business plan sample for electrical

• FieldEdge Software
• ESC Software
• FieldEdge Payments
• Proposals & Quoting
• Scheduling & Dispatching
• Marketing & Email
• FieldEdge Flat Rate
• HVAC Software
• Plumbing Software
• Electrician Software
• Locksmith Software
• Appliance Repair Software
• See All Industries
• Partners & Integrations
• Field Services Academy
• FieldEdge Support
• ESC Support

How to Start an Electrical Business in 11 Easy Steps

These 11 easy steps will reveal how to start an electrical business and guide you down the path to success.

At first, starting an electrical business might seem like a daunting task. However, even with all of the natural uncertainty of building a business from scratch, the steps in this article will reveal a simple process for you to follow with as little stress as possible.

Let’s explore the basic fundamentals of how to start an electrical business:

• Use the best marketing strategies
• Choose the right insurance for the business
• Competitively price electrical services for maximum profit
• Consistently meet with a Certified Public Accountant to stay on target
• Create a detailed business plan to evaluate your strategy as a whole
• Invest in the best electrician software to help streamline everyday operations

Essential business strategies like the ones listed above are what develop the secret sauce to establishing a prosperous business with consistent, sustainable growth. Take advantage of the pro tips in this article to minimize worries and mitigate risk.

1. Choose Electrical Service Offerings

Before exploring how to start an electrical business, it’s crucial to have several years of field experience.

Before getting started, at a minimum, you should be a journeyman, or preferably a master electrician. The prior experience you’ve gained as an electrician will help in thinking through your business model.

Before choosing the electrical services to offer, consider the target market, and ask yourself:

• Will you serve commercial, residential, or both types of customers?
• Are you offering services for new or existing constructions?
• What services do your customers need the most?
• Which services are your specialty?

Many businesses start with a few basic services for specific markets (e.g. residential homes) and then grow from there. This saves them from buying exorbitant amounts of tools and equipment all at once.

Even though you may want to serve both residential and commercial customers in the beginning, different equipment and licenses are often required for commercial accounts. For this reason, many businesses start in the residential space first before expanding into the commercial space.

2. Get Certified and Licensed Prior to Starting

As you’re likely already aware, both you AND your team need to be certified in order to complete jobs in the field. Depending on the type of electrical work being performed, you’ll need to look into your state’s requirements to cover all bases.

Also, keep in mind, in the U.S., many states have licensing requirements for starting an electrical business. Licenses and certifications are issued at the state level. For this reason, it’s important to stay up-to-date with local laws and regulations.

As a refresher, here are a few different types of electrician specializations :

• Residential
• Maintenance

3. Decide on the Best Electrical Business Name

Even though the electrical business name is important, it doesn’t have to be overly thought out or complex to be a great business name.

Take a look at a few simple elements to keep in mind when choosing the right name:

• Make it simple
• Choose two to three words related to offered services
• E.g. dallaseletricalservices.com

Keep in mind, it’s unnecessary to include:

• Excessive details
• [Your Name’s] Electrical Services
• Save it for your slogan

4. Consult With a Trusted CPA

Consulting with a CPA (i.e. Certified Public Accountant) is downright necessary to ensure a successful, financially-sound business.

Prior to starting the typical business ventures, establish factors such as:

• Business plan
• Bank accounts

CPAs evaluate all assets to determine how to launch the business, weigh costs, decide if a loan is necessary, determine when to start full-time, among other factors difficult to see at the outset. Additionally, CPAs will flag any financial obligations you haven’t thought about yet.

The best CPAs clear the path to success and mitigate potential risks, which might interfere. Before registering your electrical business, ALWAYS meet with a CPA first.

5. Get the Electrical Business Registered

After speaking with a trusted CPA, you’re ready to register the business. Fortunately, it’s relatively inexpensive to register businesses with your state. Plus, some states only require a little paperwork to complete registration.

Since becoming a registered business is easy, mitigates legal implications, and secures your personal assets, there’s no excuse to skip this crucial step in becoming a legal business!

In addition, registering your electrical business as an S Corp (i.e. S Corporation) or LLC (i.e. Limited Liability Company) protects personal assets in the unfortunate event of getting sued or receiving a dispute. Plus, it helps with filing taxes.

NEVER WAIT to register your electrical business. It needs to be done before getting started.

S Corp vs. LLC

Due to tax purposes, the IRS classifies businesses as sole proprietorships, partnerships, C corporations or S corporations. Since the LLC doesn’t have an IRS classification, it gets taxed as another type of business.

In short, registering as a sole proprietorships LLC requires you to pay self-employment taxes (e.g. social security and Medicaid). Which means, the entire business profit is taxed for that year.

As a result, many businesses choose to register as an S Corp. By registering as an S Corp or LLC, you (the business owner) can get a set salary. In other words, your salary will get a self-employment tax – instead of your total profits paying for it.

As always, consult with an excellent CPA before deciding how to register.

6. Create an Electrical Business Plan

After meeting with a CPA and registering the business, it’s time to create a business plan with the financial information you’ve gathered so far.

Both new AND established electrical businesses alike should have an official business plan. In fact, almost anyone providing financing to the business (e.g. loans, grants, investors, etc.) will ask to review it.

However, even if you don’t seek financial assistance, business plans keep everyone within the company focused and aligned on the right goals and vision. In addition, a great business plan helps with staying organized as well as preparing for unexpected events.

Take a look at how a basic outline of your electrical business plan should appear:

• Executive Summary
• Business Overview
• Electrical Services
• Market Analysis Summary
• Business Strategy
• Implementation Summary
• Management Summary
• Financial Plan

Remember, your electrical business plan is one of the most essential steps to becoming successful. The best ones are detailed, minimize stress, and set the business up to thrive. In turn, a great business plan takes time to create.

Though, it’s important to regularly update the plan with new contact information, financial updates, and more. Which means, it’s not a one-and-done document. Typically, monthly financial revisions and complete annual revisions are performed.

Before finalizing the business plan, have your CPA review it to ensure everything looks great.

Plan your prices in a few minutes using this FREE electrical pricing calculator to increase profits now!

7. Establish a Business Bank Account

Unfortunately, many new start-ups make the mistake of using their personal bank account for the business. This is a huge mistake, which can produce some complications when getting audited or filing taxes.

By keeping personal and business finances separate with a business bank account, it’ll simplify things for your CPA and mitigate confusion and potentially prevent costly mistakes.

The best thing you can do for your business’ finances is to establish a business bank account early on. If you’re wondering how to set up a business bank account, your CPA and bank are the most valuable resources in this process.

8. Get Bonded and Insured Before Working

While adequate business insurance presents upfront costs, getting bonded and insured will protect the business from financial liabilities when inevitable mishaps occur on the job. Most states require this before issuing a contractor license, which is required before accepting any work from clients.

As a result, business insurance protects the business from going bankrupt if a customer tries to sue. Get the best insurance which reasonably fits within the budget. Though, there’s no one-size-fits-all insurance policy. Choose the best insurance policy that meets your business’ needs.

9. Start Marketing to Win Customers

Quickly win customers through marketing . Use your marketing budget to help to establish the business’ brand, build credibility and expand the public’s awareness of your services.

Here’s a look inside the top 10 marketing strategies for electrical businesses:

• Freelancers can be a great resource for this
• Take advantage of email marketing
• Start PPC (i.e. Pay Per Click) marketing
• Discover how to leverage all reviews
• Explore content marketing
• Develop a video marketing strategy
• Actively use social media
• Place physical ads
• Use truck wraps to expand brand visibility
• Provide leave-behinds to receive fantastic referrals

By developing a marketing strategy as early as possible, you can increase brand awareness and win new customers fast.

Always remember, it’s crucial to build a website, and as the business grows, continually shift more focus onto SEO (i.e. search engine optimization). Create content on your website that prioritizes local industry keywords to improve your site’s rank in Google’s search results (E.g. “Dallas Electrician”). Ultimately, ranking higher in Google makes your company’s website more discoverable to leads.

Though, you don’t necessarily need a website to start your electrical business, it will help to quickly expand reach, build credibility and increase conversions. When you have space in the budget, consider hiring a freelance web developer . Meanwhile, Wix and Squarespace are simple, user-friendly website builders with easy-to-follow tutorials accessible to novices.

10. Begin the Electrician Hiring Process

After verifying the business plan with a CPA, you’ll likely already know if you need to hire another electrician to help you get started.

Now, let’s talk about the necessary steps in the electrician hiring process:

Conduct a Complete Background Check

Even if they’re a trusted referral, it’s vital to complete background checks on ALL employees before hiring.

After the ideal candidate has passed their phone screening and in-person interview, it’s time to conduct a complete background check. You’re looking for any potential liabilities or red flags they could present to the business if you should hire them.

For example, if the electrician has been caught stealing, then they’re probably not an adequate candidate for hire. Since they’ll be working in customers’ homes and offices and will operate expensive tools and equipment, both you and your clients need to be able to trust your team’s integrity.

Also, don’t forget to follow up with every candidate’s provided references – at least two recent professional and two personal references. This helps verify the information they’ve given you as well as provide insight about them as a potential employee.

If everything checks out, then it’s time to verify the candidate is legally ready to work – including any certifications or visas. Depending on the position being filled, make sure the candidate is willing to put in the time and effort into any training or additional credentials they may need to perform their job duties.

Obtain an EIN

In order to legally begin hiring employees, you’ll need to get an EIN (i.e. employer identification number) in the U.S. and a SIN (i.e. social insurance number) in Canada.

For those in the US, this is as simple as filling out an online application at IRS.gov . Likewise, if you’re in Canada, then there’s a similar process at Canada.ca .

Explore how to hire the best electricians for your business by downloading our FREE hiring guide !

11. Ignite Sustainable Growth With the Best Electrician Software

FieldEdge is the best electrician software to ignite long-term, sustainable growth. Plus, it’ll benefit your business EVEN MORE when using it from the start.

The best electrician software helps you to:

• Get paid faster
• Create instant estimates on-the-go
• Invoice clients with the touch of a button
• Create efficient routes to quickly dispatch electricians
• Access job history and customer information from anywhere

The #1 electrician software has the ultimate power to streamline your everyday business operations – allowing the business to grow even faster with all of the time and money saved. Plus, FieldEdge has helped THOUSANDS of businesses just like yours to become efficient, successful operations.

Explore how the best electrician software will transform your business growth. Book a demo of FieldEdge for free today!

How to Start an Electrical Business That’s Successful

In this article, we’ve discussed key components that lay the groundwork to starting a successful electrical business, including:

• Meeting with a CPA to discuss finances and liabilities
• Seeking outside specialist help when necessary
• Developing a strategic business plan

These actions will set you up for success as you explore how to start an electrical business.

Plus, if you want to maximize profits and optimize time as much as possible, then choose the best electrician software .

Follow these pro tips to help start an electrician business that thrives for many years to come!

Related: 10 Ways to Supercharge Your Electrician Marketing

Want to get updates about the latest content, industry news and business tips ? Sign up to receive our emails!

Tags: Business Operations , business owner , electrical industry , electrical marketing , electrician , electrician business , electrician career , electrician employees , electrician hiring , electrician interview , electrician marketing , employee engagement , employee management , employee recruitment , fieldedge , fieldedge dispatch , grow my electrician business , hiring electricians , how to start an electrical business , Improve Employee Engagement , interview questions , interview topics , interviewing , interviewing electricians , marketing , starting an electrical business

Improve Your Electrical Sales Strategy in 4 Steps

Field Service Key Performance Indicators

We use cookies to personalize content and ads to make our site easier for you to use. We also share that information with third parties for advertising and analytics. By using this site, you agree to our Privacy Policy

How To Write a Winning Electrical Construction Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for electrical construction businesses who want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every electrical construction company owner should include in their business plan.

Download the Ultimate Construction Business Plan Template

What is an electrical construction business plan.

An electrical construction business plan is a formal written document describing your company’s business strategy and feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write an Electrical Construction Business Plan?

An electrical construction business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Electrical Construction Business Plan

The following are the key components of a successful electrical construction business plan:

Executive Summary

The executive summary of an electrical construction business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your electrical construction company
• Provide a summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast, among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your electrical construction business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your electrical construction firm, mention this.

Industry Analysis

The industry or market analysis is an important component of an electrical construction business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the electrical construction industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support your company’s success)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, an electrical construction business’ customers may include:

• Businesses (e.g., office buildings, factories)
• Construction companies
• Government agencies
• Utility companies

You can include information about how your customers decide to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or electrical construction company services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your electrical construction business via word-of-mouth or referrals from satisfied customers.

Operations Plan

This part of your electrical construction business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for an electrical construction business include reaching $X in sales. Other examples include hiring Y number of employees, or opening Z new locations.

Management Team

List your team members here, including their names and titles, as well as their expertise and experience relevant to your specific electrical construction industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Electrical Construction Company

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Electrical Construction Company

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup electrical construction business.

Sample Cash Flow Statement for a Startup Electrical Construction Company

Finally, your appendix section will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your electrical construction company. It not only outlines your business vision but also provides a step-by-step process of how you will accomplish it.

A well-written business plan is an essential tool for any electrical construction company. The tips we’ve provided in this article should help you write a winning business plan for your electrical construction company.  

Finish Your Electrical Construction Business Plan in 1 Day!

Wish there was a faster, easier way to finish your electrical construction business plan?

With our Ultimate Construction Business Plan Template you can finish your plan in just 8 hours or less!

• Smart Roofing contractor Solutions
• ROI Calculator

Creating an electrical business plan can be a difficult task, especially if you are new to the world of electrical business. However, with careful research and planning, you can create a comprehensive business plan that will help your electrical business succeed.

When starting an electrical company, it is essential to have a comprehensive and well-thought-out electrical business plan in place. This plan should include information on your company’s strengths, weaknesses, opportunities, and threats (known as SWOT analysis), as well as market research on the electrical industry and your target customers. Additionally, you will need to consider your company’s financing and cash flow needs, as well as any potential risks or challenges that may arise in the future.

Join the booming community of 1000+ contractors

• Auto-Schedule techs for weeks with incremental billing.
• Track assignments and prevent overbooking in long projects.
• Access 100+ customizable templates for estimates

Insights from business like yours

Grow your business with key data driven insights from SmartServ Service Contractor Community (SSCC)

Top 5 NFPA Inspection Software for Streamlined Compliance

Any building must have a fire prevention system built because it is one of the most critical and necessary systems. Every structure or organization should

NFPA 25 Inspection Software: Advantages Unveiled

Because of software opportunities, more and more sprinkler inspection firms are turning to it to assist them in streamlining their operations and inspection process. In

First Time Fix Rate: Understanding and Improving Technician Efficiency

Your business could succeed or fail based on how you treat your customers at initial contact. This is because 24% of clients with a positive

Request a personalized demo.

Book a free demo with our product specialist

Sample Electrical Contractor Business Plan

The guide focuses on how to write an electrical contractor business plan.

As an electrical contractor, the goal of establishing your business is only achievable when the process is well coordinated. Coordination comes from having a carefully written plan.

