You” message.

“After one week, the revenue on that one email brought in about $4,000,”  says Bill Highsmith, the company’s Process & Procedure Manager.

Manage Direct Mail Campaigns with ServiceTitan

Direct mail is still a powerful way to get your message right into the customer’s hands, Stark adds, but he’s also finding new ways to do creative marketing through various digital media channels.

“Marketing is such a beast these days. It's so multi-layered that you’ve got to always be looking for ways to get your name out there, however it may be,”  Stark says.

ServiceTitan helps electrical businesses manage their direct mail.  You get everything you need to design, print, mail, and track the results of each campaign. In just a few minutes, you can choose a postcard design from the ServiceTitan library, alter the default text as necessary, select the audience, send it to be printed, and then send it to your potential new customers. 

Each campaign you design through ServiceTitan costs a single flat-rate per postcard, so you know exactly how much you’ll be spending, whether you send thousands or just a few.

Similar to our email marketing tool, by using ServiceTitan, you can track the revenue generated by each of your campaigns, so you can identify which is the most successful approach.

Focus Your Online Electrical Marketing Strategies

Post helpful electrical safety content to boost Search Engine Optimization (SEO) on Google.

Invest in Pay-Per-Click (PPC) advertising to increase brand awareness.

Incentivize techs to get more reviews .

Expand your service area in conjunction with Google Local Services.

“Just understand Google is God when it comes to home service,”  Mello says, explaining how consumers find 70% of all services online through Google searches.

“Half of your marketing dollars should be spent on SEO, PPC, Google My Business, getting reviews, and Google Local Services.”

Billboards and TV or radio ads can still work, but with one caveat:

“You better be good at Google, and you better have mailers going out, because that’s going to increase the conversion rate on the direct response stuff,”  Mello advises.

Marketing via Facebook also works for some electrical companies, he says, but it’s hard to make a ton of money on the social media platform.

“Facebook is more of an upside-down pyramid,”  Mello explains.  “The way I do Facebook is, you’ve got a lot of customers at the top who really don’t know about your service or they don’t need it today, but you’re building a funnel. It's at the top of the pyramid, but it’s an upside-down pyramid.”

Some customers will find you because they need your services today, whereas new business might find you through brand awareness.

“They call it ‘top-of-mind awareness.’ You’re starting to get that online reputation of ‘Hey, I’ve seen that company before, now I need them.’ Now, they’re going to think of you,”  Mello says.

How ServiceTitan Helps Boost Your Online Presence

ServiceTitan makes it easy to advertise your electrical services online  by integrating with Google Local Services . This integration allows potential customers to click on your Google Local Services ad and be taken directly to a job-scheduling page driven by ServiceTitan.

When a potential customer searches for “Electrical Service Chicago,” for example, your Local Services ad appears at the top of the search results in Google. The customer then clicks on your ad to book an appointment with you and doesn’t need to make a call or look up the booking section on your website.

To make sure your marketing and advertising budget is being used appropriately, you can also track  ROI on your Google ad campaigns  using ServiceTitan.

Connect your Google Ads and Google Analytics accounts to ServiceTitan to track the ROI of your campaigns to the actual jobs booked and the revenue generated from those jobs. Real ROI figures can help you decide which ads to invest in further, and which ones to shut down.

Grow Your Electrical Business with the Best Field Service Management Software

Make it easy to implement all the tips and strategies in this article by using  ServiceTitan’s field management software . 

ServiceTitan helps you improve your business processes and workflow, and ultimately helps your business grow by:

Giving your team reliable communication tools. Office staff can easily communicate with electricians out in the field — streamlining workflow and improving company culture.

Helping your business put processes, systems, and templates in place for consistent and error-free services.

Giving you tools to manage digital advertising, email marketing, and direct mail campaigns, as well as tracking ROI — so you know what is working and what needs to be changed.

How Mel Carr Electric Uses ServiceTitan to Improve Sales and Drive Growth

Mel Carr Electric  in Albany, N.Y., switched from another mobile software provider to ServiceTitan in January 2019 to give its techs better options for sales presentations in the field. 

