business plan for engineering services company pdf

Engineering Consulting Business Plan

There is a business outside in which one does not do the actual work. Instead he just give some consultation. The job is simply called consultation. And there are many kinds of consultation out there. Thesis consultation. Music consultation. Marriage consultation. Party consultation. And there is an engineering consultation.You may also  financial consulting business plan examples

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Before going deeper into the world of consultation, let us dissect first the words engineering and consultation.

Engineering Consultancy Example

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Business Planning Example

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Sample Business Plan Example

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What is engineering

In its broadest sense is the study of industries and its applications. It utilizes mathematics, technology, science and other mathematical solutions to construction works. Engineering is like writing music but in a concrete means and approach instead of an abstract approach.You may also see  business plan .

What is consultation

Consultation on the other hand is the discussion of one particular case by someone to another who is expert in the field. For example. if one wants to seek advice from someone about spiritual problem. You know where you go to, a priest. Or if you are writing a thesis, and you want some advice, then you go to someone who is and expert of the field. Or if you want to know anything about health matters, you go to a doctor in general medicine. But that is basically what consultation is about.You may also see  importance of business plans .

What an Engineering Consultant Does

So an engineering consultant’s job is to provide consultation to the general public. Informing them of the best possible action to be done in a construction work such as designing and erecting a building.You may also see  business plan guidelines examples .

Engineer vs  Architect

If you are new to the word of engineering, you may be confused if there is any difference between the two. From the looks of it, they seem to do just one thing. Construct building. But looking closely, the two jobs have really different roles in the making of a construction work. You may also like  business operational plan examples .

Architect focuses on the design of the construction. An architect is responsible for how a building, bridge, any edifice or architectural structure, should look like.

The engineer on the other hand focuses on the mathematical, that is the technical and structural side of the construction.You may also see  social media marketing plan

Both the architect and engineer can make up a good team in realizing a germ of design, the plan in the blue print.

Can engineers do what architects can do, and can architects do what engineers can do? Technically, they can. Legally, they can’t. But there are many cases where a engineers are also architects, and there are also architects who happen to be engineers, too.You may also check out  hotel business plan examples .

Does one require one another?

Generally, the standard and professional way of constructing a building requires to have both an engineer and an architect. That is the standard and the legal way of doing it. But there are many cases in which buildings, especially small houses, are constructed by just one part, either by the engineer only, without an architect. Or by an architect without an engineer. This do not happen though in big constructions such as the one found in the city.You might be interested in  market analysis business plan examples .

The blue print is where the engineer, architect put into writing in graphical design their ideas that they base in realizing the construction. It is like a business plan in the world of marketing, but in the form of a drawing, a design, a sketch, made of lines and numbers.You may also like  business plan outline with examples .

Kinds of Engineer

Originally, there were only four categories in the engineering industry.

• Mechanical, it the branch of engineering that deals with the design, construction, and use of machines
• Chemical, is the branch of engineering that deals with the design and operation of industrial chemical plants
• Civil,  is the branch of engineering that looks for ways on how people can live a convenient life or to make our living condition less difficult to live.You may also check out  implementation plan examples .
• Electrical, is the branch of engineering that deals with electricity and its technologies.

Now, engineering has increased to at least six.

• Management, this is the kind of engineering that combines the general kinds of engineering (technical and structural) with business.You may also like  company plan examples .
• Geotechnical, is the branch of engineering that focuses on the rock formation, the roads, soil, pathways, highways, and the likes.

But wait, the number of engineering categories has increased in numbers recently, and there can be around, at least, 40 of them now, (and counting.) But there may not be a need for us to mention all of them. But you have the basic idea of what engineering is in general.You may also check out  advertising plan examples .

Consulting Engineer Example

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Steps to Becoming an Engineering Consultant

1. earn a degree in engineering.

Obviously, you need to have a degree to become an engineer. It is like the idea of selling, before you can sell something, you need to have something to sell. And before you can be a consultant, you need to know about the things your client expected from you. And you can only do that if you study engineering. Of course, you can be a consultant in engineering without a degree, but that will not sound legal.You may also see  importance of business plans .

2. Gain Work Experience and Training

At the start of your career, you need to have experiences. Engineering theories are necessary, but so do with experience. You can be a consultant even without much background of experience. But you may loose in the competition. But like getting a degree, it takes patience and time to gain experience. Consider it as an investment. You can start by working for someone, either as full time engineer, or may just an assistant.You may also see  business plan guidelines examples .

3. Become a Licensed Professional Engineer

Getting a degree is great. Kudos to you. But getting a license is another thing. And getting one is not that difficult if you are not that lazy in terms of studying. The fact that you are able to finish the degree, which means you have gone through plenty of study, it means that you can pass the board exam easily.

4. Start Your Own Consulting Firm

If you already have those three, you are an engineer, you have some experience, and you are now have a license, your next step is to have your own independent corporation. It does not have to be that big. A small office will do. Advertising matters. But that is another discussion. You may also check out  implementation plan examples .

5. Get a Master’s Degree or Ph.D.

Great, you have those first four steps. You have your own firm now, but need to shine, you need to be on top of the competition. And the way to do that is to get an MA or a PhD. It would also be great if the members of your team have a certificate. That way, you are yourself convinced that you have a good, strong team. You might be interested in  annual plan examples .

Advantages of Hiring an Engineering Consultant

There is a an advantage when hiring a professional. One is you can trace his background.

1. Consultant fees.

Expensive. Yes it is expensive. Hiring an expert can be expensive. But, you can be assured that what you pay will return to you. The cost that you have spent will become an investment in the long run. Why, because you are getting a quality service, quality product, expert level skills. And the output of what you get will last longer than if you just do it the cheap method. You may also see  coffee catering business plan

2. A fresh outside perspective.

With an engineering consultant, you are assured that the services you get are the latest ones. And you have a perspective other than your own. That can be a great advantage.

3. Experience and intelligent advice.

Bear in mind, that you are hiring a professional, licensed engineer. You can be assured that the output of his works is exceptional, professional.You may also like  quality plan examples .

4. Specialized skill.

If you have particular concepts in mind that you want to realize, you have the choice to get someone with a specialized skill. If you do the construction planning yourself, chances are it may not be the best available there is. Remember, there are many kinds of engineering. You just need to know what specific service you are looking for, because there can be a specific engineer for that particular service. You might be interested in  daily plan examples .

5. Ready made business plan.

If you hire an engineering consultant, you do not have to think of anything  else. He will do the planning for you.

Disadvantages of Not Hiring a Consultant

The problem with not hiring a professional consultant is quality.  You can compromise with anything else, but not with quality. Engineering is about construction. And construction is about buildings. And buildings is about people staying in a place. The compromise is safety. And safety is the one thing that an engineer prioritizes over anything else. If the one constructing the building does not have that vision, and if that is not his priority, then that is just a waste of money. If you hire a professional engineer, you spend so much money, but it will return in the long run because the quality of the building will last longer. You may also see  consulting business plan.

Engineering Consulting Example

Consulting Engineer Sector Example

Business Plan

Proposal as the stepping stone in a business plan.

A proposal is necessary before making a business plan. As an engineer, you can deal with your clients without making some proposals. But it is not all the case wherein clients come to you. There will be times where in you will have to be aggressive in purporting your engineering business firm to prospective clients.

A portfolio in engineering means the projects that the engineer or the business firm has made. If you have a portfolio, it would not be difficult to make a business plan because the portfolio will the the thing, the portfolio will explain the kind of engineering services you are offering. You may also see  strategic plan examples .

Marketing may not be your domain as a mainstream engineer, unless you are in a management engineering. But if you want to increase in you business as engineer, you need to know a bit about marketing.

1. Connection. Connection is a key element in marketing. If you are not connected to people, you will never grow in your business. You may also see  free business plans .

2. Flyer. One way to connect with the audience is by giving them flyers or brochures. It is just a little thing, but it means something.

3.Advertisement. One way to advertise your engineering business firm, is through TV, radio, and the Internet.

The business of engineering consultation is a good business, if you can establish a good relationship with the audience.You may also see  event project plans .

Consulting Engineering Firm Example

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Construction Program Business Plan Example

Engineering Entrepreneurship Example

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So what is a good engineering business plan?

1. strategy and vision.

A good engineering business plan must include a vision. A vision that supports and realizes the goals and intention of the clients. And to realize this vision, it has to have some strategies.

2. Standardization

To meet standards, it must follow correct procedures in every transaction. These are the standards as required by the different government agencies that monitors culture, security, health.

3. Timeframe

Timeframe is observed so that deadlines are met, but without compromising quality of work.

Quality is achieved not just by the use of materials but also the kind of people that are part of the team. If your materials are good, but you do not have an excellent team, then the quality of materials will just be wasted in the output.You may also like  business operational plan examples .

5. Teamwork

But an excellent team is nothing if the members have no cooperation. Teamwork is about one member knowing what he is supposed to do without the need to be in conflict with the rest of the team.

6. Customer Interaction

But no matter how you have a good and quality team if you have no interaction, or if you have no connection with the audience, prospective customers, clients, then no business will happen.You may also see  annual plan examples .

Engineering business or business in engineering is about building relationships. And building relationship is made easier if understood in the mechanics of engineering. It is reaching out to the audience, and making sure they will stay. It is about doing quality projects for the clients, and being consistent, and even going beyond quality.You might be interested in  market analysis business plan examples .

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Engineering Business Plan Template & Guidebook

Are you starting an engineering business? The demand for skilled and knowledgeable engineering services has never been higher. Starting an engineering business can be a fulfilling and profitable venture. However, it's important to have a solid business plan in place to ensure the success of your business. Our Engineering Business Plan Template & Guidebook is designed to help you easily create a comprehensive business plan for your engineering business. This guidebook provides step-by-step instructions on how to create each section of your business plan, as well as helpful tips and examples to ensure that your plan is thorough and effective. With our template and guidebook, you can confidently put together a solid business plan to help you achieve your engineering business goals.

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

• How to Start a Profitable Engineering Business [11 Steps]
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How to Write a Engineering Business Plan in 7 Steps:

1. describe the purpose of your engineering business..