Here, your business plan is crucial to how successful your operations are.

Now, a lot of electrician entrepreneurs are faced with the challenge of putting up a unique and well-structured plan. Proper structuring of the plan requires the inclusion of all the key aspects of the business idea which help with the full implementation of the plan.

ELECTRICAL CONTRACTOR BUSINESS PLAN

Your electrical contractor business plan won’t be complete without the inclusion of certain key sections such as the executive summary and the company description sections.

Others are the products & services section, the marketing analysis section, and the strategy & implementation section.

You’ll also need to add the organization & management team, as well as the financial plan & projections. We’ll need to further dissect each of these key sections for better comprehension.

i. Executive Summary

This section of your electrical contractor business plan should always appear first.

It holds an overview of your business plan and summarizes or condenses the plan into a few pages. You must hold your reader’s attention to make them interested enough to want to read your plan further.

While it appears first, the executive summary section is best written last.

You don’t want to leave out certain key aspects of your plan without touching on them. Through the executive summary section, an investor can know if your electrical contracting business is worth making financial commitments to.

There are several areas to cover within the executive summary. They include the business name and location, your services and/or products, mission and vision statements as well as the purpose of the plan.

Business Name & Location

Before you ever write your business plan, you need to have chosen an electrical business name for the company . Also, its location is crucial and must be clearly stated.

This is basically the starting point from where your business idea gets introduced to your audience.

With such an introduction, you’re able to build on the other aspects of your business operations. These are contained within the other sections below.

Services and/or Products

Electrical contracting involves the provision of both products and services.

However, you’ll need to make things clear by stating your own range of products in addition to stating how these will be of benefit to your clients. You don’t need to go into the minute details of all such services.

You’ll have to summarize such, as there’s a whole section in the plan that’s dedicated to the services and products being offered.

Mission and Vision Statements

The mission and vision statements of your electrical contracting business are crucial as they point to the direction the business will go.

In terms of the mission statement, it should define your business’s primary objectives and purpose. Such should be done in a clear, short, and effective manner.

The vision statement on the other hand seeks to define your business’ purpose with a special focus on aspirations and goals. The vision statement should seek to inspire your workforce towards attaining set objectives.

Purpose of the Plan

You must have a purpose for which your plan exists. For a lot of entrepreneurs, the key reasons for having such a plan in place include securing investments and also for setting strategies among others.

This, like the others briefly discussed above, is a key aspect you shouldn’t leave out.

ii. Company Description

Under the company description section, a fuller and more comprehensive description of your electrical contracting business is provided.

Here, you want to provide details on who you are, modes of operation as well as set goals to be achieved.

An important aspect of your business such as its legal structure needs to be provided. Is your electrical contracting business a sole proprietorship, a Limited Liability Company (LLC), or a corporation?

Include a brief history of the nature of your business.

This should be included with its brief history as well as the demand for your services and products.

An additional detail you should consider including under the company description is an overview of products and services, your clients, as well as suppliers.

Have a summary of company growth sketched and showing market and financial highlights. Also, have a summary of both short and long-term goals you have for business operations.

Mapping out ways by which profit is to be made is also essential.

iii. Products & Services

Your electrical contracting business plan should have a products and services section where you show how every product and service being sold meets your client’s needs. Customer benefits are paramount here.

What advantages do your products and services have over those of your competitors?

What’s the product lifecycle? You’ll need to include all relevant information about trade secrets, relevant copyrights as well as patents.

If there are (which there should) any research and development activities you wish to add, this is where you need to include such.

iv. Market Analysis

The market analysis section is critical to the proper takeoff of the business idea. It largely depends on research about the business which requires the inclusion of targeted customer segments.

Others include historical, current, and projected marketing data as well as assessing your competitors’ weaknesses and strengths.

v. Strategy & Implementation

How do you intend to sell your electrical products and services to clients? Give detailed information on business promotion techniques, costing , and pricing details.

Also include information on labor sources.

vi. Organization & Management Team

When writing the organization and management team section of your plan, it’s important to focus on key areas; describing key departments and employees.

Others include details about owners of the electrical contracting business. Also, include a profile of your management team.

vii. Financial Plan & Projections

Your electrical contracting business’ financial plan and projection sections should include historical financial data, realistic prospective financial information, and also a brief analysis of your financial data.

The input of a seasoned financial expert is needed for such.

With these sections fully covered, you should have a sound and implementable electrical contracting business plan.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

ZenBusinessPlans

Home » Sample Business Plans » Wholesale & Retail

A Sample Electronics Retail Store Business Plan Template

Do you want to start an electronics store and need to write a plan? If YES, here is a sample electronics store business plan template & feasibility report. Businesses that are worth going for is a business that you are certain people would need your services or products either every day or at least once a week.

Why Start an Electronics Retail Store?

An electronics retail store falls into this category. Part of what you need to do to make headway in this line of business is to ensure that your store is intentionally positioned and you a have good business relationship with manufacturers and wholesale suppliers of various types of electronics.

One good thing about this type of business is that you don’t need to enroll in a conventional business school to learn how to start and run this type of business; it is a business that requires basic business skills such as knowledge of electronic gadgets, customer service, accounting skills, bargaining skills, networking skills, etc.

If you have decided to start an electronics retail store business, then you should ensure that you carry out feasibility studies and also market survey. Business plan is yet another very important business document that you should not take for granted when launching your own business.

Below is a sample electronics retail store business plan template that can help you to write your own with little or no difficulty.

1. Industry Overview

Electronics retail store business is part of the consumer electronics industry and this industry consists of businesses that are into the sale of a wide range of new appliances, electrical goods and home entertainment products. Many stores also offer repair services and some stores sell used goods.

Consumer electronics and appliances are staples in US households and include a wide range of items, from DVD players to refrigerators. The Consumer Electronics Stores industry, which largely relies on discretionary purchases, has been plagued by increasing external competition over the last five years.

Statistics has it that in the united states of America alone, there are about 51,615 registered and licensed consumer electronics retail stores responsible for employing about 329,256 people and the industry rakes in a whooping sum of $86 billion annually.

The industry was projected to grow at -2.2 percent annual growth within 2014 and 2019. Please note that the companies holding the largest market share in the Consumer Electronics Stores in the US industry include Best Buy Co. Inc. and GameStop Corp.

A recent report published by IBISWORLD shows that consumer confidence and spending grew over the past five years, but not enough to lift the industry out of its mild decline due to fierce competition from online retailers, discount retailers and department stores.

Considering these difficult conditions, IBISWorld expects industry revenue to fall an annualized 2.2 percent to $85.7 billion over the five years to 2019; this includes a projected decline of 0.2 percent in 2019 alone, driven primarily by improvement in the overall economy of the United States of America.

If you are contemplating opening a consumer electronics retail store in the United States, you should ensure that you carry out thorough market survey and feasibility studies. The truth is that, if you get some key factors wrong before starting your own consumer electronics retail store, then you are likely going to struggle to stay afloat.

2. Executive Summary

Chris Logan® Consumer Electronics Retail Store, Inc. is a registered consumer electronics retail store business that will be located in one of the busiest business districts in New Haven – Connecticut.

We have been able to lease a shopping facility that is big enough (a 20,000 square feet facility) to fit into the design of the kind of standard consumer electronics retail store that we intend launching and the facility is located in the heart of New Haven – Connecticut.

Chris Logan® Consumer Electronics Retail Store, Inc. will retail a wide range of new appliances, electrical goods and home entertainment products to customers and also offer repair services in conjunction with our retail operations.

We are aware that there are several consumer electronics retail store outlets all around Connecticut, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors.

We have an online – service options for our customers, and our outlet is well secured with the various payment of options. Chris Logan® Consumer Electronics Retail Store, Inc. will ensure that all our customers are given first class treatment whenever they visit our store.

We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large their numbers grow to. We will ensure that we get our customers involved in the selection of brands that will be on our store and also when making some business decisions.

Chris Logan® Consumer Electronics Retail Store, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a business, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products. Chris Logan® Consumer Electronics Retail Store, Inc. is owned by Chris Logan and his immediate family members.

Chris Logan has a B.Sc. in Business Administration, with over 10 years’ experience in the Consumer Electronics Stores industry, working for some of the leading brands in the United States. Although the business is launching out with just one outlet in New Haven – Connecticut, but there is a plan to open other outlets all around major cities in the United States of America via the sale of franchising.

3. Our Products and Services

Chris Logan® Consumer Electronics Retail Store, Inc. is in the Consumer Electronics Stores industry to service a wide range of clients and of course to make profits, which is why we will ensure we go all the way to make available a wide range of consumer electronics from top manufacturing brands in the United States and other countries of the world.

Some of the products in our store are listed below;

• Retailing new household appliances (e.g. refrigerators, washing machines and ovens)
• Retailing new personal appliances (e.g. hair dryers, curling irons and electric razors)
• Retailing consumer electronics (e.g. radios, TVs, digital cameras, video games and computers)
• Retailing mobile phones, smartphones and accessories
• Offering repair services in conjunction with retail operations.

4. Our Mission and Vision Statement

• Our vision is to become the leading brand in the Consumer Electronics Stores industry in Connecticut and to establish a one stop consumer electronics retail store chains in New Haven and in other key cities in the United States of America.
• Our mission is to establish a world – class consumer electronics retail store business that will make available a wide range of consumer electronics from top consumer electronics manufacturing brands at affordable prices in New Haven – Connecticut and other key cities in the United States of America via franchising.

Our Business Structure

Chris Logan® Consumer Electronics Retail Store, Inc. is looking towards building a standard business that can be listed among the top – flight consumer electronics retail stores not just in New Haven – Connecticut but throughout the United States of America.

For that singular reason, we will make sure that establish the business on a solid business structure. As a result of business goal, we will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.

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

• Chief Executive Officer (Owner)
• Store Manager
• Human Resources and Admin Manager
• Merchandize Manager
• Accountants/Cashiers

Sales Girls and Sales Boys

Truck and Van Drivers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

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

Admin and HR Manager

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

Store Manager:

• Responsible for managing the daily activities in the store/warehouse
• Ensures that proper records of consumer electronics are kept and warehouse does not run out of products
• Ensures that the store facility is in tip top shape and goods are properly arranged and easy to locate
• Interfaces with consumer electronics manufacturers
• Controls consumer electronics distribution and supply inventory
• Supervises the workforce in the consumer electronics sales floor.

Merchandise Manager

• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure consistent quality of consumer electronics are purchased and retailed/supplied in good price that will ensure we make good profit
• Responsible for the purchase of consumer electronics for the organizations
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization
• Assists in loading and unloading goods/consumer electronics
• Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
• Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment, such as hazardous material placards.
• Assists the transport and logistics manager in planning their route according to a pick-up and delivery schedule.
• Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
• Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
• Collects and verifies delivery instructions
• Reports defects, accidents or violations
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Responsible for monitoring and recording inventory and stock levels, electronic sales associates periodically check inventory, comparing it to expected levels, taking note of discrepancies or missing stock.
• Help customers choose electronic equipment and devices, such as mobile phones, televisions, game consoles, and computers.
• In addition to selling electronic equipment and devices, he/she also process returns and exchanges, inspecting returned items for signs of damage as they process returns via cash or credit card. Additionally, enter returns in the store’s point-of-sale (POS) system and return items to inventory or to shelves.
• Support sales goals by promoting value-added items such as extended warranties and device insurance. They present customers with information regarding replacement costs and insurance coverage, usually during the checkout process.
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries

6. SWOT Analysis

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

We are quite aware that there are several consumer electronics retail stores all over New Haven and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Chris Logan® Consumer Electronics Retail Store, Inc. employed the services of an expert HR and Business Analyst with bias in supply store chain business to help us conduct a thorough SWOT analysis. This is the summary of the SWOT analysis that was conducted for Chris Logan® Consumer Electronics Retail Store, Inc.;

Our business is located in a city with people with high purchasing powers and also, we can boast of having good business relationship with top manufacturers in the consumer electronics manufacturing industry and wholesale distributors in and around New Haven – Connecticut.

A major weakness that may count against us is the fact that we are not yet a major wholesale distributor, we are a new consumer electronics retail store outlet and we don’t have the financial capacity to compete with multi – million dollar stores when it comes to retailing consumer electronics at a rock bottom price.

• Opportunities:

Products sold by consumer electronics stores are often discretionary. Therefore, a rise in per capita disposable income increases consumers’ propensity to purchase industry goods, leading to growth in demand. Per capita disposable income is expected to increase in the coming year, representing a potential opportunity for the industry.

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

Online retailers are major competitors to industry operators. These retailers sell consumer electronics and appliances, often at lower prices than consumer electronics stores due to the lack of fixed costs, attracting customers away from industry players. The percentage of services conducted online is expected to increase in the coming year, representing a potential threat to the industry.

7. MARKET ANALYSIS

• Market Trends

If you are conversant with the Industry, you will quite agree that the changes in disposable income, consumer sentiment, ever changing trends and of course the rate of homeownership are major growth drivers for this industry. No doubt, a massive rise in consumer confidence has also contributed in helping the industry experience remarkable growth, but uneven performance in these drivers has led to slightly constrained revenue growth.

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

A close watch on industry activities reveals that the retail market for consumer electronics was hit hard by the recent economic downturn and experienced a decline in revenue in recent time. The construction of new homes is a primary market for industry products, so as housing stats increase, demand tends to follow. Moreover, as home builders have increased their use of electronics, demand for complementary consumer electronics has risen.

8. Our Target Market

We have positioned our consumer electronics retail store to service residents in New Haven – Connecticut and every other location where outlets will be located. We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us.

We are in business to supply a wide range of consumer electronics to the following;

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

Our Competitive Advantage

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

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

One of our business goals is to make Chris Logan® Consumer Electronics Retail Store, Inc. a one stop consumer electronics shop. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.

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

9. SALES AND MARKETING STRATEGY

• Sources of Income

Chris Logan® Consumer Electronics Retail Store, Inc. is in business to retail a wide range of consumer electronics to residents of New Haven – Connecticut. We are in the industry to maximize profits and we are going to ensure that we achieve or business goals and objectives.

Chris Logan® Consumer Electronics Retail Store, Inc. will generate income by;

10. Sales Forecast

One thing is certain when it comes to consumer electronics retail stores, if your store is stocked with various types of consumer electronics and centrally positioned, you will always attract customers.

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

We have been able to examine the Consumer Electronics Stores industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for Chris Logan® Consumer Electronics Retail Store, Inc., it is based on the location of our business and other factors as it relates to consumer electronics retail stores startups in the United States;

• First Fiscal Year (FY1): $350,000
• Second Fiscal Year (FY2): $550,000
• Third Fiscal Year (FY3): $750,000

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

• Marketing Strategy and Sales Strategy

Before choosing a location for Chris Logan® Consumer Electronics Retail Store, Inc., we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for key players in the industry of New Haven – Connecticut.

We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time. We hired experts who have good understanding of the industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in New Haven – Connecticut.