The move helped to improve the customer experience and increase close rates, according to company President Rob Carr.  “It’s so user-friendly. So intuitive. [The software] just knows your next step,”  Carr says.  “It took care of things we never even realized we needed.” Carr says the ServiceTitan software also provides the following features that have contributed to his company’s growth:

Accurate, real-time business performance data. Everything from close rate to average ticket and up-to-the-minute revenue is available in one place: ServiceTitan. 

Better display of sales options for the customer. This capability has increased Mel Carr Electric’s customer closing rate and enabled growth.  

More capabilities without hiring more people. Mel Carr Electric uses ServiceTitan’s app to automatically send technicians’ bios to customers, which has increased customer trust. This job was previously done by the company’s CSRs. “We just weren’t doing it at all before,” Carr says. “The software took care of things that we never even realized we needed.” 

The ability to record customer service phone calls. Phone calls to CSRs are recorded automatically and available through the app, providing training opportunities, increasing conversion rates, and eliminating confusion. “Today alone we’ve utilized those recordings two or three times,” Carr says. “Shockingly, the guys in the field listen to the calls, too. I  never expected that to happen, but they love it.  They want to know what they’re getting themselves into.”

Real-time updates from the field. “The guys in the field love it,” Carr says. “We’re not bothering them as much by calling and asking, ‘Hey, how much longer, what’s going on there?’ We can watch them as they write a quote. We can correct them with our new techs and make sure that they’re doing it right. We can tell when they’ve gotten a signature, ‘Hey, they’re finishing up, they’re cashing out.’ And that is incredible.” 

Text updates sent to the customer from the app. This fulfills a big customer desire, Carr says. “One thing we hear most from people is, ‘Text me. I want a text.’ It’s informal, it’s quick, it’s personal, it’s in your pocket. It’s what people are looking for these days. And we didn’t quite realize it beforehand.”

An intuitive pricebook that can be updated remotely. If a technician runs into a problem with the pricebook or needs a change, Carr can help immediately, from the office. “That is wonderful,” Carr says. “Sometimes they need me to make a change. Oh, you're right, let me do this. Click, click, click. OK, refresh. Boom. He’s like, ‘OK, here it is, I got it right now.’ And he clicks a button and we’re done.”

Want to Grow Your Electrical Business? Know Your "Why"

Identify your personal strengths.

Don’t become an electrical business owner just because you want to be your own boss.

Keep work-life balance in focus.

Understand the financial aspect of running an electrical business, or find someone who does.

The concept of “work-life balance” gets thrown around a lot, but Mello thinks it’s something to keep in mind when considering whether to start your own electrical contracting business or grow your current one.

He recommends the book  Off Balance on Purpose: Embrace Uncertainty and Create a Life You Love  by Dan Thurmon to gain a better perspective, especially in times of uncertainty.

“The reason you should own a business is NOT because you don’t want to work for someone else,”  Mello says. You may exhibit excellent electrician skills in the field  but lack the financial knowledge or expertise in managing an electrical contracting business. If that’s your situation, it’s a great idea to admit that to yourself and find a partner or manager with the experience and the skills you need to help you with this aspect of your business.

“I feel like I’m just getting started...I literally feel like it’s there to build, it’s ours for the taking,”  Mello says.  “For me, success just means if I want to go do something, I do it.”

“You’ve got to choose what’s important to you and decide what’s your ‘Why?’”

ServiceTitan has helped thousands of electrical businesses grow by giving them tools to manage marketing and operations. You can find out more about how these features would help your electrical business by  scheduling a demo .

ServiceTitan Electrical Software

ServiceTitan is a comprehensive electrical business software solution built specifically to help service companies streamline their operations, boost revenue, and achieve growth. Our award-winning, cloud-based platform is trusted by more than 100,000+ contractors across the country.

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Business Plan Template for Electrical Contractors

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

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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Starting a contracting business? A sample business plan for contractors will help you make sure you get all the details right. Give you business the best chance for success with a top-notch business plan.

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How To Prepare a Business Plan for Government Contracting

A well-written business plan is key to success in the competitive government contracting industry. It is a roadmap that outlines a contractor’s experience, capabilities and expertise as an ideal partner in fulfilling government objectives.

Learn the basics of a great business plan for government contracting.