The first step to writing your business plan is to describe the purpose of your engineering 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 engineering business:

An engineering business could have the following purpose mission statement: "Our purpose is to provide innovative engineering solutions that help our clients meet their goals and improve their operations. We are committed to using the latest technology and best practices to deliver high-quality, cost-effective designs that are tailored to the unique needs of each project. Through our expertise and dedication to excellence, we strive to be a trusted partner to businesses, organizations, and individuals in the pursuit of their engineering objectives."

2. Products & Services Offered by Your Engineering Business.

The next step is to outline your products and services for your engineering 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 engineering 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 engineering 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 engineering 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 engineering business?

To run an engineering business, you will need a team of trained and certified engineers, as well as a range of specialized equipment and tools, such as computers, software, and testing equipment, for carrying out engineering projects and services. You will also need a well-equipped office or workspace for your staff. In addition to these items, you may also need the following equipment and supplies:

• CAD and other design software
• Project management and scheduling tools
• Office supplies, such as pens, paper, and envelopes
• Marketing materials, such as brochures and business cards
• File storage and organization system

Depending on the specific nature of your business and the regulations in your area, you may also need additional permits or licenses to operate legally. It is important to research and comply with all applicable laws and regulations to ensure the safety and success of your engineering business.

5. Management & Organization of Your Engineering Business.

The second part of your engineering 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 engineering 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. Engineering 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 engineering business varies based on many different variables, but below are a few different types of startup costs for a engineering 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 engineering 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 engineering 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 engineering 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 Engineering Business Plans:

Why do you need a business plan for a engineering business.

A business plan is a document that outlines the goals and objectives of a business, as well as the strategies and tactics that will be used to achieve those goals. It is important to have a business plan for your engineering business because it helps to focus the efforts of the company, communicate the business's goals and objectives to potential investors, and provide a roadmap for the business to follow. Additionally, a business plan can be used to help secure funding from investors or lenders, who will want to see that the business has a solid plan in place before they provide funding.

How to write a business plan for your engineering business?)

To build a business plan for your engineering business, start by researching your industry, competitors, and target market. Use this information to define your business's goals and objectives, as well as the strategies and tactics that you will use to achieve those goals. Next, create a financial plan that outlines your projected income, expenses, and profit. This should include a projected income statement, cash flow statement, and balance sheet. Once you have all of this information, you can use it to create a comprehensive business plan that outlines the goals and objectives of your business, as well as the strategies and tactics that you will use to achieve those goals. A well-written engineering business plan contains the following sections: Purpose, Products & Services, Marketing Plan (including Marketing Strategy), Operations/Management Plan (including Operations/Management Strategy), Financial Plan (including Financial Forecasts), and Appendixes.

Can you write a engineering business plan yourself?

Yes, you can write a engineering business plan yourself. Writing a business plan is a valuable exercise that can help you clarify your business idea, identify potential challenges and opportunities, and develop a roadmap for success. While there are many resources and templates available to help you write a business plan, the process of creating one is ultimately up to you.

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Engineering Consulting Business Plan Template

Published Mar.12, 2020

Updated Apr.22, 2024

By: Noor Muhammad

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Table of Content

Business Plan for starting your engineering consulting firm

Thousands of engineering students are out there with high dreams and aspirations to start and excel in a successful business out there. Having different minds with different plans for a company, but business plans for engineering consulting services are nowadays one of the most exciting and familiar ideas among youngsters. It is wise enough to say that to think and execute any purpose takes efforts in the right direction. Some of them with great views also fail and finally surrender all because of the wrong execution.

So, how to start an engineering consulting business is the central question one should have in mind. Being a businessperson is not that easy because when it comes to marketing, he always looks for more and more profit, but there are ups and downs. For a young mind that has just started his business and is new to the market, it often becomes frustrating with such fluctuations. You need to invest in the right direction and wait patiently for the results.

Always remember, “Rome was not built in a day.” Your mission should be to provide the best and most efficient service to the people, with all types of planning, concept building, and completion. Your team should be highly professional and skilled, which you might be the critical factor, too, using experience and ideas making your customers satisfied. The development of a working strategy and working on its implementation is all it takes. Indeed starting an engineering consulting firm has several challenges that need to get sorted out though we cannot deny the fact that it is a very profitable business.

Further in the article, we will be dealing with these:-

Executive summary

The firm here is to provide all the possible support and successfully solve the problems of the people out there with high, excellent, and efficient consulting services. The firms have a team of competent and well-trained professionals, which would try to help people with consulting to all possible extents. Bit of direct investments in money and time can help you in the long run. The starting of the business is not easy, but it is the most significant step.

Start to invest little, don’t let any even the customers with very less profit go down and start gaining a name in the market. Implementation of quality control work as well as assurance program is beneficial and provides more scope and focus for production work. One needs to be more strategic and schedule oriented to get a good hold over several prospects in the engineering consulting business.

How will the engineering consulting business be started?

The business initially would be all about a small investment and hard works. The company will be started based on providing the best service possible for delivering professional quality services with excellent and efficient budgets and doing so on time. The business plan companies was started to implement and maintain the best policy control and develop a strategy for doing so and maintaining a smooth relation with the customers.

Engineering business

The private limited company is competent enough to deal with any kind of such business. The founder himself, being a professional engineer, is having profound knowledge in the engineering business. The team working alongside is also well to do with such a company and is highly efficient in providing the best service possible. The cost that might involve in such a business may depend on the size of the market. In our opinion, start slow, and then with the growth and expansion, the investments too would become more.

Management of engineering consulting business

The founder does the control of the market; he makes the initial and capital investments made for the company. He is the one who manages the investments made for the company following development and future growth. The management and success of the business, at last, are the results of cooperation and hard work by the team of workers in the venture.

Customers of engineering consulting firms

The customer of such a business, mainly the one who needs help and expert assistance in the specific project, may be private or public. These firms can provide expertise in the sections such as design, model, execution, and many many more aspects relating to civil, electrical, mechanical, and sometimes software engineering. Effective and efficacious communication is very helpful when it comes to engineering consulting. It is a way, which is more efficient, and most number of people can easily get through their problems/issues regarding their engineering projects/career easily. The customers of such firms are the people who need a tinge of experienced advice and guidance over their projects.

Business targets

Start with a little, and do not ever panic to make decisions for your investment for your business plan . The goal mainly should deal with providing the customer what they need, and going on with slow and steady growth to increase the business, I a year or two of your business years the target should be to get market value and minimum. Increase in the gross margin (which would significantly help your firm to grow), and the profit line should be one of your targets.

Company summary

Company owner.

The owner of the company is an experienced and skilled engineer. His mind-set is mainly involved in the welfare of the customers. The owner is the one responsible or every type of investments and inputs to the company, he not only is a role model for the company and the team but also is the main thought behind the concept of setting such a business. He was always into such an idea since starting of his carrier, and with hard works and efforts here, he is today making the dream come true

Why is the engineering consulting business being started?

The owner, as specified above, had the idea of doing so. The company is being stated to deal with the problems of the people, help them in all possible ways when it comes to consultations about design, model, and structure of the project or sometimes thoroughly supervising the project. The company aims to provide every possible expertise in the plans. They always will be getting befits from the best ideas and lots of experience.

Establish a web presence

A web presence is essential for any type of business to grow in the era of technology, and especially one that is dealing with engineering and technology needs to have a web presence. It not only makes your company grab opportunities from any part of the world but also makes your presence in the market stable. Our business mainly deals with consulting services, which needs a web presence. More good reviews and a significant presence out there allow you to grab more and more.

Services for the customers

• The leading function is for consultation and investigation which further also involves studies regarding it
• It includes detailed and comprehensive research and analysis of different conditions
• Comparison between different service ideas and opinion for the project
• Many various factors, such as risk management, capital and project cost, management analysis, and different environmental facts.
• When it comes to civil consultancy, it includes many urban and land development plans along with generating different and the best possible facilities
• Public involvement is also one of the services provided, the owner of the project need new concepts and ideas for explaining and involving the public with him
• When dealt with mechanical, the services can include selection and testing of materials, specialized equipment selection and employing people with supervising them for the project
• Evaluation and examination of the existing materials and rating them accordingly is one of the services
• They have some professional services like designing, bidding, and construction
• Further, they analyze the report based on the study and explain aspects such as financial requirements to the project

Market analysis of the engineering consulting business

If business was a sport, then the market is the playing ground where it is performed. Any type of business needs a demand to complete, and for a growing activity, it needs to expand and grow.

Market trends

Potentially we as an engineering consulting firm have a lot of different markets to target. According to the direction, we are there for planning and designing services. We not help the designs of the project with our innovative ideas but also give a proper plan to execute it. The trend shows that most of the inputs in the market come from architectural designing, then comes the structural design, and lastly, the mechanical and electrical designing.

The most important market for our firm would be the structural and the architectural designing companies as they need the inputs and detailed analysis of their projects.

Market segmentation

• For engineering, architectural, and structural firms- most of the customers for our firms are from these companies. The market in these firms have a great need for consulting services; the inputs with ideas, planning, design, and structural development are well-known works out there. Even financial management is one of the aspects
• Some government departments need the help of consultations firms with projects such as construction, forensic engineering, or structural management. We would like to present ourselves as a firm standing out there with consultation services for projects such as management and restoration.
• Law-related works are also one of our market targets. We would like to provide our expertise in fields such as mediation, arbitration and many more which would be assisted by forensic engineering
• Private individuals and realtors- we would like to provide services regarding home inspection for those people who are renovating or fixing their hose up with modern equipment
• Bodies such as Municipal Corporation also might be one of our markets. Since we are not only interested in business but also promoting it and expanding our market. Bodies such as, municipal cooperation have a vast access to people, if we can collaborate with such organizations and try to help them out. Technically, they can be one of our advertising bodies and not only this much since they work for the government and if they approve you to be a legitimate body, we can attract young students, who are interested in engineering as carrier and teach them for their benefit, which ultimately makes more and more name in the market.

Our main business targets are all the companies and firms, whether government, private, or individual ventures, who are looking for some expertise in their projects. The main objectives generally would be the substantial architectural and structural firms looking for support with their plans for ideas, designs, and financial planning. Other destinations can be electrical and mechanical firms, bodies like municipal cooperation, government structures, and law firms.