In summary, Chris Logan® Consumer Electronics Retail Store, Inc. will adopt the following sales and marketing approach to win customers over;

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

11. Publicity and Advertising Strategy

Despite the fact that our store is well located, we will still go ahead to intensify publicity for the business. Chris Logan® Consumer Electronics Retail Store, Inc. has a long – term plan of opening outlets in various locations all around Connecticut, which is why we will deliberately build our brand to be well accepted in New Haven before venturing out.

Here are the platforms we intend leveraging on to promote and advertise Chris Logan® Consumer Electronics Retail Store, Inc.;

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

12. Our Pricing Strategy

Aside from quality, pricing is one of the key factors that gives leverage to consumer electronics retail stores, it is normal for consumers to go to places where they can get cheaper prices which is why big player in the industry attract loads of clients.

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

• Payment Options

The payment policy adopted by Chris Logan® Consumer Electronics Retail Store, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Chris Logan® Consumer Electronics Retail Store, Inc. will make available to her clients;

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

In view of the above, we have chosen banking platforms that will enable our client make payment for purchase of our consumer electronics without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget of establishing a standard consumer electronics supply business in New Haven, and here are the key areas where we will spend our startup capital;

• The total fee for registering the Business in New Haven – Connecticut – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
• Marketing promotion expenses for the grand opening of Chris Logan® Consumer Electronics Retail Store, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• The cost for hiring Business Consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $65,600.
• The cost for shop / warehouse remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for start-up inventory (stocking with a wide range of electronics such as new household appliances (e.g. refrigerators, washing machines and ovens), new personal appliances (e.g. hair dryers, curling irons and electric razors), consumer electronics (e.g. radios, TVs, digital cameras, video games and computers) and mobile phones, smartphones and accessories et al) – $250,000
• The cost for counter area equipment – $9,500
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost of purchase and installation of CCTVs – $10,000
• The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost of launching a Website – $600
• Miscellaneous – $10,000

We would need an estimate of five hundred and fifty thousand (450,000) US Dollars to successfully set up our consumer electronics retail store in New Haven – Connecticut.

Generating Funds/Startup Capital for Chris Logan® Consumer Electronics Retail Store, Inc.

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

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

N.B: We have been able to generate about $150,000 (Personal savings $100,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $400,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

Part of the plans we have in place to sustain Chris Logan® Consumer Electronics Retail Store, Inc. is to ensure that we continue to make available a wide range of consumer electronics, retail our products at competitive prices, improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers.

From our findings, another factor that kills new business is financial leakages. In order to plug financial leakages, the management of Chris Logan® Consumer Electronics Retail Store, Inc. adopt the use of payment machine and accounting software to run the business.

We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better. Chris Logan® Consumer Electronics Retail Store, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of.

Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check : Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the shop: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Packaging and Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Purchase of initial supply of household appliances (e.g. refrigerators, washing machines and ovens), new personal appliances (e.g. hair dryers, curling irons and electric razors), consumer electronics (e.g. radios, TVs, digital cameras, video games and computers: In Progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Compilation of our list of products that will be available in our store: Completed
• Establishing business relationship with vendors – manufacturers of consumer electronics and wholesale suppliers: In Progress

More on Wholesale & Retail

• Small Business Loans
• Working Capital Loans
• Short Term Business Loans
• Equipment Financing and Leasing
• Types of Funding Solutions
• Customer Reviews
• Meet Our Customers
• Sponsorships
• How We Work
• Search for: Search Button

• Financial Health

How to Run a Successful Electrical Business

• by Richard F. Stolz Richard F. Stolz is a ... more
• April 11, 2019
• 5  Minute Read
• Home > Blog > Financial Health > How to Run a Successful Electrical Business

Many electricians decide to go into business for themselves. After all, they’ve mastered the trade, created relationships with loyal customers, and developed a good sense of the rules and regulations. However, knowing how to run a successful electrical business requires a different skill set than that of a first-rate electrician.

You likely spent the first few years in business learning the finer details of running an electrical company. Here’s a chance to check in on your progress as a business owner, and spot opportunities for improvement and growth. Just as you need to stay current in your technical skills to maintain your license, keeping your business successful requires a periodic assessment and tune-up.

1. Benchmark Your Performance

If your company is growing and profitable, it may be tempting to continue with business as usual. But are you as profitable as you could be? Perhaps your competitors have a formula for how to run a successful electrical business that’s more potent than yours.

Business benchmarking is sort of like a voltage drop test. You’re comparing your numbers to those of your peers. CliftonLarsonAllen provided three years of benchmark data for electrical and mechanical contractors. For example, it took contractors an average of 69.6 days to convert their receivables into cash. How long is it taking your business? Check out data relevant to your business to make sure you’re keeping pace.

2. Keep Your Business Plan Current

If you don’t have a business plan, it might be time to create one. Running an electrical business successfully involves having a plan in place for how you’ll reach your goals.

If you’ve created a business plan in the past, also keep in mind that it can “expire” quickly. That’s because circumstances change. Maybe it’s something good, like a new residential community is about to be built nearby. Or maybe it’s something bad, like a new electrical contractor opened up in your town and hired away some of your best people.

Whatever the circumstances, it’s important to keep a current plan. A common way to begin is with a “SWOT” analysis. SWOT stands for strengths, weaknesses, opportunities and threats. Once you identify them, you can create or update your business plan.

3. Stay Tuned In to Your Customers’ Needs

Getting customers can be a challenge, so it’s vital to keep them. When possible, check in to see how things have worked out since your last job. Perhaps your customer remodeled a bathroom and your role was to install several new fixtures and GFCI receptacles. Maybe adding new fixtures to another bathroom would spruce it up without a complete remodeling job, a small project you could propose. Maybe you’d want to bring a new NFPA 70 standard to the attention of a customer you haven’t seen for a while.

Also, as innovative electrical system products come to market, like surge protectors with energy-saving features, your customers might appreciate an occasional product update. It may also keep your name top of mind the next time they need an electrician.

4. Keep Your Technology Up to Date

Almost daily, new small business technology hits the market that enhances personal safety and business productivity. You don’t need to buy new technology for its own sake, but to help you grow and maximize your profitability. Whether it’s software for customer relationship management, bookkeeping, making financial projections, tracking time, managing work orders, or job bidding, it’s all out there and getting better all the time. Technology’s long-term benefits can make it a worthwhile investment.

5. Maintain Sufficient Working Capital

Running short on cash can be costly in more ways than one — when it forces you to maintain a balance on a credit card account, lose out on discounts from suppliers, or prevents you from purchasing productivity-enhancing technology. Leveraging working capital loans and other forms of small business financing are key to running a successful electrical business. They can tide you over during a dry cash flow spell.

6. Evaluate Your Bidding Track Record

There are two aspects to bidding a job successfully when running an electrical business: getting a healthy share of the available work and charging the right price. If your bids aren’t competitive, you won’t get much business. If they’re too competitive, you could lose money. Take a fresh look at how you’re pricing jobs, and how you’re deciding which projects to bid on (and be prepared to say no to new business ). Make sure you’ve accounted for all the costs you need to cover, including overhead, with some money left over for a fair profit.

Also, consider your success ratio. If you’re consistently losing out to a competitor, try to determine the reason. And remember, cost isn’t the only variable, though it’s typically the most important. Are you getting your bids in promptly? Are they detailed, professional and clearly presented? Where applicable, can you provide customers with more than one option when bidding?

7. Optimize the Size of Your Business

Knowing how to run a successful electrical business includes knowing how big, or small, your business should be. The “Goldilocks principle” applies here — not too hot, not too cold … not too big, not too small. Too small is when you’re so busy doing administrative tasks that you don’t have enough time to do the work that’s the focus of your business. Too large can mean having greater capacity — and larger associated expenses — than the available work. It’s essential to find the right balance.

8. Maintain Your High Safety Standards

The risk of personal injury inherent in running an electrical business is one of the reasons you can command a good price for your work. But easing up on safety precautions, for whatever reason, is not only bad for business, but could mean the end of your business. Make sure you have proper safety training programs in place, as well as a workers’ compensation policy.

9. Think About Your Talent Pipeline

If key people in your business are closing in on retirement, or might just decide to move on to another opportunity, don’t be left in the lurch. It’s not always easy to find skilled younger workers moving into this field, but don’t let the challenge deter you. Consider partnering with a local community college to offer internships or apprenticeships, to keep new talent flowing into your business.

10. Ask for Referrals

No list of tips on how to run a successful electrical business is complete without a reminder to ask your customers to refer their friends to you. Sometimes it just doesn’t occur to them to do so. But if they’re happy with your work, and if you help them remember you by staying in touch, they’ll become your best — and least expensive — marketing tool.

Of course, progress is hard to come by without time, effort and determination on your part. Sometimes, it will also cost money. As you prep for growing your electrical business, you may want to research how to get a small business loan to front some of these expenses without tying up your cash flow. Whether you’re ready to tackle each of these pieces of advice in one go, or you need to start small, it’s important to carve out time to consider your business practices and plan for future growth.

If you own an electrical business, you can consider electrical and plumbing business loan options with National Funding.

Tags: Bad Credit , Business Growth , Construction , Managing your Cash Flow , Marketing for Small Business , Small Business Loans , Working Capital

RECOMMENDED FOR YOU

Bottom Line vs. Top Line: What’s the Difference for Small Business Owners?

Net income vs. net revenue: what’s the difference, fixed and working capital: what’s the difference, what is a break-even analysis.

You are leaving NationalFunding.com

You are now leaving the National Funding website, and are being connected to a third party website. Please note that National Funding is not responsible for the information, content, or product(s) found on third party websites.

How to write a business plan for an electrical appliances store?

Putting together a business plan for an electrical appliances store can be daunting - especially if you're creating a business for the first time - but with this comprehensive guide, you'll have the necessary tools to do it confidently.

We will explore why writing one is so important in both starting up and growing an existing electrical appliances store, as well as what should go into making an effective plan - from its structure to content - and what tools can be used to streamline the process and avoid errors.

Without further ado, let us begin!

In this guide:

Why write a business plan for an electrical appliances store?

What information is needed to create a business plan for an electrical appliances store.

• How do I build a financial forecast for an electrical appliances store?

The written part of an electrical appliances store business plan

• What tool should I use to write my electrical appliances store business plan?

Having a clear understanding of why you want to write a business plan for your electrical appliances store will make it simpler for you to grasp the rationale behind its structure and content. So before delving into the plan's actual details, let's take a moment to remind ourselves of the primary reasons why you'd want to create an electrical appliances store business plan.

To have a clear roadmap to grow the business

Small businesses rarely experience a constant and predictable environment. Economic cycles go up and down, while the business landscape is mutating constantly with new regulations, technologies, competitors, and consumer behaviours emerging when we least expect it.

In this dynamic context, it's essential to have a clear roadmap for your electrical appliances store. Otherwise, you are navigating in the dark which is dangerous given that - as a business owner - your capital is at risk.

That's why crafting a well-thought-out business plan is crucial to ensure the long-term success and sustainability of your venture.

To create an effective business plan, you'll need to take a step-by-step approach. First, you'll have to assess your current position (if you're already in business), and then identify where you'd like your electrical appliances store to be in the next three to five years.

Once you have a clear destination for your electrical appliances store, you'll focus on three key areas:

• Resources: you'll determine the human, equipment, and capital resources needed to reach your goals successfully.
• Speed: you'll establish the optimal pace at which your business needs to grow if it is to meet its objectives within the desired timeframe.
• Risks: you'll identify and address potential risks you might encounter along the way.

By going through this process regularly, you'll be able to make informed decisions about resource allocation, paving the way for the long-term success of your business.

To anticipate future cash flows

Regularly comparing your actual financial performance to the projections in the financial forecast of your electrical appliances store's business plan gives you the ability to monitor your business's financial health and make necessary adjustments as needed.

This practice allows you to detect potential financial issues, such as unexpected cash shortfalls before they escalate into major problems. Giving you time to find additional financing or put in place corrective measures.

Additionally, it helps you identify growth opportunities, like excess cash flow that could be allocated to launch new products and services or expand into new markets.

Staying on track with these regular comparisons enables you to make well-informed decisions about the amount of financing your business might require, or the excess cash flow you can expect to generate from your main business activities.

To secure financing

Whether you are a startup or an existing business, writing a detailed electrical appliances store business plan is essential when seeking financing from banks or investors.

This makes sense given what we've just seen: financiers want to ensure you have a clear roadmap and visibility on your future cash flows.

Banks will use the information included in the plan to assess your borrowing capacity (how much debt your business can support) and your ability to repay the loan before deciding whether they will extend credit to your business and on what terms.

Similarly, investors will review your plan carefully to assess if their investment can generate an attractive return on investment.

To do so, they will be looking for evidence that your electrical appliances store has the potential for healthy growth, profitability, and cash flow generation over time.

Now that you understand why it is important to create a business plan for an electrical appliances store, let's take a look at what information is needed to create one.

Need a convincing business plan?

The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Writing an electrical appliances store business plan requires research so that you can project sales, investments and cost accurately in your financial forecast.

In this section, we cover three key pieces of information you should gather before drafting your business plan!

Carrying out market research for an electrical appliances store

As you consider writing your business plan for an electrical appliances store, conducting market research becomes a vital step to ensure accurate and realistic financial projections.

Market research provides valuable insights into your target customer base, competitors, pricing strategies, and other key factors that can significantly impact the commercial success of your business.

Through this research, you may uncover trends that could influence your electrical appliances store.

You could find that customers may be more interested in purchasing energy efficient appliances as environmental concerns become more prevalent. Additionally, customers might be more likely to purchase items online as technology advances and online shopping becomes more popular.

Such market trends play a significant role in forecasting revenue, as they offer valuable data about potential customers' spending habits and preferences.

By incorporating these findings into your financial projections, you can present investors with more accurate information, helping them make informed decisions about investing in your electrical appliances store.

Developing the marketing plan for an electrical appliances store

Before delving into your electrical appliances store business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of an electrical appliances store

Whether you are at the beginning stages of your electrical appliances store or expanding its horizons, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is vital to ensure your business's success.

To achieve this, both the recruitment and investment plans must align coherently with the projected timing and level of growth in your forecast. It is essential to secure appropriate funding for these plans.

Staffing costs for an electrical appliances store might include salaries for employees, benefits, and payroll taxes. Equipment costs might include the purchase of computers and other technology, shelves and fixtures to display merchandise, and inventory management systems.

To create a financial forecast that accurately represents your business's outlook, remember to factor in other day-to-day operating expenses.

Now that you have all the necessary information, it's time to dive in and start creating your business plan and developing the financial forecast for your electrical appliances store.

What goes into your electrical appliances store's financial forecast?

The financial forecast of your electrical appliances store's business plan will enable you to assess the growth, profitability, funding requirements, and cash generation potential of your business in the coming years.

The four key outputs of a financial forecast for a electrical appliances store are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

The projected P&L statement for an electrical appliances store shows how much revenue and profits your business is expected to generate in the future.

