electrical business plan in philippines

Electrical Contractor Business Plan Template

Written by Dave Lavinsky

Electrical Contractor Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their electrical contracting businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an electrical contractor business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

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

Why You Need a Business Plan

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

Sources of Funding for Electrical Contractor Businesses

With regards to funding, the main sources of funding for an electrical contractor business are personal savings, credit cards, bank loans and angel investors. With regards 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 electrical contractor will not only want to confirm 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 electrical contractor businesses.

Finish Your Business Plan Today!

How to write a business plan for an electrical contracting business.

If you want to start an electrical contracting business or expand your current one, you need a business plan. Below are the details for each section of your electrical contractor business plan template:

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 type of electrical contractor business you are operating and its status. For example, are you a start-up, do you have an electrical contractor business that you would like to grow, or are you operating a chain of electrical contractor businesses?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the electrical contractor industry. Discuss the type of electrical contractor business you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of electrical contractor business you are operating.

For example, you might operate one of the following types of electrical contractor businesses:

• Commercial Electrical Contractor : this type of electrical contractor business will focus on developing outdoor spaces such as college campuses, parks, gardens and more.
• Residential Electrical Contractor: this type of electrical contractor business collaborates with homeowners to design and/or install electrical and electronic systems.
• Industrial Electrical Contractor: this type of electrical contractor business works on large projects for manufacturers or warehouse facilities.

In addition to explaining the type of electrical contractor business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question 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, number of positive reviews etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the electrical contractor industry.

While this may seem unnecessary, it serves multiple purposes.

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

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

The third reason for market research 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 electrical contractor business plan:

• How big is the electrical contractor 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 market for your electrical contractor 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 electrical contractor business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: homeowners, businesses, general contractors, developers, etc.

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

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most electrical contractor businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

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

Finish Your Dog Kennel 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 electrical contractor businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes in-house electricians and homeowners who do minor electrical work themselves. You need to mention such competition as well.

With regards to direct competition, you want to describe the other electrical contractor businesses with which you compete. Most likely, your direct competitors will be electrical contractors located very close to your location.

For each such competitor, provide an overview of their businesses 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 types of projects do they specialize in?
• 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 provide a wider array of services?
• Will you provide special discounts or perks for returning customers?
• 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 an electrical contractor business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of electrical contracting business that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to installing traditional electrical systems, will you also install smart home control systems or fire and security systems?

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

Place : Place refers to the location of your electrical contractor company. Document your location and mention how the location will impact your success. For example, is your electrical contractor business located in a growing community with a booming construction sector, etc.  Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your electrical contractor marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

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

Everyday short-term processes include all of the tasks involved in running your electrical contractor business, including marketing your business, working on current projects, prepare for upcoming projects, and overseeing the entire project.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to install your 500 th electrical system, or when you hope to reach $X in revenue. It could also be when you expect to expand your electrical contractor business to a new city.  

Management Team

To demonstrate your electrical contractor business’ ability 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 electrical contractor 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 like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in overseeing construction projects or successfully running their own electrical contractor businesses.  

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 revenues 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 work on 1 project at a time or will you oversee multiple projects at any given time? 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 electrical contractor 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 bank 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 make sure 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.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing an electrical contractor business:

• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

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 office location lease or contracts for upcoming projects.  

Putting together a business plan for your electrical contractor 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 really understand the electrical contractor industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful electrical contractor business.  

Electrical Contracting Business Plan FAQs

What is the easiest way to complete my electrical contractor business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Electrical Contractor Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of electrical contractor business you are operating and the status; for example, are you a startup, do you have an electrical contractor business that you would like to grow, or are you operating a chain of electrical contractor businesses?

Don’t you wish there was a faster, easier way to finish your Dog Kennel 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 Growthink’s professional business plan consulting services can create your business plan for you.

Other Helpful Business Plan Articles & Templates

.

Search Product category Any value Sample Label 1 Sample Label 2 Sample Label 3

How to Write a Business Plan for a Electrical Contractor

• September 14, 2022
• Small Businesses

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your electrical contractor company, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in the business plan of your electrical contractor business. Use this template to create a complete, clear and solid business plan that get you funded.

1. Electrical Business Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire plan.

Why do you need a business plan for an electrical business?

The purpose of a business plan is to secure funding through one of the following channels:

• Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
• Obtain private investments from investment funds, angel investors, etc.
• Obtain a public or a private grant

How to write an executive summary for an electrical business?

Provide a precise and high-level summary of every section that you have included in the business plan of your electrical business. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately.

Also make sure that the executive summary doesn’t exceed 2 pages in total: it’s supposed to be a summary for investors and lenders who don’t have time to scroll through 40-50 pages, so keep it short and brief.

The executive summary usually consists of 5 major sub-sections:

• Business overview : start by introducing your proposed electrical contracting firm, where it is located, the services you will offer, and the pricing strategy you want to implement. Mention what sets you apart from other businesses. For example, you may be a master electrician with a decade of experience in designing electrical systems.
• Market analysis : summarise the market where you will operate and provide a brief about your target market , target audience, spending capability, etc. Also give certain data points about the electrical contractor business industry in the area where you want to operate (size and growth), as well as an overview of the main competitors, etc.
• People : introduce your electrical business’ management and employee structure. Provide a brief (no more than a couple of sentences each) of the knowledge and experience of the team. Also, mention how the company will be structured (management roles and reporting lines)
• Financial plan: how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? You can include here a chart with your key financials (revenue, gross profit, net profit )
• Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?

2. Electrical Business Overview

In this segment of the business plan, you will provide details about your proposed electrical contracting firm.

You must answer here some important questions that potential investors and lenders often ask about your business and operations. Here are some examples of questions you must answer:

• What is the rationale behind your opening an electrical contractor business today?
• In which location will you operate and why?
• What type of services will you offer?
• Are there specific types of services and/or industries that you specialize in?
• What will be your pricing strategy and why?
• What will be the legal structure of your company?

a) History of the Project

Any business overview must start with explaining the history of the project. There are 2 components here:

• Passion & experience of the business owner
• Rationale behind starting an electrical business today

Passion & experience

You must display your passion while at the same time, you must also showcase your experience. For instance, you may have 10 years of journeyman experience, or you may be a master electrician with the ability to design ground-breaking electrical systems.

Is there a certain problem (or perhaps, a set of problems) that your electrical contracting firm will try to solve when it comes into existence?

For example, there may be a steady increase in demand for commercial electrical contracting firms but there are only a few unorganized service providers incapable of efficiently handling commercial contracts.

The rationale behind your project must be backed up by a thorough analysis of the industry in the area where you plan to open your electrical contractor business. This is what we will cover under Market Overview further below.

b) Business Model

This section of the Business Overview should explain the model you want to adopt for your electrical contractor business. For example:

• Which target audience segment you will focus on and why?
• Is there enough demand for that segment in your focus area?
• What type of services you will offer?

What are the different types of e lectrical contractor companies?

You may choose one of the following:

• Residential Electrical Contractors: They usually collaborate with homeowners to design or install electrical systems
• Commercial Electrical Contractors : They usually focus on commercial and outdoor spaces like malls, shops, college campuses, gardens, parks, etc.
• Industrial Electrical Contractors : They usually focus on larger products like industrial manufacturing areas, warehouses, etc.

No matter what you select, you must ensure that there is enough demand for the type of electrical contracting firm you want to open and the range of services you will offer.

c) Services

The services you offer will depend on the type of customers you will serve and also on the skills you have. Provide a quick list of the major services that you will offer. Some services may include things like:

• Exterior and interior lighting
• Installation of safety systems & electronic appliances
• Electrical wiring and transmission line installation
• Repairs & upgrades, etc.

d) Pricing Strategy

This is where you will provide an overview of your pricing strategy. For instance, you may charge higher than your competitors because you may have a team of highly experienced electricians and also because you use high-quality wires and other materials than your competitors.

Similarly, you may decide to charge lower than your competitors because of the bulk purchase of products like wires, switches, etc., which allows you to bring down the cost of your services.

Whatever the case is, explain your pricing strategy and the logic behind it.

Pricing table

While it may not be possible to provide a proper pricing table for all services that you will offer, it is still a great idea to provide a table that gives an overview of your pricing structure.

Providing individual pricing for all services may not be possible, however, you may provide a range. For example:

• Smart systems installation: $75 to $150 per hour (depending on the system and area)
• Repair and upgrades: $80 to $120 per hour

However, don’t go into extreme details because potential investors are not interested in the nitty-gritty of your pricing. They just need the big picture to assess the profitability, because they will tie your pricing strategy with your financial projections later on.

e) Company Legal Structure

Finally, your business overview section should specify what type of business structure you want. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

3. Electrical Business Market Overview

A complete understanding of the market where you want to operate is important for the success of your business. That’s also something you must showcase in your business plan.

For example, if there is a high demand for residential and commercial electrical contractors but you want to focus on industrial customers despite a very small market size , it may not be a great business decision.

Therefore, you must cover here 3 important areas:

• Market size & growth : how big is the electrical contractor business industry in your area? What is its growth rate (or decline rate) and what are the factors contributing to its growth or decline?
• Competition overview : how many competitors are there? What type of customers do they serve? What type of projects do they specialize in? How do they compare vs. your business? How can you differentiate yourself from them?
• Customer analysis : who is your target audience? How frequently do they require electrical contractor services? What is their yearly spending on electrical contractor services?

a) Electrical Contractor Industry Size & Growth

How big is the electrical contractor industry in the us.

In 2021 there were over 70,000 electrical contracting firms in the US employing about 650,000 electrical workers.

As per the National Electrical Contractors Association (NECA) the industry is worth $202 billion: that’s an average annual turnover of $2,800,000 per company! 

Also, the vast majority of electrical contractors are small businesses: over 80% of all businesses had less than 10 employees.

How big is the electrical contractor industry in your area?

After getting a clear picture of the electrical contractor business industry in the US as a whole, narrow down to your location. It’s very likely that you won’t find the number anywhere (at least not for free).

In that case, you can use our guide to estimate the TAM, SAM, and SOM for your business. Here is an example of how to do it:

We already know that the average annual turnover for electrical contracting firms in the US is $2.8 million. Therefore, if the area where you will operate (a city for example) has a total of 30 electrical contractors, the electrical service industry in the area is worth approximately $84 million.

What’s the market growth of the electrical contractor industry in your area?

Next on our list is market growth: is the industry growing or declining in your area?

US market growth can be a great addition to your business plan, yet it doesn’t necessarily help to assess the industry in your area of service. For example, the industry might be growing in the US, but declining in your region for a number of reasons (for example, the large commercial market may be contracting because businesses are shutting down due to losses, resulting in the closure of electrical contractor businesses that focused on the commercial market).

As you likely won’t find this information online, you can instead rely on the number of electrical contractor businesses in the location to calculate the average growth rate of the industry in your area.

For example, if the region had only 27 electrical contractor businesses in 2019 and 30 in 2021, you can assume that the average annual growth rate of the electrical contractor businesses industry in the area is around 5-6%.

b) Competition Overview

Studying your competitors’ business models is vital. You need to understand what makes them successful or why they fail. A clear understanding of their business model, the products they sell, their marketing strategies, etc., will allow you to provide a better service.

If your competitors are offering nearly the same services, then what is their market share and how do they market their products & services to attract new customers?

It is always a good idea to do some research (if necessary, you may consider physically visiting your competitors without revealing your business intentions) and create a comparative table summarizing their service offerings, marketing strategies, target audience, etc.

Here is a sample table that you can use:

Electrical Business SWOT Analysis

SWOT stands for Strength, Weakness, Opportunities, and Threats. This analysis will help lenders and investors better understand how you compare vs. competitors as well as the overall risk and reward profile of your business.

Here is a sample that you can use as a reference:

• Strengths : 12 years of experience as a master electrician in a popular electrical contractor company
• Weaknesses : Startup cost, no initial brand reputation
• Increased construction of residential apartments due to demand spike in rental housing and builders are looking for skilled electricians for wiring everything (backup with data for population and real estate boom)
• Growth in retail stores and malls (because of population influx), which in turn has increased the demand for electricians for installation and maintenance (provide data)
• Increased commercial warehouse construction because of increased regional distribution centers by e-commerce retailers that require electrical installations (provide data and explain why there is an increase in commercial warehouse construction – for example, increased demand and hence imports of cheaper products)
• Threats : Big brands like Helix Electric, Bergelectric, & Cupertino Electric, Inc. are all eyeing the growing market

c) Customer Analysis

Finally, we need to look at your customers.

However, the first thing you must do is clearly define the target audience. For instance, you may serve individual households, commercial establishments, or even industrial establishments.

Some important points that you must include in your customer analysis include:

• How much do your target customers spend on electrical services per year?
• How frequently do they need electrical contractors?
• What type of electrical services do they usually require (fresh installations, inspections, repairs, etc.)?
• What type of electrical contractors do they usually hire (big brands, small contractors, individual electricians, etc.)?
• What do they dislike about the existing electrical contractors in the area (for example, slow response time)?

4. Sales & Marketing Strategy

This is the section where you outline your customer acquisition strategy. Try to answer here the following questions:

What is your Unique Selling Proposition (USP)?

• What are the different marketing strategies you will use?
• How do you intend to track the success of your marketing strategy ?
• What is your CAC or customer acquisition cost?
• What is your marketing budget?
• What introductory promos and offers do you intend to provide for attracting new customers?
• What marketing channels do electrical businesses use?

What marketing strategies do electrical contractors use?

A few marketing channels that electrical businesses typically use are:

• Signages, vehicle branding
• PPC ads (Google local services ads)
• Social media platforms
• Flyers & pamphlets
• Word of mouth, recommendations

It is not necessary to use all channels. Instead, you can start by focusing on a few of them, and include other marketing strategies later.

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.

A few examples of USPs are:

• Response Time : you may respond within 30 minutes (whatever you can commit to), which is faster than any competitor 
• Emergencies : you may have years of experience dealing with electrical emergencies that can potentially cause immense damage to life and property
• Free inspection : you may offer one free inspection of wiring and other installations once every quarter

Your USP will depend on your business model, competitor analysis , and target audience. Whatever your USP be, it should be clear and appealing to your target audience.

5. Management & People

You must address two things here:

• The management team and their experience
• The organization structure : different team members and who reports to whom?

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your electrical business.

Describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.

It is also important that you explain how their experiences and qualifications help you in implementing the electrical business you are proposing. If they have specialized training and experience (master electrician or journeyman electrician for 8 years in a reputed electrical contractor firm), add that information.

Organization Structure

Even if you haven’t already hired electricians, trainees, managers, drivers, accountants, and other relevant staff members, you must provide a flowchart of the organizational structure defining hierarchy and reporting lines.

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan for an electrical contractor company.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your electrical contractor company is an attractive investment.

There should be 2 sections to your financial plan section:

• The startup costs of your company
• The 5-year financial projections

a) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project.

For an electrical contractor company, startup costs are all the expenses you incur before you start making sales. These expenses typically are limited especially for small businesses and include:

• The lease deposit (if you rent an office and/or warehouse for your equipment)
• Electrical equipment, tools, etc.
• License & permits, business insurance, etc.

Of course, the startup costs depend on a number of factors, like the size of your business (employees), the services you plan to offer (which will dictate what equipment you may need), etc.

b) Financial Projections

In addition to startup costs, you will also need to build a solid 5-year financial model in the business plan of your electrical company.

Note that your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

• How much revenue do you expect to generate over the next 5 years?
• When do you expect to break even?
• How much cash will you burn until you get there?
• What’s the impact of a change in pricing (say 10%) on your margins?
• What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

• The number of contracts (customers) over time ;
• Your expected revenue ;
• Operating costs to run the business ;
• Capex (cost to buy the equipment and vehicles, etc.)

