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

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

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

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

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

Tips to Write Electrical Contracting Business Plan

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

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

how to write electrical contracting business plan

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

3. The language must be clear and concise

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

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

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

4. Explain why people should care about your business

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

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

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

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

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

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

6. Demonstrate the difference between your company and the competitors

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

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

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

7. Purpose of the business plan

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

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

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

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

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

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

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

FieldCamp Craves to Fulfill Your Business Goals with Digitized Approach

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

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

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

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

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

Author Bio

Gaurang Bhatt

Gaurang Bhatt is a techie in himself with an ability to solve problems technically and present solutions in the form of a product. He is one of the pioneers to curate FieldCamp with his 15+ years of knowledge and expertise in providing solutions to home service industries. Gaurang aims to overcome challenges faced by service business owners through software solutions and blogs.