Ideally, your electrical appliances store's P&L statement should show:

• Healthy growth - above inflation level
• Improving or stable profit margins
• Positive net profit

Expectations will vary based on the stage of your business. A startup will be expected to grow faster than an established electrical appliances store. And similarly, an established company should showcase a higher level of profitability than a new venture.

The projected balance sheet of your electrical appliances store

Your electrical appliances store's forecasted balance sheet enables the reader of your plan to assess your financial structure, working capital, and investment policy.

It is composed of three types of elements: assets, liabilities and equity:

• Assets: represent what the business owns and uses to produce cash flows. It includes resources such as cash, equipment, and accounts receivable (money owed by clients).
• Liabilities: represent funds advanced to the business by lenders and other creditors. It includes items such as accounts payable (money owed to suppliers), taxes due and loans.
• Equity: is the combination of what has been invested by the business owners and the cumulative profits and losses generated by the business to date (which are called retained earnings). Equity is a proxy for the value of the owner's stake in the business.

Your electrical appliances store's balance sheet will usually be analyzed in conjunction with the other financial statements included in your forecast.

Two key points of focus will be:

• Your electrical appliances store's liquidity: does your business have sufficient cash and short-term assets to pay what it owes over the next 12 months?
• And its solvency: does your business have the capacity to repay its debt over the medium-term?

The projected cash flow statement

A cash flow forecast for an electrical appliances store shows how much cash the business is projected to generate or consume.

The cash flow statement is divided into 3 main areas:

• The operating cash flow shows how much cash is generated or consumed by the operations (running the business)
• The investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.)
• The financing cash flow shows how much cash is raised or distributed to investors and lenders

Looking at the cash flow forecast helps you to ensure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

It is also a best practice to include a monthly cash flow statement in the appendices of your electrical appliances store business plan so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The initial financing plan, also known as a sources and uses table, is a valuable resource to have in your business plan when starting your electrical appliances store as it reveals the origins of the money needed to establish the business (sources) and how it will be allocated (uses).

Having this table helps show what costs are involved in setting up your electrical appliances store, how risks are shared between founders, investors and lenders, and what the starting cash position will be. This cash position needs to be sufficient to sustain operations until the business reaches a break-even point.

Now that you have a clear understanding of what goes into the financial forecast of your electrical appliances store business plan, let's shift our focus to the written part of the plan.

Need inspiration for your business plan?

The Business Plan Shop has dozens of business plan templates that you can use to get a clear idea of what a complete business plan looks like.

The written part of an electrical appliances store business plan plays a key role: it lays out the plan of action you intend to execute to seize the commercial opportunity you've identified on the market and provides the context needed for the reader to decide if they believe your plan to be achievable and your financial forecast to be realistic.

The written part of an electrical appliances store business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

In your electrical appliances store's business plan, the first section is the executive summary — a captivating overview of your plan that aims to pique the reader's interest and leave them eager to learn more about your business.

When crafting the executive summary, start with an introduction to your business, including its name, concept, location, how long it has been running, and what sets it apart. Briefly mention the products and services you plan to offer and your target customer profile.

Following that, provide an overview of the addressable market for your electrical appliances store, current trends, and potential growth opportunities.

Next, include a summary of key financial figures like projected revenues, profits, and cash flows.

Finally, in the "ask" section, detail any funding requirements you may have.

2. The presentation of the company

As you build your electrical appliances store business plan, the second section deserves attention as it delves into the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide valuable insights into the legal structure of the business, the identities of the owners, and their respective investments and ownership stakes. This level of transparency is vital, particularly if you're seeking financing, as it clarifies which legal entity will receive the funds and who holds the reins of the business.

Moving to the location part, you'll offer a comprehensive view of the company's premises and articulate why this specific location is strategic for the business, emphasizing factors like catchment area, accessibility, and nearby amenities.

When describing the location of your electrical appliances store, you could focus on the potential for customer traffic. It could be situated in a community with high levels of consumer activity, such as a shopping mall or a popular neighborhood restaurant district. You could also emphasize the potential for growth in the area, as the population of the surrounding area may be increasing rapidly. In addition, you could point out any unique features or amenities that might draw customers to the store, such as a nearby park or a major highway that passes by. Finally, you could highlight any partnerships that you could leverage to bring more customers to the store, such as deals with local businesses or organizations.

Lastly, you should introduce your esteemed management team. Provide a thorough explanation of each member's role, background, and extensive experience.

It's equally important to highlight any past successes the management team has achieved and underscore the duration they've been working together. This information will instil trust in potential lenders or investors, showcasing the strength and expertise of your leadership team and their ability to deliver the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of what your company offers, who are the target customers, and what distribution channels are part of your go-to-market. 

For example, your electrical appliances store might offer a range of products such as refrigerators, dishwashers, washing machines, air conditioners, and vacuum cleaners. Your store might also offer services such as installation, maintenance, and repair services. This will enable customers to purchase suitable appliances for their needs, and to ensure that they are installed and maintained properly. This can improve the customers' convenience and satisfaction, and help to build trust in the store.

4. The market analysis

When outlining your market analysis in the electrical appliances store business plan, it's essential to include comprehensive details about customers' demographics and segmentation, target market, competition, barriers to entry, and relevant regulations.

The primary aim of this section is to give the reader an understanding of the market size and appeal while demonstrating your expertise in the industry.

To begin, delve into the demographics and segmentation subsection, providing an overview of the addressable market for your electrical appliances store, key marketplace trends, and introducing various customer segments and their preferences in terms of purchasing habits and budgets.

Next, shift your focus to the target market subsection, where you can zoom in on the specific customer segments your electrical appliances store targets. Explain how your products and services are tailored to meet the unique needs of these customers.

For example, your target market might include young professionals. These customers are likely to be between the ages of 25 and 35, and have an above average disposable income. They are likely to be tech-savvy and interested in the latest gadgets and appliances.

In the competition subsection, introduce your main competitors and explain what sets your electrical appliances store apart from them.

Finally, round off your market analysis by providing an overview of the main regulations that apply to your electrical appliances store.

5. The strategy section

When writing the strategy section of a business plan for your electrical appliances store, it is essential to include information about your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

The competitive edge subsection should explain what sets your company apart from its competitors. This part is especially key if you are writing the business plan of a startup, as you have to make a name for yourself in the marketplace against established players.

The pricing strategy subsection should demonstrate how you intend to remain profitable while still offering competitive prices to your customers.

The sales & marketing plan should outline how you intend to reach out and acquire new customers, as well as retain existing ones with loyalty programs or special offers. 

The milestones subsection should outline what your company has achieved to date, and its main objectives for the years to come - along with dates so that everyone involved has clear expectations of when progress can be expected.

The risks and mitigants subsection should list the main risks that jeopardize the execution of your plan and explain what measures you have taken to minimize these. This is essential in order for investors or lenders to feel secure in investing in your venture.

Your electrical appliances store could face the risk of a natural disaster such as a flood or a fire damaging the store and its contents. This could result in significant financial losses due to the destruction of inventory and equipment. Your store might also face the risk of theft. Thieves could target your store for expensive items such as televisions, computers, or sound systems. This could lead to a loss of profits as well as a decrease in customer confidence in the store.

6. The operations section

The operations of your electrical appliances store must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your electrical appliances store - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You may have valuable physical assets such as inventory, equipment, or building space. You could also have intellectual property such as trademarks, trade secrets, or copyrighted materials. These could be associated with the store's name, logo, or other intellectual creations.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will present the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of what goes in your electrical appliances store business plan, let's look at the solutions you can use to draft yours.

What tool should I use to write my electrical appliances store's business plan?

There are two main ways of creating your electrical appliances store business plan:

• Using specialized business planning software,
• Hiring a business plan writer.

Using an online business plan software for your electrical appliances store's business plan

Using online business planning software is the most efficient and modern way to write an electrical appliances store business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Need a solid financial forecast?

The Business Plan Shop does the maths for you. Simply enter your revenues, costs and investments. Click save and our online tool builds a three-way forecast for you instantly.

Hiring a business plan writer to write your electrical appliances store's business plan

Outsourcing your electrical appliances store business plan to a business plan writer can also be a viable option.

Business plan writers are skilled in creating error-free business plans and accurate financial forecasts. Moreover, hiring a consultant can save you valuable time, allowing you to focus on day-to-day business operations.

However, it's essential to be aware that hiring business plan writers will be expensive, as you're not only paying for their time but also the software they use and their profit margin.

Based on experience, you should budget at least £1.5k ($2.0k) excluding tax for a comprehensive business plan, and more if you require changes after initial discussions with lenders or investors.

Also, exercise caution when seeking investment. Investors prefer their funds to be directed towards business growth rather than spent on consulting fees. Therefore, the amount you spend on business plan writing services and other consulting services should be insignificant compared to the amount raised.

Keep in mind that one drawback is that you usually don't own the business plan itself; you only receive the output, while the actual document is saved in the consultant's business planning software. This can make it challenging to update the document without retaining the consultant's services.

For these reasons, carefully consider outsourcing your electrical appliances store business plan to a business plan writer, weighing the advantages and disadvantages of seeking outside assistance.

Why not create your electrical appliances store's business plan using Word or Excel?

I must advise against using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write your electrical appliances store business plan. Let me explain why.

Firstly, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is highly technical and requires a strong grasp of accounting principles and financial modelling skills. It is, therefore, unlikely that anyone will fully trust your numbers unless you have both a degree in finance and accounting and significant financial modelling experience, like us at The Business Plan Shop.

Secondly, relying on spreadsheets is inefficient. While it may have been the only option in the past, technology has advanced significantly, and software can now perform these tasks much faster and with greater accuracy. With the rise of AI, software can even help us detect mistakes in forecasts and analyze the numbers for better decision-making.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software makes it easier to compare actuals versus forecasts and maintain up-to-date forecasts to keep visibility on future cash flows, as we discussed earlier in this guide. This task is cumbersome when using spreadsheets.

Now, let's talk about the written part of your electrical appliances store business plan. While it may be less error-prone, using software can bring tremendous gains in productivity. Word processors, for example, lack instructions and examples for each part of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they don't handle formatting for you.

Overall, while Word or Excel may seem viable for some entrepreneurs to create a business plan, it's by far becoming an antiquated way of doing things.

• Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
• A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
• A business plan has 2 main parts: a financial forecast outlining the funding requirements of your electrical appliances store and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your electrical appliances store business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.

Also on The Business Plan Shop

• How to write a business plan to secure a bank loan?
• Key steps to write a business plan?
• Top mistakes to avoid in your business plan

Do you know entrepreneurs interested in starting or growing an electrical appliances store? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

Create a convincing business plan

Assess the profitability of your business idea and create a persuasive business plan to pitch to investors

500,000+ entrepreneurs have already tried our solution - why not join them?

Not ready to try our on-line tool ? Learn more about our solution here

Need some inspiration for your business plan?

Subscribe to The Business Plan Shop and gain access to our business plan template library.

Need a professional business plan? Discover our solution

Write your business plan with ease!

It's easy to create a professional business plan with The Business Plan Shop

Want to find out more before you try? Learn more about our solution here

Electrical Hardware Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Construction & Engineering

Are you about starting an electrical hardware company? If YES, here is a sample electrical hardware business plan template & FREE feasibility report.

A hardware business typically manufactures or sells hand and power tools, building materials, fasteners, keys, locks, hinges, chains, electrical supplies, plumbing supplies, cleaning products, housewares, utensils, and paint. These businesses are designed for DIY consumers and handymen (as well as tradesmen) who need a location to acquire supplies for projects.

A small hardware store can be established for less than $100,000. Startup costs include rent for the building, start-up inventory, display setup, and cash reserve for staffing and labor costs. Start-up inventory will likely run between $50,000 and $75,000.

Ongoing expenses for this kind of business include supplies, rent, utilities, and insurance. All of these costs will vary significantly depending on your location.

Your customers in this business will mainly be DIY customers or handymen. However, an electrical hardware store can set up trade accounts with local tradesmen to acquire steady business. Note that email marketing is an underutilized strategy in this industry because most electrical hardware stores depend on word of mouth and foot traffic.

But, by emailing your existing customers on a regular basis, you can generate significantly higher revenue than depending on people randomly coming into your store when they need something. A well-structured and targeted email campaign would also allow you to better predict revenue and profit.

A Sample Electrical Hardware Business Plan Template

1. industry overview.

The Electrical Equipment Industry is made up of companies that manufacture and sell a range of products to a diverse customer base. Although this sector is fragmented, there are a few members that strive to claim a sizable portion of sales.

Products include electrical motors, commercial and industrial lighting fixtures, heating, ventilation and air conditioning systems and components, and, among others, electrical power equipment. Operating structures involve high fixed costs.

Too, copper, aluminum and steel are essential raw materials used in the manufacture of products. (Fluctuations in commodity prices can have an impact on earnings).

The industry spans all corners of the world, and it is subject to the influence of the macroeconomic cycle. These companies majorly serve the mature markets of North America and Europe, but they have found growth venues in the emerging world.

According to reports, massive global coverage helps to smooth the effects of the broader business cycle. Capable management is meanwhile needed to oversee long distribution networks and far flung operations. Most recently, companies have created more overseas brick-and-mortar facilities, which has allowed them to better serve local markets economically and limit the negative impact of foreign currency exchange.

According to industry reports, top- and bottom-line trends in the industry often track the broad economic cycle. Within short periods of prosperity, when they are flush with cash, customers are comfortable expanding their capital budgets and spending on electrical equipment.

Sometimes, when there is uncertainty as to the direction of the economy, those controlling the purse strings delay spending decisions, which can hurt short-term operating results. Also, when business conditions are very challenging, customers may pull back dramatically on equipment orders.

Companies try to repair and replace equipment during regular, seasonal or cyclical slack periods. Often, managers will attempt to extend the useful life of equipment as long as possible. Meanwhile, there are some major indicators of the industry’s prospects.

The Institute of Supply Management’s Purchasing Managers Index offers a near real-time view of manufacturing production, employment levels, new orders, supplier deliveries and inventory turnover. For instance, a reading above 50 shows expansion, and one below that figure marks a manufacturing contraction.

Durable Goods Orders, released by the U.S. Census Bureau, is another crucial statistic. These consumer goods last three years or more and are relatively expensive. Month-to-month trends are a good indication of whether the economy is cycling up or down.

Additionally, the Federal Reserve Board regularly releases capacity utilization figures. Utilization is high when demand is strong and low when demand is weak. Capacity utilization rates above 80% suggest that equipment spending will rise; such levels may also indicate that inflation will increase.

2. Executive Summary

Billing Main Stores (BMS) is a new electrical hardware business that will design and sell strong and long lasting power protection products in Downtown Billing, Montana. We will be successful because our plan is to provide a distinctive service different to what the industry are already used to. At Billing Main Stores, we expect an optimistic gross margin over the industry average.

We plan to achieve this due to the new approach to service we bring to the industry and our diversified workforce. We boast of durable workforce from different backgrounds, but with the prerequisite skills and zeal to present our customers with an experience they won’t forget in a hurry.