When projecting your financials, make sure to sensitize sales volume (customers), pricing as well as the expenses (inventory, salaries, etc.). Indeed, a small change in these assumptions may have a significant impact on your revenues, and most importantly, your profits.

7. Use of Funds

This is the last section of the business plan of your electrical contractor company. Now that we have explained what your business model is, what type of services you offer, how you get customers, etc., this section must now answer the following questions:

• How much funding do you need?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

• What percentage of the total funding the loan represents?
• What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

• What percentage ownership are you selling as part of this funding round?
• What is the corresponding valuation of your business?

Use of Funds

Any business plan for an electrical contractor company should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment in paying your employees’ salaries and the COGS (inventory)? Or will it cover mostly the cost for acquiring the equipment and machines?

For the use of funds, we also recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

Privacy Overview

How to write a business plan for an electrical company?

Putting together a business plan for an electrical company 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 company, 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 company?

• What information is needed to create a business plan for an electrical company?
• How do I build a financial forecast for an electrical company?

The written part of an electrical company business plan

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

Being clear on the scope and goals of the document will make it easier to understand its structure and content. So before diving into the actual content of the plan, let's have a quick look at the main reasons why you would want to write an electrical company business plan in the first place.

To have a clear roadmap to grow the business

It's rarely business as usual for small businesses. The economy follows cycles where years of growth are followed by recessions, and the business environment is always changing with new technologies, new regulations, new competitors, and new consumer behaviours appearing all the time...

In this context, running a business without a clear roadmap is like driving blindfolded: it's dangerous at best. That's why writing a business plan for an electrical company is essential to create successful and sustainable businesses.

To write an effective business plan, you will need to take stock of where you are (if you are already in business) and where you want the business to go in the next three to five years.

Once you know where you want your electrical company to be, you'll have to identify:

• what resources (human, equipment, and capital) are needed to get there,
• at what pace the business needs to progress to get there in time,
• and what risks you'll face along the way.

Going through this process regularly is beneficial, both for startups and existing companies, as it helps make informed decisions about how best to allocate resources to ensure the long-term success of the business.

To get visibility on future cash flows

If your small electrical company runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your electrical company's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your electrical company business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your electrical company's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

A detailed business plan becomes a crucial tool when seeking financing from banks or investors for your electrical company.

Investing and lending to small businesses are very risky activities given how fragile they are. Therefore, financiers have to take extra precautions before putting their capital at risk.

At a minimum, financiers will want to ensure that you have a clear roadmap and a solid understanding of your future cash flows (like we just explained above). But they will also want to ensure that your business plan fits the risk/reward profile they seek.

This will off-course vary from bank to bank and investor to investor, but as a rule of thumb. Banks will want to see a conservative financial management style (low risk), and they will use the information in your business plan to assess your borrowing capacity — the level of debt they think your business can comfortably handle — and your ability to repay the loan. This evaluation will determine whether they'll provide credit to your electrical company and the terms of the agreement.

Whereas investors will carefully analyze your business plan to gauge the potential return on their investment. Their focus lies on evidence indicating your electrical company's potential for high growth, profitability, and consistent cash flow generation over time.

Now that you recognize the importance of creating a business plan for your electrical company, let's explore what information is required to create a compelling plan.

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.

Information needed to create a business plan for an electrical company

Drafting an electrical company business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for an electrical company

As you consider writing your business plan for an electrical company, 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 company.

Your electrical company's market research may reveal that customers may be looking for more energy-efficient products. Additionally, customers might be interested in products that offer more convenience, such as smart home devices.

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 company.

Developing the marketing plan for an electrical company

Before delving into your electrical company 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 company

As you embark on starting or expanding your electrical company, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

The staffing costs for an electrical company might include wages for electricians, engineers, and administrative staff. They may also need to pay for additional training for their staff. The equipment costs might include items such as electrical wiring, tools, power supplies, and safety gear. The company may also need to invest in vehicles and other transportation costs in order to reach their customers and job sites.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

What goes into your electrical company's financial forecast?

The objective of the financial forecast of your electrical company's business plan is to show the growth, profitability, funding requirements, and cash generation potential of your business over the next 3 to 5 years.

The four key outputs of a financial forecast for an electrical company 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 company shows how much revenue and profit your business is expected to make in the future.

A healthy electrical company's P&L statement should show:

• Sales growing at (minimum) or above (better) inflation
• Stable (minimum) or expanding (better) profit margins
• A healthy level of net profitability

This will of course depend on the stage of your business: numbers for a startup will look different than for an established electrical company.

The projected balance sheet of your electrical company

The balance sheet for an electrical company is a financial document that provides a snapshot of your business’s financial health at a given point in time.

It shows three main components: assets, liabilities and equity:

• Assets: are resources owned by the business, such as cash, equipment, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors and other entities, such as accounts payable (money owed to suppliers) and loans.
• Equity: includes the sums invested by the shareholders or business owners and the cumulative profits and losses of the business to date (called retained earnings). It is a proxy for the value of the owner's stake in the business.

Examining the balance sheet is important for lenders, investors, or other stakeholders who are interested in assessing your electrical company's liquidity and solvency:

• Liquidity: assesses whether or not your business has sufficient cash and short-term assets to honour its liabilities due over the next 12 months. It is a short-term focus.
• Solvency: assesses whether or not your business has the capacity to repay its debt over the medium-term.

Looking at the balance sheet can also provide insights into your electrical company's investment and financing policies.

In particular, stakeholders can compare the value of equity to the value of the outstanding financial debt to assess how the business is funded and what level of financial risk has been taken by the owners (financial debt is riskier because it has to be repaid, while equity doesn't need to be repaid).

The cash flow forecast

A projected cash flow statement for an electrical company is used to show how much cash the business is generating or consuming.

The cash flow forecast is usually organized by nature to show three key metrics:

• The operating cash flow: do the core business activities generate or consume cash?
• The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
• The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your electrical company business plan to pay close attention to your cash flow forecast.

Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the electrical company is appropriately funded.

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 company 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 company, 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 company 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 company 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

Throughout these sections, you will seek to provide the reader with the details and context needed for them to form a view on whether or not your business plan is achievable and your forecast a realistic possibility.

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

1. The executive summary

In your electrical company'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 company, 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 company 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 company to a third party financier, you could emphasize its proximity to a major highway, its potential access to a large customer base, and the potential for growth in the area. You might also mention the potential for cost savings due to the lower cost of living in the area, as well as the potential to find talented employees in the local labor market. Finally, you could highlight the potential for diversifying the customer base by tapping into nearby industry clusters.

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 electrical company business plan should include a detailed description of what your company sells to its customers. 

For example, your electrical company might offer wiring and installation services, such as for electrical outlets, lighting fixtures, and safety inspections. It might also offer repair and maintenance services, like for circuit breakers, thermostats, and generators. Finally, it might offer energy solutions, such as solar panel installation, energy audits, and energy efficiency upgrades. These services provide customers with reliable and efficient electrical solutions for their homes and businesses, as well as the assurance that they are safe and compliant with local codes.

The reader will want to understand what makes your electrical company unique from other businesses in this competitive market.

When drafting this section, you should be precise about the categories of products or services you sell, the clients you are targeting and the channels that you are targeting them through. 

4. The market analysis

When outlining your market analysis in the electrical company 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 company, 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 company 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 who are interested in energy efficiency. This segment likely values the latest technology and gadgets and is willing to pay a premium for high-end products. They are likely to be tech-savvy and interested in products that help them reduce their energy consumption and save money.

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

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

5. The strategy section

When crafting the strategy section of your business plan for your electrical company, it's important to cover several key aspects, including your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, clearly explain what sets your company apart from competitors. This is particularly critical if you're a startup, as you'll be trying to establish your presence in the marketplace among entrenched players.

The pricing strategy subsection should demonstrate how you aim to maintain profitability while offering competitive prices to your customers.

For the sales & marketing plan, outline how you plan to reach and acquire new customers, as well as retain existing ones through loyalty programs or special offers.

In the milestones subsection, detail what your company has achieved thus far and outline your primary objectives for the coming years by including specific dates for expected progress. This ensures everyone involved has clear expectations.

Lastly, in the risks and mitigants subsection, list the main risks that could potentially impact the execution of your plan. Explain the measures you've taken to minimize these risks. This is vital for investors or lenders to feel confident in supporting your venture - try to proactively address any objection they might have.

Your electrical company could face a number of risks. For example, it may be exposed to financial risks due to fluctuations in the market or changes in interest rates. It could also face operational risks such as power outages, equipment malfunctions, or cyberattacks. These risks could have the potential to cause financial losses, reputational damage, or operational disruptions. It is important for your electrical company to be aware of the risks it may face and take proactive steps to mitigate them.

6. The operations section

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

Begin by addressing your staff, specifying the main roles and your recruitment plan to support the anticipated growth. Outline the qualifications and experience needed for each role and discuss your recruitment strategies, which may involve using job boards, referrals, or headhunters.

Next, clearly state your electrical company's operating hours, allowing the reader to gauge the adequacy of your staffing levels. Additionally, mention any considerations for varying opening times during peak seasons and your approach to handling customer queries outside regular operating hours.

The key assets and intellectual property (IP) required to run your business should also be highlighted. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, ensure they are well-documented in this section.

You may have key assets such as specialized tools and equipment necessary for electrical processes, as well as intellectual property such as blueprints and patents for specific designs. These assets and IP could be integral to running your electrical company, allowing you to produce products and services that may bring value to your customers.

Finally, provide a comprehensive list of suppliers you intend to collaborate with, along with a breakdown of their services and main commercial terms, such as price, payment terms, break clauses and contract duration. Investors often seek insight into the reasons behind your supplier choices, which may include a preference for higher-quality products or established relationships from past ventures.

7. The presentation of the financial plan

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

Now that you have a clear idea of the content of an electrical company business plan, let's look at some of the tools you can use to create yours.

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

In this section, we will be reviewing the two main options for writing an electrical company business plan efficiently:

• Using specialized software,
• Outsourcing the drafting to the business plan writer.

Using an online business plan software for your electrical company's business plan

Using online business planning software is the most efficient and modern way to create an electrical company 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 company's business plan

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

These writers possess valuable experience in crafting business plans and creating accurate financial forecasts. Additionally, enlisting their services can save you precious time, enabling you to concentrate on the day-to-day operations of your business.

It's important to be mindful, though, that hiring business plan writers comes with a cost. You'll be paying not just for their time but also for the software they use, and their profit margin.

Based on experience, a complete business plan usually requires a budget of at least £1.5k ($2.0k) excluding tax, and more if revisions are needed after initial meetings with lenders or investors - changes often arise following these discussions.

When seeking investment, be cautious about spending too much on consulting fees. Investors prefer their funds to contribute directly to business growth. Thus, the amount you spend on business plan writing services and other consulting services should be negligible compared to the amount you raise.

Another aspect to consider is that while you'll receive the output of the business plan, you usually won't own the actual document. It will be saved in the consultant's business plan software, which will make updating the plan challenging without retaining the consultant on a retainer.

Given these factors, it's essential to carefully weigh the pros and cons of outsourcing your electrical company business plan to a business plan writer and decide what best suits your business's unique needs.

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

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write an electrical company business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

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.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my electrical company business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

• Word processors don't include instructions and examples for each part of your business plan
• Word processors don't update your numbers automatically when they change in your forecast
• Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating an electrical company business plan for some entrepreneurs, it is by far not the best or most efficient solution.

• 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 company 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 company 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 company? 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

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Electrical Contractor Business Plan

Start your own electrical contractor business plan

Premiere Electric

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

The population in Richmond is growing. With more people come the need for more apartments and stores, in other words, new construction. New construction needs skilled electricians that can wire everything.

Premiere Electric is a new electrical contracting firm that Robin has started to serve the former Gardner and Miller customers, as well as expand her services to new customers in the tri-county area.

The market for commercial electrical contracting services is very fragmented and crowded. Among these, only a few are large firms with 20 or more electricians on staff. The remainder are small firms with less than three full-time electricians. Premiere Electric’s current niche is its strong relationship with former customers of Gardner and Miller, but this will not be sufficient for growth in a competitive market.

By focusing on data, communication and electrical installation and maintenance, Robin reduces her direct competitors to two large electrical firms that bid on the area’s largest projects. Though one day, Premiere Electric plans to be a force in the area’s largest projects, an opportunity exists now for new customers whose smaller projects are not being pursued aggressively by Robin’s competitors.

Competition

There are quite a few electric contractors in Richmond: Above Code Electric, Frazier Electrical, H.O. Feild Electric company, Prism Industries and Langhorne Electric to name a few. 

All of them advertise many years experience, training and customers who trust them. Electrical contractors enter their customer’s home. They need to do excellent work as well as be able to be in someone’s house without danger of invading privacy. 

Premiere Electric’s mission is to offer its customers the highest-quality electrical services. Robin focuses on personalized service by offering convenience and rapid service. Additionally, Premiere Electric has the technological expertise to install wireless voice and data systems, as well as intelligence systems in any size facility. Finally, Robin has strong vendor relationships with the most service conscious vendors who are capable of shipping major parts rapidly (on an overnight timeline in most cases) minimizing the system down time for Premiere Electric customers.

Expectations

Currently, there is $100,000 worth of business with former Gardner and Miller customers. Robin believes she can capture a lion’s share of it and build from that base. She will start as the firm’s only employee but will hire additional electricians as her sales grow.

Financial Highlights by Year

Financing needed.

We will be getting $62,000. Robin will invest $40,000 and we will get a $22,000 long term loan. 

Problem & Solution

Problem worth solving.

The population in Richmond is growing. With more people come the need for more apartments and stores, in other words, new construction. New construction needs skilled electricians that can wire everything

Our Solution

Premiere Electric’s focus is to meet the demands of the former Gardner and Miller customer base. Premiere Electric has established relationships with these companies and believes we will receive referral business from them over time. The company estimates that 80% of revenues will come from old Gardner and Miller clientele and 20% from new referrals and business. Though the former Gardner and Miller clientele will be important during the first year of business, Robin knows the future of the business is new referrals. 

Target Market

Market size & segments.

Many factors are contributing to this projected building growth, notably regulation, demographics, inexpensive capital, a strengthening U.S. economy, and technology. Alternative delivery methods are helping to make projects viable where they otherwise would not be.

Labor shortages may Impede growth to some extent will be. According to the Bureau of Labor Statistics, employment rose in 43 states in October, while declining in seven states. Finding qualified workers to perform the work has become onerous. Immigrant labor from Central America has helped somewhat, but the need for more skilled craftsman—electricians, pipefitters, plumbers etc.—will not be filled through immigration. Labor shortages will begin to slow growth and create wage inflation.

COMMERCIAL CONSTRUCTION FORECAST

RETAIL STORES AND MALLS

Online sales continue to grow, and extreme discounters keep expanding. Major retail chains and deep-discount stores will lead construction growth in this sector, although there will be some significant activity among regional and national grocery, drugstore, and quick-service restaurants. Specialty stores in urban cores will also contribute to growth, as will e-commerce warehouses. Look for increased activity in store renovations as well. There is the potential for 9% construction growth in this sector in 2016. Retailers will continue to fret about a possible increase in the federal minimum wage and the strength in the overall U.S. economy, which could slow growth.

COMMERCIAL WAREHOUSES

Commercial warehouse construction is being buoyed by regional distribution centers for major retailers and the positive effect of the Panama Canal expansion. The strong dollar and a weakened global are pushing up imports of cheaper goods into the U.S., driving up warehouse construction. We are looking at an 8-10% growth in this sector in 2016. A slowdown in the U.S. economy could be a drag on this sector, but not by much.

