ProfitableVenture.com

Helping You Start a Business With Less Risk!

A Sample General Electrical Contractor Business Plan Template

Are you about starting a general electrical contractor business? If YES, here’s a complete sample electrical contracting business plan template & feasibility report you can use for FREE to raise money.

Okay, so we have considered all the requirements for starting an electrical contracting business. We also took it further by analyzing and drafting a sample electrical contracting service marketing plan template backed up by actionable guerrilla marketing ideas for electrical contracting businesses. So let’s proceed to the business planning section.

If you have studied an electrical related business, or you have the passion for electrical stuff, then you may want to be an electrical contractor. One of the things that you have to however have at the back of your mind is the fact that you will need to arm yourself with the right information that will be able to operate of a very skilled level.

You have to be sure that you carry out a through and exhaustive research. Why, you may ask? This is very needful so that you can be really conversant with all the information and tools that will be needed kick start your business.

One other step that needs to be scaled is the business plan part. Here you will needs to chart a very great course for your b businesses so that it can grow accordingly. There are plenty of great business experts who will be willing to help you draw a plan for a fee. However, you can also use an existing template do justice to your business plan.

A Sample General Electrical Contractor Business Plan Template

  • Business Overview

Electric contractors are an integral part of not just the construction cum real estate industry, but plays very important roles in ensuring that households, offices and public facility enjoys electric power supply and electric appliances are repaired when they become faulty.

Basically, players in this industry executes electrical work at a sites such as installing wiring, services electrical equipment and sells and installs electrical equipment et al. So also, some of the electrical work they performed include new work, additions, alterations, and maintenance and repairs et al.

No doubt, the electrical contractor services industry is indeed one of the largest subcontracting industries in the United States of America going by the revenue generated in the industry. A close watch on the industry activities shows that the revenue increase is due to acceleration in downstream construction markets in the United States.

As a result of the steady increase of demand from downstream construction markets, activities in this industry, registered businesses and of course contracts / job numbers have been on a steady rise. Going forward, the construction industry and real estate industry are expected to continue thriving hence increase in the demand for the services of electrical contractors.

So also, the industry is also expected to benefit from the increase in renovation and retrofitting activities, principally for green upgrades, such as energy-efficiency projects et al.

The Electrical Contractor Services industry is indeed a thriving and profitable industry in the United States, Canada, Japan, Germany, United Kingdom, and France and in almost all the countries of the world. Statistics has it that the Electrical Contractor Services industry in the United States of America, is worth over $135 billion, with an estimated growth rate of 1.9 percent.

There are about 202,274 registered and licensed electrical contractor services businesses in the United States and they are responsible for employing about 909,862 people. It is important to state that there is no company with a dominant market share of the available market in this industry.

According to research carried out by IBISWORLD, it  shows that, the small-scale and localized nature of operations in the Electrical Contractor Services industry results in a geographically dispersed structure that corresponds to the distribution of population and of course economic activity throughout the United States of America.

So also, most small-scale electrical contractors target a narrow, regional market, while larger-scale electrical contractors often undertake maintenance and construction contracts throughout several states. It was also indicated in the report that the Southeast region of the United States accounts for an estimated 23.7 percent of the industry establishment, which is roughly in line with the region’s share of the national population (25.6%).

The electrical contractor services industry will keep on thriving in the coming decade especially if an entrepreneur in this line of business is committed to providing reliable and quality work for customers in the services they render. The market is highly unsaturated and there is room for growth as the industry is expanding and maturing. The good news for would be entrepreneurs in this line of business is that there is an estimate of continued annual growth for the electrical contractor services industry for as high as 20 percent.

Over and above, the electrical contractor services industry is very open to any aspiring entrepreneur who has acquired the required trainings, skills and perhaps professional certifications to start his or her own business and of course make good money from the industry.

General Electrical Contractor Business Plan – Executive Summary

James Guttmann & Sons Electrical Services, Inc. is a licensed and standard American electrical contractor services company. We have been able to secure a standard and well – positioned office facility in a central business district in Little Rock – Arkansas. We are an electrical contractor services company that is set to compete in the highly competitive electrical contractor services industry not only in Little Rock – Arkansas, but also throughout the United States market.