To price and bill for a project, which you will be working on is a difficult task. Often the customers can be confusing depending upon their expectation for the price, and one can find it too high and unaffordable while for the other it might be well within the reach

Clients can compare two of the providers but usually goes on what they hear from the market, which makes an essential point of standing in the market with the right name. When reasonable concessions are given with satisfactory work, customers will return to you for the next job, and also the recommendation of your work will create chances in the market.

excellent work

excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

The primary components of strategy of our business will keep growing and expanding the company in the market. The primary market strategy for the company would include the promotion and spread of the business. Good strategies, along with management for understanding the budgets, can solve your problems easily.

Sales strategy

When it comes to internet and web promotion, we will try to maximize the flow of users to our website with efficient advertisements and campaigns like email campaigns. One of the best ways to connect with customers is to meet them directly. We will try advertising in a limited budget by giving technical supports to NGOs and campaigning in local communities and schools.

Competitive analysis

It is something that is the best way to rate and know where your business is lacking. Comparing another such firm who has similar services to offer allows you to understand how to overcome things which make you lag. Since you are competing and analyzing yourself, it makes you grow with double speed as it would be the combined inputs of both you and the one which you are getting from your competitor. When you analyze on this basis, it makes your market growth, which ultimately makes your business grow.

Sales monthly

Sales monthly and annual are the analysis of the growth of your company in months and years. Regularly the gross margin is expected to be the same all over and will remain constant; with time passing by, it might increase, but it is going to be persistent.

Sales yearly

For yearly sales, the first year n is expected to be moreover a constant one, the second year might show fluctuations, and in the third, we expect a growth in gross margin. During this time, the business might need some extra cost input, which disrupts the graph sometimes, but in most cases, it same.

Sales forecast

The sales forecast is a summary of the sales and layout of the business in months and years. The sales in months and years are expressed in such estimates. This forecast shows a constant deal typically for three years in a successfully running business with a slow start for the first year. When we talk of the third year, the gross margin likely will increase, but don’t lose your patience and be there to support the business.

Personnel plan

Company staffs.

A company is a roof that is supported by the strong pillars of the employees working out there. The company staff, which gives you support and confidence to be there out at the market, is one of the main reasons why a venture becomes successful. If the team does this much for you, makes the backbone of your company secure, then they deserve appreciation, which may be in ways of good and justified salary.

The average salary of employees

The average salary of the employees should be adequate to justify their works when an employee gets what he deserves; he gives his best for the company. It creates a healthy environment and a happy workplace for the people out there. The average salary should justify what one does for a company, and most importantly, the employees should have the respect they deserve.

Financial plans

Important assumptions.

We have assumed the economy be healthy and without a recession. We believe the creation of the company will not change the delivery of engineering services. Different taxes and interest rates are taken as conservative assumptions.

Break-even analysis

A break-even analysis helps you compare total variable and fixed costs with sales revenues to determine the level of sales volume. Charts and graphs can show it, and it is the number of sales, which we need to cover the cost, and we don’t think that before a few months such things would happen.

Projected profit and loss

The projected profit and loss for the first financial year are considered much less, and the gross margin was taken high. As the years pass by and the business is in the second, and the third year the growth can be seen, and gross margin should readily increase

Profit monthly

Profit monthly with our business is moreover seen constant. The profit margins seen every month are next to the same in the initial financial years.

Profit yearly

It is the profit of the business in a financial year. In the first year the profit is not expected to be high, the second year remains to fluctuate, and good profits can be appreciated until the third financial year.

Gross margin monthly

Gross margin monthly is the gross profit the company will make in a month. The gross margin monthly is not estimated to be high in our business in the initial months.

Gross margin yearly

This is the gross profit made by our company annually. In other words, the sales from the business minus the gross cost. In our business, the first year is not expected to give a great gross margin. However, a steep increase can be expected during the third year.

Projected cash flow

The projected cash flow is an essential aspect of the project. With the starting of the business, one should have ready cash inflow, and sometimes an increase in capital investment to boost up the industry is needed. The first periods are often critical, and at this time, a company needs support.

Projected balance sheet

The balance sheet in our business shows healthy financial growth and an increase in the net worth. It shows growth in gross income and increasing business.

Business ratio

It is the ratio indicating if our business is growing or indirectly if we have many to pay our credit holders or not. Our company shows a good ratio, which means we are running out of adequate cash flow.

I hope you got some ideas on how to start with a business in engineering consulting services. Collect your idea and accurately put them for the best result. Thanks for reading!

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How to Start an Engineering Consulting Business

Below you will learn the key steps to starting an engineering consulting firm.

Download the Ultimate Consulting Business Plan Template

10 Steps to Starting an Engineering Consulting Business

1. conduct market research to determine demand.

An important step to starting an engineering consulting business is conducting market research. To begin, you must learn what services your clients want and how much they are willing to pay for them. There are two ways you can go about conducting this research:

• Survey your target market . This can be done through online surveys, interviews, or focus groups.
• Analyze competing businesses . This can be done by looking at their websites, reading their customer reviews, and contacting their clients to get feedback.

Once you have analyzed the survey data, determine which types of businesses are likely to hire you and how much they are willing to pay. Use this information to set your consulting prices.

2. Name Your Engineering Consulting Business

Once you have analyzed your market and determined what services clients want, it’s time to name your engineering consulting firm startup. While naming a business can be difficult, there are a few rules of thumb to keep in mind:

• Keep it Short : Your business name needs to be short enough for clients to remember and say.  
• Keep it Relevant : Your business name should be relevant to the engineering services you offer and your target market’s needs.
• Keep it Memorable : Using clever ideas and words, help your audience connect with your business.
• Focus on Your Target Market :  Make sure that whoever sees or hears your engineering company name understands who you are targeting as clients.

Read our article about choosing the right business name .

3. Choose Your Business Structure and Set-Up Your Company’s Legal Entity

As with any business, the type of legal entity you set up is critical.  After all, you want your company to be treated as a separate entity, not just an extension of yourself.  There are several types of structures in which you can start your engineering consulting company. Three popular options are sole proprietorship, S-corporation and LLC (limited liability company).

• Sole Proprietorship :  A sole proprietorship is one in which the business and the owner are considered to be one entity. Therefore, you are personally responsible for all debts and liabilities your engineering consulting firm may incur. One benefit of this type of structure is that it’s easy to set up and there are no formal filings required.
• S-Corporation : An S corporation is a type of C Corporation that was designed by the IRS to help small corporations minimize their paperwork while still gaining many of the tax benefits of incorporating. It also offers protection for business owners in case of lawsuits and other liabilities.
• Limited Liability Company (LLC) :  An LLC is a structure in which the company is considered a separate legal entity from its owners. This means that the company is responsible for its own debts and liabilities. This type of structure offers protection for business owners in case of lawsuits.

Read our article comparing the most common consulting business structures .

4. Write an Engineering Consulting Business Plan

A business plan is a document that outlines your business goals, strategies, and how you plan to achieve them. Your engineering consulting business plan should include the following:

• Business Description : Describe what your engineering company does, who your target market is, and how you will differentiate yourself from the competition.
• Industry & Market Analysis : Detail your research on the industry and what services clients are most likely to want.
• Financial Plan : Outline your estimated income and expenses for the next three to five years.

Other sections of your plan will answer other key questions such as the following:

• What are your areas of expertise?
• What services can you offer your clients?
• Who is your target audience?
• How will you differentiate yourself from the competition?

Your business plan should also include several sections that detail your company’s history, current financial situation, and future goals. These sections will allow an investor to learn more about your company before they commit to investing in it.

Read our article about how to write a consulting business plan .

5. Apply for the Necessary Permits and Licenses

You must register your engineering consulting business as a legal entity with the state in which you plan to do business.

To file your business with the state, obtain the necessary forms from the Secretary of State’s website or local County Clerk’s office. You will be required to pay a small fee for filing your business with the state.

Registering with the federal government may or may not be required. You can register your business on the federal level by obtaining an Employer Identification Number (EIN) from the IRS.

Read our article about obtaining the proper consulting business licenses .

6. Determine Your Budget & Apply for Funding as Needed

As with any business, you will need to use your own capital to finance the initial stages of your engineering consulting company.  Your budget may also include several other costs including marketing expenses and the salary you wish to pay yourself.  

After determining how much money you will invest in starting your business, review some options for financing your business.  Here are several financing options that may be available to you:

• SBA Loans : The Small Business Administration (SBA) is a government agency that provides financial assistance to small businesses in the U.S.  
• Bank Loans : Many small business owners are able to secure loans from their local banks. Often, you can borrow money for any purpose that relates to the growth of your company.
• Friends and Family : You can consider getting loans and/or equity investments from friends and family members..
• Angel investors : Angel investors may provide debt or equity funding to you.

Read our article about the costs associated with starting a consulting business to help you determine if funding is needed.

7. Get the Technology & Software Needed to Run Your Engineering Consulting Company Efficiently

As an engineering consulting firm startup, you will need different types of technology to complete projects and keep track of your company’s operations. To simplify the process of starting a consulting business, we’ve provided a list below detailing some items that you’ll need:

Computers : Even if most of your work is done remotely with clients on the other side of the country or world, you will need at least one computer that is dedicated to your engineering consulting company.

Software : Software is an essential component of any consulting business. The right software can help you manage projects, track expenses, and communicate with clients more effectively.

Here are some popular software platforms that may be beneficial to your business:

• Microsoft Office : This software suite includes a variety of applications that can help you manage your company, including Word, Excel, and PowerPoint.
• QuickBooks : This software is designed for small businesses and can help you track income and expenses, create invoices, and manage payroll.
• Basecamp : This project management software can help you manage multiple projects simultaneously and keep track of deadlines and milestones.
• Gmail : Google’s email platform offers several features that can be helpful for businesses, including the ability to access the same email from multiple devices.
• CRM : Customer relationship management software can help you track customer communication, manage leads, and create reports that detail your sales activities.

There may be additional software that is specific to your engineering consulting business. This may include CAD software, software for writing proposals, or software to manage your inventory. Be sure to research the different types of software that are available and find one that will fit the needs of your business.

Read our article about the technology and software you need to run a consulting business .