MULTIFAMILY HOUSING

Multifamily housing remains the star performer in this recovery. The 20-34 age demographic (children of Baby Boomers) is growing. This age group is the typical renter. The untypical renter is the growing 55-64 demographic of empty nesters. These two age groups are pushing up demand for rental housing. They are demanding walkability and high-end amenities in a work-live-play environment.

A significant amount of capital is chasing the apartment sector, a trend that does not seem to be abating anytime soon. Deals can be financed at 3%, making them easy to justify, especially in light of the available fixed-income alternatives, which can’t come close to real estate.

Expect growth to remain torrid at 17-20% in 2016. Rental demand is on the rise and shows no signs of slowing down. Most markets cannot keep up with current demand, making this segment a star performer for 2016 and most likely beyond.

Demographics and the strengthening U.S. economy are helping to drive construction growth. As the economy strengthens, employment is increasing. After sitting on the sidelines for the past few years, businesses and developers are building new office space.

Millennials (age 18-34), who now outnumber Baby Boomers, are traveling more than other demographic groups, which is feeding hotel growth and remodeling. The strengthening economy is increasing discretionary income, helping the lodging and retail sectors. Millennials are impatient shoppers, making it imperative for retailers to invest in more robust order fulfillment systems and fast and excellent customer service. Retailers who ignore Baby Boomers do so at their own risk. Boomers have significant financial resources and are much more active and educated buyers than previous older generations. 

Millennials are also of the age to move out of their parents’ homes. They’re looking for apartments in the urban core, but there is also a significant amount of mixed-use development occurring in the suburbs, particularly in transit-oriented developments. This is an indication that developers believe that Millennials choosing to defer marriage and families will embrace the suburban lifestyle—albeit in the context of mixed-use properties rather than what their parents opted for.

Baby Boomers and the Affordable Care Act are infusing life into what just a few years ago was a moribund healthcare construction sector. Emphasis will be placed on preventive care and wellness initiatives for younger Boomers, as well as more traditional acute care for the older demographic.

Inexpensive capital is flowing into urban-core areas, especially those with a strong presence in healthcare, education, and the life sciences. In general, areas with historically high rents are faring much better than areas that rise and fall with the economy. Lower rent areas are also seeing some growth, but it is more tepid than in the urban cores.

These are heady times for builders, and there is cause for optimism. While it is true that certain larger issues, such as industry labor shortages or another financial crisis emanating from China, could slow down growth, the way things look today, this train has miles to go before running out of steam.

Current Alternatives

All of them advertise many years experience, training, and customers who trust them. Electrical contractors enter their customer’s home. They need to do excellent work as well as be able to be in someone’s house without danger of invading privacy. 

Some try and stand out like Above Code Electric which focuses on electric fan installations, or Prism Industries which focuses on TV and television installations. Others like Frazier Electric and H.O. Feild Electric are general contractors but are not locals, they are are a couple towns over.

Then there are our direct competitors like Langhorne Electric who focuses on electrical wiring upgrading for residential and commercial buildings. 

Our Advantages

When Robin opted to start her own company and take matters into her own hands,  this was just another step in her quest to deliver services to customers that were second to none. As a woman in the male-dominated electrician profession, it has always been Robin’s competitive edge that has pushed her ahead with customers and employers. Her focus on new electrical technology places her in a unique situation. Both her major competitors had sought her services when Gardner and Miller announced the company’s departure from the area. Her reputation for quality work and excellent customer skills could have landed her with a new employer and a bigger pay check. The Richmond tri-county area is booming with new commercial construction, including a new research park and airport. Robin’s technical skills in data retrieval and communication systems will be a valuable asset for a company to have in the next five years.

Keys to Success

Premiere Electric’s keys to success include:

• Expedient and convenient electrical services.
• Growing and maintaining a referral network of customers.
• Focus expertise in data, communication and electrical installation and maintenance.
• Rapid order and delivery of electrical components.

Marketing & Sales

Marketing plan.

Premiere Electric’s focus is to meet the demands of the former Gardner and Miller customer base. Premiere Electric has established relationships with these companies and believes we will receive referral business from them over time. The company estimates that 80% of revenues will come from old Gardner and Miller clientele and 20% from new referrals and business. Though the former Gardner and Miller clientele will be important during the first year of business, Robin knows the future of the business is new referrals. The table below further estimates the total market potential of the type of services rendered by Premiere Electric in the Richmond tri-county area.

We plan on having a sales plan that takes advantage of the relationships we had before we re-organized. The millennials are the biggest growing part of the market. To gain new clients we will take advantage of Social Media. We will speak directly to them by Twitter and Facebook. We have green initiatives and a website that speaks directly to them. Our well-trained sales team will take over once they come our way. 

The services rendered by Premiere Electric can cover a project in its entirety from original concept to acceptance of completed construction work.

• Consulting services : engineering studies (functional analysis), evaluations and recommendations (value engineering analysis), feasibility studies, master planning.
• Design services : cost estimates, design analysis, project scheduling, conceptual drawings: electrical standards, specifications.
• Field services : 24-hour emergency service, troubleshooting, field engineering liaison and inspection, commissioning and checkout, customer representation at acceptance testing of equipment, preventive maintenance programs.
• Construction services : commercial and industrial.

Milestones & Metrics

Milestones table, key metrics.

Our key metrics are: 

• inventory turnover 
• Tweets and Retweets 
• Facebook views and shares 
• returning customers 
• customer referral program 

Ownership & Structure

Robin Sullivan is the sole owner proprietor and employee of Premiere Electric.

Management Team

Premiere Electric is owned by its sole employee, Robin Sullivan. Robin is a talented electrician who holds a Bachelor of Science degree from Eastern College that she obtained while working full-time as an electrician. Robin entered the world of electricity at just the right time when national legislation made it possible for her to join the electricians’ union. She started her apprenticeship and early training as an electrician in St. Louis, Missouri in 1978. She later relocated to the Richmond area in 1983 and has worked in the local number three jurisdiction for the past 18 years.

For the past 10 years with Gardner and Miller, Robin has focused on the new electrical technologies as new industries and commercial growth have come to the Richmond area. During that time, she has created a base of customer support that praises her ability to handle all aspects and responsibilities of the design and engineering process.

Personnel Table

Financial plan investor-ready personnel plan .">, key assumptions.

Our key assumptions are: 

• Buildings need electricity 
• Electricity wires fray and need repair 
• As technology gets more advanced it needs more electricity to accomplish its tasks
• Tech boom never dies, just changes. We will always have customers looking for services 

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

Our Startup Expenses are: 

Stationery etc.$100

Brochures$200

Start-up Inventory$10,000

TOTAL $10,300

Sources of Funds

We will be getting $69,000. Robin will invest $47,000 and we will get a $22,000 long term loan to cover the inventory as well as some machinery. 

Projected Profit & Loss

Projected balance sheet, projected cash flow statement.

Tax Season Savings

Get 40% off LivePlan

The #1 rated business plan software

Discover the world’s #1 plan building software

How to Start a Profitable Electrical Business [11 Steps]

By Nick Cotter Updated Feb 02, 2024

Business Steps:

1. perform market analysis., 2. draft a electrical business plan., 3. develop a electrical brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for electrical., 6. open a business bank account and secure funding as needed., 7. set pricing for electrical services., 8. acquire electrical equipment and supplies., 9. obtain business insurance for electrical, if required., 10. begin marketing your electrical services., 11. expand your electrical business..

Starting an electrical business requires a thorough understanding of the current market to identify opportunities and challenges. A comprehensive market analysis will guide your business strategy, helping you to make informed decisions and tailor your services to meet the needs of your target customers. Here are key steps to take when performing a market analysis:

• Research the local demand for electrical services by assessing the number of residential and commercial properties in your target area.
• Analyze your competitors by studying their services, pricing, and customer reviews to determine your competitive edge.
• Examine industry trends, such as smart home technology and energy-efficient solutions, to identify growing markets and potential niches.
• Understand regulatory requirements and standards in the electrical sector to ensure compliance and identify any barriers to entry.
• Assess the availability of suppliers and workforce to ensure you can source materials and hire qualified electricians.
• Conduct surveys or focus groups to gather feedback about potential customers' needs and preferences.

Are Electrical businesses profitable?

Yes, depending on the type of electrical business, they can be very profitable. Electrical businesses such as wiring and maintenance services, solar installation, or data wiring can be very profitable. Additionally, depending on the location, some businesses may have an advantage due to a higher demand for certain types of services.

Embarking on an electrical business venture requires a well-thought-out plan to navigate the complexities of the industry and set a course for success. A comprehensive business plan will serve as a roadmap for your operations, financial management, and growth strategies. Here's a guide to drafting your electrical business plan:

• Begin by defining your business objectives, mission statement, and the services you'll offer.
• Conduct a market analysis to understand your competition and identify your target customer base.
• Outline your organizational structure, detailing the roles and responsibilities of your team members.
• Develop a marketing strategy that highlights your unique selling points and how you'll attract clients.
• Prepare a detailed financial plan including startup costs, pricing strategy, sales forecasts, and projected cash flow.
• Consider the legal and regulatory requirements for your electrical business, including licenses, insurance, and safety standards.
• Establish operational procedures for project management, customer service, and quality control to ensure efficiency and professionalism.
• Set short-term and long-term goals with measurable milestones to track your progress and make adjustments as necessary.

How does a Electrical business make money?

An electrical business typically makes money by providing electrical services such as installation, repair, and maintenance of electrical systems, wiring, and equipment. The business may also earn revenue from the sale of electrical supplies and components.

Developing a brand is essential in creating an identity for your electrical business that resonates with your target audience. It's about crafting a memorable image and a promise of quality that customers will come to recognize and trust. Here are some key steps to guide you through the branding process:

• Define Your Brand Values: Determine what your business stands for, including reliability, innovation, or sustainability. These values should resonate with your customers and be apparent in every aspect of your business.
• Create a Unique Brand Name and Logo: Your brand name and logo are often the first things a customer will see. Make sure they are distinctive, professional, and reflective of the brand's personality and values.
• Establish Brand Voice and Messaging: The way your business communicates should be consistent across all platforms, from your website to customer service. A clear and consistent brand voice helps build a strong connection with your audience.
• Design a Visual Identity: Choose colors, fonts, and imagery that align with your brand and make it stand out. Consistent visual elements make your brand more recognizable and memorable.
• Build an Online Presence: In today's digital age, having a professional website and active social media accounts are crucial for brand visibility and customer engagement.

How to come up with a name for your Electrical business?

Coming up with the perfect name for your electrical business can be a difficult task. Brainstorming words that relate to electricity and the services that you offer can be a great place to start. Consider using words from different languages, rhymes, or alliterations to make your name more memorable. Finally, be sure to check that the name isn’t already taken or too similar to another business in your area.

Starting an electrical business requires formalizing your business registration to ensure legal compliance and to protect your personal assets. This step is crucial as it establishes your business as a legitimate entity in the eyes of the law and allows you to operate officially. Below are the key points to consider when formalizing your business registration:

• Choose a business structure that suits your needs, such as a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each has its own legal and tax implications.
• Register your business name with the appropriate state authority. If you're using a name other than your own, you may need to file a 'Doing Business As' (DBA) registration.
• Obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) for tax purposes, especially if you plan to hire employees.
• Apply for the necessary permits and licenses specific to electrical contracting in your state or locality, which may include a master electrician's license, electrical contractor license, and business license.
• Consider purchasing insurance policies such as general liability insurance, workers' compensation, and professional liability insurance to protect your business from potential risks.
• Comply with local zoning laws and building codes to ensure your business location is appropriate for an electrical services operation.
• Register for state and local taxes as required to ensure you are set up to pay sales, payroll, and other business taxes.

Resources to help get you started:

Uncover vital resources perfect for electrical entrepreneurs aiming for insights on market trends, operational excellence, and strategic growth:

• Electrical Trends Report: Annual insights into market trends and technology shifts in the electrical industry. No direct link available.
• Electrical Contractor Magazine: Offers news, latest tech reviews, and business management tips. www.ecmag.com
• IE3 Media: Provides a wealth of resources, from best practices to governmental policy impacts on the electrical trade. www.ie3media.com
• Electric Smarts Network: A digital market network providing industry news, webinar trainings, and product information. www.electricsmarts.com
• NECA (National Electrical Contractors Association): Offers resources for electrical contracting operational practices, business development, and education. www.necanet.org

Starting an electrical business requires careful attention to legal requirements. Licenses and permits are essential for operating legally and ensuring the safety of your services. Here is a quick guide to help you acquire the necessary documentation:

• Check with your local city or county government office for specific electrical business licenses. Each locality may have different requirements.
• Obtain an Electrical Contractor's License, which typically requires passing an exam that covers electrical codes, standards, and safety practices.
• Make sure to have a General Business License, which allows you to operate a business in your city or county.
• Apply for specialized permits for any specific services you offer, such as fire alarm or low voltage systems installation.
• Consider professional liability insurance to protect your business against potential claims related to your electrical work.
• Stay informed about renewals to ensure your licenses and permits remain valid and avoid any legal complications.

What licenses and permits are needed to run a electrical business?

Depending on the jurisdiction, a variety of licenses and permits may be required to operate an electrical business. These may include a professional license from a state licensing board; certification from the relevant authority for specific types of electrical work such as residential wiring, commercial wiring, or fire alarm systems; electrical permits from the local building department; and insurance coverage for liability.

Securing your financial foundation is a crucial step when starting an electrical business. A dedicated business bank account will help you manage your finances effectively, and securing the necessary funding will ensure you have the capital needed to cover startup costs and maintain operations. Follow these guidelines:

• Choose the right bank: Research and compare different banks to find one that offers favorable terms for small businesses, such as low fees, easy access to funds, and good customer service.
• Prepare the required documents: You will typically need your business registration details, EIN (Employer Identification Number), and personal identification to open a business bank account.
• Understand your funding needs: Calculate the initial costs of starting your electrical business, including equipment, licensing, insurance, and working capital.
• Explore funding options: Investigate various funding sources such as small business loans, lines of credit, grants, or investors. Consider the pros and cons of each to determine the best fit for your business.
• Build a strong business plan: A detailed business plan is essential when seeking funding as it demonstrates to lenders or investors that you have a clear path to profitability.
• Maintain good credit: Ensure that both your personal and business credit histories are in good standing to increase your chances of securing favorable loan terms.

Setting the right prices for your electrical services is crucial to ensuring the success of your business. It's important to find a balance that reflects the value of your work, covers your costs, and remains competitive in the marketplace. Here are some key points to consider when setting your pricing:

• Costs: Calculate all your costs, including materials, labor, overhead, and any other expenses. Make sure your prices cover these costs and provide a reasonable profit margin.
• Market rates: Research what other electricians in your area are charging for similar services. This will help you set competitive rates and understand what clients are willing to pay.
• Value-based pricing: Consider the value you provide to your clients and set prices that reflect your expertise, certifications, and the complexity of the services offered.
• Pricing models: Decide whether you will charge by the hour, by the project, or a combination of both. Fixed pricing for common services can simplify the decision-making process for potential clients.
• Transparent pricing: Be upfront about your prices to build trust with clients. Consider providing detailed quotes and invoices that break down costs.

What does it cost to start a Electrical business?

Initiating a electrical business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $35500 for launching such an business. Please note, not all of these costs may be necessary to start up your electrical business.

