Do you have a business plan? These vital documents aren’t just for big companies and corporations. A well-thought-out business plan can be a great tool for getting your start-up electrical business off the ground and help track your success.
Here are tips for writing an electrical business plan to help you get started.
What is a business plan?
A business plan is like a blueprint for your business. It is a guide to help you run your business, make important decisions, and reach your goals. This can be a valuable tool for keeping everything on track and operating smoothly.
Your electrical business plan can be as simple or detailed as you want it to be. In fact, it may have less detail in the early stages of planning your business. You can always update and revise your business plan as you go. A business plan is meant to grow and change with your business. You’ll likely be updating it periodically (for example, once a quarter, yearly, or every five years).
What goes in a business plan?
There are many different sections that can go into an electrical business plan. You might include information such as:
- Executive summary – An overview of your business concept that catches the reader’s attention.
- Business profile – Basic information about your business (name, location, purpose, etc.) and you (your experience and qualifications).
- Market research – The need for electrical services in your area. This includes your target market or ideal customer and information about your competitors.
- Marketing plan – How you will reach new potential customers and keep your existing ones.
- Risk management plan – The steps you’re taking to manage business risks, such as buying electrician insurance or holding required permits and licenses.
- Business finances – This is everything from the costs of setting up your business and budgets to projected cash flow and how much you need to make to break even.
You don’t need to include every section listed above in your business plan (and you may decide to add others that are appropriate for your business). Many people include specific sections depending on their reasons for writing one. For example, if you need a business plan to get a small business loan, the finance sections will likely be mandatory.
How to write a business plan
There’s no one way to write an electrical business plan, but here are some steps to help you get started on yours.
1. Set your goals
What do you want your start-up electrical business to achieve? Examples of goals you might set for your business include:
- Run a profit within six months.
- Grow repeat business by 25% during the business’ first year.
- Secure a commercial contract of $1 million dollars within three years.
- Take on one new apprentice every two years.
The goals you set are up to you and should be as specific as possible. Details make it easier to track if you’re successful and when exactly you’ve reached your goal.
2. Think about your customers
Who is your ideal customer? Be as specific as possible. Think about factors such as:
- Where they live or work
- The services they are looking for
- Their income level or business revenue
- Why they need to hire an electrical contractor
- Where they find contractors
This information can impact many areas of your business, from marketing to pricing.
3. Do some research
Understanding the local market you’re about to enter sets you up for success. Competition can be fierce in some areas, and you’ll want to set yourself apart from other electricians or electrical contractors.
Market research can help you make many decisions, such as:
- Where to locate your business
- The services you’ll provide
- How much to charge
- How you’ll advertise
- Who is your competition
4. Sort your finances
This is often the hardest part of a business plan for many business owners. Here you’ll need to think about budgets and cash flow projections, which might be far outside your area of expertise. It may be wise to work with an accountant who can help you make reasonable financial forecasts for your electrical business.
5. Fine-tune your goals
Once you’ve thought about your target customers, researched the local market, and detailed your projected finances, it’s time to revisit the goals you set in step one. Are these goals too ambitious? Maybe they’re not ambitious enough!
If you’re working with an accountant, they could help you set realistic goals that you can reach in months or a few years. You might also make some stretch goals to test your resolve and business growth.
6. Revisit your plan
A business plan is not a “set it and forget it” type of document. At the very least, you should review yours every few months to see if you’re on track to meet your goals.
And as your business grows, you’ll want to update your current electrical business plan. Creating new goals, continually researching your competitors, and keeping an eye on the local market will help you continue your success for years to come!
Making business insurance part of the plan
After your write your electrical business plan, you might want to think about protecting the business itself. Electrician insurance policies, such as General Liability and Professional Liability, can help shield you against a variety of risks that could spark trouble for you and your business.
Compare electrician insurance policies online with BizInsure. You could be covered instantly and back to business in just 10 minutes.