8.  Market Your Engineering Consulting Firm to Potential Clients

Once you’ve established your engineering consulting company, the next step is to market it to potential clients.

Here are some common marketing strategies used for engineering consulting startup firms:

• Networking : Attend local industry events and meet with people in your network. Introduce yourself and your company and be prepared to pitch your services.
• LinkedIn : LinkedIn is an excellent platform for marketing your engineering consulting startup firm and engaging with engineering industry influencers. Use the site to connect with potential clients, build industry connections, and share content that is relevant to your target market.
• Online marketing : Marketing your business online, such as through a business website and pay-per-click and/or social media marketing, can help you reach a larger audience looking for your services.
• Blogging : A blog can be a valuable marketing tool for your engineering consulting firm. Share engineering industry news, insights into your work, case studies, and more to help potential clients learn more about you and what you offer.
• Guest Posting : Guest posting is a great way to reach potential clients and showcase your expertise. Find blogs in your industry that accept guest posts and submit a high-quality article that will be of interest to their readers.

Marketing your engineering consulting firm can be daunting, but by using a variety of marketing strategies, you can increase the visibility of your company and attract more clients.

You should also consider ways to incentivize potential clients to choose you over another engineering consulting firm. Some incentives that work well include:

• Lower rates : Many consulting businesses offer lower rates on their services to attract new clients.
• Discounts on services : Offering discounts on certain projects may help you win bids against other firms.
• Free consultation : Providing potential clients with a free consultation can help them determine if your company is the best one for their needs.

Learn more about how to market your consulting business .

9.  Establish a Price Structure and Billing System

There are a few factors to consider when establishing your price structure:

• Hourly rates : Charging by the hour is a common way to price consulting services. This allows clients to budget for your services and gives you the flexibility to charge more for complex projects.
• Project rates : Charging a flat fee for a project can be beneficial for both the client and the consultant. It ensures that the client knows what they are paying up front, and it allows the consultant to charge more for more complex projects.
• Retainers : A retainer is a set amount of money that the client pays upfront for services. This can be a good option for clients who need regular consulting services.

No matter which pricing structure you choose, be sure to clearly communicate it to your clients. Additionally, have a detailed invoice template that includes all the engineering services you provided so the client knows exactly what they are paying for.

10.  Manage Client Relationships and Deliver Projects

After finding new clients and marketing your engineering consulting firm, you should begin delivering the projects and getting paid. This means managing client relationships and making sure that clients are happy with your work. Some of the ways to manage relationships with your engineering clients include:

• Regular communication : Keep in touch with your clients regularly, whether it’s through email, phone calls, or in-person meetings. This will help ensure that they are kept up to date on the progress of their project and that any questions or concerns are addressed quickly.
• Detailed reports : Send regular reports to your clients detailing the progress of the project, including how much has been completed and how much is left to do. This will help them stay informed on the project’s progress and ensure that you are meeting their expectations.
• Client feedback : Ask your clients for feedback after the project is completed. This can help you improve your services and ensure that clients are happy with your work.
• Delivering on time and budget : Make sure that you meet your deadlines and stay within the budget that you agreed upon with the client. This will help keep them happy and ensure future business from them.

Delivering projects on time and within budget is essential for an engineering consulting business. It can be beneficial to create a project management plan that outlines how each project will be completed. This will help ensure that all deadlines are met and that the client is happy with the final product.

Learn more about how to effectively manage client relationships .

Starting an Engineering Consulting Business FAQs

Why start an engineering consulting business.

There are many reasons to start your own engineering consulting firm. The most likely is that you are an experienced engineer who wants to use your skills to help others while earning a nice income and enjoying the flexibility of being your own boss.

What is Needed to Start an Engineering Consulting Business?

There are a few things you will need to start an engineering firm:

• A business license
• A website or brochure to market your services
• A portfolio of your past projects

What are Some Tips for Starting an Engineering Consulting Firm?

The following tips can help you to start an engineering consulting business:

• Choose the right business structure : There are a few different business structures you can choose from when starting an engineering firm, each with its own pros and cons. For example, a sole proprietorship is easy to set up and maintain but offers limited liability protection for the owner. A limited liability company (LLC) provides more liability protection but is more complex to set up. You should consult with an accountant or lawyer to help you choose the right structure for your business.
• Create  a website or brochure : A website or brochure is essential for marketing your engineering consulting services. Be sure to include information about your experience and qualifications, as well as examples of your past work.
• Get insurance : It is important to have insurance in case something goes wrong while working on a project. Be sure to get the insurance that will protect you and your business.
• Market your services : You will need to market your engineering consulting services to find new clients. Use your website and brochure to market your services, and network with other professionals in your field.
• Stay up to date on the latest technologies : As an engineer, it is important to stay up to date on the latest technologies. This will help you better understand your clients’ needs and how to best help them.
• Manage client relationships : It is important to manage client relationships effectively to keep them happy and get future business from them. Be sure to keep clients informed on the progress of their project, meet deadlines, and stay within budget.
• Keep track of your expenses : Keep track of your expenses so you can stay within your budget. This will help you be more profitable and increase your chances of obtaining future contracts.

• Business Plans Handbook
• Business Plans - Volume 04
• Engineering/Management Consultant Business Plan

Engineering/Management Consultant

BUSINESS PLAN

HERMAN LIVINGSTON CONSULTANTS

3053 Harbor Drive, Ste. 206 Los Angeles, CA 90041

HLC's business plan contains informative financials for anyone considering entering the engineering/management consulting business. One interesting aspect of the plan is HLC's plan of networking with other similar businesses to work together and create more opportunities.

EXECUTIVE SUMMARY

Description of business opportunity, description of the market, location of business, description of the competition, management & key personnel, milestone schedule, financial data.

Herman Livingston Consultants (HLC) seeks to raise equity capital of $28,000.00 principal equity for start-up costs involved with an engineering/management consulting firm. This includes the purchase of furniture, equipment and inventory; renovations and improvements at Los Angeles, California office site, and maintenance of sufficient cash reserves. This plan provides a description of the business opportunity and an outline and time line of the start-up period for HLC.

During his eight year involvement with the architecture, engineering and construction (A/E/C) industry, Herman Livingston realized unresolved obstacles existed in many organizations. Despite the lack of qualified management to correct the problems, most A/E/C owners hesitate to seek outside managerial assistance. Mainly this is due to the justifiable belief that an MBA management consultant would not have the technical knowledge to develop applied solutions to A/E/C firms in transition.

This gap in the market place inspired Herman Livingston to establish Herman Livingston Consultants (HLC), a professional service company specializing in providing engineering and management consulting (E/MC) services along with software sales to A/E/C companies and public works departments to enhance and strengthen their organizations and to meet the needs of their clients. In conjunction with established E/MC and software firms, HLC will provide the essential technical knowledge and products to develop goal oriented solutions that address the client's strengths and weaknesses.

The nature of selling consulting services is difficult since the sold product is unique and varies according to the needs of the client. The management of HLC plans to offer, but not be limited to, the following services:

• Civil, structural, and electrical engineering design
• Project management and assessment
• Quality assurance and quality control
• Computer software and hardware advisement
• Business development assistance
• Executive search
• Operations analysis
• Personnel manuals
• Competition and client analysis
• Company valuation
• Business plan preparation (Start-ups)
• Performance management systems
• Customer service bench marking (internal and external)
• Expert testimony

Because HLC will be able to chose temporary partnerships with all types of engineering companies and/or management consulting firms based on the job at hand, the flexibility of the company is virtually unlimited. HLC can provide cost effective services for small and large companies, from the public and private sectors. The flexibility to create any size group is further enhanced by Herman Livingston's project management background and strong industry understanding.

In addition to providing professional services, HLC will assess the client's computer needs, if requested, and recommend alternate courses of action. Ultimately, HLC will work to implement both installation and training of new software that will greatly benefit the client. The approach will involve both a thorough understanding of the available software tools and the ability to provide cost/benefit proposals for the client to take action. HLC plans to arrange for a percentage-of-sale fee paid by the software supplier along with a technical service fee paid by the client. The goal here is to leave the client with a product that will greatly enhance their company.

In June 1996, HLC plans to commence business at 3035 Harbor Drive, Ste.206, Los Angeles, CA.

HLC will provide engineering and management consulting services to A/E/C companies and public works departments to enhance and strengthen their organizations and to meet the needs of their clients. As many private companies and public agencies have recently trimmed their staffs, HLC will seek to provide the services that they can no longer provide internally. Initially, HLC will target 80% engineering/20% management consulting strategy and shift to 30% engineering/70% management consulting as the company grows. The firm will continue to provide engineering services in order to stay in touch with clients.

The goal of HLC is to be the management consultant company that the A/E/C industry and public works departments in Southern California ("target region") look to when they are faced with unique situations. Presently, the value of total construction in Southern California stands at $9.3 billion, which includes heavy construction, non-residential, and multi-unit residential. The demand for architecture and engineering companies is driven by construction activity. There are presently 20,560 A/E/C companies located in the target region of which a majority are headquartered here. Below is the list of top A/E/C companies based in the target region; Adwell Corporation, Hinsworth Corporation, and JAX Group are the top 3 A/E/C firms in the world.

Although the potential for finding a niche with large A/E/C organizations is the greatest, HLC will also target public agencies. There are hundreds of public agencies in the target region, including cities, counties, transportation boards and state agencies. Often public agencies are not equipped to provide adequate community services, due to both the lack of staff and knowledge specific to each project. HLC can provide public officials with technology support to complete each complex, varied project with the greatest efficiency.

In addition to providing consulting for private companies and public agencies, HLC will strive to both assist and partner with other management consulting firms. There will be several A/E/C company assignments that a small firm cannot physically handle. In these situations, HLC will position itself as the industry specialist working with the project team. There are less than a hundred management consulting firms that provide services to the target market and work in the target region.

HLC has the potential of over 30,000 public and private clients—the "target market" as described above. These customers will be attracted by:

• Direct approach to all management levels of the target market, including cold calls, letters and "at work" presentations. This presentation will involve meeting the prospective client at his/her office to discuss concerns and projects and to find common ground in which HLC can help. Typically, reference material will include a laptop computer with various Powerpoint presentations, work portfolio, referral lists, business cards, brochures and a calendar of upcoming events.
• Networking events where business cards and brochures can be exchanged.
• Published papers in professional A/E/C journals related to HLC's line of business.
• Referrals from other professional companies and public agencies.
• HLC's strategic location near major freeways and the Los Angeles International Airport (LAX).