Our goal is to provide our customer with an enjoyable, honest service by satisfying individual customers electrical equipment needs. Our business location, The Billings trade area serves over a half million people. Known as a major trade and distribution center, the city is home to many regional headquarters and corporate headquarters.

With Montana having no sales tax, Billings is a retail destination for much of Wyoming, North and South Dakota as well as much of Montana east of the Continental Divide. $1 out of every $7 spent on retail purchases in Montana is being spent in Billings.

Also, the percentage of wholesale business transactions done in Billings is even stronger: Billings accounts for more than a quarter of the wholesale business for the entire state. Billings is an energy center sitting amidst the largest coal reserves in the united states as well as large oil and natural gas fields.

At Billing Main Stores, profits made at first will be used to settle any overhead costs related to purchasing inventory. We have chosen to outsource production because we have numerous relationships with contract manufacturers that can make the products for far less than we can.

We also acknowledge that production would create significant capital costs which are truly unnecessary. The beauty of this Business model is the usage of contract manufacturers and the leveraging of other viable resources to grow our business.

Billing Main Stores was founded by a group of friends, headed by Mr. Gregory Cameral in May 2019. Mr. Gregory Cameral has an MBA from Montana State University and has experience working for the large electrical company SONY as an assistant project manager, and Concord Current as an executive in the value added services department.

Billing Main Stores has been forecasted to achieve impressive sales for years two and three, with correspondingly respectable net profit. Having completed nearly 12 years at various electrical business establishments, Mr. Gregory has a complete knowledge and experience in this industry.

3. Our Products and Services

At Billing Main Stores, we will offer a vast range of surge arrestors and surge protectors. A surge protector protects electrical devices plugged into it against spikes in voltage. While a surge arrestor or “whole house surge protector” protects all circuits of a house from a surge in current coming from outside the building. All our products will protect consumers and their sensitive electric and electronic appliances from power surges or transient voltage.

For the sake of clarity, a power surge is an increase in voltage significantly above the designated level of flow of electricity. When a surge or spike is high enough, it can cause serious electrical damage, just like applying to much water pressure through a hose.

These surge protectors work by diverting the extra electricity into the outlet’s grounding wire. A surge arrestor provides the same protection, but, the protection occurs before the current comes into the home. There are several sources of surges. The most familiar source is lightning. When lightning strikes near a power line, the electrical energy creates a boost of electrical pressure.

A surge arrestor is the best form of protection against lightning as a lightning surge will overpower most surge protectors. A more common source is the operation of high power electrical devices such as refrigerators and air conditioning units.

These appliances cause spikes when their compressors or motors are turned on and off, creating sudden, brief demands for power and upsetting the flow of the electrical voltage. These types of surges can be protected only by surge protectors because the spike occurs within the home and not from the electrical grid.

The last main source of surges comes from the utility company’s equipment. The complex system of equipment that brings electrical power from the grid into the home may have points of failure that can cause uneven power transmission.

A combination of a surge arrestor and surge protectors on major or expensive electric/electronic components can significantly decrease the possibility of surge/spike damage. We at Billing Main Stores will offer two main products, surge arrestors and surge protectors. These products are made by a contract manufacturer and sold under the Billing Main Stores brand name.

4. Our Mission and Vision Statement

• Our vision at Billing Main Stores is to establish an electrical hardware dealership with a respectable gross margin in a sustainable environment.
• Our Mission is to develop a vast range of surge protectors and arrestors for clients that offer safety and value.
• Our aim is to leverage the economic strength of our business location to help build brand recognition.
• All customer’s expectations will be exceeded with their innovative, useful products and complete customer satisfaction is guaranteed.

Our Business Structure

Mr. Gregory Cameral will function as the company president for the first five years for a minimal salary of $24,000 in exchange for his commitment, coordination and technical know-how. The board of directors which comprises of industry leaders will be compensated for their services by a return of profits on their investment.

Two sales staff will work the sales floor for the first year compensated solely by commissions earned on a 5% pay scale. Also three mechanics, specializing in hardware repairs, will be paid $3,200 monthly.

The mechanics’ salaries will steadily increase every year by 5% to show the increased human capital acquired by the mechanics’ maintenance experience with our equipment and hardware. Meanwhile, the maintenance and secretarial staff will take care of administrative matters and sales room decorum. Below are detailed professionals we plan to employ to achieve our business visions and goals.

Store Manager

• Human Resources and Admin Manager

Sales and Marketing Manager

• Information technologist
• Maintenance and Secretarial staffs

5. Job Roles and Responsibilities

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

Admin and HR Manager

• In charge of overseeing the smooth running of HR and administrative tasks for the organization
• Tasked with maintaining office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Makes sure operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defining job positions for recruitment and managing interviewing process
• Carrying out induction for new team members
• In charge of training, evaluation and assessment of employees
• In charge of arranging travel, meetings and appointments
• Oversee the smooth running of the daily office cum business activities
• In charge of managing the daily activities in the hardware store
• Ensures that proper records of hardware are kept and the store does not run out of hardware
• Ensures that the store facility is in tip top shape and hardware are properly arranged and easy to locate
• Interfaces with third – party suppliers (vendors)
• Controls distribution and supply chain inventory
• Supervise the workforce in the hardware store sales floor
• Takes care of external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyse the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts
• In charge of supervising implementation, advocate for the customer’s needs, and communicate with clients
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Find out mechanical problems, often by using computerized diagnostic equipment
• Test parts and systems to ensure that they are working properly
• Repair or replace worn parts
• Disassemble and reassemble parts
• Use testing equipment to ensure that repairs and maintenance are effective
• Explain to clients the problems and the repairs done on their electrical device
• Adhere to checklists to ensure that all critical parts are examined
• Do basic care and maintenance.

Information Technologist

• Manages the organization website
• Handles ecommerce aspect of the business
• In charge of installing and maintenance of computer software and hardware for the organization
• Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manages the organization’s CCTV
• Handles any other technological and IT related duties

Accountant/Cashier

• In charge of preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports
• In charge of financial forecasting and risks analysis
• Performs cash management, general ledger accounting, and financial reporting
• Tasked with developing and managing financial systems and policies
• Tasked with administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Maintenance and secretarial staffs

• Makes sure that all contacts with clients (e-mail, walk-In centre, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
• Provides information about warranties, manufacturing specifications, care and maintenance of merchandise and delivery options
• Ensures that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the store
• Handles any other duty as assigned by the store manager

6. SWOT Analysis

At Billing Main Stores, our major objectives include developing a profitable product that is unregulated from the core power generation business, to become profitable within one year and to use our business as a successful model for future ventures.

We can’t achieve these goals by being a trial and error business. Our plans are steady, solid and they respect the ideas and visions of our founders. Below is a well-documented summary of our SWOT analysis, performed by Xavier Holdings, to ascertain our chances and weaknesses in our industry of choice.

• We provide every customer 100% satisfaction.
• We design and sell meaningful, valuable, power protection products.
• We plan to design and employ strict financial controls.

According to our SWOT analysis, we are a new electrical hardware dealership business in Downtown Billing and we don’t have the financial capacity to compete with multi – million dollar dealers in the country, and we might find it hard penetrating the market.

• Opportunities

Although most hardware stores, electronic stores, and mass merchants sell some sort of surge protector, the products offered by Billing Main Stores will be differentiated by their industrial grade offer and, a far higher level of protection than most other surge protectors.

These units are $130 each and offer the best protection when used in conjunction with a surge arrestor. Any type of electric or electronic appliance of value should be protected such as furnaces, refrigerators, stoves, TVs, stereos, computers, modems, phones, etc.

One of the key setbacks that we are going to face at Billing Main Stores will be convincing people to patronize our services. Although we acknowledge the open opportunities in this industry far outweighs this threat.

7. MARKET ANALYSIS

• Market Trend

According to reports, electrical equipment shipments, orders, and backlog offer a fairly accurate indication of an individual company’s sales prospects. Growing orders help to build backlog and lead to higher shipments and sales.  Order cancellations, however, can quicken top-line declines.

Plant utilization lends insight to a company’s pricing power and earnings potential. Also, product quality and ease of integration (into manufacturing systems) will influence demand, pricing and profits. In this industry, operating efficiency is very important for these companies to succeed. For the most part, the industry’s operating margin ranges from 10% to 20%.

Some leaders achieve margins in the 30s and 40s, and a few, with profitability measures in the single digits, lag behind. Popular efficiency and cost-reduction methods include Six Sigma, Lean Manufacturing, Best Practices and common production platforms. Effective hedging strategies can bring volatile commodity prices under control.

In some instances, research and development expense is less than 5% of sales. Nonetheless, R&D outlays are important to the industry. Innovation allows a company to improve its competitive position.

Managements work to keep up with shrinking product life cycles and attain standardization to maintain cohesiveness and save money. Notwithstanding, net margins hew close to 10%. For equipment makers with little or no debt, net margins about match operating margins.

Those with significant debt obligations often have net margins in the single digits. Managements tap the equity and debt markets, and use cash, for expansion and acquisitions, depending on the comparative cost of capital and their tolerance for risk.

Also note that the industry has a history of substantial merger and acquisition activity. Acquisitions offer access to new markets and products, as well as ample cost synergies. Usually, the larger the company and the more extensive the record of buyouts, the less risk there is to investors.

8. Our Target Market

At Billing Main Stores, we’ve identified three unique target market to sell our products to. The first market is family home owners, typically with children, and the second is single home owners.

These two unique markets have been chosen because families with children typically have a large number of electronic devices and the upper income single home owner often use lots of gadgets in their home. Meanwhile, the third market is commercial businesses that have equipment they want protected.

We acknowledge that competition is very limited for surge arrestors as they require electric utility installation. There is some competition with the surge protectors, however the competitive products are of a consumer level of quality and protection, different from our products which offer industrial levels of protection.

Billing Main Stores is targeting these groups. Although most home owners insurance offers some level of compensation for damage, deductibles are typically high enough that most people do not make claims.

• Our Competitive Advantage

At Billing Main Stores, we expect an optimistic gross margin over the industry average. We plan to achieve this due to the new approach to service we bring to the industry and our diversified workforce.

Billing Main Stores will grow from four board directors plus a small group of two sales persons, one IT personnel, an accountant and one mechanic, all of who will bring their professional expertise and contacts to provide a solid foundation of connections for future marketing ventures. Meanwhile, our media strategy will focus on direct marketing to local groups and clubs, as well as advertising in magazines.

All sales prospects will be finalized in person, through mail-order, over the phone, and via the Internet. We also believe that as the visibility of our hardware increases, sales among home owners and the commercial market will increase by 60% each month thereafter.

9. SALES AND MARKETING STRATEGY

• Marketing and Sales strategy

At Billing Main Stores, we’ve developed a targeted strategy that allows us to leverage our competitive edge and quickly gain market penetration. Our competitive edge is our optimistic gross margin over the industry average. Our marketing strategy will concentrate on the ability to offer supreme, inexpensive protection for electronic appliances.

This campaign will be communicated through various methods and will focus on the product offerings coming from Billing Main Stores.

We will also put together a news release which will be sent to area newspapers and magazines announcing the launch of Billing Main Stores. Our President Mr. Gregory Cameral is an important member of the Montana Chamber of Commerce. He will also make himself available for speaking engagements at other community or civic organizations.

We believe that by becoming a front runner and a sponsor in a community event, we can leverage a low-cost way of increasing awareness and building goodwill in the community. We will also encourage and reward our customers for their repeat business. This can be accomplished by offering a discount special price to past customers who returned.

10. Sales Forecast

At Billing Main Stores, we expect our normal monthly running costs per month, which include our full payroll, lease, marketing, utilities, and an estimation of other running expenses. Payroll alone can be about $60,000 for one mechanic and one accountant, while all sales staff operates on commission.

Agreeably, margins are difficult to put together as the average per unit costs do not include marketing costs, promotions, or salesman commissions. But our overall average per unit revenue over per unit costs is based on past sales from other dealerships.

The gross margin within the first year will be modest, rising in the second and third year. Our major budget items will include salary, rent, sales and marketing expenses, utilities, insurance, taxes and licensing.

Billing Main Stores net profit is also expected to reach outstanding levels in the first year, rising in the second and the third year. All of these profits can then be fed back into research and development opening the doorway to a secondary market role for Billing Main Stores to become a patent holding company.

11. Publicity and Advertising Strategy

At Billing Main Stores, our promotion strategy will seek to communicate the idea that the products that we offer are cheap insurance against large electronic damage or losses. By proactively purchasing our electrical products, clients can protect all their expensive devices against loss and damage.

Although many homeowners probably have some sort of insurance, deductibles are often prohibitively high, making a claim for damage to one or a couple appliances not worth the money. Billing Main Stores will use several forms of communication for our promotional campaign:;

• Put adverts on community based newspapers, radio and TV stations
• Encourage the use of word of mouth publicity from our loyal customers
• Make use of the internet and social media platforms like YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
• Make sure we position our banners and billboards in strategic positions all around Billings.
• Share our fliers and handbills in target areas in and around Billings
• Advertise our used hardware dealership business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our products and delivery trucks and ensure that all our staff members wear our branded shirt or cap at regular intervals.

Source of income

Most of our inventory will be bought in advance to stock the sales floor and we plan to generate revenue by offering a vast range of surge arrestors and surge protectors to our clients. Billing Main Stores is expected to grow in sales at a rate of 15% per month, starting from the conservative estimate of 72 hardware sold.

Note that this financing will come initially from the executive board, giving room for plenty of opportunity for credit to cover unforeseen expenses, if necessary. Growth will be rapid and produce profits almost immediately.

12. Our Pricing Strategy

At Billing Main Stores, we believe our target audience will buy based on superior quality, excellent customer service, and local business location. We also know that businesses in our business scope make their money from the interest and commissions they offer their services and products.

We hope to keep our prices at the average market rate for the main time, but will increase as our identity in the market increases. Most of our products will sell between $130 and $620 to take advantage of impulse purchasers in the city. Our average sale is around $375, which also includes a professional installation.

• Payment Options

At Billing Main Stores, we will always strive to establish payment methods that will suit our clients. We have also partnered with a renowned bank to help serve our clients comfortably. We hope to make available the following payment options for our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment through POS
• payment through PayPal
• Payment via check
• Payment via bank draft
• Payment with cash

13. Startup Expenditure (Budget)

Our goal at Billing Main Stores is to establish a business that will serve the needs of our customers and also ensure a balanced positive cash flow. We believe that with our diverse workforce and experienced board of directors, we can build a unique business that will invest residual profits into company expansion and Personnel.

We have estimated our start up costs and overheads for the next three years. It is believed that all new entrants in the industry operate with negative profits through the first two years. But, at Billing Main Stores, we plan to avoid that kind of operating loss by understanding our markets, our competitors, industry direction, and the products we sell. Outlined below are the ways we plan spending our start-up cost;

• The Total Fee for Registering the Business in Billings : $900.
• The budget for insurance, permits and license: $10,000
• The Amount needed to acquire a suitable Facility for 6 months in Downtown Billings (face lifting of the facility inclusive): $75,000.
• The Cost for the purchase of furniture and gadgets (fridges, TVs, Sound System, tables and chairs et al): $20,000.
• The Cost for Equipment: $15,000
• The Cost for inventory : $3,000,000
• The Cost of Launching a Website: $700
• Our marketing and publicity budget – $150,000
• The cost for our opening party: $6,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al): $7,000

From our detailed analysis above, we will need $3,284,600 to start Billing Main Stores. We have also put plans in place to be able to raise the funds and capital.

