business plan template for electrical contracting

Electrical Contractor Business Plan Template

Written by Dave Lavinsky

electrical contracting business plan template

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

business plan template for electrical contracting

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.

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How to Write An Electrical Contracting Business Plan?

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

1. Executive Summary

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

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

Introduce your Business:

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

Market Opportunity:

Products and services:.

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

Marketing & Sales Strategies:

Financial highlights:, call to action:.

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

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2. Business Overview

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

Business Description:

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

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

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

Mission Statement:

Business history:.

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

Future Goals

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

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

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your electrical contracting business plan:

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

4. Products And Services

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

Describe your services:

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

Electrical installations
Electrical repairs
Electrical design services
Maintenance and upgrades

Describe your domain:

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

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

Quality measures

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

Additional Services

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

5. Sales And Marketing Strategies

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

Unique Selling Proposition (USP):

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

Pricing Strategy:

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

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

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

6. Operations Plan

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

Staffing & Training:

Operational process:, equipment & machinery:.

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

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

7. Management Team

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

Founders/CEO:

Key managers:.

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

Organizational structure:

Compensation plan:, advisors/consultants:.

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

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

8. Financial Plan

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

Profit & loss statement:

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

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

Financing Needs:

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

9. Appendix

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

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

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

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

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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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Electrical Contractor Business Plan Template

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1. Don't worry about finding an exact match

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

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

2. Remember it's just an example

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

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

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

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

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Electrical Contractor Business Plan [& Free Template]

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

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

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What Is a Business Plan for Electrical Contractors?

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

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

Why Do Electrical Contractors Need a Business Plan?

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

Reason #1: Raise Funding

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

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

Reason #2: Define Business Goals and Reduce Risks

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

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

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

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

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

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

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

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

1. Industry Analysis

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

Market strength

Market size

Competitors

Industry trends

2. Executive Summary

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

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

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

3. Business Overview

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

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

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

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

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

4. Services Analysis

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

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

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

Service guarantee

Repair guarantee

Replacement guarantee

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

5. Market Analysis

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

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

6. Customer Analysis

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

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

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

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

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

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

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

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

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

7. Marketing Plan

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

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

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

Direct mail (%)

Newspaper (%)

Television (%)

Search engine marketing (SEM) (%)

Social media marketing (%)

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

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

8. Operations Plan

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

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

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

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

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

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

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

9. Management Summary

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

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

You should also list professional and advisory support, including:

Board of directors

Management advisory board

Insurance agent

Consultant(s)

Mentors and key advisors

10. Financial Plan

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

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

Over to You

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

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

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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.

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Watch your online reputation transform with Broadly

Get more out of broadly., top local seo tools for home service business owners, essential small business seo tips, powerful home services lead generation strategies, how to trademark your business name: a step-by-step guide for entrepreneurs, master your online business reputation: essential strategies, maximizing your visibility on angie’s list business center, how to master local business marketing: a comprehensive guide for service providers, ultimate guide to plumbing lead generation: strategies to boost your business, examples of dealing with difficult or angry customers professionally, managing google my business for multiple locations.

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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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Best Practices for Creating an Effective Lead Follow-Up Strategy

How to Fund Your Small Business

Growing your electrical contracting business

How Can I Grow My Electrical Contracting Business

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 Template & Guidebook

If you are looking for a comprehensive yet simple guide to help you create an effective and professionally crafted electrical contracting business plan, then The #1 Electrical Contracting Business Plan Template & Guidebook is the perfect choice. With easy to follow instructions and helpful advice, the guidebook provides step-by-step guidance on how to create a comprehensive business plan that will put your electrical contracting business in a great position for success. So if you are serious about starting your own electrical contracting business, this guidebook is an essential resource.

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

How to Start a Profitable Electrical Contracting Business [11 Steps]
10+ Best & Profitable Electrical Contracting Business Ideas [2023]

How to Write a Electrical Contracting Business Plan in 7 Steps:

1. describe the purpose of your electrical contracting business..

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

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

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

Our mission at ABC Electrical Contracting is to provide excellent electrical services to our clients, from commercial buildings to residential homes, with a focus on safety, timely completion of projects, and customer satisfaction.

2. Products & Services Offered by Your Electrical Contracting Business.

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

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

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

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

3. Build a Creative Marketing Stratgey.

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

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

Target market

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

Customer base

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

Product or service description

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

Competitive analysis

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

Marketing channels

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

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4. Write Your Operational Plan.

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

In it, you should list:

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

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

Valid electrical contractor's license
Insurance coverage (liability, workers comp, etc.)
Electrical supplies (wires, conduit, switches, breakers, etc.)
Tools (pliers, screwdrivers, drills, etc.)
Safety gear (gloves, hard hats, goggles)
Computer and software for estimating and billing
Marketing materials (business card, website, etc.)