The competition consists of engineering firms, management consultants, and employees at the client's office. Even though other firms have more people and experience, HLC will win business by understanding the interaction of technical personnel and management. The key to beating the competition is by strategically balancing price, efficiency, and differentiation. We will provide work above the client's expectations and the competition's ability (i.e. early completion, less cost, future paradigm analysis). Finally, in order to best understand the competition, HLC will analyze other company's successes and failures on a regular basis.

HLC plans on capturing only a small portion of the market. Fortunately, the market is not very competitive because most engineers become managers within engineering companies and management consulting firms don't understand the cultures of A/E/C companies enough to quickly root out problems. A complete market analysis will be provided in the Marketing Plan.

HLC is currently utilizing approx. 500 square feet on the first floor of a two-story masonry building with cement floor at 3035 Harbor Drive, Ste. 206, Los Angeles, CA. HLC plans to perform leasehold improvements, including the addition of a conference room, small kitchen, and interior redecoration. The building is divided into (1) a mechanical/electrical engineering shop; (2) a multipurpose office, including one restroom with separate entry; (3) conference room with kitchenette and storage; and (4) upstairs office space presently being leased by Sullivan mechanical engineers. HLC will occupy 64 sq. ft. of the multipurpose office and the entire 210 sq. ft. of the remodeled conference room.

The current building owner, Caldwell Livingston, has generously offered to provide an equity contribution to the business for the first year. The area is zoned for commercial use. Harbor Drive is a heavily traveled, east-west commercial/residential route with most nearby businesses either dining establishments or repair (service) shops. Within a few blocks, there is convenient access to many of Southern California's freeways. Also nearby, the SC transit station provides rail service throughout the South Bay cities.

There are four consulting firms providing services similar to those contemplated by HLC:

Schwimmer & Associates— an independent, management consulting firm run by Calvin Schwimmer, a registered civil engineer and college professor. Mr. Schwimmer is a project management consultant assisting engineering firms and public agencies in proposal preparation, cost estimating, project scheduling, and project management activities. Many of Mr. Schwimmer's clients are also present engineering clients of Herman Livingston. His previous employer was the Alexander Co., where Mr. Schwimmer worked as a project manager. Since Schwimmer & Associates is small and focuses on project management, HLC has confidence that the two firms will have several opportunities to work together rather than compete.

The Coleman Group— a twenty-four year old management consulting firm that caters strictly to the A/E/C industry. According to President Aaron Coleman, The Coleman Group has worked with more than 1,000 clients (less than 0.1% of the market) and is headquartered in San Antonio. The firm has only 13 consultants (6 architects, 4 engineers, and 3 behavioral scientists) that respond proactively to clients by understanding the market and by writing and speaking to professional organizations. Consultants are not salaried, but rather rely on assignment fees. The Coleman Group will be used as a model for HLC both in business development and proactivity, but their limited size minimizes The Coleman Group as a competitive threat.

As with Schwimmer & Associates, HLC will meet with The Coleman Group to discuss partnering opportunities for large consulting assignments. The benefits to The Coleman Group are those in the business description outlined above.

Piedmont & Co. — with 80,000 people in offices worldwide, Piedmont claims to have broad experience in serving the global engineering and construction industry by providing a variety of consulting, audit and tax related services. Piedmont's services include business process reengineering, performance measures, strategic planning, organizational design, customer satisfaction, ISO 9000, project management, global best practices, human resource management, materials and costs management, business systems, and litigation. Piedmont's engineering and construction industry group is headed by Ms. Connie Hall and is headquartered in Atlanta, Georgia.

HLC learned during a year of competitive research that Piedmont was not able respond to a request of an engineering manager seeking assistance. After several calls to reach the right person, HLC finally received a generic brochure package addressed to the wrong company. This was the extent of Piedmont's pursuit of potential work. HLC can much more successfully reach the A/E/C market in southern California.

Fowler Reynolds (A Subsidiary of the Hinsworth Corp.)— has 16 quality centers throughout the United States claiming to provide new and innovative quality methods, systems and technologies that are providing radical improvements to their clients. Fowler Reynolds states that they provide "the leading edge in changing the Architectural/Engineering and Construction Community and directly affecting the bottom line." Their intent is to help companies and agencies that the Hinsworth Corp. works with (which is extensive) in providing higher quality, ISO 9000 certification, and executive management support.

In July 1995, HLC met with Mr. Steve Jenkins, Director of Quality Assurance, to discuss both Fowler Reynolds' business and potential partnering opportunities. First impressions of Fowler Reynolds were that this business unit was being driven by one man, Shawn Reynolds, who had good intentions, but a flawed business philosophy. The problem is that A/E/C companies do not want a competitor knowing what is wrong with their business. Also, Fowler Reynolds has the same bureaucratic structure that potential clients deal with in their own businesses. By meeting's end, Mr. Jenkin's almost desperately asked that HLC come back with ideas to help them build their business. Since this meeting, no mention within the industry has been made about Fowler Reynolds.

Indirect competition exists from internal staffs at HLC client offices. If clients have the options, they will and should have their staff provide the service. HLC will direct the client to use their internal staff if it is determined prudent to do so. However, from an objectivity standpoint, an outside consultant will often be the best solution.

Herman Livingston is a native Californian and has resided in Southern California all his life. After graduating valedictorian from South High School, he attended the University of Southern California (USC) and received his BS in Building Science in 1987. He began his professional engineering career with the State of California Department of Transportation (Caltrans), working in both construction and project planning. Then, Mr. Livingston worked for Trudell Engineering Company focusing on engineering design, business development, and research. Finally, he worked as a project and office manager for Johnson Associates Infrastructure, Inc. (JAI).

While at JAI, Mr. Livingston received his professional engineering registration from the States of California (1993) and Florida (1995). He completed his MS in Engineering Management in 1994 learning about proven management techniques used in all engineering industries.

Karen Livingston, wife of Herman Livingston, is also a native Californian. After graduating in the top 5% of her class at Beachside High school, Ms. Livingston moved to Los Angeles to pursue a BFA at the prestigious California College of Design. Ms. Livingston worked seven years at Nouveau Fashion Industries as technical designer and import manager where her responsibilities included developing and updating procedural manuals for the fitting and import departments. During this time, she also wrote two novels and had several short stories published. In 1995, Ms. Livingston started her own business and has worked with such companies as Nostalgic Antiques, developing a computerized inventory system, designing marketing campaigns and product displays and creating an updated business plan.

Both Mr. and Ms. Livingston believe their complementary knowledge and goals will make HLC a success. In particular, Mr. Livingston understands the A/E/C industry and is a highly regarded member of the community while Ms. Livingston is a proven quality assurance and report writing expert. Since Mr. Livingston has industry track record and management experience, he will be responsible for business development and project control. Ms. Livingston will be primarily responsible for proposal preparation, research and product quality assurance and control. Together they will set all business policies and personnel decisions.

The Livingston's will draw a combined salary of $5,000/month based upon a minimum 40% billing utilization. Ms. Livingston will retain outside business activities earning approximately $500/month and expected to increase. The Livingston's personal expenditures total approximately $4,500/month, including housing, automobiles, insurance, etc.

In order to augment their skills, HLC has enlisted an advisory board consisting of John Commons, founder and president of Capital Management; Dean White, office manager of Dunstable, Goody & Company; Alice Reed, senior associate of Corbin Consulting; Darin Johnson, project manager of Parkway Co.; Trent Silman, vice president of XRS Group, Inc.; and Calvin Schwimmer, founder and principal of Schwimmer & Associates. This board along with several other professional associates will provide on-going management review.

Initially, HLC will not hire any outside office administrative help. HLC will strive to grow the business quickly in order to maximize profits, but only two additional employees have been planned during the first two years. Employees will be chosen based upon their superior knowledge and understanding of their business and will be compensated accordingly.

Preliminary Business Plan June 2, 1996 Work in progress using "The Business Planning Source" by Duke Binman

Send Out Business Plan for Review June 3, 1996 Confidential review by advisory board, family, friends, and professional associates

Meet with Attorneys Week of June 3, 1996 Referrals presently sought

Gather Required Service Information Week of June 10, 1996 Medical, dental, professional insurance, supplies, retirement plan, equipment

Cease Present Employment June 14, 1996 8-week phase-down period through August 9, 1996

HLC Opens to Business June 17, 1996 Hard work & commitment

Finalize Business Plan June 30, 1996 Send to advisory board, family, friends, professional associates, and handouts for HLC Open House

Begin Construction of Office July 6, 1996 Contingent upon Perform Engineering Company clearance office area

Finish Construction of Office December 15, 1996 Finish before the Holidays

Start All Required Services Week of August 5, 1996 Begin services on Sept. 16, 1996

HLC Open House - Xmas Party January 1997 Existing and potential clients, friends, partners, associates

Sources of Funding

Capital Equipment List

Balance Sheet

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Mechanical Engineering Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Construction & Engineering

Are you about starting a mechanical engineering firm? If YES, here is a complete sample mechanical engineering business plan template & feasibility report you can use for FREE .

Starting a mechanical engineering business is different from your average business, as expertise in this industry is required especially if you intend to be able to meet some of the expectations of your clients. The mechanical engineering industry is one with several niches such as kinematics, mechanics; robotics; drafting and structural analysis and most firms usually offer to stick to one or two niches rather than attempt to offer all the services.

Starting this business can be a bit difficult as you will also need to employ or partner with a host of mechanical engineering professionals, and also employ other proficient staff to help you run your firm and achieve your intended corporate goals and objectives.

Another thing that would be required is a business plan. While writing a business plan might look complex, it is for this reason that a sample mechanical engineering firm business plan has been prepared below for you;

A Sample Mechanical Engineering Firm Business Plan Template

1. industry overview.

The engineering industry isn’t doing so well as demand fell due to the fall of oil prices in 2015. This action caused the industry to not only slow down but to cancel on major projects in the case of the crunch. Asides cancellation of projects, most firms in the industry also reduced its capital spending which led to a stall in the industry.