James Guttmann & Sons Electrical Services, Inc. is set to executes electrical work at a sites such as installing wiring, services electrical equipment and sells and installs electrical equipment et al. Basically, we will provide services such as electric power and systems installation and servicing, telecommunications installation and servicing, fire and security system installation and servicing, electronic control system installation and servicing et al.

Our business goal is to become one of the leading electrical contractor service companies in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry.

Our workers are going to be selected from a pool of certified and highly experienced electrical technicians and tradesmen (electricians) with different area of expertise as it relates to our service offerings in and around Little Rock – Arkansas and also from any part of the United States of America as the business grows.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading electrical contractor services companies in the United States and throughout the globe.

At James Guttmann & Sons Electrical Services, Inc., our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for all our partners, employees and for our clients.

James Guttmann & Sons Electrical Services, Inc. is a family business that is founded by Engr. James Guttmann a graduated from Illinois Institute of Technology B.Engr. in electrical and electronics engineering. He will run the business alongside his son Ken Guttmann who has a B.Sc. in Business Administration. They have a combine experience that can help them build James Guttmann & Sons Electrical Services, Inc. to favorably compete with other leading electrical contractor services businesses in the United States of America.

  • Our Product and Services

James Guttmann & Sons Electrical Services, Inc. is established with the aim of maximizing profits in the electrical contractor services industry. We want to compete favorably with the leading electrical contractor service companies and also installation, maintenance and repair companies in the United States- which is why we have put in place a competent quality assurance team that will ensure that every electrical repairs, installations and services carried out or related services rendered meet and even surpass our customers’ expectations.

We will work hard to ensure that James Guttmann & Sons Electrical Services, Inc. is not just accepted in Little Rock – Arkansas but also in other cities in the United States of America. Our service offerings are listed below;

  • Electric light or power installation
  • Electric wiring installation on construction projects
  • Repair or maintenance of electrical wiring (except of electricity transmission or distribution lines)
  • Domestic exhaust fans installation
  • Closed-circuit video surveillance systems installation
  • Communication wiring and cabling installation
  • Electric power and systems installation and servicing
  • Telecommunications installation and servicing
  • Fire and security system installation and servicing
  • Electronic control system installation and servicing
  • Repairs and maintenance of communication and electrical equipment
  • Other related electrical installation, maintenance and repair services

Our Vision Statement

Our vision is to establish a standard and all – round electrical contractor services company whose services and brand will not only be accepted in Little Rock – Arkansas but also in other cities in the United States of America.

  • Our Mission Statement

Our mission is to provide professional electrical installation, maintenance and repair services and other related services that will assist businesses, individuals, households and non-profit organizations in ensuring that their facility and electrical equipment are always in good shape.

We want to build an electrical contractor service company that can favorably compete with other leading brands in the electrical contractor services cum installation, maintenance and repair services industry.

  • Our Business Structure

James Guttmann & Sons Electrical Services, Inc. is a business that intend starting small in Little Rock – Arkansas, but hope to grow big in order to compete favorably with leading electrical contractor Services Company and installation, maintenance and repair companies in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.

At James Guttmann & Sons Electrical Services, Inc. we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

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

  • Chief Executive Officer
  • Head, Technical Services (Senior Electrical Engineer)
  • Human Resources and Admin Manager
  • Sales and Marketing Executive
  • Accountant
  • Electrical Engineers and Electricians
  • Client Service Executive

Roles and Responsibilities

Chief Executive Officer – CEO:

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

Head, Technical Services (Senior Electrical Engineer):

  • Serves as project manager of the organization; works directly with employees
  • Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.
  • Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
  • Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
  • Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
  • Maintains quality service by establishing and enforcing organization standards.
  • Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
  • Makes certain that the technical department perform efficiently, coordinate employee efforts, and facilitate communications between management and handymen
  • Ensures that the organization work in line with international best practices.

Admin and HR Manager

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Designs job descriptions with KPI to drive performance management for clients
  • Regularly holds meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Defines job positions for recruitment and managing interviewing process
  • Carries out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
  • Oversees the smooth running of the daily office activities.