Generating Funding/Start up for Billing Main Stores 

Billing Main Stores was founded by four friends led by Mr. Gregory Cameral. These experienced men, Mason Creed, Churchill Garner, Sampson Amos and Fred Marshall are all from different walks of life, with a basic knowledge of the electrical hardware industry and ready to invest their years of experience in Billing Main Stores. They will also be the sole financiers of the business which is why we have restricted the sourcing of the startup capital for the business to just three major sources.

• Generate part of the startup capital from personal savings and sale of stocks
• Generate part of the startup capital from friends and other extended family members
• Generate part of the capital from the bank (loan facility).

This group of friends have been able to raise $2,000,000 ($500,000 from personal savings and $400,000 from his friends and family as soft loan), and we are at the final stages of obtaining a loan facility of $1,000,000. We have verified all the necessary procedures to actualize or get our startup cost.

14. Sustainability and Expansion Strategy

At Billing Main Stores, our strategy to build customer sales includes telemarketing and encouraging and rewarding present clients to refer future clients. Networking within business groups, civic groups, church groups, etc. are important, even if the business results are not immediately felt.

Billings Main Store does not face any real competition for the arrestors due to the installation requirement of the electric utility. Although, there are six current vendors that sell the actual arrestor equipment, it is far more expensive to buy the equipment and then pay for installation than buying the package (product and installation) directly from the utility.

We boast of a long lasting business understanding with MSL Distribution, one of the topmost utility firms in Billings. In terms of the surge protectors, we face general competition from several sources. This is qualified as general competition since the products typically sold (75% of the time) are of consumer quality versus the industrial quality that Billing Main Stores offers.

Due to our direct contacts with electrical component manufacturers and their sheer buying scale/power, we will be able to offer high-quality industrial grade products for prices that are similar to the consumer units. Our sales forecast has been developed as a forecast and tracking tool to provide the company with realistic sales goals as well as a way to verify progress.

The forecast has been developed as a conservative estimate, not an aggressive sales promise. By adopting a conservative forecast, Billings Main Stores increases the likelihood of reaching sustainable sales growth. Barring monopolistic manipulations of the supply of inventory, success is just around the corner.

Also objectives have been set for Billing Main Stores so that actual performance can be measured against them. Each subsequent year, new objectives will be set for these benchmarks, and actual performance will be measured against them.

If actual performance falls short of objectives, investigation will be made into the cause, and plans adjusted accordingly. At Billing Main Stores, we will keep track of the source of all new clients so as to measure the effectiveness of each type of promotion.

Checklist/Milestone

• Business Name Availability Check : Completed
• Business Incorporation: Completed
• Opening of Corporate Bank 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
• Leasing, renovating and equipping our facility: Completed
• Generating part of the startup capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress

Related Posts:

• Sand Dredging Business Plan [Sample Template]
• Laser Cutting Business Plan [Sample Template]
• Spray Foam Insulation Business Plan [Sample Template]
• Equipment Leasing Business Plan [Sample Template]
• Electrical Supply Business Plan [Sample Template]

38+ SAMPLE Electrical Plans in PDF | MS Word

Electrical plans | ms word, 38+ sample electrical plans, what is an electrical plan, what should an electrical plan include, how to make an electrical plan using a template, how is a proposal different from a plan, what are the different types of plans, why is having a plan important.

Electrical Plan Review Checklist

Electrical Plan Submittal Form

Engineer Electrical Plan

Electrical Power Plans

Electrical Plan Application Example

Electrical Plan Assessment Template

City Electrical Plan

Drawing an Electrical Plan

City of Elmhurst Electrical Plan

Electrical Protection Plan

Commercial Electrical Plan

Solar Electrical Plan

Electrical Check Plan

Electrical Actuator Test Plan

Electrical Safety Plan

Electrical Lesson Plan

Application for Electrical Plan

Minimum Electrical Plans

Electrical Plan Review Checklist Example

Summerland Electric Master Plan

Solar Standard Electrical Plan

Electrical Project Plan

Electric Power Systems Plan

Electrical Design Plan

Electrical Training Program Plan

Electrical Engineering Assessment Plan

Commercial Electrical System Plan

Sample Electrical Review Plan

Electrical Check Plan Example

Complex Electrical Plan

Electrical Plan Sheet

Eletrical Inspection Plan

Electrical Plan Symbols Example

Office Electrical Plan

Electrical Construction Plan

Electrical Engineering Control Plan

Electrical Power Plan Example

Retail Electricity Plan

Electrical Plan for Commercial Service

Step 1: open editing tool, step 2: modify your template, step 3: consider digital documents, step 4: finalize the to-do list.

• Lesson Plan
• Treatment Plan
• Safety Plan
• Quality Plan
• Research Plan

Share This Post on Your Network

File formats, word templates, google docs templates, excel templates, powerpoint templates, google sheets templates, google slides templates, pdf templates, publisher templates, psd templates, indesign templates, illustrator templates, pages templates, keynote templates, numbers templates, outlook templates, you may also like these articles, 5+ sample investment company business plan in pdf.

What do you do when you have tons of spare cash lying around your home or burning a hole in your wallet or expensive jeans pocket? For some people, the…

41+ SAMPLE Unit Plan Templates in PDF | MS Word

As a teacher, you might know about every school policy, the steps to keep classrooms safe for intellectual development, how to set up an organized classroom, and the proposed…

browse by categories

• Questionnaire
• Description
• Reconciliation
• Certificate
• Spreadsheet

Information

• privacy policy
• Terms & Conditions

550+ Business Plan Examples to Launch Your Business

Need help writing your business plan? Explore over 550 industry-specific business plan examples for inspiration.

Find your business plan example

Accounting, Insurance & Compliance Business Plans

• View All 25

Children & Pets Business Plans

• Children's Education & Recreation
• View All 33

Cleaning, Repairs & Maintenance Business Plans

• Auto Detail & Repair
• Cleaning Products
• View All 39

Clothing & Fashion Brand Business Plans

• Clothing & Fashion Design
• View All 26

Construction, Architecture & Engineering Business Plans

• Architecture
• Construction
• View All 46

Consulting, Advertising & Marketing Business Plans

• Advertising
• View All 54

Education Business Plans

• Education Consulting
• Education Products

Business plan template: There's an easier way to get your business plan done.

Entertainment & Recreation Business Plans

• Entertainment
• Film & Television
• View All 60

Events Business Plans

• Event Planning
• View All 17

Farm & Agriculture Business Plans

• Agri-tourism
• Agriculture Consulting
• View All 16

Finance & Investing Business Plans

• Financial Planning
• View All 10

Fine Art & Crafts Business Plans

Fitness & Beauty Business Plans

• Salon & Spa
• View All 36

Food and Beverage Business Plans

• Bar & Brewery
• View All 77

Hotel & Lodging Business Plans

• Bed and Breakfast

Finish your plan faster with step-by-step guidance, financial wizards, and a proven format.

IT, Staffing & Customer Service Business Plans

• Administrative Services
• Customer Service
• View All 22

Manufacturing & Wholesale Business Plans

• Cleaning & Cosmetics Manufacturing
• View All 68

Medical & Health Business Plans

• Dental Practice
• Health Administration
• View All 41

Nonprofit Business Plans

• Co-op Nonprofit
• Food & Housing Nonprofit
• View All 13

Real Estate & Rentals Business Plans

• Equipment Rental

Retail & Ecommerce Business Plans

• Car Dealership
• View All 116

Technology Business Plans

• Apps & Software
• Communication Technology

Transportation, Travel & Logistics Business Plans

• Airline, Taxi & Shuttle
• View All 62

View all sample business plans

Example business plan format

Before you start exploring our library of business plan examples, it's worth taking the time to understand the traditional business plan format . You'll find that the plans in this library and most investor-approved business plans will include the following sections:

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally only one to two pages. You should also plan to write this section last after you've written your full business plan.

Your executive summary should include a summary of the problem you are solving, a description of your product or service, an overview of your target market, a brief description of your team, a summary of your financials, and your funding requirements (if you are raising money).

Products & services

The products & services chapter of your business plan is where the real meat of your plan lives. It includes information about the problem that you're solving, your solution, and any traction that proves that it truly meets the need you identified.

This is your chance to explain why you're in business and that people care about what you offer. It needs to go beyond a simple product or service description and get to the heart of why your business works and benefits your customers.

Market analysis

Conducting a market analysis ensures that you fully understand the market that you're entering and who you'll be selling to. This section is where you will showcase all of the information about your potential customers. You'll cover your target market as well as information about the growth of your market and your industry. Focus on outlining why the market you're entering is viable and creating a realistic persona for your ideal customer base.

Competition

Part of defining your opportunity is determining what your competitive advantage may be. To do this effectively you need to get to know your competitors just as well as your target customers. Every business will have competition, if you don't then you're either in a very young industry or there's a good reason no one is pursuing this specific venture.

To succeed, you want to be sure you know who your competitors are, how they operate, necessary financial benchmarks, and how you're business will be positioned. Start by identifying who your competitors are or will be during your market research. Then leverage competitive analysis tools like the competitive matrix and positioning map to solidify where your business stands in relation to the competition.

Marketing & sales

The marketing and sales plan section of your business plan details how you plan to reach your target market segments. You'll address how you plan on selling to those target markets, what your pricing plan is, and what types of activities and partnerships you need to make your business a success.

The operations section covers the day-to-day workflows for your business to deliver your product or service. What's included here fully depends on the type of business. Typically you can expect to add details on your business location, sourcing and fulfillment, use of technology, and any partnerships or agreements that are in place.

Milestones & metrics

The milestones section is where you lay out strategic milestones to reach your business goals.

A good milestone clearly lays out the parameters of the task at hand and sets expectations for its execution. You'll want to include a description of the task, a proposed due date, who is responsible, and eventually a budget that's attached. You don't need extensive project planning in this section, just key milestones that you want to hit and when you plan to hit them.

You should also discuss key metrics, which are the numbers you will track to determine your success. Some common data points worth tracking include conversion rates, customer acquisition costs, profit, etc.

Company & team

Use this section to describe your current team and who you need to hire. If you intend to pursue funding, you'll need to highlight the relevant experience of your team members. Basically, this is where you prove that this is the right team to successfully start and grow the business. You will also need to provide a quick overview of your legal structure and history if you're already up and running.

Financial projections

Your financial plan should include a sales and revenue forecast, profit and loss statement, cash flow statement, and a balance sheet. You may not have established financials of any kind at this stage. Not to worry, rather than getting all of the details ironed out, focus on making projections and strategic forecasts for your business. You can always update your financial statements as you begin operations and start bringing in actual accounting data.

Now, if you intend to pitch to investors or submit a loan application, you'll also need a "use of funds" report in this section. This outlines how you intend to leverage any funding for your business and how much you're looking to acquire. Like the rest of your financials, this can always be updated later on.

The appendix isn't a required element of your business plan. However, it is a useful place to add any charts, tables, definitions, legal notes, or other critical information that supports your plan. These are often lengthier or out-of-place information that simply didn't work naturally into the structure of your plan. You'll notice that in these business plan examples, the appendix mainly includes extended financial statements.

Types of business plans explained

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. To get the most out of your plan, it's best to find a format that suits your needs. Here are a few common business plan types worth considering.

Traditional business plan

The tried-and-true traditional business plan is a formal document meant to be used for external purposes. Typically this is the type of plan you'll need when applying for funding or pitching to investors. It can also be used when training or hiring employees, working with vendors, or in any other situation where the full details of your business must be understood by another individual.

Business model canvas

The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.

The structure ditches a linear format in favor of a cell-based template. It encourages you to build connections between every element of your business. It's faster to write out and update, and much easier for you, your team, and anyone else to visualize your business operations.

One-page business plan

The true middle ground between the business model canvas and a traditional business plan is the one-page business plan . This format is a simplified version of the traditional plan that focuses on the core aspects of your business.

By starting with a one-page plan , you give yourself a minimal document to build from. You'll typically stick with bullet points and single sentences making it much easier to elaborate or expand sections into a longer-form business plan.

Growth planning

Growth planning is more than a specific type of business plan. It's a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, forecast, review, and refine based on your performance.

It holds all of the benefits of the single-page plan, including the potential to complete it in as little as 27 minutes . However, it's even easier to convert into a more detailed plan thanks to how heavily it's tied to your financials. The overall goal of growth planning isn't to just produce documents that you use once and shelve. Instead, the growth planning process helps you build a healthier company that thrives in times of growth and remain stable through times of crisis.

It's faster, keeps your plan concise, and ensures that your plan is always up-to-date.

Download a free sample business plan template

Ready to start writing your own plan but aren't sure where to start? Download our free business plan template that's been updated for 2024.

This simple, modern, investor-approved business plan template is designed to make planning easy. It's a proven format that has helped over 1 million businesses write business plans for bank loans, funding pitches, business expansion, and even business sales. It includes additional instructions for how to write each section and is formatted to be SBA-lender approved. All you need to do is fill in the blanks.

How to use an example business plan to help you write your own

How do you know what elements need to be included in your business plan, especially if you've never written one before? Looking at examples can help you visualize what a full, traditional plan looks like, so you know what you're aiming for before you get started. Here's how to get the most out of a sample business plan.

Choose a business plan example from a similar type of company

You don't need to find an example business plan that's an exact fit for your business. Your business location, target market, and even your particular product or service may not match up exactly with the plans in our gallery. But, you don't need an exact match for it to be helpful. Instead, look for a plan that's related to the type of business you're starting.

For example, if you want to start a vegetarian restaurant, a plan for a steakhouse can be a great match. While the specifics of your actual startup will differ, the elements you'd want to include in your restaurant's business plan are likely to be very similar.

Use a business plan example as a guide

Every startup and small business is unique, so you'll want to avoid copying an example business plan word for word. It just won't be as helpful, since each business is unique. You want your plan to be a useful tool for starting a business —and getting funding if you need it.

One of the key benefits of writing a business plan is simply going through the process. When you sit down to write, you'll naturally think through important pieces, like your startup costs, your target market , and any market analysis or research you'll need to do to be successful.

You'll also look at where you stand among your competition (and everyone has competition), and lay out your goals and the milestones you'll need to meet. Looking at an example business plan's financials section can be helpful because you can see what should be included, but take them with a grain of salt. Don't assume that financial projections for a sample company will fit your own small business.

If you're looking for more resources to help you get started, our business planning guide is a good place to start. You can also download our free business plan template .