The oil price was not responsible alone for the fall of the industry as economic activities in other countries such as China which had seen a decline also contributed to the global downturn.  China has been a chief player globally as regards economic activity and infrastructure projects for at least the past ten years.

According to analysts, 2016 will still not be a good year for the engineering industry as revenues will continue to fall especially as global economy is virtually still unstable. This action will lead to a stagnation process for the industry that was previously recovering from the previous collapse it experienced in the 2008 and 2009 financial crisis.

According to a study by Commerzbank, the mechanical engineering industry in Germany was on the positive outlook as there was a slight increase of about 3% in demand for the country’s products by other nations in Europe. This means that the mechanical engineering sector in the engineering industry is growing when compared to other sectors in the industry.

China has seen stiff competition in its mechanical engineering industry from other Asian countries as more providers are also entering the market in order to showcase what they are able to offer.

According to the united states Bureau of Labor Statistics, employment of mechanical engineers will grow by 5% between the periods of 2014 to 2024. This percentage is averagely what other occupations in other industries are expected to pull.

It is however not all gloom in the industry as the sector saw a slight increase in the year 2015 and has been projected to grow another 6% in the year 2016. According to analysts, a global growth and economic stability will see an annual growth in the industry to more than 100% what it is currently is.

2. Executive Summary

Motown Mechanical Engineering Firm is a standard mechanical engineering firm that will be based in Detroit – Michigan, USA and will cover all our corporate and individual clients. We are in the mechanical engineering sector to offer production of products as well as consultancy and advisory services to our various clients.

Our vision as a company is to ensure that we get at least three major clients by the end of our second year in business and that we meet the expectations of our customers so as to ensure that they stick with our firm and also refer us to others. To achieve this, we will build excellent relationships with our clients and also build the best business structure.

Our location in Detroit – Michigan is very strategic as it is one of the mechanical engineering hubs in the country, which means that we are near to the kind of strategic clients that will give our business the boosts we need. We are also in a very conspicuous location that makes it very easy for our customers and even employees to access us.

The machineries we use in our mechanical engineering firm are those that are designed to give us optimum satisfaction by lasting for a long time and causing us to spend less on buying new machines and equipment as replacements. This means that our customers have no need to fear that their demands will not be met on time due to poor machineries.

We have the best management team as they are not only the best we could source for in relation to the size and scale of our firm but they are also determined individuals that understand our core values and are willing and committed to ensure that we attain our desired goals and objectives.

We have built the best business structure for our firm as we sourced for and recruited the best hands to help us achieve our vision. Our workers understand that we are in business to make a profit and that the closer we are to achieving our goals, the better it gets for all those involved and so they are willing to remained dedicated to our true goals.

Our facility is one that is conducive for our employees because we understand that a conducive environment breeds productivity and efficiency in the workplace. We also run a standard facility and our work ethics are of the highest standard and as transparent as possible.

Finally, our Chief Executive Officer Mr. Don Perrine is a talented entrepreneur and businessman who have the finesse and expertise required to ensure that our mechanical engineering firm attain its intended goals and objectives. He has a B.Sc. Degree in Mechanical Engineering from the University of Oxford as well as a Masters Degree in Business Administration. He is also a certified project manager and has many projects under his belt

3. Our Products and Services

Motown Mechanical engineering Firm is established with the intention of dealing in all sorts of services to its various clients not only here in Detroit – Michigan but all over the United States of America as well. In our bid to ensure that we build a bottom line that will sustain our business and allow us grow, we intend to offer several services in addition to our core service in order to create multiple sources of income.

We intend to make our profit legally and under the permissible laws of the United States of America. Therefore some of the services we intend to offer to our clients are;

• Mechanical designs
• Structural analysis
• Other services such as assistance on code compliance, litigation support, safety inspections, and operational procedures
• Consultancy and advisory services

4. Our Mission and Vision Statement

• Our vision is to ensure that we get at least three major clients by the end of our second year in business and also to ensure that we meet the expectations of our customers so as to ensure that they stick with our firm and also refer us to others.
• To achieve our vision, we will ensure that we build effective long-term relationships with our clients and also offer excellent and efficient services that will be delivered in a timely and cost-effective manner.

Our Business Structure

Having a solid business structure is very important to us and so we have set forth processes and structures that would ensure that we start off on a solid foundation and run with as less hitches as possible. This is why we are willing to go the extra mile to ensure that we get the right hands to work with us in all the available positions in our mechanical engineering firm here in Detroit – Michigan.

We are going all out to ensure that we build a professional team that are not only committed but understand our vision and where we are going to and are willing to ensure that we attain our corporate goals and objectives. Our management staffs for instance are some of the best professionals in the whole industry and have the expertise on how to ensure that we become a reckoning force nationally.

Due to the fact that we intend to offer more services than we ordinarily should, we would be employing more hands to handle the new tasks that would arise from our more services here at Motown Mechanical Engineering Firm Inc. Below is the business structure that we will build at Motown Mechanical Engineering Firm;

Chief Executive Officer

General Manager

Chief Financial Officer

Plant Manager

Human Resources and Admin Manager

Marketing Executives

Customer Service Executives

Business Development Officer

Security Guard

5. Job Roles and Responsibilities

• Drafts policies and strategies that will set the path for the organization’s future
• Meets with high level clients on behalf of the organization
• Reviews policies and modifies ineffective policies whilst ensuring that effective policies are duly implemented
• Coordinate all the departments and ensures that management staff duly understands the policies of the organization
• Takes certain important decisions on behalf the chief executive officer
• Handles all financial transactions and ensures that all transactions are in accordance to financial rules
• Monitors the revenue of the organization in order to ensure that the loan collected is fully repaid
• Prepares tax documents accurately and ensures that they are submitted to the tax authorities as at when due
• In charge of all machineries and employees working in the plant
• Ensures that machineries in plant are functioning fine
• Carries out light maintenance and repairs when necessary on behalf of management
• Conducts recruitment and carries out orientation of new employees on behalf of the organization
• In charge of employee welfare and incentive packages
• Carries out regular performance appraisals in order to rev up the productivity of the employees for the benefit of the firm
• Conducts market research in order to determine new markets for the firm
• Drafts effective marketing objectives to be used to attract clients for the firm
• Meets physically with clients on behalf of the firm
• Answers enquiries from clients with the aim of giving back accurate information about the company
• Ensures that they are updated not only on company policies but also on industry trends
• Keeps an updated and accurate database of clients on behalf of the firm
• Looks into developing new businesses in order to generate new streams of income for the firm
• Works with the marketing executives in order to understand the target market
• Carries out any other duties that might crop up
• Drives supplies and materials to and from the firm
• Ensures that materials gotten are accurate and in line with documentation
• Carries out light maintenance and repairs on the vehicle when necessary
• Ensures that the premises and properties is always secured at all times
• Monitors all activities both incoming and outgoing on behalf of the organization
• Provides beneficial security tips on behalf of the organization
• Ensures that the premises is kept clean at all times
• Ensures that cleaning supplies are always in stock
• Carries out all duties as might be determined by the human resources

6. SWOT Analysis

Due to our desire for excellence, we know how important it is for us to start and run a standard mechanical engineering firm and so we have had to engage one of the finest business consultant here in Michigan who has a deep knowledge of the business we intend going into as well as the environment from where we intend to operate from.

After looking through our business concept, the business consultant used an analysis that would allow him know how we were likely to fare in the mechanical engineering industry.

In carrying out an evaluation as we asked for, the business consultant was able to use our strengths, weaknesses, opportunities and threats to determine what we are likely to be exposed to here in Detroit – Michigan, here in the United States of America. Below is the result of the SWOT analysis that was conducted on behalf of Motown Mechanical Engineering Firm;

There are several strengths available to us as a new start-up and it starts from the services that we are offering our various customers. We fully intend to employ highly competent and professional employees who not only understand what our firm stands for but also what trends in the industry and how our firm could benefit from it.

We have a team that would b able to meet up with demands of our clients as our motto is to be able to deliver our projects in a timely manner to all our clients. We know how valuable our clients are and so we intend to ensure that we go all out to make them keep coming back to patronize us and also refer others to us as well.

Finally, our management staff and our chief executive officer have the necessary experience and qualifications that would ensure that we are able to achieve our corporate goals and objectives.

The mechanical engineering industry is a complex one and so as a start-up we would not be able to fully compete with already established mechanical engineering firms because we are limited in finances and employees. We intend to work seriously though and change our weaknesses to our strengths as soon as we can.

• Opportunities

Several opportunities are available to us in this industry and we are set to ensure that we fully tap into the opportunities available. We intend adding the robotics niche because we know that the future lies in robotics, which is another opportunity for us.

Every business faces threats at every point in time and our business is no different. We would likely be facing threats from the economy especially if it experiences a downturn which would mean that there would be fewer clients for the firm.

Also, if there is an arrival of a competitor offering same services in our same location, it will definitely affect our overall revenue. Facing threats aren’t new, but we have strategies in place to handle any threat that are likely to occur.

7. MARKET ANALYSIS

• Market Trends

Even though mechanical engineering firms can service a broad client base by offering several services, most mechanical engineering firms choose instead to specialize in a niche, whilst forming strategic partnerships with other mechanical engineering firms offering other services in order to be able to fully deliver to their customers.

Whilst this might seem counterproductive, a niche market offering is actually wise especially for a start-up who might not have all the necessary resources in which to offer a full scale of activities to its customers. Recruiting the right employees for a mechanical engineering firm can be very difficult because of the need to recruit an array of engineering professionals amongst other kinds of workers.

Most clients will only patronize the services of a mechanical engineering firm, if they know that the staffs in the firm have the necessary experience and expertise. This does not however mean that you cannot start your mechanical engineering firm with some core staff whilst partnering with another firm for staffs you might need whenever a job comes up.

Most mechanical engineering firms usually end up expanding their business models in order to offer support services such as safety inspections, litigation support, operational procedures as well as assistance with code compliance. This is often to create multiple sources of income for the firm in order to sustain and grow the company.

8. Our Target Market

Even though mechanical engineering firms offer services to a wide array of clients, restriction of the target market to just a set of clients for our firm cannot be done, which is why we have conducted a market research on the market we intend entering.

