The guide focuses on how to write an electrical contractor business plan.
As an electrical contractor, the goal of establishing your business is only achievable when the process is well coordinated. Coordination comes from having a carefully written plan.
Here, your business plan is crucial to how successful your operations are.
Now, a lot of electrician entrepreneurs are faced with the challenge of putting up a unique and well-structured plan. Proper structuring of the plan requires the inclusion of all the key aspects of the business idea which help with the full implementation of the plan.
ELECTRICAL CONTRACTOR BUSINESS PLAN
Your electrical contractor business plan won’t be complete without the inclusion of certain key sections such as the executive summary and the company description sections.
Others are the products & services section, the marketing analysis section, and the strategy & implementation section.
You’ll also need to add the organization & management team, as well as the financial plan & projections. We’ll need to further dissect each of these key sections for better comprehension.
i. Executive Summary
This section of your electrical contractor business plan should always appear first.
It holds an overview of your business plan and summarizes or condenses the plan into a few pages. You must hold your reader’s attention to make them interested enough to want to read your plan further.
While it appears first, the executive summary section is best written last.
You don’t want to leave out certain key aspects of your plan without touching on them. Through the executive summary section, an investor can know if your electrical contracting business is worth making financial commitments to.
There are several areas to cover within the executive summary. They include the business name and location, your services and/or products, mission and vision statements as well as the purpose of the plan.
Business Name & Location
Before you ever write your business plan, you need to have chosen an electrical business name for the company. Also, its location is crucial and must be clearly stated.
This is basically the starting point from where your business idea gets introduced to your audience.
With such an introduction, you’re able to build on the other aspects of your business operations. These are contained within the other sections below.
Services and/or Products
Electrical contracting involves the provision of both products and services.
However, you’ll need to make things clear by stating your own range of products in addition to stating how these will be of benefit to your clients. You don’t need to go into the minute details of all such services.
You’ll have to summarize such, as there’s a whole section in the plan that’s dedicated to the services and products being offered.
Mission and Vision Statements
The mission and vision statements of your electrical contracting business are crucial as they point to the direction the business will go.
In terms of the mission statement, it should define your business’s primary objectives and purpose. Such should be done in a clear, short, and effective manner.
The vision statement on the other hand seeks to define your business’ purpose with a special focus on aspirations and goals. The vision statement should seek to inspire your workforce towards attaining set objectives.
Purpose of the Plan
You must have a purpose for which your plan exists. For a lot of entrepreneurs, the key reasons for having such a plan in place include securing investments and also for setting strategies among others.
This, like the others briefly discussed above, is a key aspect you shouldn’t leave out.
ii. Company Description
Under the company description section, a fuller and more comprehensive description of your electrical contracting business is provided.
Here, you want to provide details on who you are, modes of operation as well as set goals to be achieved.
An important aspect of your business such as its legal structure needs to be provided. Is your electrical contracting business a sole proprietorship, a Limited Liability Company (LLC), or a corporation?
Include a brief history of the nature of your business.
This should be included with its brief history as well as the demand for your services and products.
An additional detail you should consider including under the company description is an overview of products and services, your clients, as well as suppliers.
Have a summary of company growth sketched and showing market and financial highlights. Also, have a summary of both short and long-term goals you have for business operations.
Mapping out ways by which profit is to be made is also essential.
iii. Products & Services
Your electrical contracting business plan should have a products and services section where you show how every product and service being sold meets your client’s needs. Customer benefits are paramount here.
What advantages do your products and services have over those of your competitors?
What’s the product lifecycle? You’ll need to include all relevant information about trade secrets, relevant copyrights as well as patents.
If there are (which there should) any research and development activities you wish to add, this is where you need to include such.
iv. Market Analysis
The market analysis section is critical to the proper takeoff of the business idea. It largely depends on research about the business which requires the inclusion of targeted customer segments.
Others include historical, current, and projected marketing data as well as assessing your competitors’ weaknesses and strengths.
v. Strategy & Implementation
How do you intend to sell your electrical products and services to clients? Give detailed information on business promotion techniques, costing, and pricing details.
Also include information on labor sources.
vi. Organization & Management Team
When writing the organization and management team section of your plan, it’s important to focus on key areas; describing key departments and employees.
Others include details about owners of the electrical contracting business. Also, include a profile of your management team.
vii. Financial Plan & Projections
Your electrical contracting business’ financial plan and projection sections should include historical financial data, realistic prospective financial information, and also a brief analysis of your financial data.
The input of a seasoned financial expert is needed for such.
With these sections fully covered, you should have a sound and implementable electrical contracting business plan.