Think of business planning as a process, instead of a document

Think about business planning as something you do often , rather than a document you create once and never look at again. If you take the time to write a plan that really fits your own company, it will be a better, more useful tool to grow your business. It should also make it easier to share your vision and strategy so everyone on your team is on the same page.

Adjust your plan regularly to use it as a business management tool

Keep in mind that businesses that use their plan as a management tool to help run their business grow 30 percent faster than those businesses that don't. For that to be true for your company, you'll think of a part of your business planning process as tracking your actual results against your financial forecast on a regular basis.

If things are going well, your plan will help you think about how you can re-invest in your business. If you find that you're not meeting goals, you might need to adjust your budgets or your sales forecast. Either way, tracking your progress compared to your plan can help you adjust quickly when you identify challenges and opportunities—it's one of the most powerful things you can do to grow your business.

Prepare to pitch your business

If you're planning to pitch your business to investors or seek out any funding, you'll need a pitch deck to accompany your business plan. A pitch deck is designed to inform people about your business. You want your pitch deck to be short and easy to follow, so it's best to keep your presentation under 20 slides.

Your pitch deck and pitch presentation are likely some of the first things that an investor will see to learn more about your company. So, you need to be informative and pique their interest. Luckily, just like you can leverage an example business plan template to write your plan, we also have a gallery of over 50 pitch decks for you to reference.

With this gallery, you have the option to view specific industry pitches or get inspired by real-world pitch deck examples.

Ready to get started?

Now that you know how to use an example business plan to help you write a plan for your business, it's time to find the right one.

Use the search bar below to get started and find the right match for your business idea.

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

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

How To Start An Electrical Business And Get New Clients Fast

October 31, 2022

Adam Hoeksema

If you’re thinking of starting an electrician business, you’ll likely be thinking in terms of how much you can earn, and how best you can put your expertise to use and grab hold of your market share. And that’s a significant part of the necessary thought process, but it’s also worth considering how much extra responsibility you’ll have, how you’ll get funding to cover the initial overheads, and then where you’ll be looking for your first customers. 

We’ve got a rough guide to all of these things coming up, and some great suggestions on how you can design a business plan that will not only help you appeal to investors but teach you about your new business and its role in the market. First off, let’s take a look at some of the most appealing and somewhat less appealing aspects of starting your own electrical business.

Some of the Pros and Cons of Starting an Electrician Business

There’s a rapidly-growing reliance on smart and digital tech, as well as plans all over the country to build new properties as populations increase. California alone vows to put up 2.5 million homes by 2030 and this leaves plenty of openings for electricians to start businesses. 

Not only that, the shortage of electrical talent means that for the right person, now might be the perfect time to get involved. 

Running your own business also gives you a lot of independence from bosses, control over the vision and scope of the company, and ultimately a lot fewer people to answer to than working for one. These perks are a major draw for most people, not to mention the amount of money that can come into your pocket if you do the job well. 

But there are some drawbacks too, mostly in the form of the responsibility you’ll have to take on. First off, it’s hard work. You’ll have to do all of your regular duties while managing the development of the business too. Then, you’re going to be on the hook for whatever comes your way. Didn’t make any money last month? Too bad! You’ve still got to pay your staff. 

Further, the shortage of talent that may work to your advantage could potentially cause you trouble when it comes to hiring other techs for your team. There’s a lot to think about, and this level of responsibility isn’t for everyone but if this doesn’t put you off in the slightest, let’s take a look at where you can go from here.

Starting an Electrical Business: Roles and Responsibilities

First of all, you should know what running an electrical business looks like. The world of electrical engineering is vast and diverse, so you could be designing any number of things if you head down that route. Or, if you’re planning to work as an electrician, you’ll be primarily responsible for installing and maintaining electronic devices or components. 

Your path will of course depend on your experience and your specific skill set. If you specialize, you’ll likely get a boost to your salary, so keep that in mind as something to consider before starting an electrician business. 

Typically, a self-employed electrician might earn between $45k and $60k , but this is all after the company gets started, and if you’re looking at how to start an electrical business, you’ll need to remember that there will be plenty of admin before that. 

Small business owners are responsible for the entirety of their business needs. These responsibilities include: 

• Planning the direction of the company
• Arranging the financing and accounts
• Making sure you’re compliant and legal
• Customer service

And there are plenty more moving parts that need to become competencies before you’ll be bringing in the big money. So, where’s a good place to start? Let’s go over a step-by-step process for you to get acquainted with. 

How to Start an Electrical Business: Step-by-Step

We’re going to break down some of the most important steps in detail, but it’s worth mentioning that if you’re not qualified yet, this will have to be your starting point. If this is a long-term goal, and you’re just starting out in the field, consider that it will take some years to get up to speed in the industry and gather the relevant experience.

Check your state requirements for electrical qualifications and work towards those, whether you’re starting as an apprentice, or doing your qualifications in an academic setting. To even qualify for a license in some states may take you 8000 hours of experience, and perhaps 1000 hours of education, so keep this in mind – you won’t be able to jump the gun on these. 

The next step is to get some experience. If you set up your company before you’ve been around the block a few times, you’re going to be met with a very steep learning curve. Strongly consider working as an employee for a few years at least, to get a feel for how things work. 

The next level from employee is self-employed, but this isn’t the end of the journey either; consider being self-employed before starting a larger company. Sole traders are different from limited companies in that a sole trader is legally and financially responsible for their company, while a limited company can go into debt without jeopardizing the personal funds of the owner. 

If you’re already qualified in this way, it’s time to get started.

Write up your Business Plan

This is the most important part of your early and ongoing company setup. A good business plan will carry you through funding cycles, marketing strategies, and more. Further, it’ll help you conceptualize your ideas and put them into realistic, attainable plans. 

 Here’s how it’s commonly  laid out:

• Executive Summary – this is the first page summary of the document.
• Market analysis – The second page goes into your competition and your ideal customers, and what issues they’re looking to have fixed.
• Your company – On the next page is an introduction to your company and how you’re going t address these issues. 
• Company Organization – This is where you’ll itemize your key players and lay out the way the company will be run. 
• Products and Services - Another itemized list; this time with your products and services, alongside how much you’ll be charging for each.
• Marketing Strategies – These will relate to your market analysis and demonstrate an understanding of how you’ll get out there and find your market share. 
• Financial plan – You’ll want to take your most important financial documents and use them to project the financial future of your company on this page. 

The data you gather and display in this document need to be accurate. This is a very short summary of a complex and detailed document that may take months to complete, so it’s important that you’re doing good research. Once you’ve got a strong business plan, it’s time to move on to the next step.

Source your Funding

There are a number of ways you can go with this. If you’ve got some backing in the bank already, you might be able to scrape by with your own funds and bootstrap your business. If you’re going big, or you have nothing saved up, you’re going to want to look into loans or investments.

Loans are a great way to get large sums of money quickly but come with plenty of necessary diligence beforehand, and they will need to be paid back regardless of whether or not you choose to continue your venture. 

Investment comes at a loss to your equity share, but may include some expertise, and lets you off the hook, financially, if you go under. This means that you’ll maybe be able to get valuable industry insights from investors that you wouldn’t receive from a banker, at the cost of some control over the direction of your company. 

Whichever source of funding you’re going to choose, you’ll need some well-executed financial projections to present. This shouldn’t be a problem if you’ve done a good job with your business plan, as you should have accurate and realistic data to draw upon. 

With these data points, our Specialty subcontractor financial projection template can forecast the effect of your decisions before you make them, and build up a professional-looking set of financial projections to show to capital providers. 

These customizable templates are designed with investors in mind, provide projections five years ahead, and come with support included, so they can make a great addition to your business plan.

Get Registered and Insured

Now you can register your company. You’ll have decided on whether the sole trader or limited company is a better option, but either way, it’s time to make it official. Register a name and get all your state and federal documentation in order. 

You’ll need to be insured against a whole range of things as an electrical company. Accidents happen, and when electricity is involved – as you’ll be aware – the outcomes can be very serious. As a business owner, you will need to make sure everyone who works under you is covered, and that the business itself has the relevant insurance too. 

Consider whether your tools need to be insured, as they can be expensive to replace if stolen or lost. 

Find your suppliers

If you haven’t done this already, now’s the time to start forming relationships with suppliers. You might have a network that can help you with this, otherwise, shop around and make sure you’re working with reliable people. 

Your supplier’s mistakes will become yours when they’re passed on by you to your customers, so it’s a good idea to spend time on this step before going out there. Agree on the deals you’ll make; e.g., will you have a credit line with your suppliers? In the early days, this can be a great way to protect you from parting with money before you’ve been paid for the job. 

Buy your equipment

If you don’t have a full kit yet, you’ll have to budget for that. You’ll also be covering the cost of any tools your staff needs, so again, get them insured. Before you go out and spend all your budget on a full set, consider what you’ll need in the immediate future and see if you can build up your collection over time. 

If you put a bit of thought into this step, you might be able to save money in the long run. Upgrading your old sets can come at a reduced cost if you can hand them down to your staff or sell them for a decent price second-hand. 

Build your brand

You could probably have been getting on with this around the time you were working on your business model, but if not, it’s not too late. You’ll want to have logos, color schemes, and anything that you associate with your brand set up in a way that it’s consistent across all channels. 

Then, you’ll be working on brand awareness, so getting out and networking, joining online groups, etc., and getting your name out there. One of the best ways to get noticed is to contribute to online groups with educational materials. Spread your expertise and get recognized as an expert in the field. 

Get marketing

Now you’ll want to push a little harder. You should have your strategy ready from your market analysis, so begin putting it into play here. Make sure you know who your ideal customers are and where to find them. Then tailor your content to their needs and draw them in. 

In the very early days, your sales funnel and marketing strategy doesn’t have to be a detailed, scientific method; just be as informed as you can be, and get ready to adapt it as you learn more about your market.

How to find Clients for an Electrician Business

So you’re all set up and you’re looking for clients, but you want to know how to draw your first customers in quickly. We’ve got a few options, some of which are faster than others, but consider them as inspiration for your approach. 

Your Online Presence

This is a powerful tool that isn’t going to work its magic very quickly. However, you can start it before you begin anything else, meaning that by the time you’re ready to look for customers, you’ve already got this network set up and ready to serve you. 

As we mentioned, building your online presence is about sticking to your branding and contributing something to the community. Join groups that include people in your area and answer their questions. Don’t be afraid to ask questions from industry giants, either. The more active you are, the more your presence will become known. Make sure you have an up-to-date website with contact details that work.

When the time is right, you’ll have a wide audience to pitch your services to, and a wealth of material available online for them to research and look into you. If you don’t have this, you’ll be missing out on a lot of engagement with your customers and will lose many in the early stages. 

Get outside

Trade shows and other real-world networking opportunities shouldn’t be ignored. You’ll get other perks to this approach too, such as learning more about the industry and your prospects’ needs. Just make sure the places you attend are relevant to what you’re doing. 

Maintain your portfolio

Your LinkedIn profile is a good place to showcase your skills and accomplishments. Have it attached to your online media, and print it on your business cards too. You’ll want a record of what you can do that’s available to anybody who’s looking, so keep it up to date, and include your best work. 

Find referrals and offer discounts

If you’ve got your first client, you can increase your customer base rapidly by asking them to introduce you to more of them. Referrals and word of mouth are cheap and effective ways to grow your audience, so consider giving your early customers a discount for bringing you new ones. 

Discounts don’t only have to be for referrals, either. If you run the figures well, you’ll be able to tell whether you can afford to drop prices early on to bring people in and undercut the competition. This gives you a chance to show off your work before you start charging full price. 

Starting an electrical business doesn’t have to be daunting. It’s certainly hard work, but it isn’t necessarily difficult, once you know how and what you need to do. There’s a roughly systematic approach that carries you from conception, through the relevant qualifications, into finding and reaching out to your prospective clients, and each step can be broken down accordingly. 

Keep in mind a few tips: the sooner you start building your online presence and network, the better; the more detail and accuracy you use in your financial document, the more reliable your financial projections will be; and your business plan is perhaps the single most important document you’ll need! 

With all that understood, you should be well set to get started on your new business.

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

Other Stories to Check out

How to finance a small business acquisition.

In this article we are going to walk through how to finance a small business acquisition and answer some key questions related to financing options.

How to Acquire a Business in 11 Steps

Many people don't realize that acquiring a business can be a great way to become a business owner if they prefer not to start one from scratch. But the acquisition process can be a little intimidating so here is a guide helping you through it!

How to Buy a Business with No Money Down

Learn the rare scenarios enabling the purchase of a business with no money down and delve into the complexities of selling via seller notes, highlighting the balance of expanded opportunities and inherent risks in these unique financial transactions.

Have some questions? Let us know and we'll be in touch.

How To Write A Business Plan (2024 Guide)

Updated: Apr 17, 2024, 11:59am

Table of Contents

Brainstorm an executive summary, create a company description, brainstorm your business goals, describe your services or products, conduct market research, create financial plans, bottom line, frequently asked questions.

Every business starts with a vision, which is distilled and communicated through a business plan. In addition to your high-level hopes and dreams, a strong business plan outlines short-term and long-term goals, budget and whatever else you might need to get started. In this guide, we’ll walk you through how to write a business plan that you can stick to and help guide your operations as you get started.

Featured Partners

ZenBusiness

$0 + State Fees

Varies By State & Package

On ZenBusiness' Website

On LegalZoom's Website

Northwest Registered Agent

$39 + State Fees

On Northwest Registered Agent's Website

Drafting the Summary

An executive summary is an extremely important first step in your business. You have to be able to put the basic facts of your business in an elevator pitch-style sentence to grab investors’ attention and keep their interest. This should communicate your business’s name, what the products or services you’re selling are and what marketplace you’re entering.

Ask for Help

When drafting the executive summary, you should have a few different options. Enlist a few thought partners to review your executive summary possibilities to determine which one is best.

After you have the executive summary in place, you can work on the company description, which contains more specific information. In the description, you’ll need to include your business’s registered name , your business address and any key employees involved in the business. 

The business description should also include the structure of your business, such as sole proprietorship , limited liability company (LLC) , partnership or corporation. This is the time to specify how much of an ownership stake everyone has in the company. Finally, include a section that outlines the history of the company and how it has evolved over time.

Wherever you are on the business journey, you return to your goals and assess where you are in meeting your in-progress targets and setting new goals to work toward.

Numbers-based Goals

Goals can cover a variety of sections of your business. Financial and profit goals are a given for when you’re establishing your business, but there are other goals to take into account as well with regard to brand awareness and growth. For example, you might want to hit a certain number of followers across social channels or raise your engagement rates.

Another goal could be to attract new investors or find grants if you’re a nonprofit business. If you’re looking to grow, you’ll want to set revenue targets to make that happen as well.

Intangible Goals

Goals unrelated to traceable numbers are important as well. These can include seeing your business’s advertisement reach the general public or receiving a terrific client review. These goals are important for the direction you take your business and the direction you want it to go in the future.

The business plan should have a section that explains the services or products that you’re offering. This is the part where you can also describe how they fit in the current market or are providing something necessary or entirely new. If you have any patents or trademarks, this is where you can include those too.