Starting an electrical business requires careful selection of high-quality electrical equipment and supplies. This step is crucial as it ensures that your services meet industry standards and safety regulations. Here's how to go about acquiring the tools and materials needed for your electrical business:

• Research and select reputable suppliers who offer quality products and warranties. Consider both local distributors and online vendors for competitive pricing.
• Make a comprehensive list of essential tools, such as multimeters, wire strippers, pliers, and screwdrivers, as well as safety gear like insulated gloves and goggles.
• Purchase inventory based on common electrical components such as wires, cables, connectors, switches, and circuit breakers, keeping in mind to stock various sizes and types.
• Consider investing in advanced diagnostic tools and equipment if your budget allows, to provide specialized services.
• Look for opportunities to buy in bulk to reduce costs, but ensure you have adequate storage space for your inventory.
• Stay updated with new technologies and tools in the electrical industry to continuously improve your services and offerings.

List of Software, Tools and Supplies Needed to Start a Electrical Business:

• Electrical tools, such as wire strippers, screwdrivers and power drills
• Safety equipment, such as hard hats, safety glasses and work gloves
• Electrical supplies, such as wire, conduit, circuit breakers and light fixtures
• Electrical testing equipment, such as multimeters and voltage testers
• Software, such as electrical CAD drawing programs and accounting software
• Vehicles, such as trucks, vans or trailers
• Marketing materials, such as business cards and brochures

Starting an electrical business involves managing risks that come with the trade. Obtaining the right business insurance not only protects your investment but also provides peace of mind for you and your customers. Here's what you need to consider:

• General Liability Insurance: This is essential for any business, covering accidents or injuries to non-employees that occur as a result of your business activities.
• Professional Liability Insurance: Also known as Errors and Omissions (E&O) insurance, it protects your business against claims of negligence or harm due to professional services provided.
• Workers' Compensation Insurance: If you have employees, this insurance covers medical costs and lost wages for work-related injuries and illnesses.
• Commercial Auto Insurance: If your business uses vehicles, this insurance covers damages from accidents or other vehicle-related incidents.
• Tool and Equipment Insurance: This covers the repair or replacement of stolen, lost, or damaged tools and equipment.
• Bonding: Surety bonds can be required to guarantee the completion of a job and the payment of suppliers and subcontractors.

Consult with an insurance agent specializing in business policies for the electrical industry to ensure you have adequate coverage for your specific needs.

Now that you've laid the groundwork for your electrical business, it's time to attract customers through strategic marketing. Here are some effective ways to promote your services and build a strong client base.

• Develop an Online Presence: Create a professional website and maintain active social media profiles to showcase your work, share customer testimonials, and provide easy contact information.
• Local SEO: Optimize your website for local search terms to ensure that potential customers in your area can find you easily when they need electrical services.
• Networking: Join local business groups, attend trade shows, and partner with related businesses like home builders or real estate agents to gain referrals.
• Advertising: Consider using Google Ads, social media advertising, and traditional methods such as flyers, local newspaper ads, or sponsoring community events.
• Customer Reviews: Encourage satisfied clients to leave positive reviews on platforms like Google My Business and Yelp to build your reputation.
• Offer Promotions: Provide introductory discounts or special offers to new customers to encourage them to choose your services over competitors.

Expanding your electrical business is a pivotal stage that requires strategic planning and careful execution. As you grow your operations, consider various avenues for development that align with your business goals and market demand. Here are some key steps to help you scale your electrical business effectively:

• Diversify Services: Offer a wider range of services such as smart home automation, renewable energy solutions, or specialized commercial services to attract a broader client base.
• Hire Skilled Technicians: As your workload increases, recruit qualified electricians to maintain high-quality service and customer satisfaction.
• Invest in Marketing: Enhance your online presence with a professional website and engage in digital marketing to reach a larger audience.
• Networking: Build relationships with contractors, suppliers, and other tradespeople to find new opportunities and partnerships.
• Training and Development: Continuously train your staff on the latest technologies and safety protocols to stay competitive.
• Expand Geographically: Consider opening new locations or offering services in neighboring areas to capture more market share.
• Improve Operational Efficiency: Adopt new technologies and business management software to streamline operations and reduce costs.

Trending News

How to start a real estate business in the philippines .

• Business Ideas
• Human Resources
• Office Technology
• Starting a Business

Ultimate Business Plan Guide in Creating a Winning Strategy 

Disclosure: Small Business Philippines strives to provide relevant and accurate information in all its articles. However, some information in our articles may differ or might be outdated from what you can see or read directly from the establishments’ or businesses’ websites. Please get in touch with us directly for any discrepancies.

A business plan is a strategic document that outlines your business idea, goals, target audience, competition, marketing strategies, financial projections, and operational plans. It serves as a comprehensive guide that not only helps you organize your thoughts but also convinces potential investors, partners, and stakeholders of your business’s viability.

2. Attracting Investors

3. decision-making, 4. resource allocation, 5. goal tracking, when to create a business plan, step 1: executive summary, step 2: company description, step 3: market analysis, step 4: products and services, step 5: marketing and sales strategies, step 6: organization and management, step 7: financial projections, step 8: funding request, step 9: operational plan, step 10: appendices, 1. research thoroughly, 2. be realistic, 3. know your audience, 4. update regularly, 5. be concise, key takeaways, why is a business plan essential.

A well-crafted business plan offers numerous benefits:

It helps you clearly define your business goals and the strategies to achieve them, providing you with a focused direction.

Investors are more likely to support a business with a solid plan, showcasing your commitment and potential returns.

A business plan helps you make informed decisions by analyzing potential risks and rewards.

Efficiently allocate your resources – both financial and human – to achieve your business objectives.

Measure your progress against the initial goals and make necessary adjustments for success.

The ideal time to create a business plan is before you launch your venture . However, it’s never too late to create or update your plan, especially when you’re looking to expand, secure funding, or navigate significant changes in your business.

Where to Begin: Step-by-Step Guide to Crafting Your Business Plan

Summarize your business idea , goals, target market, competition, and financial projections briefly. This section provides a snapshot of your entire plan.

Describe your company’s mission, vision, values, and unique value proposition that sets you apart in the market.

Research your target market, industry trends, and competition. Understand your customers’ needs, preferences, and behaviors.

Detail your offerings, explaining how they fulfill your customers’ needs. Highlight their features, benefits, and competitive advantages.

Outline how you’ll promote your products/services, attract customers, and convert leads into sales. Discuss pricing, distribution, and promotional tactics.

Introduce your team and their roles, highlighting their expertise and contributions to the business’s success .

Present detailed financial forecasts, including income statements, cash flow projections, and balance sheets. Be realistic and supported by thorough market research.

If you’re seeking funding, clearly state how much you need, how you’ll use the funds, and the potential returns for investors.

Describe your day-to-day operations, production process, and supply chain management. Address any potential operational challenges and how you’ll overcome them.

Include additional information such as market research data, legal documents, patents, licenses, and any other relevant materials.

Tips for Creating an Effective Business Plan

Ensure your plan is backed by solid market research and accurate data.

Set achievable goals and projections. Overly optimistic forecasts can damage your credibility.

Tailor your plan to your target audience, whether it’s investors, lenders, or partners.

Your business environment evolves. Regularly review and update your plan to stay relevant.

While thoroughness is important, avoid unnecessary jargon and keep your plan concise and easy to understand.

Crafting a business plan is an essential step in launching or growing a business in the dynamic Philippines market of 2023. A well-structured plan offers clarity, attracts investors, aids decision-making, guides resource allocation, and helps you track goals. By following our step-by-step guide and incorporating expert tips, you’re setting your business on a path toward success. Remember, a well-prepared business plan is the key to turning your entrepreneurial dreams into reality.

Ready to embark on your business journey? Start creating your comprehensive business plan today to build a successful and sustainable venture in the thriving Philippines market. Your roadmap to success begins with a well-crafted business plan .

Your Definitive Guide to Business Financing in the Philippines

Unlocking business grants in the philippines.

Allan Martinez

Related posts, how to fulfill philippine business registration requirements , guide to barangay business permits in the philippines: everything entrepreneurs and business owners need to know , philippine startup companies: navigating the entrepreneurial landscape , your ultimate guide to philippine business seminars for beginners , how to start a food delivery business in the philippines in 2024 , crafting comprehensive content , leave a reply cancel reply.

You must be logged in to post a comment.

Unlocking the Benefits of Internet Banking in the Philippines 

Unlocking the potential of free email domains , exploring sample collection letters , exploring time card samples , understanding sales funnel templates: a blueprint for effective marketing , creating an inviting and functional space , exploring free job posting sites , exploring types of pos systems , exploring customer service programs , exploring storefront signs , understanding backpay calculator , unveiling the laughter , understanding payroll computation , understanding pos in business , exploring different types of light fixtures , optimizing pricing strategies with a selling price calculator , exploring quickbooks enterprise pricing , enhancing business operations with pos inventory systems , unveiling effective marketing materials .

Username or Email Address

Remember Me

Registration confirmation will be emailed to you.

Business Plan for Investors

• Bank/SBA Business Plan
• Operational/Strategic Planning Services
• L1 Visa Business Plan
• E1 Treaty Trader Visa Business Plan
• E2 Treaty Investor Visa Business Plan
• EB-1 Business Plan
• EB-2 NIW Business Plan
• EB-5 Business Plan
• Innovator Founder Visa Business Plan
• Start-Up Visa Business Plan
• Expansion Worker Visa Business Plan
• Manitoba MPNP Visa Business Plan
• Nova Scotia NSNP Visa Business Plan
• British Columbia BC PNP Visa Business Plan
• Self-Employed Visa Business Plan
• OINP Entrepreneur Stream Business Plan
• LMIA Owner Operator Business Plan
• ICT Work Permit Business Plan
• LMIA Mobility Program – C11 Entrepreneur Business Plan
• USMCA (ex-NAFTA) Business Plan
• Franchise Business Plan
• Landlord business plan
• Nonprofit Start-Up Business Plan
• USDA Business Plan
• Cannabis business plan
• Ecommerce business plan
• Online boutique business plan
• Mobile application business plan
• Daycare business plan
• Restaurant business plan
• Food delivery business plan
• Real estate business plan
• Business Continuity Plan
• Pitch Deck Consulting Services
• Financial Due Diligence Services
• ICO whitepaper
• ICO consulting services
• Confidential Information Memorandum
• Private Placement Memorandum
• Feasibility study
• Fractional CFO
• How it works
• Business Plan Examples

Electrical Contractor Business Plan Sample

DEC.30, 2020

Electrical Contractor business plan for starting your own business

So, you want to become an electrical contractor. Well, this is undoubtedly an exciting venture, but can end up causing huge legal troubles if you couldn’t manage it properly.

An electrical contractor can be a person or company that employs electricians to design, install, and maintain electrical systems. Due to the delicate nature of work, the company is required to comply with specific standards.

To succeed in this challenging yet profitable enterprise, you must write an effective business plan for electrical contractor as the first step. In your business plan, you must include details about how you will train the employees, reach your customers, and obtain your goals within the resource constraints.

If you don’t know how to write an effective business plan, you can take help from here. In this electrical contractors business plan pdf, we have provided all the details of an electrical contractor startup, E-Volts.

Executive Summary

2.1 the business.

E-Volts will be a registered, licensed, certified, and insured electrical contractor company based in Detroit. The business will comprise of highly trained electricians and supervisors to ensure the highest-quality work delivery.

From installation of transmission and distribution lines to the provision of electricity to buildings, E-Volts will be there to shine and help.

2.2 Management of Electrical Contractor

Managing an electrical contractor business requires extensive pre-planning. In some cases, even a smaller mistake can lead to a disastrous situation. Therefore, you should be very careful about all the details.

E-Volts will lease a facility in Detroit to set up their office. Following that, a procurement and HR manager will be hired so that the company could find the best equipment and the best hands to handle the equipment.

To manage the tasks effectively, E-Volts will be creating a database so that employees’ activities and engagements could be recorded. And the availability of specified workers could be ensured for upcoming projects.

2.3 Customers of Electrical Contractor

Before exploring how to start an electrical contractors business, you should identify your customers. Knowing your client base will help you to develop a sales strategy that is best suited to target them. Besides, recognizing customers will also enable you to create a precise electrical contractor startup plan by defining pricing, and services, etc.

E-Volts will provide its services to individuals, businesses as well as local government. In this business plan electrical contractor, we will be discussing the ways E-Volts will adopt to target these customers.

2.4 Business Target

Our target is to become the most renowned electrical contractor business in our vicinity within a year of the launch. Moreover, we aim at generating a net profit margin of $10.5k per month by the end of the two years. Our 3 years’ profit forecast based on our gross profit margin, sales forecast and net profit is given here:

Company Summary

3.1 company owner.

E-Volts will be owned by Mark Koch. Mark is an electrical engineer who has also acquired a degree in MBA after his graduation in engineering. He has a strong grip on power and protection systems. He has also captured much experience in the field as he did electrical systems’ related jobs during the last two years.

3.2 Why the electrical contractor is being started

Marks always wanted to start his own business. As business offers flexibility and scalability, extensive profits and freedom to implement own ideas.

He opted for starting an electrical contractor business since there couldn’t be a better way to invest his interest and knowledge of electrical systems.

3.3 How the electrical contractor will be started

Step1: Creating A Business Plan

Before starting this business, you must create a detailed electrical contractor business plan template.

If you are new to creating a professional business plan, you can take help from this electrical contractor business plan example.

Step2: Acquiring Required Licenses & Permits

Step3: Leasing Property, Equipment & Hiring Managers

E-Volts will be started in a leased facility. After which the company will procure the equipment, machinery, furniture, and other items.

Step4: Establishing Company’s Database & Website

A software developer/ IT expert will be employed to create a management database and website for the company. The database will help the company in keeping a record of completed and pending activities. Moreover, the platform will also enable customers to book the services remotely and give their reviews and feedbacks.

Step5: Hiring & Training Staff

At the same time, the company will establish its workforce by hiring and training technicians and electricians. In this sample electrical contractors business plan we will provide the list of employees that will be hired by E-Volts along with their job responsibilities and estimated salaries.

Step6: Marketing & Advertisement

To reach its target community E-Volts will start advertising about its services and competitive aspects before a month of the launch. The detailed marketing and sales strategy plan of the company will be given in the upcoming sections.

Our startup expenses and available assets are summarized in the graph given here.

Deciding the services is the most important phase of a business. In this sample business plan for electrical contractor, you can look through the services provided by E-Volts. To have a greater idea of which services you can provide as an electrical contractor, you should read more electrical contractor business plan examples.

• Interior & Exterior Lighting: This will be our primary service. We will design and install lighting in homes, school buildings, plazas, restaurants, public spaces, and government buildings.

Areas Of Expertise:

• Home Décor Lighting
• Flush Mount and Semi-Flush Mount Ceiling Lighting
• Outdoor Landscape Lighting
• General Ambient Lighting
• Street Lighting
• Smart Lighting System
• Electronic Appliances Installation: Our workers specialize in installing air-conditioners, fans, electric chargers, motors, generators, transformers, solar panels, intercom, doorbells, circuit breakers, network wiring, and smart home wiring.
• House & Commercial Wiring Services: We will do wiring in homes and small buildings’ as well as in commercial properties.
• Installation of Underground/ Overhead Transmission Lines: Our workers are also skilled in the installation and removal of distribution & transmission lines whether they are overhead or underground.
• Repair and Upgradation: We have experts who can repair and upgrade electrical systems. You can have us at your doorstep whether you want just a fuse replacement or a complete electrical service upgrade. We also repair electronic appliances.
• Safety Systems: E-Volts specialize in protecting your power systems. We can tackle power surges. And we can also install safety systems in your homes like childproof electrical outlets, smoke detectors, and fire detectors, etc.

Marketing Analysis of Electrical Contractor

Marketing analysis is one of the most important parts of a business plan template electrical contractor. In this part, you have to identify who will be your customers so that you could meet their expectations and concerns within the available budget and resources.