Sales and Marketing Manager

  • Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Models demographic information and analyze the volumes of transactional data generated by customer
  • Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
  • Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
  • Responsible for handling business research, market surveys and feasibility studies for clients
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develops, executes and evaluates new plans for expanding increase sales
  • Creates new markets cum businesses for the organization
  • Empowers and motivates the sales team to meet and surpass agreed targets

Accountant / Cashier:

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for James Guttmann & Sons Electrical Services, Inc.
  • Serves as internal auditor for James Guttmann & Sons Electrical Services, Inc.

Electrical Engineers and Electricians

  • Responsible for carrying out electric light or power installation
  • Responsible for carrying out electric wiring installation on construction projects
  • Handles repair or maintenance of electrical wiring (except of electricity transmission or distribution lines)
  • Responsible for carrying out domestic exhaust fans installation
  • Handles closed-circuit video surveillance systems installation
  • Handles communication wiring and cabling installation
  • Handles electric power and systems installation and servicing
  • Responsible for telecommunications installation and servicing
  • Handles fire and security system installation and servicing
  • Responsible for electronic control system installation and servicing
  • Handles general repairs and maintenance of communication and electrical equipment
  • Handles other related electrical installation, maintenance and repair services as instructed by the Head, Technical Services.

Client Service Executive

  • Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the creative director in an effective and timely manner
  • Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

General Electrical Contractor Business Plan – SWOT Analysis

James Guttmann & Sons Electrical Services, Inc. engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured electrical contractor services company that can favorably compete in the highly competitive electrical contractor services cum electrical installation, maintenance and repair service industry in the United States and the world at large.

Part of what the team of business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for James Guttmann & Sons Electrical Services, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of James Guttmann & Sons Electrical Services, Inc.;

  • Strength:

Our core strength lies in the power of our team; our workforce. We have a team of certified and highly trained and experience electrical engineers and electricians / technicians et al, a team with excellent qualifications and experience in various niche areas in the electrical contractor services cum installation, maintenance and repair service industry. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry.

  • Weakness:

As a new electrical contractor services company in Little Rock – Arkansas, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients (construction companies) in the already saturated and highly competitive electrical contractor services and installation, maintenance and repair services industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.

  • Opportunities:

No doubt, the opportunities in the electrical contractor services and installation, maintenance and repair services industry is massive considering the number massive activities going on in the construction cum real estate industry and also the numbers of households and corporate organizations who are would always need one or more electrical appliances or wiring to fix in their facilities. As an electrical contractor services company, we are ready to take advantage of any opportunity that is available in the industry.

  • Threat:

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new electrical contractor services business or even installation, maintenance and repair company in same location where our target market exist and who may want to adopt same business model like us.

General Electrical Contractor Business Plan – MARKET ANALYSIS

  • Market Trends

No doubt, the electrical contractors industry is indeed one of the largest subcontracting industries in the United States of America going by the revenue generated in the industry. A close watch on the industry activities shows that the revenue increase is due to acceleration in downstream construction markets in the United States.

As a result of the steady increase of demand from downstream construction markets, activities in this industry, registered businesses and of course contracts / job numbers have been trending upward. Going forward, the construction industry and real estate industry are expected to continue thriving hence increase in the demand for the services of electrical contractors.

So also, the industry is also expected to benefit from the increase in renovation and retrofitting activities, principally for green upgrades, such as energy-efficiency projects et al. On the average, starting and running an electrical contractor services business can be cost effective. This is especially so when you have highly trained, well qualified and experienced staff as members of your team.

With the quality of work carried out by them for your customers, you will be able to retain your customers and the good work your company does will be well spread by word of mouth as customers will tend to recommend your services to their families and friends once you are able to do a good job in their homes and on their properties.

A company’s ability in providing its customers with quality service at affordable prices will also be a factor that will count in the industry. This way the company will be able to retain existing clients and get more business from new customers. The competition in the electrical contractor industry shows that there is a viable market for the services of electricians.

As long as you are prepared to run a high quality business, you will have your own share of the market as some electricians business that exist take their customers for granted and offer them mediocre services. This gives you room as a new entrant into the business to come in and dominate if you are prepared to give quality service to your client.

  • Our Target Market

Before starting our electrical contractor services company in Little Rock – Arkansas, we conducted a market survey and feasibility studies and we are certain that there is a wide range of both corporate and individual clients who would need the services of electricians on a regular basis.