If you have any visual aids, they should be included here as well. This would also be a good place to include pricing strategy and explain your materials.

This is the part of the business plan where you can explain your expertise and different approach in greater depth. Show how what you’re offering is vital to the market and fills an important gap.

You can also situate your business in your industry and compare it to other ones and how you have a competitive advantage in the marketplace.

Other than financial goals, you want to have a budget and set your planned weekly, monthly and annual spending. There are several different costs to consider, such as operational costs.

Business Operations Costs

Rent for your business is the first big cost to factor into your budget. If your business is remote, the cost that replaces rent will be the software that maintains your virtual operations.

Marketing and sales costs should be next on your list. Devoting money to making sure people know about your business is as important as making sure it functions.

Other Costs

Although you can’t anticipate disasters, there are likely to be unanticipated costs that come up at some point in your business’s existence. It’s important to factor these possible costs into your financial plans so you’re not caught totally unaware.

Business plans are important for businesses of all sizes so that you can define where your business is and where you want it to go. Growing your business requires a vision, and giving yourself a roadmap in the form of a business plan will set you up for success.

How do I write a simple business plan?

When you’re working on a business plan, make sure you have as much information as possible so that you can simplify it to the most relevant information. A simple business plan still needs all of the parts included in this article, but you can be very clear and direct.

What are some common mistakes in a business plan?

The most common mistakes in a business plan are common writing issues like grammar errors or misspellings. It’s important to be clear in your sentence structure and proofread your business plan before sending it to any investors or partners.

What basic items should be included in a business plan?

When writing out a business plan, you want to make sure that you cover everything related to your concept for the business,  an analysis of the industry―including potential customers and an overview of the market for your goods or services―how you plan to execute your vision for the business, how you plan to grow the business if it becomes successful and all financial data around the business, including current cash on hand, potential investors and budget plans for the next few years.

• Best VPN Services
• Best Project Management Software
• Best Web Hosting Services
• Best Antivirus Software
• Best LLC Services
• Best POS Systems
• Best Business VOIP Services
• Best Credit Card Processing Companies
• Best CRM Software for Small Business
• Best Fleet Management Software
• Best Business Credit Cards
• Best Business Loans
• Best Business Software
• Best Business Apps
• Best Free Software For Business
• How to Start a Business
• How To Make A Small Business Website
• How To Trademark A Name
• What Is An LLC?
• How To Set Up An LLC In 7 Steps
• What is Project Management?

How To Get A Business License In North Dakota (2024)

How To Write An Effective Business Proposal

Best New Hampshire Registered Agent Services Of 2024

Employer Staffing Solutions Group Review 2024: Features, Pricing & More

How To Sell Clothes Online In 2024

2024 SEO Checklist

Julia is a writer in New York and started covering tech and business during the pandemic. She also covers books and the publishing industry.

Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist covering small business marketing content. She is a former Google Tech Entrepreneur and she holds an MSc in International Marketing from Edinburgh Napier University. Additionally, she is a Columnist at Inc. Magazine.

Electrical Company Marketing Plan Template

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

Are you an electrical company looking to amp up your marketing efforts? Look no further than ClickUp's Electrical Company Marketing Plan Template! This comprehensive template is designed to help your marketing team create a winning strategy that will attract new clients and boost your revenue.

With ClickUp's Electrical Company Marketing Plan Template, you can:

• Define your objectives and set clear goals for your marketing campaigns
• Identify and understand your target audience to tailor your messaging and reach the right customers
• Conduct a competitive analysis to stay one step ahead of your rivals
• Develop effective marketing strategies and tactics to promote your electrical services

Take your marketing game to the next level with ClickUp's Electrical Company Marketing Plan Template. Start generating buzz and growing your business today!

Benefits of Electrical Company Marketing Plan Template

When using the Electrical Company Marketing Plan Template, you can expect the following benefits:

• Streamline your marketing efforts by having a comprehensive plan in place
• Clearly define your company's objectives and target audience to focus your marketing efforts
• Conduct a thorough competitive analysis to understand your position in the market and identify opportunities for growth
• Develop effective marketing strategies and tactics to promote your electrical services and attract new customers
• Increase your customer base and revenue by implementing a strategic marketing plan

Main Elements of Electrical Company Marketing Plan Template

ClickUp's Electrical Company Marketing Plan Template is designed to help your team efficiently manage and execute your marketing strategies. Here are the main elements you can expect:

• Custom Statuses: Keep track of the progress of your marketing tasks with statuses like Cancelled, Complete, In Progress, Needs Input, Planned, and To Do.
• Custom Fields: Utilize 6 custom fields such as Quarter, Task Type, Impact, Progress, Percent Completion, and Effort to add relevant information and track key metrics for each task.
• Custom Views: Access 5 different views to gain valuable insights, including Key Results, Timeline, Getting Started Guide, Objectives, and Progress Board.
• Task Management: Organize your marketing plan in a List format, set due dates, assignees, and dependencies to ensure smooth execution.
• Collaboration: Utilize ClickUp's built-in commenting system, @mentions, and file attachments to collaborate effectively with your team.
• Track Progress: Monitor your marketing plan's progress with the Percent Completion field, visualize key milestones, and track overall team performance.

How to Use Marketing Plan for Electrical Company

If you're an electrical company looking to create a marketing plan that will help you attract new customers and grow your business, follow these four steps using the Electrical Company Marketing Plan Template in ClickUp:

1. Define your target audience

The first step in creating an effective marketing plan is to clearly identify your target audience. Determine who your ideal customers are by considering factors such as demographics, location, and specific needs or pain points that your electrical services can address.

Use custom fields in ClickUp to categorize and segment your target audience based on different criteria such as age, location, or industry.

2. Set your marketing goals

Once you know who you're targeting, it's time to set specific and measurable marketing goals. These goals should align with your overall business objectives and help you track your progress. Examples of marketing goals for your electrical company may include increasing website traffic, generating leads, or improving brand awareness.

Create Goals in ClickUp to set clear objectives and track your marketing progress over time.

3. Develop your marketing strategies and tactics

With your goals in place, it's time to develop strategies and tactics to reach your target audience effectively. Consider different marketing channels and tactics that align with your audience's preferences and behaviors. This may include digital marketing strategies such as search engine optimization (SEO), social media advertising, content marketing, or traditional marketing methods like direct mail or local advertising.

Use tasks in ClickUp to outline your marketing strategies and assign specific tactics to team members responsible for their execution.

4. Implement, track, and optimize

Once your marketing strategies and tactics are defined, it's time to put your plan into action. Start implementing your marketing campaigns, tracking their performance, and analyzing the results. Keep an eye on key metrics such as website traffic, lead generation, conversion rates, or return on investment (ROI) to evaluate the effectiveness of your marketing efforts.

Use Dashboards in ClickUp to visualize and track your marketing performance metrics in real-time. Regularly review your data and make necessary adjustments to optimize your marketing plan for better results.

By following these steps and utilizing the Electrical Company Marketing Plan Template in ClickUp, you'll be able to create a comprehensive marketing plan that drives growth and success for your electrical company.

Get Started with ClickUp’s Electrical Company Marketing Plan Template

Electrical companies can use this Marketing Plan Template to help their marketing team stay organized and focused on promoting their services to a wider audience.

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

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

Now you can take advantage of the full potential of this template to create an effective marketing plan:

• Use the Key Results View to set measurable goals and track progress towards achieving them
• The Timeline View will help you visualize your marketing plan over a specific period of time
• Refer to the Getting Started Guide View for step-by-step instructions on how to use this template effectively
• The Objectives View will help you define your marketing objectives and outline strategies for achieving them
• Use the Progress Board View to track the progress of marketing initiatives and campaigns
• Organize tasks into six different statuses: Cancelled, Complete, In Progress, Needs Input, Planned, To Do, to keep track of progress
• Update statuses as you progress through tasks to keep team members informed of progress
• Monitor and analyze tasks to ensure maximum productivity and successful marketing campaigns.

Related Templates

• Wireless Headphones Marketing Plan Template
• Online Jewelry Business Marketing Plan Template
• Bowling Alley Marketing Plan Template
• Podcasts Marketing Plan Template
• Food Delivery Service Marketing Plan Template

Template details

Free forever with 100mb storage.

Free training & 24-hours support

Serious about security & privacy

Highest levels of uptime the last 12 months

• Product Roadmap
• Affiliate & Referrals
• On-Demand Demo
• Integrations
• Consultants
• Gantt Chart
• Native Time Tracking
• Automations
• Kanban Board
• vs Airtable
• vs Basecamp
• vs MS Project
• vs Smartsheet
• Software Team Hub
• PM Software Guide

Upmetrics AI Assistant: Simplifying Business Planning through AI-Powered Insights. Learn How

Entrepreneurs & Small Business

Accelerators & Incubators

Business Consultants & Advisors

Educators & Business Schools

Students & Scholars

AI Business Plan Generator

Financial Forecasting

AI Assistance

Ai Pitch Deck Generator

Strategic Planning

See How Upmetrics Works  →

• Sample Plans
• WHY UPMETRICS?

Customer Success Stories

Business Plan Course

Small Business Tools

Strategic Planning Templates

E-books, Guides & More

• Sample Business Plans
• Construction, Architecture & Engineering

Engineering Consulting Business Plan

Without professional engineering consulting advice, any science, technology, or related business is likely not going to succeed to its full potential.

Likewise, any business needs a clear roadmap to drive it to success. A business plan will provide directions to your business like a roadmap.

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

Free Business Plan Template

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

• Fill in the blanks – Outline
• Financial Tables

How to Write An Engineering Consulting Business Plan?

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

1. Executive Summary

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

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

Introduce your Business:

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

Market Opportunity:

Engineering consulting services:.

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

Marketing & Sales Strategies:

Financial highlights:, call to action:.

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

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

2. Business Overview

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

Business Description:

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

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

• Civil engineering consulting
• Mechanical engineering consulting
• Electrical engineering consulting
• Industrial engineering consulting
• Describe the legal structure of your engineering consulting company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

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

Future Goals

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

3. Market Analysis

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

Target market:

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

Market size and growth potential:

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

Competitive Analysis:

Market trends:.

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

Regulatory Environment:

Here are a few tips for writing the market analysis section of your engineering consulting firm business plan:

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

4. Engineering Consulting Services

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

Describe your consulting services:

Mention the engineering consulting services your business will offer. This list may include services like,

• Engineering design & analysis
• Project management & planning
• Sustainable engineering solutions
• Technology consulting & innovation

Describe each service:

Additional services.

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

5. Sales And Marketing Strategies

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

Unique Selling Proposition (USP):

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

Pricing Strategy:

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

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

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

6. Operations Plan

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

Staffing & Training:

Operational process:, equipment & software:.

Include the list of equipment and software required for engineering consulting business, such as communication tools, project management software, field equipment, financial & accounting software, etc.

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

7. Management Team

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

Founders/CEO:

Key managers:.

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

Organizational structure:

Compensation plan:, advisors/consultants:.

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

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

8. Financial Plan

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

Profit & loss statement:

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

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

Financing Needs:

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

9. Appendix

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

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

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

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

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

Fill-in-the-blanks and automatic financials make it easy.

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

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

Related Posts

Consulting Business Plan

IT Consulting Business Plan

Construction Company Business Plan

Important Components of an Effective Business Plan

Deciding Important Business Milestones

Business Plan Outline Creation Guide

Frequently asked questions, why do you need an engineering consulting business plan.

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

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

How to get funding for your engineering consulting business?

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

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

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

Where to find business plan writers for your engineering consulting business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your engineering consulting business plan and outline your vision as you have in your mind.

What is the easiest way to write your engineering consulting business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any engineering consulting business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How do I write a good market analysis in an engineering consulting business plan?

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

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

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

About the Author

Upmetrics Team

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

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Popular Templates

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

Welding Business Plan Template

Written by Dave Lavinsky

Welding Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their welding companies.

If you’re unfamiliar with creating a welding business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a welding business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Welding Business Plan?

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

Why You Need a Business Plan for a Welding Business

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

Sources of Funding for Welding Businesses

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

Finish Your Business Plan Today!

How to write a business plan for a welding business.

If you want to start a welding business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your welding business plan.

Executive Summary

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

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of welding business you are running and the status. For example, are you a startup, do you have a welding business that you would like to grow, or are you operating an established welding business that you would like to sell?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the welding industry.
• Discuss the type of welding business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of welding business you are operating.

For example, you might specialize in one of the following types of welding businesses:

• Aluminum welding: Aluminum welders can produce a variety of aluminum products such as baseball bats, bicycle frames, and golf clubs.
• Heavy steel fabricating: This type of welding business specializes in large projects using thick metals to manufacture products such as industrial tanks and agriculture machines.
• Mobile welding: This type of business specializes in small welding projects in residential homes or commercial businesses.
• Truck trailer manufacturing: This type of welding business specializes in manufacturing tuck trailers, trailer decks, and trailer bodies.
• Underwater welding: This type of business specializes in welding services that require the welder to be submerged in water such as working on dams, pipelines, and nuclear power facilities.

In addition to explaining the type of welding business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

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

Industry Analysis

In your industry or market analysis, you need to provide an overview of the welding industry.

While this may seem unnecessary, it serves multiple purposes.

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

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

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

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

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

Customer Analysis

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

The following are examples of customer segments: individuals, schools, families, and corporations.

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

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

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

Finish Your Welding Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

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

Direct competitors are other welding businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes businesses that provide other forms of manufacturing methods, welders who use other types of techniques or materials, and companies that use their own in-house welders. You need to mention such competition as well.

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

• What types of customers do they serve?
• What type of welding business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

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

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

• Will you make it easier for customers to acquire your product or service?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

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

Marketing Plan

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

Product : In the product section, you should reiterate the type of welding company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide heavy welding, underwater welding, trailer manufacturing, or aluminum fabrication services?

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

Place : Place refers to the site of your welding company. Document where your company is situated and mention how the site will impact your success. For example, is your welding business located in a busy retail district, a business district, a standalone facility, or is it a mobile operation? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your welding marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

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

Everyday short-term processes include all of the tasks involved in running your welding business, including answering calls, meeting with clients, sending invoices and collecting payments, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your welding business to a new city.  

Management Team

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

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

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a welding business or successfully running a small welding operation.  

Financial Plan

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

Income Statement

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

In developing your income statement, you need to devise assumptions. For example, will you employ 3 welders, and will each welder work for 8 hours per day at an hourly wage of $50 per hour? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

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

Cash Flow Statement

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

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a welding business:

• Cost of welding equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your facility location lease, or a list of successful welding projects completed.  

Writing a business plan for your welding business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the welding industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful welding business.  

Welding Business Plan Template FAQs

What is the easiest way to complete my welding business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your welding business plan.

How Do You Start a Welding Business?

Starting a welding business is easy with these 14 steps:

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

Learn more about how to start your own welding business .

Don’t you wish there was a faster, easier way to finish your Welding business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how a Growthink business plan writer can create your business plan for you.

Other Helpful Business Plan Articles & Templates