5. Management & Organization of Your Electrical Contracting Business.

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

This section will cover all of the following:

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

6. Electrical Contracting Business Startup Expenses & Captial Needed.

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

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

Startup Costs

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

Running & Operating Costs

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

Marketing & Sales Expenses

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

7. Financial Plan & Projections

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

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

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

Frequently Asked Questions About Electrical Contracting Business Plans:

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

A business plan for an electrical contracting business is essential for both starting out and running the business. It helps provide a roadmap for success and defines goals to be achieved. It also outlines the financial and human resources needed to operate the business, and can serve as a useful tool when seeking funding from investors or lenders. A business plan also helps identify potential risks and provide contingency plans in case of unexpected events that could negatively impact the business. Finally, it can help owners understand the competitive landscape and make informed decisions about marketing, pricing, and other business strategies.

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

It would be helpful to consult a professional accountant or business advisor who has experience developing plans for electrical contracting businesses. They will be able to provide guidance and advice on how to create a successful plan that will meet the needs of your business. Additionally, you may wish to research other successful electrical contractor businesses and their plans for inspiration.

Can you write a electrical contracting business plan yourself?

Writing a business plan for an electrical contracting business can be a complex process, and it is recommended that you consult with a professional business plan consultant to ensure that all of the necessary details and components of your plan are in place. There are a number of resources available online that can provide guidance on the steps necessary for effective business planning. It is important to consider factors such as market research, competition, financial projections, cash flow management, marketing strategies, and legal advisement when constructing your plan.

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Business Plan Examples

Electrical Contractor Business Plan Sample

Published Dec.30, 2020

Updated Apr.22, 2024

By: Noor Muhammad

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Electrical Contractor Business Plan Sample

Table of Content

Electrical Contractor business plan for starting your own business

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

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

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

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

Executive Summary

2.1 the business.

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

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

2.2 Management of Electrical Contractor

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

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

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

2.3 Customers of Electrical Contractor

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

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

2.4 Business Target

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

Company Summary

3.1 company owner.

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

3.2 Why the electrical contractor is being started

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

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

3.3 How the electrical contractor will be started

Step1: Creating A Business Plan

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

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

Step2: Acquiring Required Licenses & Permits

Step3: Leasing Property, Equipment & Hiring Managers

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

Step4: Establishing Company’s Database & Website

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

Step5: Hiring & Training Staff

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

Step6: Marketing & Advertisement

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

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

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

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

Areas Of Expertise:

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

Marketing Analysis of Electrical Contractor

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

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

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

5.1 Market Trends

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

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

Business plan for investors

5.2 marketing segmentation.

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

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

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

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

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

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

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

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

This category will also be acquiring our wiring services.

5.3 Business Target

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

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

5.4 Product Pricing

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

Marketing Strategy

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

6.1 Competitive Analysis

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

6.2 Sales Strategy

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

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

6.3 Sales Monthly

6.4 sales yearly, 6.5 sales forecast, excellent work.

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Personnel plan

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

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

7.1 Company Staff

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

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

7.2 Average Salary of Employees

Financial plan.

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

8.1 Important Assumptions

8.2 brake-even analysis, 8.3 projected profit and loss, 8.3.1 profit monthly, 8.3.2 profit yearly, 8.3.3 gross margin monthly, 8.3.4 gross margin yearly, 8.4 projected cash flow, 8.5 projected balance sheet, 8.6 business ratios.

Download Electrical Contractor Business Plan Sample in pdf

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

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

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Business Plan Template for Electrical Contractors

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

Our template is designed to help electrical contractors:

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

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

Business Plan Template for Electrical Contractors Benefits

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

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

Main Elements of Electrical Contractors Business Plan Template

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

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

How To Use Business Plan Template for Electrical Contractors

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

1. Define your vision and goals

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

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

2. Analyze the market and competition

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

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

3. Develop your service offerings

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

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

4. Create a marketing and sales strategy

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

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

5. Plan your operations and resources

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

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

6. Monitor and revise your business plan

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

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

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

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

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

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

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

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

Use the Topics View to organize your business plan into different sections, such as Executive Summary, Market Analysis, Financial Projections, etc.
The Status View will help you track the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do
The Timeline View will provide a visual representation of the deadlines and milestones for each section of your business plan
The Business Plan View will give you an overview of the entire plan, allowing you to easily navigate and make updates
The Getting Started Guide View will provide step-by-step instructions on how to use the template and create a successful business plan
Utilize the custom fields Reference, Approved, and Section to add additional information and track the status of each section
Collaborate with team members to gather input, feedback, and insights to create a comprehensive and effective business plan.
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Electrical Business Plan Template PDF

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

Get your copy today!