The reason for the market research is so that w would have an idea on what the clients expect from us, which would allow us know how best we can offer our services. We therefore are in business to offer our services to the following group of people;

• Government agencies
• Corporate organizations
• Other engineering firms
• Construction companies
• Aviation industry
• Transportation and auto industries
• Other mechanical engineering firms
• And other related industries

Our competitive advantage

We are a business established because of our passion for the engineering industry and the desire to bring forth standard practices through our ethical practices. We are also a firm that intends to make profit via our services and also be able to compete favorably against our competitors in the same industry globally and nationally.

To achieve all that we intend, we have laid down competitive strategies that we intend to deploy as a means of standing out in the industry.

Our intention is to be amongst the top three mechanical engineering firms not only here in Detroit – Michigan but also all around the United States of America. We will ensure that we deploy effective promotional strategies to entrench our brand in the mind of our customers.

We have the best technologies and also use the best machineries which mean that clients who place orders always get it done within time with as few hitches as possible. All our machineries and equipment all undergo intense inspection before and after use to be able to forestall any problems that might likely crop up.

We have highly trained and competent staff in our employ as we understand that having experienced and competent staff gives us an edge over our competitors because not only do they understand what our company stands for, they know how best to help us achieve our goals.

We also offer our employees a great welfare package, better than what they are most likely to get if they were working for our competitors. We also ensure that our employees get periodical trainings that will enhance not only their skills but also increase the productivity and efficiency rate for our firm.

Finally, we understand how valuable customers are to any business and so we treat all our clients with the utmost respect that they deserve. All complaints are promptly treated and all feedbacks duly appreciated. We also reward customers who are loyal to us as well as those who refer us to others.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Motown Mechanical Engineering Firm is a reputable firm that is based in Detroit – Michigan and intends to offer certain services to its intended customers from in and around its intended location.

Asides our core service, we will be adding other services as well in order to boost our bottom line and help sustain and grow our company. Therefore the several ways by which we intend to generate income for our mechanical engineering firm include;

10. Sales Forecast

Mechanical engineering firms are ones that are very vital to the economy and as such cannot be done without. Our strategic location in Detroit – Michigan is one that has us optimistic of not only generating and reaching our revenue goals but also allow us grow and expand our business in as little time as possible.

Our arrival at the sales forecast for a three year period was borne from the fact that we conducted a critical analysis of the industry and how we intended to achieve our set goals based on certain data and assumptions from the similar start-ups such as ours especially those who were located in the same location with us.

Below therefore are the sales projections that we arrived at for Motown Mechanical Engineering Firm using several assumptions;

• First Fiscal Year-: $2,000,000
• Second Fiscal Year-: $4,000,000
• Third Fiscal Year-: $8,000,000

N.B : It should be noted that the above sales projections were carried out based on the fact that certain assumptions would not change, such as there would not be a downturn in the economy or the arrival of any major competitor. Should any of these assumptions change, it would have an impact on the sales projection, which might increase or decrease depending on the positivity or otherwise of the assumptions stated.

• Marketing Strategy and Sales Strategy

Marketing is a very essential part of any business because not only does it generate awareness about the brand but it also serves to generate income for the brand. Not carefully drafting and deploying effective marketing strategies has seen to the collapse of businesses.

Since this is basically the major way to generate revenue for our firm, we have conducted a marketing research in order to identify our best to attract our target market.

We know how importance technology has come to be in the marketing process and we fully intend to use this to our advantage in our marketing strategies by creating apps and also using the internet to ensure that we create awareness for our mechanical engineering firms.

We have hired a marketing consultant who is well versed in the industry and who understands the environment we will be operating in to help us draft effective marketing strategies that will allow us be able to compete favorably against our competitors.

We would also be empowering our marketing staff in order to modify or remove ineffective marketing strategies and decide what is best for our firm overall based on our corporate core values and philosophies, whilst also positively communicating our brand to our potential and existing clients.

Therefore, the marketing and sales strategies we intend to adopt for Motown Mechanical Engineering Firm are;

• Ensure that we formally introduce our mechanical engineering firm to our potential and existing clients as well as industry stakeholders
• Throw a grand opening party to launch our mechanical engineering firm in a way to boost awareness for our firm
• Engage in direct marketing
• Place advert for our mechanical engineering firm in local newspapers, and on radio and television stations
• Ensure that we use social media platforms such as LinkedIn, Google Plus, Facebook, and Twitter to advertise our business
• Ensure that we are listed in local (yellow pages) and online directories

11. Publicity and Advertising Strategy

No matter how large scale our business might be, having the right publicity is very vital to the business as it would ensure that not only is our brand positively communicated to all our clients but that we are able to effectively compete against our competitors in the marketplace.

We have for this purpose hired a brand consultant who has knowledge about our kind of business and the environment we intend to start off in to help draft effective publicity and advertising strategies that would help create a positive awareness in the eyes of our clients not only here in Michigan but all over the United States of America.

The platforms that we intend to use in promoting and advertising Motown Mechanical Engineering Firm here in Detroit – Michigan are;

• Sponsoring projects in the local community in which we are based
• Use corporate social media platforms like LinkedIn, Google Plus, Facebook and Twitter to generate the right awareness for our mechanical engineering firm
• Placing of adverts in local newspapers as well as on radio and television stations
• Install our bill boards in strategic locations all around Detroit – Michigan in order to raise awareness locally about our services
• Distribute our handbills and fliers in target locations
• Promote our activities vi our official website as well as on other related blogs and websites

12. Our Pricing Strategy

Setting the right rates for our services will depend on a whole lot of factors such as what our overhead costs and operational costs are, what our competitors are offering and what is fair to our customers while allowing us make a profit as we should.

Setting the right rates for our services will mean we employing the right strategy that will allow us get the detailed rates that we will eventually come to charge our customers. In view of this, we intend to charge rates much lower than what is ordinarily obtainable in the industry for at least three months.

The idea behind this is that we will be able to attract the customers we would need for our business, which would allow them see what we have to offer. We however will not offer ridiculous prices in such a way as to cause a price war between us and our competitors.

Having looked critically at the rates we will be offering during this period, we would however like to point out that even though we would be running on a low profit margin for this period, we would not be incurring any loss whatsoever for our firm.

• Payment Options

Due to the diverse offerings that we intend to offer at Motown Mechanical Engineering Firm, it will allow us to have attract different customers to our firm who will have diverse preferences for how they which to pay for the services we would be offering.

This has enabled us to come up with different payment options. The payment options that we therefore intend to offer all our various customers are;

• Payment via check
• Payment via bank draft
• Payment via online payment portal

The above payment options which we came up with were carefully chosen by us after considering what will be good for our clients and for us eventually. The platforms will be without any hitches whatsoever.

13. Startup Expenditure (Budget)

Mechanical engineering firms are complex businesses because it not only require professionals but also need strategic partnerships with other firms, which is why in generating capital for the firm, there are a lot of things that need to be put under consideration.

Therefore, after generating our capital, it should be noted that the bulk of the capital will definitely go into procuring equipment, paying employee salary and leasing a facility. Therefore, the key areas where we intend to spend our start-up capital on are;

• Total fee for registering the business in the United States of America – $750
• Obtaining of licenses, permits and accounting and customer management software – $5,250
• Cost of hiring several reputable business consultants and payment for a business plan – $20,000
• Insurance coverage (general liability, asset insurance, equipment insurance and workers’ compensation) – $5,000
• Cost of purchasing several equipment and machinery – $500,000
• Operational cost for the first 6 months (payments of employee salaries and utility payments) – $300,000
• Cost of leasing a facility for use at six years and carrying out renovations – $300,000
• Marketing promotion expenses (grand opening party promotion and general marketing) – $20,000
• Other start-up expenses (furniture, stationeries, computers, printers, and phones) – $9,000
• Cost of purchasing one transport truck – $55,000
• Cost of launching a website – $1,000
• Cost of throwing a launching party – $5,000
• Miscellaneous – $10,000

From the above analysis, we would need the sum of $1,231,000 if we intend to not only start but successfully run our mechanical engineering firm here in Detroit – Michigan.

Even though the amount is quite average, it should be noted that the bulk of the capital will go into buying heavy machineries and equipment for use; leasing and renovating a facility and furnishing it, purchasing a truck as well as payment of employee salaries utility bills.

Generating Funding / Startup Capital for Motown Mechanical Engineering Firm

Motown Mechanical Engineering Firm is owned by a foremost mechanical engineer and businessman, Mr. Don Perrine, who has over 20 years experience in the engineering industry as well as in the business sector. Don intends to source for funds from various sources in order to be able to generate the needed capital for his business.

Some of the sources where he intends to generate the required funds for his business are;

• 30% of the total capital from sale of personal stock
• 70% of the total capital from the commercial bank

N/B : From the sale of his personal stock, he was able to generate the sum of $369,300. The bank which Mr. Don Perrine has approached has agreed to lend him the sum of $861,700 after looking through his business plan. The bank loan will be repaid after 7 years with a 2.5% interest rate.

All the loan documents have been signed and approved, and the money would soon be credited to the company account before the end of the work week.

14. Sustainability and Expansion Strategy

Sustaining a business in order to grow and expand it is very vital and as such we have carried out measures to ensure that our mechanical engineering firm is effectively sustained. The measures we intend to deploy in implementing our sustainability are business structure, customer loyalty and re-investment strategy.

Building a solid business structure is very important to us because we would like to do away with any hitches whatsoever in the bid to offer our services to our clients, and to this effect, we are sourcing for and hiring professional and competent employees.

Our employees are not only professionals; they also understand our corporate values and objectives and are willing to work to ensure that we are able to achieve them. We would be offering our employees the best welfare packages better than what similar mechanical engineering firms are offering their own employees.

Also, we would ensure that we conduct periodical trainings for our employees in order to not only enhance their skills but also to ensure that that productivity rate for our firm is increased.

Having loyal customers is very important to our business knowing our customers can make or mar a business, and so we would ensure that we treat our customers very well and give them the attention that they deserve. All our staffs understand this and have been trained to ensure that all our customers are satisfied with our every service.