The biggest problem new startups face is attracting potential customers. With a problem worth solving electrical contractor business plan you can understand your target customers’ psychology to determine their preferences and needs.

An effective electrical contractor business plan also includes a detailed analysis of market dynamics. By knowing the market ups and downs, and the strengths and weaknesses of your competitors, you can plan ways to outperform your competitors.

5.1 Market Trends

These days people are moving towards newer technologies. Some want to install a newer type of power outlet while some want to have a smart lighting system. Simply put, electricians are in demand like always. The only thing that can make you unsuccessful in this venture can be a really poor service delivery or extremely bad customer care.

According to IBIS World, nearly 205,048 electrical contractors are operating in the U.S. Their collective annual revenue sums up to $170bn as reported by First Research.

5.2 Marketing Segmentation

Marketing segmentation means dividing the population of your target customers into distinct groups. So that you can determine the dominant traits of each group of your buyers.

This activity can help you get an insight into how you should plan your services, pricing, and customer care.

In this blog on how to write a business plan for an electrical contractor, we have listed the marketing segmentation done by E-Volts.

The detailed marketing segmentation of the target audience of E-Volts is as follows:

5.2.1 Residents: Our first target group will be the locals living in Detroit. We expect them to avail of our lighting services as well as repair & upgradation services. The residents will also be needing us frequently for the installation or replacement of electronic appliances and safety systems.

5.2.2 Businesses: Our second target group comprises of small and large businesses. They will consume all of our services like electrical repairing, AC installation, commercial wiring, ceiling lighting, etc.

In this category, restaurants, shopping malls, and cinemas, etc. will require our landscaping lighting, interior & exterior lighting, and ambient lighting the most. To turn them into potential buyers, we will be offering them several discounts.

5.2.3 Local Government & Construction Companies: Our third target group will comprise municipalities and home builders. They are expected to avail of our electronic appliances installation services, lighting, repair & upgrade services, as well as commercial wiring services.

This category will also be acquiring our wiring services.

5.3 Business Target

Our business targets set to be met in a defined time are given below.

• To obtain an average rating of 4.65 by the end of the first year
• To balance startup expenses with earned profits by the end of the second year
• To achieve the net profit margin of $10.5k per month by the end of the second year
• To extend our work areas by the end of the first two years

5.4 Product Pricing

Our prices will almost be in the same range as that of our competitors. However, we will be charging a little more for the installation, removal, and repair of transmission and distribution lines.

Marketing Strategy

In this electrical contractor business proposal, we are listing the ways adopted by E-Volts to reach their target customers. Moreover, we are also explaining the competitive advantages that E-Volts decided to come up with to go ahead of all competitors.

6.1 Competitive Analysis

• All of our professionals are skilled, licensed, and certified.
• We follow the National Electrical Code to ensure safe and secure working.
• We are offering an online booking facility so that our customers can call us to their location without visiting our office.
• In case of repairing services, our workers will reach the desired area in less than 45 minutes.
• Client satisfaction is our topmost priority. You can contact us anytime between 6 a.m. to 12 p.m. Moreover, you can tell us any problems you had with our workers through the feedback portal. You are also welcomed to give your valuable suggestions to improve our services.

6.2 Sales Strategy

The selling strategy of E-Volts as defined in its business plan electrical contractor is given here.

• We’ll create a great SEO optimized website for our business
• We’ll advertise our services through Google Local Services ads, local magazines, and newspapers
• We’ll ensure a strong presence on social media platforms
• We’ll offer a 50% discount on our lighting and repair services for the first month of the launch

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

excellent work

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

Personnel plan

To ensure the smooth running of the business and efficient tackling of any disruptions or risks, you have to train your workers properly. E-Volts hired a business continuity coordinator to develop business continuity plan electrical contractor so that company can stay competitive.

The list of staff E-Volts will hire is given here in this business plan sample electrical contractor, along with their job responsibilities and average salaries.

7.1 Company Staff

Mark will supervise overall business operations himself, however, he will hire the following people.

• 1 Co-Manager & HR Manager to help manage the business
• 3 Supervisors to monitor different projects
• 1 Business Continuity Coordinator to manage threats and risks
• 2 Electrical Engineers to design electrical systems
• 6 Electricians to work for the company
• 1 Accountant to maintain financial records
• 1 Sales Executive to carry out the company’s sales strategy plan
• 2 Drivers to provide transport
• 1 IT Expert to manage company’s sites and database
• 1 Customer Care Representative

7.2 Average Salary of Employees

Financial plan.

The last step before initiating a business is creating a financial plan. A profit and loss business plan electrical contractor template analyze your investment group business plan , payrolls, taxes, and other expenses to draft a way of earning profits. In this electrical contractor business plan pdf we are providing detailed brake-even analysis, profit and loss projections, business balance sheet, and business ratios of E-Volts.

8.1 Important Assumptions

8.2 brake-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

Download Electrical Contractor Business Plan Sample in pdf

Professional OGS capital writers specialized also in themes such as electronics semiconductor business plan , solid manufacturing business plan , mining company business plan , steel sheet manufacturing business plan , biodiesel company business plan , diamond cutting and polishing business plan , etc.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

Add comment

E-mail is already registered on the site. Please use the Login form or enter another .

You entered an incorrect username or password

Comments (0)

mentioned in the press:

Search the site:

OGScapital website is not supported for your current browser. Please use:

NorthOne is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A., Member FDIC.

How to Start an Electrical Business: Full Guide

Table of Contents

Starting an electrical business can be a rewarding venture, both professionally and financially. However, like any business, it requires careful planning and execution. In this comprehensive guide, we will walk you through the key steps and considerations for starting your own electrical business.

1. Create Your Business Plan

Define your electrical services.

Start by clearly defining the specific services your electrical business will offer. Will you focus on residential or commercial electrical work? Will you specialize in specific areas such as lighting installations or energy-efficient solutions? Understanding your unique value proposition will help you target the right audience.

When it comes to residential electrical work, you may offer services such as wiring installation, electrical repairs, and appliance installations. You could also specialize in home automation systems, providing homeowners with the convenience of controlling their electrical devices remotely. For commercial electrical work, you might focus on electrical system maintenance, power distribution, and electrical troubleshooting for businesses of all sizes.

In addition to these services, you could consider offering specialized solutions such as lighting installations. By staying up-to-date with the latest lighting technologies and trends, you can provide your customers with energy-efficient lighting options that not only reduce their energy consumption but also enhance the aesthetic appeal of their spaces.

Identify Your Target Market

Identify and analyze your target market to tailor your marketing efforts effectively. Consider factors such as demographics, location, income level, and specific needs of potential customers. This will help you develop targeted marketing campaigns and reach the right audience for your services.

For residential electrical services, your target market may include homeowners, property managers, and real estate developers. By understanding their specific needs and preferences, you can customize your marketing messages to highlight the importance of reliable electrical systems, energy efficiency, and safety in their homes.

When it comes to commercial electrical services, your target market may consist of small businesses, corporations, and industrial facilities. Understanding their unique requirements, such as the need for uninterrupted power supply and compliance with industry regulations, will enable you to position your services as essential for their operations.

Set Your Pricing Strategy

Determining your pricing strategy is a crucial aspect of running a successful electrical business. Research industry standards and local market rates to ensure your pricing is competitive while still allowing for profitability. Consider factors such as labor cost, material expenses, and overhead costs when setting your prices.

When it comes to labor costs, you need to factor in the expertise and experience of your electricians. Highly skilled electricians may demand higher wages, but they can also deliver superior quality workmanship, which can differentiate your business from competitors. Additionally, consider the cost of materials required for each project and any overhead costs, such as insurance, licensing fees, and vehicle maintenance.

It’s important to strike a balance between competitive pricing and profitability. While undercutting your competitors may attract customers initially, it may not be sustainable in the long run. By offering fair and transparent pricing, you can build trust with your customers and establish a reputation for delivering value for money.

2. Legal Considerations for Starting an Electrical Business

Starting an electrical business involves various legal considerations that are crucial for success and compliance with regulations. By understanding and addressing these considerations, you can ensure the smooth operation of your business and build a solid foundation for growth.

Register Your Business

One of the first steps in starting an electrical business is registering your business with the appropriate authorities. This process may vary depending on your jurisdiction, so it is important to thoroughly research the registration requirements in your area. This typically involves filling out necessary forms, providing relevant documentation, and paying any applicable fees.

During the registration process, you will also need to ensure compliance with all necessary legal requirements. This may include obtaining the required permits and licenses specific to the electrical industry. These permits and licenses not only demonstrate your commitment to operating within the law but also provide assurance to potential clients that your business meets the necessary standards.

Understand Licensing Requirements

As an electrical business, it is crucial to understand and comply with the licensing requirements in your area. Electricians are typically required to obtain specific licenses and certifications to legally perform electrical work. These requirements are put in place to ensure the safety and competency of electrical professionals.

Familiarize yourself with the licensing requirements in your jurisdiction and ensure that your business and employees meet these requirements. This may involve completing specific training programs, passing exams, and obtaining the necessary certifications. By meeting these requirements, you not only comply with the law but also build trust and credibility with clients who value professionalism and expertise.

Insurance and Liability Considerations

Protecting your business and clients is essential in the electrical industry, where potential risks and liabilities exist. Obtaining appropriate insurance coverage is crucial to safeguard against unforeseen circumstances and potential legal issues.

General liability insurance is a fundamental coverage option that protects your business from third-party claims for property damage or bodily injury. This coverage can provide financial protection in the event of accidents or mistakes that may occur during your operations.

In addition to general liability insurance, workers’ compensation insurance is also important for electrical businesses. This coverage protects your employees in the event of work-related injuries or illnesses. It provides medical benefits, wage replacement, and other necessary support to help employees recover and return to work.

Consulting with insurance professionals who specialize in the electrical industry can help you determine the best coverage options for your business. They can assess your specific needs and recommend additional coverage, such as professional liability insurance, which protects against errors or omissions in your work.

By addressing these legal considerations, you can establish a strong legal foundation for your electrical business. This not only ensures compliance with regulations but also builds trust and confidence among clients, setting you up for long-term success in the industry.

3. Acquire Essential Tools and Equipment

When it comes to delivering top-notch electrical services, investing in high-quality tools is essential. Basic tools for electricians include wire strippers, pliers, voltage testers, multimeters, and screwdrivers. These tools are the bread and butter of an electrician’s toolkit, allowing them to perform various tasks with precision and efficiency.

Researching reputable brands is crucial when choosing your tools. Look for brands that have a long-standing reputation for producing reliable and durable equipment. It’s also important to consider the quality standards of your business. Investing in tools that align with your business’s quality standards will ensure that you can consistently deliver excellent results to your clients.

Advanced Equipment for Specialized Services

While basic tools are essential for most electrical work, if you plan to offer specialized services, you may need to invest in advanced equipment. Specialized electrical services, such as automation or renewable energy solutions, often require specific tools to get the job done effectively.

For example, if you’re venturing into the field of automation, you might need to invest in thermal imaging cameras. These cameras can detect temperature variations, allowing you to identify potential issues in electrical systems and prevent malfunctions. Similarly, if you’re focusing on renewable energy solutions, electrical testing equipment becomes crucial to ensure the proper functioning of solar panels or wind turbines.

Moreover, specialized software can also be a valuable investment for electricians offering advanced services. Software programs designed for electrical professionals can streamline tasks such as circuit design, load calculations, and energy efficiency analysis.

Investing in Safety Gear

While tools and equipment are essential, they should never come at the expense of safety. Electrical work can be hazardous, so investing in proper safety gear is crucial to protect yourself and your team.

Personal protective equipment (PPE) is a must-have for every electrician. Safety glasses, for instance, protect your eyes from potential debris or sparks. Gloves are essential for safeguarding your hands against electrical shocks and burns. Additionally, flame-resistant clothing is crucial to minimize the risk of injuries in case of accidental fires.

However, having the right safety gear is just the first step. It’s equally important to ensure that your team is well-trained in proper safety procedures. Conduct regular safety training sessions to educate your employees about potential hazards and the correct protocols to follow. By prioritizing safety, you can minimize the risk of accidents and injuries, creating a secure working environment for everyone involved.

4. Hire and Train Your Team

Finding qualified electricians.

As your business grows, you may need to hire skilled electricians to handle increased demand. Look for candidates with relevant certifications and experience in the electrical industry. A qualified electrician should have a strong understanding of electrical systems, wiring, and safety protocols. Additionally, they should possess problem-solving skills and the ability to work independently or as part of a team.

When searching for potential candidates, consider conducting thorough interviews to assess their technical knowledge and experience. Ask them about their previous projects, challenges they have faced, and how they resolved them. This will give you insight into their problem-solving abilities and their ability to handle complex electrical issues.

In addition to interviews, it is crucial to verify the credentials of potential hires. Check their certifications and licenses to ensure they are valid and up to date. You may also want to contact their references to gain a better understanding of their work ethic and reliability.

Training for Quality and Safety

Investing in ongoing training and professional development is essential to enhance the skills and knowledge of your team. As technology and industry standards evolve, it is crucial for your electricians to stay up to date with the latest trends and advancements.

Consider providing your team with opportunities to attend workshops, seminars, and conferences related to the electrical industry. These events can offer valuable insights into new techniques, tools, and safety practices. By continuously improving their skills, your electricians will be better equipped to handle complex projects and provide top-notch service to your customers.

Furthermore, prioritize safety training within your team. Electrical work can be hazardous, so it is crucial to ensure that your electricians are aware of and adhere to proper safety protocols. Offer regular safety training sessions, provide them with protective gear, and encourage a safety-first mindset.

Building a Positive Team Culture

Fostering a positive work environment is essential for the success of your team. A positive team culture promotes collaboration, creativity, and mutual respect among team members.

Encourage open communication within your team. Create an environment where electricians feel comfortable sharing their ideas, concerns, and suggestions. This open dialogue can lead to innovative solutions and a stronger sense of camaraderie.

Recognize and reward achievements to motivate your team. When an electrician goes above and beyond, acknowledge their efforts and express your appreciation. This recognition can boost morale and encourage others to strive for excellence.

Provide opportunities for career growth within your business. Offer training programs, mentorship opportunities, and the chance to take on more significant responsibilities. By investing in your team’s professional development, you show that you value their growth and are committed to their long-term success.

Building a positive team culture not only increases employee satisfaction but also contributes to customer satisfaction. When your electricians work well together, communicate effectively, and feel valued, they are more likely to deliver exceptional service and exceed customer expectations.

5. Market Your Electrical Business

Building a strong online presence.

In today’s digital age, having a strong online presence is essential for any business. Create a professional website that showcases your services, team, and past projects. Utilize search engine optimization (SEO) techniques to improve your website’s visibility in search results. Leverage social media platforms to engage with potential clients and share valuable content.

Traditional Marketing Strategies

Don’t overlook traditional marketing strategies that can still be effective in reaching your target audience. Consider distributing flyers or brochures in the local area, advertising in relevant industry publications, or sponsoring community events. A well-rounded marketing approach can help you stay visible and attract new clients.

Networking and Building Relationships in the Industry

Networking is a powerful tool for growing your electrical business. Attend industry conferences, trade shows, and local business events to connect with other professionals in the field. Building relationships with contractors, architects, and property managers can lead to valuable referrals and collaborative opportunities.

Read our full guide on marketing your electrician business

6. Set Up Financial Management for Your Electrical Business

Setting up your accounting system.

Effective financial management is crucial for the long-term success of your electrical business. Implement a reliable accounting system to track income and expenses, manage invoices, and monitor cash flow. Consider using accounting software or seek professional help to ensure accurate record keeping.