In view of that, we have created strategies that will enable us reach out to various corporate organizations and households who we know can’t afford to do without our services. Below is a list of the people and organizations that we have specifically market our services to;

  • Construction and Real Estate Companies
  • Banks, Insurance Companies and other related Financial Institutions
  • Blue Chips Companies
  • Corporate Organizations
  • Real Estate Owners, Developers, and Contractors
  • The Government (Public works department)
  • Schools (High Schools, Colleges and Universities)
  • Hotels
  • Sport Facilities
  • Religious Organizations
  • Individuals and households

Our Competitive Advantage

Surviving in the business world as an electrical contractor services business or installation, maintenance and repair company requires more than, your expertise, knowing how to deliver standard electrical installations, repairs and maintenance jobs but also how to network with key people that matters; decision makers that can decide who will get an electrical installation, repair and maintenance contract.

There are favorable conditions for growth in the electrical contractor services industry and as a result of this, survival in the industry will require that you build on existing knowledge of the services you offer to your customers and broaden your skill base in order to be able to compete favorably. More electrical contractor services companies are coming up and they are using the services of existing franchise in the business to boost their competitive edge and exposure in the industry.

We are quite aware that to be highly competitive in the electrical contractor services industry means that you are not only expected to be able to deliver consistent and highly reliable electrical installation, repair and maintenance jobs, but you must be able to meet set targets. No one would want to continue to hire your services if don’t always meet up with the target date of completion of projects.

Our competitive advantage lies in the power of our team; our workforce. We have a team of certified and highly trained and experience electrical engineers and electricians / technicians et al, a team with excellent qualifications and experience in various niche areas in the electrical contractor services cum installation, maintenance and repair service industry. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry.

Lastly, all our employees will be well taken care of, and their welfare package will be amongst the best within our category (startups electrical contractor services cum installation, maintenance and repair businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

General Electrical Contractor Business Plan – SALES AND MARKETING STRATEGY

We are mindful of the fact that there is stiffer competition in the electrical contractor services industry; hence we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the electrical contractor services cum installation, maintenance and repair services industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of James Guttmann & Sons Electrical Services, Inc.

Our corporate goal is to grow James Guttmann & Sons Electrical Services, Inc. to become one of the top 10 electrical contractor services brands in the United States of America- which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in Little Rock – Arkansas but also in other cities in the United States of America.

James Guttmann & Sons Electrical Services, Inc. is set to make use of the following marketing and sales strategies to attract clients;

  • Introduce our business by sending introductory letters alongside our brochure to individuals, households, construction and real estate companies, corporate organizations, religious organizations and key stake holders.
  • Promptness in bidding for electrical installations, repair, and maintenance contract from construction companies, real estate companies, the government and other cooperate organizations
  • Advertise our business in relevant business magazines, newspapers, TV stations, and radio station.
  • List our business on yellow pages ads (local directories)
  • Attend relevant international and local expos, seminars, and business fairs et al
  • Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
  • Leverage on the internet to promote our business
  • Engage direct marketing approach
  • Encourage word of mouth marketing from loyal and satisfied clients

Sources of Income

James Guttmann & Sons Electrical Services, Inc. is established with the aim of maximizing profits in the electrical contractor services industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients.

James Guttmann & Sons Electrical Services, Inc. will generate income by offering the following services;

  • Electric light or power installation
  • Electric wiring installation on construction projects
  • Repair or maintenance of electrical wiring (except of electricity transmission or distribution lines)
  • Domestic exhaust fans installation
  • Closed-circuit video surveillance systems installation
  • Communication wiring and cabling installation
  • Electric power and systems installation and servicing
  • Telecommunications installation and servicing
  • Fire and security system installation and servicing
  • Electronic control system installation and servicing
  • Repairs and maintenance of communication and electrical equipment
  • Other related electrical installation, maintenance and repair services

Sales Forecast

One thing is certain, there would always be construction and real estate companies, corporate organization, government agencies, households and individual who would need the services of electrical contractor services cum installations, maintenance and repair companies.

We are well positioned to take on the available market in the electrical contractor services industry and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our company to enviable heights.