Finally, we intend to re-invest 30% of our profit back into the business as we know that this will help us have a strong bottom line that will be highly beneficial to our business and allow us suitably expand our services which will in turn bring in more earnings.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting feasibility studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
• Purchase of trucks: Completed

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As an experienced construction worker, architect, or engineer, you know how vital a detailed plan is for success. It provides a path forward for even the most technical projects to be streamlined, stable, and successful. This is why, if you’re starting your own construction, architecture, or engineering firm, you’ll need a business plan to do it.

Do you want a solid structure to help develop your own plan? Check out our library of sample business plans to get started with industry-proven templates.

The quickest way to turn a business idea into a business plan

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Free Electrical Business Plan PDF Download | Electrical Shop Business Plan

How to Start an Electrical Business - Free Electrical Business Plan PDF Download

Are you considering starting an electrical business and are in need of an electrical business plan? if yes, you'll find this free book to be extremely helpful.

This is a practical guide that will walk you step by step through all the essentials of starting your business. The book is packed with guides, worksheets and checklists. These strategies are absolutely crucial to your business' success yet are simple and easy to apply.

Don’t Start a New Electrical Business Unless You Watch This Video First!

Checklist for Starting a Business: Essential Ingredients for Success

If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a business. This will allow you to predict problems before they happen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!

Here’s a Valuable Free Gift for You This is a high quality, full blown business plan template complete with detailed instructions and all related spreadsheets. You can download it to your PC and easily prepare a professional business plan for your business. Click Here! To get your free business plan template

The Single Most Important Ingredient for Business Success

The first and most important thing you need to acquire in order to succeed in a small business is... knowledge.

Sounds exaggerated? Listen to this...

According to research conducted by Dun & Bradstreet, 90% of all small business failures can be traced to poor management resulting from lack of knowledge.

This is backed up by my own personal observations. In my 31 years as a business coach and consultant to small businesses, I've seen practically dozens of small business owners go under and lose their businesses -- not because they weren't talented or smart enough -- but because they were trying to re-invent the wheel rather than rely on proven, tested methods that work.

Conclusion: if you are really serious about succeeding in a business... If you want to avoid the common traps and mistakes... it is absolutely imperative that you acquire the right knowledge.

"Why Invent Mediocrity, When You Can Copy Genius?"

That's an excellent quote I picked up from a fellow business owner a few years back. What this means is that you should see what is working and try to duplicate it. Why go through all the trouble of inventing something new, that you don't even know will ever work, when you can easily learn from and duplicate something that has been a proven success?

[ Note: One of the BIGGEST mistakes almost all new businesses make is that they WASTE tons of valuable time, energy and money on trying to create something "new", that has never been tested or proven... only to find out later that it was a total loss. Don't make the same mistake! ]

Hi! My name is Meir. I'm the founder and president of BizMove.com, a successful Internet based information business. I'm also the author of numerous books, mostly in the area of small business management.

I've been involved in small business for the past 31 years of my life, as a business coach, manager of a Electrical firm, a seminar leader and as the owner of five successful businesses.

During my career as a business coach and consultant I've helped dozens of business owners start their businesses, market, expand, get out of troubles, sell their businesses and do practically every other small business activity you can think of. You see, I have been there .... done it ... and bought the Small Business t-shirt! -- This free book contains techniques and strategies I've learned during my 31 year small business career.

Here's what you'll discover in the 'How to Start a Electrical Business' book:

Success Tip: Setting Goals

Good management is the key to success and good management starts with setting goals. Set goals for yourself for the accomplishment of the many tasks necessary in starting and managing your business successfully. Be specific. Write down the goals in measurable terms of performance. Break major goals down into sub-goals, showing what you expect to achieve in the next two to three months, the next six months, the next year, and the next five years. Beside each goal and sub-goal place a specific date showing when it is to be achieved.

Plan the action you must take to attain the goals. While the effort required to reach each sub-goal should be great enough to challenge you, it should not be so great or unreasonable as to discourage you. Do not plan to reach too many goals all at one time.

Establish priorities. Plan in advance how to measure results so you can know exactly how well you are doing. This is what is meant by "measurable" goals. If you can’t keep score as you go along you are likely to lose motivation. Re-work your plan of action to allow for obstacles which may stand in your way. Try to foresee obstacles and plan ways to avert or minimize them.

Click here! to download your Electrical Business Plan book for free (PDF version)

Management Skills Video: How to Become a Great Manager and Leader

Learn how to improve your leadership skills and become a better manager and leader. Here's how to be the boss people want to give 200 percent for. In the following video you'll discover 120 powerful tips and strategies to motivate and inspire your people to bring out the best in them.

For more insightful videos visit our Small Business and Management Skills YouTube Chanel .

Here're other free books in the "how to start a business" series that may interest you:

Here's a Sample 'Executive Summary' for a Electrical Business plan :

COMPANY NAME ADDRESS CITY, STATE, ZIP CODE Tel.  Fax: Email:

COMPANY NAME is an Electrical Sub-Contractor, primarily doing commercial, industrial, medical and residential. COMPANY NAME offers value engineering for energy evaluation & efficiency. The purpose of the company's plan is to grow in the fields mentioned above as well as branch out into Nevada, Arizona & New Mexico. COMPANY NAME also wants to further the company's market share in the solar/energy and the service industry.

1.1 Objectives

1. To fund growth of existing business & increase market share of our service business 2. Expand into the field of energy/solar 3. With additional capital the ability to bid larger projects.

1.2 Mission

COMPANY NAME 's sole purpose is to establish a profitable and well managed company while at the same time designing to please the local residents with excellent service in California.  COMPANY NAME’s near future plans are to grow the company's electrical contracting business in California and other states such as Nevada, Arizona and New Mexico.  The company will seek to provide these services in the timeliest manner and with an ongoing comprehensive quality control program to provide 100% customer satisfaction.

1.3 Keys to Success

1.  Servicing and maintaining our existing client base 2.  Having employees that understand and implement our high standards 3.  Reliability and communication with clients from beginning of each job to end.

COMPANY NAME is in the city of Orange and has been in the county of Orange since 1994, servicing Los Angeles, Riverside, San Bernardino and San Diego counties. We provide electrical contracting services to a wide range of clients, including owners and general contractors, mainly in the medical field. COMPANY NAME's current corporate office is at [INSERT ADDRESS].   The company's corporate office is a 4,650 sq ft concrete tilt up building. This corporate office houses all administrative operations, with warehouse space used for inventory and service vehicles. All of the work is done at many off-site locations.

2.1 Company Ownership

COMPANY NAME is a privately held C Corporation where OWNER’S NAME is president & secretary and CO-OWNER’S NAME is Vice President.

2.2 Company History

In 2006 and 2007 COMPANY NAME experienced a decrease in sales due to California budget cuts for the company's voice and data division that had provided services to Employment Development Departments.   The decrease in sales was also due to existing clients who were very slow in paying for services rendered.  COMPANY NAME had also made the decision to focus more on the medical field and their primary client base. The company had cut ties with three general contractors and proceeded to establish new contacts within the medical field. The year of 2008 was a great year and COMPANY NAME was on track to double sales; however the economy was starting to slow. 2009 was a respectable year, however, again, due to the economy COMPANY NAME re-evaluated again to expand into solar/energy industry.

Table: Past Performance

3.0 Services

COMPANY NAME 's products are: 1) Design build which is based on a per square foot price. 2) Contract work which is specific to a certain set of blueprints/drawings. 3) Service work that is based on an hourly rate.

COMPANY NAME will focus on four main markets within the industry such as: MEDICAL This field is a viable source of business now and due to ever changing technology a great source of future business that will sustain us long term. SERVICE There will always be a need for service and this is an area that we have never taped into and believe there is great potential. COMMERCIAL/INDUSTRIAL This has been the company's main focus; COMPANY NAME has built great long term relationships with building owners who now look for our guidance in directing their energy improvements. SOLAR/ENERGY We feel we always need to look at new trends and stay ahead of change in our approach to long term sustainability.

How to Organize Paperwork for Business

We must all be efficient and productive in today's business world. Being organized helps you handle tasks quickly so that you have more time and space to do what you truly want to do.

1. One-time mail system.

Have an In Box on your desk for new mail/information. Look at your mail once a day. Review each piece of mail once to decide whether to do it, delegate it or dump it. If it adds value to your business or is required for doing business, do it or delegate it. If not, then dump it. If you keep it, then categorize it using the A, B, C system. Use your time wisely.

2. Categories for performing your work.

Set up desk trays labeled A, B, and C. Items in category A must be handled today. Category B items must be handled this week. Category C items are generally filing that must be kept because they have some value, such as invoices, tax returns, and statements.

3. Prioritize your work within categories A and B.

Sort the categories into 1, 2, and 3. A1 must be done NOW, it is "hot" or "urgent." A2 can be done this AM. A3 can be done by the end of the day. B1 is done on Monday. B2 done by Wednesday. B3 done by the end of the week. Make the decision once, then do the work.

Set a day and time each week for filing. Don't let it stack up. Give yourself space to work.

5. Purge your files on a regular schedule.

For example, purge files every six months. Send these documents to storage. This gives you more space to work.

6. Storing records.

Store documents in boxes. Mark the contents of each box. For instance, clients A-F2013. Mark the destruction date on the box, D = June 02. Base your destruction date on the legal requirements for your industry.

7. Toss out stored documents on a regular schedule.

For example, two times per year, visit the storage area and remove boxes that are beyond the destruction date. Depending on your industry, they may need to be shredded rather than put in the trash.

8. Color code your records.

For example, clients with first names beginning with A-F are in Orange folders; G-K Yellow; L-P Blue; Q-Z Green. This will save you time when you are searching for a file. You can also apply this to AP, AR, Payroll, and Taxes. This can also be done by year. For example, 2012 AP is blue; 2013 AP is purple.

9. Hot files.

Put a red cover on files that you consider "hot." These could be urgent projects, legally or financially sensitive, or important VIP clients. Keep these visually at your fingertips.

10. Use out guides.

If you work with other people and share files, create a check-out system so that files are not lost. Put the file name, taken-by name, and date on a card and place it in an out guide box. When you can't find what you want, check the box to see if your co-worker is using the file. Be sure to remove the card from the box when you return the file.

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