Choose the Right Bank Account For Your Business

Choosing a business bank account is essential for electrician businesses to get started. With NorthOne, electricians can easily track their expenses, manage invoices, and receive real-time notifications for transactions, ensuring financial organization and efficiency. Additionally, NorthOne’s seamless integration with accounting software simplifies bookkeeping tasks, making it an ideal banking solution for electricians focused on growing their business. Apply for an account in minutes:

Understanding Taxes for Your Business

Be aware of the various tax obligations for your business, including income tax, sales tax, and payroll tax. Consult with a tax professional to understand the specific tax requirements in your area and ensure you are in compliance. Proper tax planning can help minimize liabilities and maximize profits.

Planning for Growth and Expansion

As your electrical business flourishes, it’s important to plan for future growth and expansion. Set clear goals and objectives for your business and develop a strategic plan to achieve them. Continuously evaluate market trends, customer needs, and industry developments to adapt your business strategy and seize new opportunities.

Starting an electrical business requires careful planning, knowledge of the industry, and sound business practices. By following this full guide and consistently delivering high-quality services, you can build a successful electrical business that thrives in today’s competitive market.

Justin Adler

Related posts, 12 best electrical contractor software apps in 2023, 26 must-have electrician tools for your kit in 2024, 18 best electrician apps for contractors in 2023, electrician seo: complete guide for 2024, 12 best electrical slogans to use in 2024, how to pick the best electrical insurance.

Username or Email Address

Remember Me

Registration is closed.

• Open an Account

Electrical Supply Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Construction & Engineering

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

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

As an aspiring entrepreneur who wants to delve into a business with huge returns on investment, one of your options is to venture into the construction industry. There are several money-spinning business opportunities in the construction industry and one of them is to start an electrical supply business.

Just like other investment vehicles, there are potential down sides that you need to look out for if you want to be successful in this business. One of the major risks in electrical supply is a sudden downturn in the economy.

Part of what you need to do to make headway in this line of business is to ensure that your store is properly positioned and you a have good business relationship with construction contractors, constructions companies and key players in the real estate industry.

If you are truly convinced that starting an electrical supply business is the right business for you, then you need to write your own business plan . The essence of writing a business plan before starting any business is for you to have a roadmap of how you want to setup, manage and expand your business.

Below is a sample electrical supply business plan template that will help you successfully write yours with little or no stress.

A Sample Electrical Supply Business Plan Template

1. industry overview.

Electrical supply business is part of the Electrical Equipment Wholesaling industry and this industry consists of businesses that are into the sale and supply of wiring, lighting fixtures and light bulbs, relay and industrial controls, switchgear and switchboard apparatus, motors and generators, power and distribution transformers and other electrical equipment.

On the average, an electrical supply company distributes electrical construction materials, such as wiring supplies, electrical light fixtures, light bulbs, security systems, electrical power equipment, switchboards, circuit breakers and fuses to construction companies. Hence, demand from building, developing and general contracting largely determines industry revenue growth.

In addition, demand for many of the industry’s products depends on industrial production and electrical power consumption. As manufacturing activity in the economy increases, they purchase industry goods to both outfit their factories and to act as intermediary components.

If you are a closer watcher of the Electrical Equipment Wholesaling industry, you will agree that over the past five years, the Electrical Equipment Wholesaling industry has struggled to rebuild itself, even as the overall economy strengthens.

Industry goods are purchased by professional contractors and consumers engage in remodeling and construction projects.

Rising consumer confidence and household income have helped ignite remodeling activity forestalled during the recession, providing additional demand for electrical equipment used in home improvement projects. Even so, rising competition from large home improvement stores has stifled revenue growth for electrical supply stores.

The Electrical Equipment Wholesaling industry is indeed a large industry and pretty much active in most countries of the world. Statistics has it that in the united states of America alone, there are about 17,709 registered and licensed electrical supply stores scattered all across the United States responsible for employing about 226,258 people and the industry rakes in a whopping sum of $179 billion annually.

The industry is projected to grow at 2.2 percent annual growth within 2013 and 2018. It is important to state that The Electrical Equipment Wholesaling industry has no companies with major market shares.

A recent report published by IBISWORLD shows that over the past five years, the Electrical Equipment Wholesaling industry has grown by 2.2 percent to reach revenue of $179bn in 2018. In the same timeframe, the number of businesses has grown by 0.7 percent and the number of employees has grown by 3.6 percent.

The Electrical Equipment Wholesaling industry is highly regulated in the United States of America and anyone who aspires to start an electrical supply business must apply and obtain a license before they can legally operate in the industry.

No doubt, the Electrical Equipment Wholesaling industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business.

2. Executive Summary

Mac Bruce™ Electrical Supply Store, Inc. is a registered electrical equipment supply store business that will be located in one of the busiest streets in Albuquerque – New Mexico. We have been able to lease a facility that is big enough (a 5 thousand square foot facility) to fit into the kind of standard electrical equipment supply store that we intend launching and the facility is located in the heart of the city.

Mac Bruce™ Electrical Supply Store, Inc. will supply electrical construction materials such as wiring supplies, electrical light fixtures, light bulbs, security systems, electrical power equipment, switchboards, circuit breakers and fuses et al to construction companies.

We are aware that there are several electrical equipment supply outlets all around New Mexico, 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 in the industry. We have an online service option for our customers, and our outlet has various payment options.

Mac Bruce™ Electrical Supply Store, Inc. will ensure that all our customers are given first class treatment whenever they visit our electrical equipment store. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they grow to. We will ensure that we get our customers involved in the selection of brands that will be on our store.

Mac Bruce™ Electrical Supply 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.

Mac Bruce™ Electrical Supply Store, Inc. is owned by Mac Bruce and his immediate family members. Mac Bruce has a B.Sc. in Business Administration, with over 10 years’ experience in the electrical equipment wholesaling industry, working for some of the leading brands in the United States.

Although the business is launching out with just one outlet in Albuquerque – New Mexico, but there is a plan to open other outlets all around major cities in the United States of America.

3. Our Products and Services

Mac Bruce™ Electrical Supply Store, Inc. is in the electrical equipment wholesaling 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 electrical equipment from top manufacturing brands in the United States.

Our product offerings are listed below;

• Lighting fixtures and light bulbs
• Relay and industrial controls
• Switchgear and switchboard apparatus
• Motors and generators
• Power and distribution transformers
• Other electrical equipment.

4. Our Mission and Vision Statement

• Our vision is to become the leading brand in the electrical equipment wholesaling industry in New Mexico and to establish a one stop electrical equipment supply store in Albuquerque.
• Our mission is to establish a world – class electrical equipment supply store that will make available a wide range of electrical equipment from top manufacturing brands at affordable prices in Albuquerque – New Mexico.

Our Business Structure

Mac Bruce™ Electrical Supply Store, Inc. is looking towards building a standard business that can be listed among the top – flight electrical supply stores in Albuquerque – New Mexico. For that singular reason, we will make sure that we establish the business on a solid business structure.

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 stakeholders. 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 Amin Manager

Merchandize Manager

Sales and Marketing Manager

• Accountants / Cashiers
• Customer Services Executive

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

• 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 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 electrical equipment 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
• Controls electrical equipment distribution and supply inventory
• Supervises the workforce in the electrical equipment sales floor.
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure consistent quality of electrical equipment are purchased and retailed/supplied in good price that will ensure we make good profit
• Responsible for the purchase of electrical equipment for the organizations
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• 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 purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts
• Responsible for 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

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/electrical equipment
• 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

Client Service Executive

• 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
• 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

6. SWOT Analysis

Any profitable business 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 in establishing a business. We are quite aware that there are several electrical equipment supply stores all over Albuquerque 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.

Mac Bruce™ Electrical Supply Store, Inc. employed the services of an expert HR and Business Analyst with bias in supply chain business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Mac Bruce™ Electrical Supply Store, Inc.;

Our business is located in a city with heavy construction and real estate activities and also, we can boast of having good business relationship with top manufacturers in the electrical equipment manufacturing industry.

A major weakness that may count against us is the fact that we don’t have our own electrical equipment production plant, we are a new electrical equipment supply outlet and we don’t have the financial capacity to compete with multi – billion dollars electrical equipment supply stores when it comes to supplying at rock bottom prices.

• Opportunities:

The fact that we are going to be operating our electrical equipment supply store in one of the busiest construction locations in Albuquerque – New Mexico provides us with unlimited opportunities to sell our electrical equipment to a large number of construction contractors.

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 electrical equipment from us; we are well positioned to take on the opportunities that will come our way.

A major threat that we are going to face as an electrical supply business operating in the United States of America is uncertainty in government policies as it relates to price control and influx of electrical equipment manufactured outside the United States of America.

When the prices charged by manufacturers to wholesalers’ declines, wholesalers typically have to reduce their selling prices to retailers. This results in subdued revenue growth for wholesalers, even if demand expands.

7. MARKET ANALYSIS

• Market Trends

If you are conversant with the electrical equipment supply Industry, you will quite agree that the changes in disposable income, consumer sentiment, ever changing trends and of course the rates 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 electrical equipment supply stores keep prices low to attract more sales amid growing competition.

A close watch on industry activities reveals that the retail market was hit hard by the recent economic downturn. The construction of new homes is a primary market for industry products, so as housing starts, increase demand tends to follow.

Moreover, as home builders have increased their use of electronics, demand for complementary electrical equipment has risen. In 2018, housing is expected to increase, presenting a potential opportunity for the industry. As part of marketing strategies, electrical equipment supply stores partner with key players in the construction and real estate industry. They are in the best position to offer you electrical equipment supply contract.

8. Our Target Market

We have positioned our electrical equipment supply store to service the construction industry in Albuquerque – New Mexico. 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 electrical equipment to the following;

• Construction Companies
• Construction Contractors
• Home Remodeling Companies
• Small Electrical equipment Retail Stores

Our competitive advantage

A close study of the 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 electrical equipment supply stores.

Our electrical equipment supply store is located in a corner piece property in the largest electrical equipment market in Albuquerque – New Mexico. We have enough parking space that can accommodate over 10 cars/trucks per time.

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

One of our business goals is to make Mac Bruce™ Electrical Supply Store, Inc. a one stop electrical equipment shop for customers. 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 achieve all our aims 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

We are in the electrical equipment wholesaling industry to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives. Mac Bruce™ Electrical Supply Store, Inc. will generate income by;

10. Sales Forecast

One thing is certain when it comes to electrical equipment supply stores, if your store is stocked with various types of electrical equipment and centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Albuquerque – New Mexico 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 electrical equipment wholesaling 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 Mac Bruce™ Electrical Supply Store, Inc., it is based on the location of our business and other factors as it relates to electrical equipment supply stores startups in the United States;

• First Fiscal Year: $450,000
• Second Fiscal Year: $950,000
• Third Fiscal Year: $1. 9 million

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 electrical equipment and customer care 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.

• Marketing Strategy and Sales Strategy

Before choosing a location for Mac Bruce™ Electrical Supply Store, Inc., we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market and become the preferred choice for key players in the construction and real estate industry.

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 electrical equipment supply 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 Albuquerque – New Mexico.

In summary, Mac Bruce™ Electrical Supply Store, Inc. will adopt the following sales and marketing approach to win customers over;

• Introduce our electrical equipment supply store by sending introductory letters alongside our brochure to construction companies, construction contractors, home remodeling companies and other key stake holders in Albuquerque – New Mexico
• Ensure that we have a wide range of electrical equipment from different manufacturing brand at all times.
• Make use of attractive hand bills to create awareness and also to give direction to our electrical equipment supply store
• Position our signage/flexi banners at strategic places around Albuquerque – New Mexico
• 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 electrical equipment supply store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our electrical equipment supply store.

Mac Bruce™ Electrical Supply Store, Inc. has a long – term plan of opening outlets in various locations all around New Mexico and key cities in the United States which is why we will deliberately build our brand to be accepted in Albuquerque before venturing out.

Here are the platforms we intend leveraging on to promote and advertise Mac Bruce™ Electrical Supply Store, Inc.;

• Place adverts on community – based newspapers, radio 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 Albuquerque – New Mexico
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Advertise our electrical equipment supply 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 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 electrical equipment supply stores, it is normal for consumers to go to places where they can get electrical equipment at cheaper price which is why big players in the industry will attract loads of clients.

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

• Payment Options

The payment policy adopted by Mac Bruce™ Electrical Supply 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 Mac Bruce™ Electrical Supply Store, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• 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 supply of our electrical equipment without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for products purchased.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget on achieving our aim of establishing a standard and one stop electrical equipment supply business in Albuquerque – New Mexico and here are the key areas where we will spend our startup capital;

• The total fee for registering the Business in Albuquerque – New Mexico – $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 Mac Bruce™ Electrical Supply 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 electrical construction materials, such as wiring supplies, electrical light fixtures, light bulbs, security systems, electrical power equipment, switchboards, circuit breakers and fuses) – $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 $750,000 to successfully set up our electrical equipment supply store in Albuquerque – New Mexico.

Generating Funds/Startup Capital for Mac Bruce™ Electrical Supply Company, Inc.

Mac Bruce™ Electrical Supply Company, Inc. is a private business that is solely owned and financed by Mac Bruce and his immediate family members. 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 $250,000 (Personal savings $200,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $500,000 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

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

One of our major goals of starting Mac Bruce™ Electrical Supply Company, Inc. is to build a business that will survive off its own cash flow without 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 retail our wide range of quality electrical equipment 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.

Mac Bruce™ Electrical Supply Company, 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.

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 six 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 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 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 electrical construction materials: 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 electrical equipment and construction contractors: In Progress

Related Posts:

• Building Materials Supply Business Plan [Sample Template]
• Concrete Contracting Business Plan [Sample Template]
• Welding and Fabrication Business Plan [Sample Template]
• Plant and Tool Hire Business Plan [Sample Template]
• How to Successfully Bid on Government Contracts

• Energy Management
• Energy Monitoring
• Energy Storage
• Fossil Energy
• Hydro Energy
• Hydrogen Energy
• Incineration
• Power Distribution
• Renewable Energy
• Solar Energy
• Waste-to-Energy
• Wind Energy
• Algae Biofuels
• Alternative Fuels
• Anaerobic Biogas
• Anaerobic Digestion
• Anaerobic Digestion Pretreatment
• Batch Biogas
• …and more
• Applications
• Air Source Heat Pumps
• Alternative Energy
• Ambient Energy
• Ash Management
• Backup Power
• Base Load Power
• Ash Analysis
• Battery Monitoring
• Biodiesel Analysis
• Bioenergy Testing
• Biofuel Analysis
• Biogas Monitoring
• Above Ground Storage Tanks
• Advanced Energy Storage
• Battery Charging
• Battery Energy Storage
• Battery Fire Hazard
• Battery Impedance Analysis
• Advanced Fossil Energy
• Aviation Fuel
• Boiler Cleaning
• Boiler Technology
• Closed Loop Geothermal
• Commercial Geothermal
• Deep Geothermal
• Domestic Geothermal
• Geothermal Borehole
• Archimedean Screw Turbine
• Conduit Hydropower
• Distributed Hydropower
• Francis Hydro Turbines
• High-head Hydropower
• Hydro Generators
• Ammonia Cracking
• Blue Hydrogen Generation
• Electrolytic Hydrogen Generation
• Electrolyzer
• Air Curtain Incineration
• Batch Incineration
• Biomass Burners
• Boiler Mounted Incinerators
• Catalytic Incineration
• Chamber Incinerators
• AC Distribution
• AC Wall Chargers
• Cable Deployment
• Cable Fault Location
• Cable infrastructure
• Advanced Renewable Energy
• Clean Power
• Cooling Towers
• Distributed Renewable Energy
• Domestic Renewable Energy
• Fuel Cell Components
• Backsheet Solar
• Bifacial Solar
• Building Integrated Photovoltaics (BIPV)
• Building Integrated Solar
• CIGS Photovoltaic
• CIS Photovoltaic
• Automatic Pellet Boilers
• Farm Waste-to Energy
• Food Waste-to-Energy
• Land Energy
• Landfill Waste-to-Energy
• Municipal Waste-to-Energy (WtE)
• Agriculture Windmill
• Airborne Wind Energy
• Bladeless Wind
• Distributed Wind
• Domestic Wind Power
• Horizontal Axis Wind Turbine (HAWT)

• … and more
• Energy XPRT Search
• List your business
• Email marketing

• Eaton Corporation
• Eaton Opens New Electrical Facility in ...