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

How can an electrical business plan template help you?

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

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Electrical Contractor Business Plan Template

Document description.

This electrical contractor business plan template has 38 pages and is a MS Word file type listed under our business plan kit documents.

Sample of our electrical contractor business plan template:

Contact Information INSERT ADDRESS Phone: Email: 2010 INSERT IMAGE/LOGO Owners: INSERT NAME

Electrical Contractor Business Plan Template [Updated 2024]

I. Executive Summary

This Section's Contents

Business Overview

Services provided, customer focus, management team, success factors, financial highlights.

[Company Name], located in [insert location here], is a local newly established family owned and operated electrical contracting company. The company provides electrical contracting services to the local metropolitan area and its surrounding communities. With an emphasis on customer service and rapid response time, [Company Name] is set to establish itself as one of [Location]’s most trusted and reliable electrical contractors.

[Company name] was founded by [Founder’s Name]. [Founder] has been an electrician in the community for over 40 years. [Founder] has always wanted to own and operate his own electrical contracting company for many years now, but wanted to wait until his sons were old enough and attained their electrician’s license. He knew the company would be his legacy and offer his sons and their families a reliable and reputable career. Through his knowledge and ability to follow through to address each of his clients issues, [Founder] has gained an immense following and is the most requested electrical contractor in the greater [location] area.

[Company Name] will provide a variety of different electrical contractor services. The services include Smart Home installation, Security Systems, Home Theater Installation, Camera Systems, LED Lighting Retrofit, Residential Electrical, Commercial Electrical, Industrial Electrical, Audio Visual Solutions, Lighting Control, and Network Systems.

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

[Company Name] will primarily serve the residents within a 1 to 50-mile radius of our location. The demographics of these residents are as follows:

862,989 residents
Average income of $36,000
59.3% married
41% in Mgt./Professional occupations
Median age: 39 years

Of the above mentioned residents, there are about 76% of single family homes that will likely require electrical work. There are also over 1 million square feet of industrial and warehouse space and there is another 1 million in the planning stages of development for another industrial park to be built.

[Company Name] is led by [Founder’s Name], a local electrician who has worked for the largest electrical contractor company in [location] for over 40 years. [Founder] is fully licensed and bonded and has gained an impressive reputation as the most reliable and trustworthy electrician in the market. As a project manager that oversaw hundreds of projects, [Founder] has the proper knowledge and experience to own, manage, and operate his own electrical contracting company.

[Company Name] is uniquely qualified to succeed due to the following reasons:

The company will be providing electrical contracting services to the local market that its competition does not yet provide.
The company will have a full fleet of vans and trucks to be able to properly and professionally serve [location] and its surrounding communities.
The owner has a positive reputation in the community and is widely requested for electrical projects of all sizes.
The pricing model is competitive with other electrical contractor companies.
[Company Name] is fully licensed, bonded, and insured.

[Company Name] is seeking a total funding of $625,000 of debt capital to open its electrical contracting company.

Warehouse design/build-out: $100,000
Equipment and fleet of vehicles: $300,000
Initial inventory: $100,000
Working capital: $125,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

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Electrical Contractor Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

Schneider Electric Blog

Home > Homes > Electrical Installers > 12 tips for starting a successful electrical contracting business

Electrical Installers

12 tips for starting a successful electrical contracting business

May 14, 2024

5 min read | Guest Blogger

This audio was created using Microsoft Azure Speech Services

Starting an electrical contracting business is challenging, even for experienced electricians. We asked two Canadian sparkies, Simon Noone and Ben Morin, to share their tips—both went out on their own after working for other contractors. Noone started his company, Tried and True Electric, six years ago in Wallacetown, Ontario. Morin launched Amped Electric, which operates in Brandon, Manitoba, in 2015.

5 tips for getting the business going

Consider whether you want to go solo or work with a business partner. Although many electrical contractors run companies on their own, “a partner gives you freedom and flexibility to take a vacation or time off if your family needs you.” says Noone. A good partner, he says, can share the load and help you build a stronger business.
Make sure a partner’s values are aligned with your own. Before signing any legal agreements or writing a business plan, Noone and his business partner talked to each other at length. They both wanted to be sure they understood—and shared—each other’s work ethic, quality standards, and vision for the business’s future.
Know your limits and get the business help you need. “I trained as an electrician, not as a bookkeeper or accountant,” says Morin. Working in the trades, he says, means you should understand when to call in an expert rather than trying to do everything yourself.
Develop business systems, whether for dealing with paperwork and record-keeping, for prompt quoting and invoicing, or for handling customer inquiries. Staying organized and working efficiently is necessary for business success, both electricians agree.
Be financially prepared for a rough start. Noone and his partner set aside enough money to cover at least the first year’s expenses. “Between buying a vehicle, paying for materials, and payroll—we hired an apprentice right away—money was going out faster that it was coming in. It wasn’t until the 11th month when we could pay ourselves.” But that moment, he adds, reassured him the business was going to succeed.