Table of Contents

What Is a Business Plan?

A business plan is a comprehensive document that details the contractor’s objectives, strategies and financial projections. It serves as a manual for growth, helping organizations secure funding, attract investors and obtain new business opportunities. 

Having a business plan provides an organization with a method method to operate objectively, evaluate the feasibility of a new business idea and increase the probability of success in government contracting. 

Selecting the Right Format for a Business Plan for Government Contracting

There’s no one-size-fits-all approach to creating a business plan for government contracting. The ideal format depends on the type of business and its specific needs and goals. 

Two standard formats dominate the business planning process: traditional and lean startup.

Traditional Business Plan

A traditional business plan format must be very detailed to explain the contractor’s capabilities, past performance and compliance history. Government agencies consider these factors necessary in selecting the right contractor.

• Widely used — The traditional business plan’s structured approach infuses detailed sections that account for all business components, making it best suited for a situation requiring thoroughness.
• Detailed analysis — This business plan type executes a thorough analysis, where every section must be critically examined. It is particularly beneficial for contracts requiring a robust track record and complex project management.
• Lengthy document — A traditional business plan is generally protracted, sometimes containing containing dozens after dozens of pages. This lengthy plan can prove advantageous when the level of information provided in the document increases the chances of winning a contract.
• Specific use cases — A traditional business plan is well-suited for large-scale projects or high-security contracts, where the ability to deliver according to rigorous specifications is necessary.

Lean Startup Business Plan

A lean startup business plan involves quickly testing and validating business ideas. This approach is commonly used by startups and early-stage companies to create a strategic roadmap. It focuses on identifying and testing key assumptions about the market, ensuring that resources are used efficiently for agile adaptation based on market feedback.

For example, lean startup principles were utilized in the creation of healthcare.gov, which was launched within just 90 days and at a significantly lower cost than typical federal government projects of a similar nature.

• Focus on essentials — A lean startup business plan prioritizes conciseness, emphasizing the most critical elements of the business strategy.
• Efficient approach — This format streamlines the planning process by focusing only on crucial information, allowing for a more efficient document creation process.
• Less common — While less prevalent than traditional plans, lean startups can be used by contractors seeking a concise and focused format. 

5 Helpful Tips for Preparing a Business Plan

1. Conduct Competitive Analysis and Market Research

Conducting market research and competitive analyses enables a contractor to identify specific targets and procurement needs of government agencies.

For example, contractors may need to analyze the contracts that the agency recently awarded to better understand the project scale, contract size and qualifications. With this information, they can tailor the business plan according to the agency’s requirements.

2. Showcase Capabilities and Accomplishments

A business plan must showcase a contractor’s capabilities and previous performance. It should detail the contractor’s contractor’s qualifications and expertise, focusing on certifications and industry recognitions that demonstrate the ability to deliver contract requirements within the given timeline and required budget.

This information can prove a business’ expertise and capabilities in handling the project and providing high-quality service.

3. Integrate Competitive Financial Analysis and Projections

Integrating competitive financial analysis and projections in a business plan can demonstrate a contractor’s ability to manage large government projects. The projected revenue, operating expenses and profit margins from the contract are recommended to be included in the study. 

Contractors seeking funding to acquire crucial systems and equipment must detail how these resources can enhance their ability to fulfill specific government contracts.

4. Ensure Compliance With Government Contracting Regulations

Government contracting comes with a unique set of compliance requirements and regulations. Compliance is vital to demonstrate a contractor’s commitment to ethical business practices and adherence to relevant laws. 

When drafting the business plan, outline quality assurance procedures and highlight the track record of meeting quality standards.

5. Follow IT Infrastructure Guidelines and Cybersecurity Measures

Depending on the type of contract, a contractor may be subject to some cybersecurity measures, security clearances and IT infrastructure guidelines.

The business plan should emphasize the contractor’s commitment to security awareness and employee security training to secure cybersecurity contracts. It should also highlight the ability to safeguard sensitive government data through firewalls, intrusion prevention systems and data encryption protocols. 

More importantly, the business plan must detail the contractor’s vulnerability management approach, incident response and disaster recovery for cybersecurity measures.