Eaton Opens New Electrical Facility in the Philippines to Serve Regional, Global Customers and Expand Manufacturing Footprint in Asia Pacific

Source: Eaton Corporation

SHANGHAI -- Power management company Eaton today announced the opening of a new manufacturing facility in the Philippines for its electrical business. The new facility will further expand Eaton’s operations in the Asia Pacific market by serving regional and global customers in the IT and small and medium data center markets.

Today’s opening ceremony was attended by representatives from government, local organizations and Eaton leadership. Alexander M. Cutler, Eaton chairman and chief executive officer, presided over the opening of the new plant.

“Eaton’s global growth strategy is focused on continued investment in emerging, high growth markets and regions,” Cutler said. “Today’s event underscores our long-term commitment to the Asia Pacific region, which has been a major growth market for Eaton and continues to be of great strategic importance.”

The new 29,000-square-meter facility is located in Tanauan City, Batangas and will manufacture electrical power management products such as uninterruptable power supply (UPS) products for global markets. This facility will create a significant number of new jobs in the local economy with a projection of up to 2,000 employees by 2017.

“With the increased manufacturing capabilities in the Philippines, we will be able to continue Eaton’s expansion into emerging markets with cost-competitive products,” said Ivo Jurek, president of Eaton’s electrical business in Asia Pacific. “Our investment in the Philippines is a strategic pillar that demonstrates our commitment to building our electrical business in ASEAN (The Association of South East Asian Nations) and the East Asia region. We are investing heavily in expanding our electrical business in the market to meet our growth goals.”

The Philippines is a key emerging growth market for Eaton in Southeast Asia. Eaton launched its first Philippines manufacturing facility in 2012 to produce electronics products for global markets. With the opening of the new facility, Eaton now has two major manufacturing facilities and more than 1,200 employees in the Philippines.

Eaton’s electrical business is a global leader with expertise in power distribution and circuit protection; backup power protection; control and automation; lighting and security; structural solutions and wiring devices; solutions for harsh and hazardous environments; and engineering services. Eaton is positioned through its global solutions to answer today’s most critical electrical power management challenges.

Eaton is a power management company with 2014 sales of $22.6 billion. Eaton provides energy-efficient solutions that help our customers effectively manage electrical, hydraulic and mechanical power more efficiently, safely and sustainably. Eaton has approximately 102,000 employees and sells products to customers in more than 175 countries. For more information, visit www.eaton.com .

Most popular related searches

• backup power protection
• electrical power
• electric power
• backup power
• power distribution
• energy efficiency
• distributive power
• distributed power
• power automation
• Placeholder

Customer comments

No comments were found for Eaton Opens New Electrical Facility in the Philippines to Serve Regional, Global Customers and Expand Manufacturing Footprint in Asia Pacific . Be the first to comment!

Great! comment successfully added!

The captcha is not valid

Philippine Electrical Code 2017 Part 1/Chapter 1. General/Article 1.3 - Electrical Plans And Specifications

Article 1.3 - electrical plans and specifications.

While the authors have used good faith and efforts to ensure that the information and instructions contained in this work are accurate, the authors disclaim all responsibility for errors or omissions, including without limitation responsibility for damages resulting from the use of or reliance on this work. Use of the information and instructions contained in this work is at your own risk. If any contents or other technology this work contains or describes is subject to open source licenses or the intellectual property rights of others, it is your responsibility to ensure that your use thereof complies with such licenses and/or rights.

• 1.1.1 1.3.1.1 Drawing Sheet Sizes.
• 1.1.2 1.3.1.2 Drawing Scale.
• 1.1.3 1.3.1.3. Graphic Scale.
• 1.2.1.1 (A) Location and Site Plans.
• 1.2.1.2 (B) Legend or Symbols.
• 1.2.1.3 (C) General Notes and/or Specifications.
• 1.2.1.4.1 (1) Plan for Power.
• 1.2.1.4.2 (2) Plan for Lighting and Receptacle Loads.
• 1.2.1.4.3 (3) Plan for Fire Alarm Circuits.
• 1.2.1.5.1 (1) Motor Loads;
• 1.2.1.5.2 (2) Lighting and Receptacle Loads;
• 1.2.1.5.3 (3) Other Loads.
• 1.2.1.6 (F) Design Analysis.
• 1.2.1.7.1 (1) Lighting and Receptacle Outlet Loads;
• 1.2.1.7.2 (2) Motor Loads;
• 1.2.1.7.3 (3) Feeders and Subfeeders;
• 1.2.1.7.4 (4) Load Center.
• 1.2.2 1.3.2.2 Title Block.
• 1.2.3.1 (A) Exposed conductors shall show:
• 1.2.3.2 (B) Auxiliary gutters, wireways, busways, cabinets, boxes, metallic raceways, underground installations, other than specified in the Code shall show:
• 1.2.3.3 (C) Private pole installations shall show:
• 1.2.3.4 (D) Low energy power and low voltage power installation shall show:
• 1.3.1.1 (A) Location and dimensions of;
• 1.3.1.2 (B) Substation structural requirements;
• 1.3.1.3 (C) Substation electrical requirements such as;
• 1.3.1.4 (D) Cross sectional views showing;
• 1.3.1.5 (E) Miscellaneous;
• 1.3.2 1.3.3.2 Outdoor Substation.
• 2 Other Pages in this Category: Chapter 1. General
• 3 References

1.3.1 General

1.3.1.1 drawing sheet sizes..

(A) Electrical plans and drawings shall be drawn on drawing sheets of the following standard sizes:

(B) In cases such as projects of large magnitude, an exemption in the use of the standard drawing sheets may be granted by the office of the local building official.

(C) For a dwelling unit having a floor area of not more than 50 square meters with a total load not exceeding 3 680 VA, a drawing sheet of size 297 mm x 420 mm (A3 size) is permitted.

With the advent of computer-aided design, drawing sizes may change. The common practice now internationally is to use A3 for any drawing.

1.3.1.2 Drawing Scale.

Appropriate metric drawing scales shall be used.

1.3.1.3. Graphic Scale.

Since the size of the drawing sheet can be changed photographically, graphic scale shall be shown on each drawing sheet.

FPN : Graphic scale denotes nominal or average plan scale and remains true when plans are photographically reduced.

1.3.2 Plans and Specifications

1.3.2.1 plan requirements., (a) location and site plans..

Location and site plans, with proposed e. Others structure and owner’s land drawn to appropriate metric scale shall show:

(B) Legend or Symbols.

Refer to Appendix A – Electrical Symbols

(C) General Notes and/or Specifications.

General Notes and/or Specifications, written on the plans or submitted on separate standard size sheets shall show:

(D) Electrical Layout.

Floor plan showing the location of equipment and devices, and their interconnection wiring.

(1) Plan for Power.

Layout and wiring plans for power on the floor plans drawn to scale, shall show:

FPN: In residences, apartment houses, and small commercial establishments, layout of equipment and motors of one horsepower or less may be incorporated in the layout for General Lighting and Receptacle Outlets. In general, layout of motors and power outlets not exceeding a total of ten, may be included in the lighting layout provided such inclusion will not make reading, interpretation and/or checking of said plan difficult.

(2) Plan for Lighting and Receptacle Loads.

Layout and wiring plans for general lighting and receptacle outlets on floor plans drawn to scale, shall show:

(3) Plan for Fire Alarm Circuits.

Layout and wiring plans of fire alarm station, fire alarm bell, fire alarm control panel, and others shall be drawn to scale and show:

(E) Schedule of Loads.

Schedule of load in tabulated form shall indicate:

(1) Motor Loads;

(2) lighting and receptacle loads;, (3) other loads., (f) design analysis..

Design analysis shall be included on the drawings or shall be submitted on separate sheets of standard size, and shall show:

FPN No 1: This analysis is not required for dwelling units but required for service equipment and other electrical equipment not part of the individual dwellings units of residential condominiums and individual detached dwelling units.

FPN No. 2: Arch-flash hazard analysis required is intended for concerned parties to be informed and made aware of the importance of personal protective equipment (PPE) and its type for the flash hazard risk category determined by the analysis. Further overcurrent protective coordination coupled with the flash hazard analysis can reduce the severity of PPE needed but is not required under this arc-flash hazard analysis.

FPN No. 3: IEEE Std 1584-2002, Guide for Performing Arc-Flash Hazard Calculations provides guidelines for arc-flash hazard analysis.

NFPA 70E Standard for Electrical Safety in the Workplace provides guidelines for a practical safe working area for employees relative to the hazards arising from the use of electricity. It also provides guidelines on the selection of Personal Protective Equipment (PPE) required for various tasks.

NFPA 70E also provides "Limits of Approach" to an exposed energized conductor.

(G) One Line Diagram.

One line diagram shall indicate:

(1) Lighting and Receptacle Outlet Loads;

(2) motor loads;, (3) feeders and subfeeders;, (4) load center., 1.3.2.2 title block..

Title block or nameplate of plans and drawing shall be a standard strip of 40 mm high at the bottom of the sheet.

It shall contain the following:

1.3.2.3 Other Details.

(a) exposed conductors shall show:, (b) auxiliary gutters, wireways, busways, cabinets, boxes, metallic raceways, underground installations, other than specified in the code shall show:, (c) private pole installations shall show:, (d) low energy power and low voltage power installation shall show:, 1.3.3 substation plans and specifications, 1.3.3.1 indoor substation..

Indoor substation plans shall show:

(A) Location and dimensions of;

(b) substation structural requirements;, (c) substation electrical requirements such as;, (d) cross sectional views showing;, (e) miscellaneous;, 1.3.3.2 outdoor substation..

Outdoor substation plans shall show the same items as indoor substations except that in lieu of walls and roof, details of fence and supporting steel structure shall be shown in accordance with the latest edition of the Philippine Electrical Code, Part 2 .

Other Pages in this Category: Chapter 1. General

<DynamicPageList> category = Philippine Electrical Code 2017 Part 1/Chapter 1. General count = 5 order = ascending addfirstcategorydate = false </DynamicPageList>

• Philippine Electrical Code 2017 Part 1/Chapter 1. General

• Get custom product tools and services
• Access training
• Manage support cases
• Create and manage your orders (authorized partners only)

Welcome to the Schneider Electric Website

The Future of Partner ecosystems

Sustainability school: turn knowledge into business, sustainability impact awards – be the change for the future, about idc and the study findings, learn how and why to transform your role and develop future-ready attributes, start your transformation journey today, grow your expertise, maximize your efficiency, better together, differentiate through sustainability, experience success, watch what successful partnerships look like, a partnership that ensured sustainability, a game-changer in maintenance services, a partnership for smart homes and lower energy costs, simplified ways of working, made to help you to save time.

We are your partner in navigating challenges. Our simple-to-use products ensure easy connectivity, improved performance, sustainability, and resiliency at every stage of your project.

Products needed from start to finish

• Explore our products

Reduce costs, create opportunity

• Learn how we can help

Sustainability made easier

• Explore more  opens in new window

Open partnerships enabling open collaboration

We are committed to unleashing the infinite possibilities of an open community that offers collaborative opportunities and insightful exchange between all our partners.

Expand your network to grow the business

• Explore Schneider Electric Exchange  opens in new window

Interoperable architectures

• Discover more

Can’t find what you are looking for?

• Contact support

Become a certified expert

• Explore now

Digital transformation creates long-lasting businesses

Our digital solutions enable you to drive efficiency and grow your business with end-to-end connectivity and interactions to always keep you one step ahead.

Digital intelligence for resilient operations

• Download the report  opens in new window

Software across the entire lifecycle

• Discover our software

Tap into the digital future

• Register now  opens in new window

Meaningful connectivity

Find your tailored partner program, consultant, designers and engineers, panel builders, oems, and alliance partners, contractors, it solutions providers, electricians, start here.

Find answers now. Search for a solution on your own, or connect with one of our experts.

Contact Support

Reach out to our customer care team to receive more information, technical support, assistance with complaints and more.

Where to buy?

Easily find the nearest Schneider Electric distributor in your location.

Search FAQs

Search topic-related frequently asked questions to find answers you need.

Contact Sales

Start your sales inquiry online and an expert will connect with you.

1. The importance of a successful partnership for electrical business

An electric business partnership is investing in the future of your business. Grow, develop, and future-proof your business by partnering with an electrical company that provides end-to-end electrical solutions and products. Once you have a reliable partner for electrical business on board, you’ll be able to appreciate the importance of this electrical partnership, as it’ll simplify your work and save you time. Schneider Electric offers reliable products and services that future-proof your business, leading toward growth and development on a larger scale. Thus, a successful partnership for electrical business encourages growth and development with the help of the latest and innovative technologies. It helps you save valuable resources like time and money, enhance the market value of your business, and attract new business partners and investors.

2. Schneider Electric’s partner program for electrical companies

Schneider Electric aims to become an effective partner for an electrical business, offering sustainable solutions and high-efficiency products to help you grow and expand your business. At Schneider Electric, we believe in unleashing the full potential of your business by utilizing all the resources wisely and integrating leading processes and energy technologies to drive digital transformation. Moreover, we bring innovation and technology together to deliver the best products and services for your business.

3. Our partnership is different from other electric business partnerships

Schneider Electric partner programs encourage and empower companies to make the most of their energies and resources. We offer products and solutions that are efficient as well as climate positive. As your partner for electrical business, Schneider Electric will help you drive digital transformation and benefit from the best business opportunities in the market.

• 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.

• 3M Privacy Filters
• Asus Commercial Laptops And Desktops
• BenQ Monitors
• Corning Optical Communications
• Elo Touch Solutions
• eScan Antivirus & Content Security
• Lenovo Laptops and Desktops
• Zebra Technologies
• Employment Application Form
• GET IN TOUCH

Eaton Opens Facility in the Philippines

Power management company Eaton today announced the opening of a new manufacturing facility in the Philippines for its electrical business. The new facility will further expand Eaton’s operations in the Asia Pacific market by serving regional and global customers in the IT and small and medium data center markets.

Today’s opening ceremony was attended by representatives from government, local organizations and Eaton leadership. Alexander M. Cutler, Eaton chairman and chief executive officer, presided over the opening of the new plant.

“Eaton’s global growth strategy is focused on continued investment in emerging, high growth markets and regions,” Cutler said. “Today’s event underscores our long-term commitment to the Asia Pacific region, which has been a major growth market for Eaton and continues to be of great strategic importance.”

The new 29,000-square-meter facility is located in Tanauan City, Batangas and will manufacture electrical power management products such as uninterruptable power supply (UPS) products for global markets. This facility will create a significant number of new jobs in the local economy with a projection of up to 2,000 employees by 2017.

“With the increased manufacturing capabilities in the Philippines, we will be able to continue Eaton’s expansion into emerging markets with cost-competitive products,” said Ivo Jurek, president of Eaton’s electrical business in Asia Pacific. “Our investment in the Philippines is a strategic pillar that demonstrates our commitment to building our electrical business in ASEAN (The Association of South East Asian Nations) and the East Asia region. We are investing heavily in expanding our electrical business in the market to meet our growth goals.”