We have been able to critically examine the electrical contractor services cum installation, maintenance and repair market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Little Rock – Arkansas.

Below is the sales projection for James Guttmann & Sons Electrical Services, Inc., it is based on the location of our business and of course the wide range of our services and target market;

  • First Fiscal Year-: $250,000
  • Second Fiscal Year-: $550,000
  • Third Fiscal Year-: $1 million

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same electrical installation, maintenance and repair services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Our Pricing Strategy

At James Guttmann & Sons Electrical Services, Inc. we will keep the prices of our services below the average market rate for all of our customers, by keeping our overhead low and by collecting payment in advance from construction and real estate companies and other corporate organizations who would hire our services.

In addition, we will also offer special discounted rates to all our customers at regular intervals. We are aware that there are some one – off jobs or government contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.

  • Payment Options

At James Guttmann & Sons Electrical Services, Inc. our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

  • Payment by via bank transfer
  • Payment via online bank transfer
  • Payment via check
  • Payment via bank draft
  • Payment via mobile money
  • Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash.

General Electrical Contractor Business Plan – Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both corporate clients and households in the whole of Little Rock – Arkansas and beyond which is why we have made provisions for effective publicity and advertisement of our electrical contractor services company.

Below are the platforms we intend to leverage on to promote and advertise James Guttmann & Sons Electrical Services, Inc.;

  • Place adverts on both print (newspapers and magazines) and electronic media platforms
  • Sponsor relevant community based events / programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our services
  • Install our Bill Boards on strategic locations all around Little Rock – Arkansas
  • Engage in road show from time to time in targeted neighborhoods
  • Distribute our fliers and handbills in target areas
  • Contact corporate organizations and households by calling them up and informing them of James Guttmann & Sons Electrical Services, Inc. and the services we offer
  • List our company in local directories / yellow pages
  • Advertise our company in our official website and employ strategies that will help us pull traffic to the site.

Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo et al.

General Electrical Contractor Business Plan – Financial Projections and Costing

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a standard electrical contractor services company; it might differ in other countries due to the value of their money.

However, this is what it would cost us to set James Guttmann & Sons Electrical Services, Inc. in the United of America;

  • Business incorporating fees in the United States of America will cost – $750.
  • The budget for Liability insurance, permits and license will cost – $3,500
  • Acquiring an office space that will accommodate the number of employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $100,000.
  • The amount required to purchase the needed tool box and repair equipment – $20,000
  • Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $10,000
  • Amount required to purchase the needed software applications to run our business – $3,500
  • Launching an official Website will cost – $500
  • Amount need to pay bills and staff members for at least 2 to 3 months – $70,000
  • Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $1,000

Going by the report from the market research and feasibility studies conducted, we will need about two hundred and fifty thousand (250,000) U.S. dollars to successfully set – up a medium scale but standard electrical contractor services company in the United States of America.

Generating Funding / Startup Capital for James Guttmann & Sons Electrical Services, Inc.

James Guttmann & Sons Electrical Services, Inc. is a family business that will be owned and managed by Engr. James Guttmann and his immediate family members. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

  • Generate part of the start – up capital from personal savings and sale of his stocks
  • Generate part of the start – up capital from friends and other extended family members
  • Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $70,000 and soft loan from family members $30,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

ELECTRICAL CONTRACTING BUSINESS GROWTH: Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting James Guttmann & Sons Electrical Services, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our electrical installation, maintenance and repair services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

James Guttmann & Sons Electrical Services, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

  • Business Name Availability Check: Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts various banks in the United States: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Securing a standard office facility, renovation and equipping of the facility inclusive: Completed
  • Application for business license and permit: Completed
  • Purchase of All form of Insurance for the Business: Completed
  • Conducting Feasibility Studies: Completed
  • Generating part of the start – up capital from the founders: Completed
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of Logo for the business: Completed
  • Purchase of repair and installation tools and equipment: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of the Needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
  • Creating Official Website for the business: In Progress
  • Creating Awareness for the business: In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with vendors and key players in the construction and real estate industries: In Progress
ProfitableVenture.com © 2015 - 2016 | All Rights Reserved | See About us | Privacy Policy and Disclaimer.