3 tips for maintaining positive customer and supplier relations

Build long-term relationships with suppliers . Noone says he depends on suppliers to have high-quality materials in stock, to price materials fairly and consistently so he can quote accurately, and to stand behind what they sell—now and in the future. “We deal with Schneider Electric almost exclusively for panels now, and we really depend on Homeline arc fault breakers. Some other arc fault breakers experience a lot of nuisance tripping, which can cost an electrician a lot in call backs just to replace one small part.”
Address customer issues quickly. Most customers, says Morin, will be reasonable when they know what’s going on. “Even when there were supply chain issues during the pandemic, for example, Schneider addressed our questions in a timely manner, which meant we could keep our customers informed—and happy.”
Document every change order. When customers ask for extras, “put it in writing and get clients to sign off on it,” says Noone. Homeowners don’t know when a seemingly simple request adds a lot of expense. If you haven’t documented changes, he says, be prepared to face objections when you invoice. “No one likes surprises, and every client absolutely has the right to question what’s on an invoice,” he adds, “so you need backup to help them understand your charges.”

4 tips for managing stress

Practise the tough stuff. “Chasing after payments and dealing with confrontational clients—those are things I don’t enjoy,” Noone says. “But over time I’ve learned how to do it.” As well, organized business systems, complete documentation, and clear communications make it easier to deal with many issues.
Learn to unplug. Morin says it took a while, but he learned to leave the stress of running a business at the office. “Now, when I get home, I sometimes imagine a coat rack inside the door. I take my work hat off, and I put my family guy hat on.”
Don’t forget that you do have a backup plan . For electricians in many job markets, Morin says, there’s enough demand that “it’s relatively easy to go back and work for someone else.” That safety net can make taking the leap and starting an electrical contracting business a little easier.
Remember your why. For both Noone and Morin, when business is especially challenging, they see family as a motivation for working hard at building a business and a support system when they need it. Noone says his employees and their families also motivate him. “We want our employees to feel like they’re building a company with us. As we grow, we want them to grow too.” Both electricians recommend taking stock of the business’s developments. “I like looking back at where I started,” says Morin. “The time went so fast, but seeing the business and the projects we do come to fruition puts a smile on my face.”

At Schneider Electric, we are committed to making your professional life easier by providing you with tools and resources designed to save time, increase efficiency, and grow your business.

That’s why we’ve created the mySchneider Electrician Program. A personalized experience offering a whole portfolio of solutions and business advantages designed to make your work more efficient, support your business needs and open the door to new business opportunities, such as starting an electrical contracting business. All completely free, accessible from your mobile device via app or browser.

Don’t wait, enjoy the mySchneider benefits, login/register at mySchneider .

About the author

Jeff Sproule, Ontario Channel Sales Senior Manager

Jeff Sproule is the Ontario Channel Sales Senior Manager for Schneider Electric Canada. With over 25 years of experience in the industry and 17 years at Schneider Electric, Jeff has spent the last 9 years leading various Commercial and Channel Sales teams in Ontario to provide best in class product offers to Electricians and Electrical Contractors.

Tags: Electrical Contractors , Electrician , entrepreneur

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Electrical Contractor Business Plan Template

Electrical Contractor Business Plan

What is an Electrical Contractor Business Plan?

Why You Need a Business Plan for an Electrical Contracting Business

Sources of Funding for Electrical Contractor Businesses

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Executive Summary

Company Analysis

Industry Analysis

Customer Analysis

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Competitive Analysis

Marketing Plan

Operations Plan

Management Team

Financial Plan

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Electrical Contracting Business Plan

How to Write An Electrical Contracting Business Plan?

1. Executive Summary

Introduce your Business:

Market Opportunity:

Marketing & Sales Strategies:

2. Business Overview

Business Description:

Mission Statement:

Future Goals

3. Market Analysis

Target market:

Market size and growth potential:

Competitive Analysis:

Regulatory Environment:

4. Products And Services

Describe your services:

Describe your domain:

Quality measures

Additional Services

5. Sales And Marketing Strategies

Unique Selling Proposition (USP):

Pricing Strategy:

6. Operations Plan

Staffing & Training:

7. Management Team

Founders/CEO:

Organizational structure:

8. Financial Plan

Profit & loss statement:

Financing Needs:

9. Appendix

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