The Philippines is a key emerging growth market for Eaton in Southeast Asia. Eaton launched its first Philippines manufacturing facility in 2012 to produce electronics products for global markets. With the opening of the new facility, Eaton now has two major manufacturing facilities and more than 1,200 employees in the Philippines.

Eaton’s electrical business is a global leader with expertise in power distribution and circuit protection; backup power protection; control and automation; lighting and security; structural solutions and wiring devices; solutions for harsh and hazardous environments; and engineering services. Eaton is positioned through its global solutions to answer today’s most critical electrical power management challenges.

Eaton is a power management company with 2014 sales of $22.6 billion. Eaton provides energy-efficient solutions that help our customers effectively manage electrical, hydraulic and mechanical power more efficiently, safely and sustainably. Eaton has approximately 102,000 employees and sells products to customers in more than 175 countries. For more information, visit www.eaton.com.

• Skip to primary navigation
• Skip to main content
• Skip to footer

How to Write a Business Plan [Complete Guide]

Last Updated on – Aug 8, 2023 @ 3:22 pm

Preparing to write your business plan? You’re already one step ahead of other entrepreneurs who don’t see its value.

A well-thought-out and well-written plan for starting and running your business helps you focus on what you need to do to make your business idea work. It can also boost your chance of getting investments and loans to finance your business .

Did you know that half of small businesses fail in their first four years? Planning is such a crucial step to reducing the risks of managing an enterprise. Turn your business idea from something abstract and uncertain into a successful venture. It starts with drafting a good business plan.

Here’s your definitive guide to writing a business plan that speaks for itself.

What is a Business Plan?

A business plan is a written document that details what a business is, what direction it will take, and how you’ll get it there.

Practically speaking, the business plan evaluates your business’ viability. As the Department of Trade and Industry (DTI) puts it , the document allows entrepreneurs to find out whether or not their business idea will bring in more money than how much it costs to start and run it.

More than just a document, the business plan helps business owners to figure out the key aspects of an enterprise, including the following:

• Business goals and strategies to meet them
• Competitive edge and how to leverage it
• Potential problems and how to solve them
• Funding required to start the business
• Equipment, facilities, and manpower needed for operations

Who Needs a Business Plan and What Is It Used For?

Every aspiring entrepreneur who will spend a great amount of money, time, and energy to earn a profit needs a business plan.

Business planning is a crucial part of starting an entrepreneurial journey, no matter how small or big a business is. Never skip this step—as they say, failing to plan is planning to fail.

Here are some examples of business types that benefit much from business planning:

Founders of startup businesses seek funds to begin their new venture. Business plans help them persuade investors and lenders to provide the funding they need.

For startups, a business plan explains the nature of the new venture, how it will achieve its goals, and why the founders are the best people to lead the company. The startup business plan should also specify the capital needed to jumpstart the new business.

Related: Fast-Growing Startups in the Philippines

Existing Businesses

Not only do startups gain advantage from a business plan—existing enterprises need it, too.

But business plans for growing businesses serve a different purpose. Usually, a business plan helps a middle-stage business raise funds for additional facilities, equipment, manpower, and others needed for expansion. This document also defines strategies for growth and allocates resources based on strategic priorities.

Growing businesses also use business plans to communicate their vision to various stakeholders such as customers, business partners, potential investors and lenders, employees, and suppliers.

For such needs, a business plan for existing businesses lays out the goals, strategies, metrics to evaluate success, responsibilities, and resource allocation.

Social Enterprises

Social enterprises may not be as profit-driven as other business types, but that doesn’t mean they need business planning any less.

A social enterprise needs to prepare a business plan to achieve its social objectives and keep empowering the communities it’s supporting. This document is what government agencies and donor agencies require and evaluate when approving grants for funding a social project .

A social enterprise business plan determines the social issue that a business idea will solve, its beneficiaries, products or services, target market, and sales projections, among many others.

Non-Profit Organizations/NGOs

Like social enterprises, non-governmental organizations (NGOs) can also use business plans to source funds for their campaigns and projects.

A nonprofit business plan discusses the problems an NGO is trying to solve through a certain project, as well as how it will do that and how much resources are needed.

It also helps the organization and its board members to prepare for risks by making projections on how likely the activities will push through and how the current sources of funds will continue to yield a certain level of revenue. Most importantly, the business plan defines the Plan B if the original plan ends up failing.

Business Plan Format and Its Components

How does a business plan exactly look like? There’s no recommended universal format for business plans. Ideally, yours is customized according to the nature of your business and what you’re going to use the plan for.

However, all business plans have sections in common. Here’s a quick walkthrough of the six components that make up a business plan.

1. Executive Summary

Like an abstract of a college thesis or a foreword of a book, the executive summary is meant to provide a brief overview of the document. It presents the highlights of a business plan in a page or two.

The executive summary the first thing that readers see, so keep it short yet engaging and compelling enough to make them want to view more details in your plan.

2. Company Profile

The company profile is your chance to introduce yourself and your business to people outside your company. It’s also called the company summary, company information, business description, and business profile.

This section quickly answers the five Ws and one H of your business: who, what, when, where, why, and how.

Think of it as your business calling card. Being the shortest section of the business plan, the company profile provides a quick overview of the business—who the owner and founder is, management team, business goals, business address, product or service, and what makes it unique.

3. Operations Plan

The operations plan explains how you’ll run your business, focusing on the different aspects of manufacturing your product. This section includes the following information, among many others:

• Type of business (sole proprietorship, partnership, corporation , or non-profit)
• How the product is made or the service completed
• Necessary materials, equipment, and facilities to manufacture the product or complete the service
• Any subcontractors needed
• Quality control system

4. Organizational Plan

Your people should play a major role in your business plan, just as how they’re important to your business success . The organizational plan includes a chart that shows how your company is structured according to key departments or functions such as administration, production/manufacturing, marketing, and finance. This organizational chart not only presents the levels of authority in a company but also clarifies who is responsible for which people and function.

Aside from the organizational chart, the organizational plan also includes these details:

• Number of employees to hire
• Responsibilities of each job role
• Qualifications of workers who will perform each role
• Salaries and benefits per job assignment

5. Marketing Plan

The marketing plan and the succeeding chapters are the heart and soul of your business plan, explaining the things that will make your business work. This section details how you plan to promote your product or service in the market.

Specifically, the marketing plan covers the following:

• How the product or service will work and how it will benefit customers
• Target market and its profile
• Strategies for packaging, advertising, public relations, and distribution
• Competitive advantage

6. Financial Plan

A critical section in your business plan, the financial plan helps you assess how much money you’ll need to start or grow your enterprise and identify your funding sources to get your business off the ground and sustain its operations. This is where you’ll provide financial estimates that cover at least one year of running your business.

Investors and lenders specifically look for these financial details in business plans:

• How much you’re going to borrow, what you’ll use the loan for, and how you’ll pay it back
• How much profit you’re expecting to make (through an income statement and balance sheet)
• How you can finance your business operations (through a cash flow statement)
• Whether to keep the business going or close it down to cut losses (through a break-even analysis)

Related: How to Write a Business Proposal

Should You Use a Business Plan Template?

Business plan templates identify what information to put into each section and how it should be structured.

They provide instructions to guide entrepreneurs through the process. This way, nothing is missed out while writing the plan.

Thus, using a business plan template is a great idea, especially if this is your first time to prepare a plan for starting or growing your enterprise.

Helpful as it as may be, a business plan template doesn’t make business planning 100% effortless. While it provides the outline that makes writing the plan easy and quick, you still need to do your homework.

For example, a template won’t compute the financial projections for you—it’s a task you have to complete either on your own or with the help of a professional.

So before you use a business plan template, manage your expectations first and be prepared to do a lot of math!

8 Free Business Plan Templates

Yes, you read it right—you can download free online business plan templates. Some of these templates are designed for a specific niche, while others offer sample business plans for a wide range of business categories and industries.

Start off by choosing any of these free templates that suit your business planning needs.

1. Business Plan Format by the DTI

DTI has a wealth of useful information for micro, small, and medium businesses in the Philippines. Of course, it’s free to access since it comes from the government.

On the DTI website, simply look for the Business Planning section and download the business plan format in a PDF file. This document not only lists down all the information to be included in every section of a business plan, but it also provides guide questions per section—making business planning easier for first-timers.

If you want a more detailed discussion of what should go into each component of your business plan plus sample scenarios, check the DTI’s Negosyo Center e-book that fleshes out things for small business owners.

2. Simple Business Plan Template by The Balance Small Business 

The Balance is an online resource for small business owners. It has a free business plan template that’s simple and easy to understand for beginners, with instructions on how to use it. Broken down into sections, the simple business plan template tells you what to include in each component of the plan.

Simply copy the free template and paste it into a word document or spreadsheet. From there, you can start drafting your business plan with the template as a guide.

3. Free Sample Business Plans by Bplans

This website features a collection of over 500 free business plan samples for various industries, including restaurants, e-commerce, real estate, services, nonprofit, and manufacturing.

Under each category are links to many sample business plans for specific types of business. Each sample comes with a plan outline, too. For example, under the Services category, you’ll find sample plans for businesses like auto repair shops, advertising agencies, catering companies, health spas, photography studios, and more.

4. Business Plan Samples by LivePlan

More than 500 free sample business plans are available at the LivePlan website, so you’re likely to find one that suits your business best. The samples allow users to know how other businesses structured and worded each component of their business plans. You can copy and paste the sections into your own plan.

To download a full business plan sample, you’ll have to sign up by submitting your name and email address through the website.

5. Business Plan Templates by PandaDoc

PandaDoc offers free business plan templates for NGOs, startups, restaurants, cafes, bakeries, hotels, and salons. These documents can be downloaded in PDF format.

But if you want a customizable template, you can download the PandaDoc template for a 14-day free trial. This template allows you to edit the document, choose a theme that matches your branding, and add pictures and videos.

The website also has free templates for executive summaries and business letters.

6. The One-Page Business Plan by The $100 Startup

If your business has a simple concept, then a one-page business plan template is ideal to use. This downloadable PDF file is a very simple outline made up of a few sections with questions that you have to answer in just a short sentence or two.

7. Business Plans by Microsoft

Microsoft provides a broad selection of templates for its users, including business plan templates in Word, business plan presentations in PowerPoint, and business plan checklists in Excel.

• Sample business plan template (Word) – Provides the steps in writing a complete business plan
• Business plan presentation template (PowerPoint) – Consists of slides for different sections of a business plan that highlight the key points for viewers
• Business plan checklist template (Excel) – Enumerates the important things to do when writing a business plan, using the Strength, Weakness, Opportunity, and Threat (SWOT) analysis framework

The advantage of using a template from Microsoft is having a professional-looking document, slideshow presentation, or spreadsheet. No need to do the formatting by yourself because the template is already formatted. All you have to do is enter the necessary information into the template to complete your business plan.

8. Social Business Plan Guidelines by the Ateneo de Manila

This free business plan format for social entrepreneurs comes from the Ateneo de Manila University’s John Gokongwei School of Management. In a glimpse, it provides the basic information you need to plan a social enterprise.

It also has more detailed business plan guidelines you can refer to. Simply click the link to the word document at the bottommost part of the page.

Related: 11 Best MBA Programs & Schools in the Philippines

How to Write a Business Plan

An outstanding business plan covers everything your stakeholders need to know about your business. So don’t just wing it—put a lot of thought into this critical document.

Let’s get down to the nitty-gritty of drafting a business plan, whether you’ll use a template or not.

1. Brainstorm about your business idea

You may have a very promising business idea, but it won’t fly unless you develop it into a clear-cut concept.

Brainstorm with your team about everything you can think of about starting and running the business. Then list them all down.

Be as creative as possible. No need to be too critical at this point.

While brainstorming, aim to answer these key questions:

• Why do you want to start the business? What has inspired you to go for it?
• What product or service do you plan to sell?
• Who will be your target customers? What are their problems that you’re hoping to solve through your product or service? How will you promote your offerings to them?
• What will be your business branding ? How will you position your brand in the industry?
• What is your competitive advantage? What makes your business unique?
• Where do you see your business within a year?

2. Validate your business idea

Research on the specifics of your business idea—paying special attention to your product or service, target market, and competitors.

According to entrepreneurship experts, it’s best to spend twice as much time on this step as spending the time to the actual drafting of the business plan.

Here are some ways to validate your business idea:

• Read studies and research to find information and trends about your industry .
• Conduct market research to gather insights from industry leaders, potential customers, and suppliers . You can do this through surveys, focus group discussions, and one-on-one interviews with your stakeholders.
• Collect data about your competitors , especially the product or service they offer and how they reach their customers. Consider buying from them or visiting their store to get a feel of their products and customer experience.

Gather all relevant information and analyze your findings to assess whether the business idea is feasible or not. You may need to tweak your business idea based on your evaluation of its feasibility.

3. Define the purpose of your business plan

It’s extremely difficult to carry out anything if you aren’t sure about why you’re doing it in the first place. Without a clear purpose, you’re like driving a car without knowing where you’re headed to.

When it comes to writing your business plan, you should have its purpose in mind from the get-go. It can be one or more of the following:

• Create a roadmap to provide the directions the business must take to achieve your goals and overcome challenges. This is ideal for bootstrapping or self-funding startups.
• Seek investments and loans to finance a business. If this is your purpose for making a business plan, it should be compelling enough to attract investors and lenders.
• Set your targets, budget, timelines, and milestones. When you put them all in writing, it’s so much easier to evaluate and measure your business’ actual performance versus your goals.
• Communicate your vision and strategic priorities with the management team. With this purpose, your business plan must establish specific goals for your managers so that they have something to commit to, you can track progress, and get them to follow through on their commitments. Also, having a business plan for this purpose ensures that everybody involved in running your business is on the same page.
• Minimize risks. Running a business in itself involves a lot of risks, and it gets riskier with a poorly researched business idea. A business plan can help entrepreneurs mitigate them by organizing activities and preparing for contingencies.

4. Create an outline for the executive summary

The first section of any business plan is the executive summary. You don’t have to draft it yet at this point, but it helps to write an outline for it before you proceed with the rest of the sections.

In a sentence or two, describe these key aspects of your business:

• Product or service
• Target market
• Competitors
• Unique value proposition (how you set your business apart from the competition)
• Management team
• Short-term and long-term business goals
• Possible sources of revenue

5. Describe your business

The next step is to write your company profile. Get your readers to become familiar with your business and realize why they should be interested in it.

If you have no idea what specifically goes into this crucial business plan section, you can check the company profiles of businesses in your industry. Usually, you can find them on their websites at the About Us or About the Company page. Take note of the information included and how they’re written.

Here are the must-haves of a great company profile:

• Brief history of the company
• Mission and vision
• Product or service lineup
• Target market and audience
• How the business will address the customers’ pain points
• What makes the business unique

6. Provide details about your operations and organizational structure

Anyone who will read your business plan needs to know what they should expect when they deal with you. They need to see a solid plan for your operations and the people who make up your team. So give your operations plan and organizational plan a careful thought.

For your operations plan, choose carefully the right legal structure for your business. Will you be a sole proprietor? Or will you partner with someone or form a corporation? Your choice will have an impact not only on your business operations but also on the taxes you’ll pay and your personal liability .  

As for the organizational plan, it’s where you put your organizational chart that shows a glimpse of the hierarchy within your organization. You can easily create this chart in Microsoft Word, Excel, or PowerPoint.

Also introduce the people who comprise your management team—their relevant experience, qualifications, and expertise . The organizational plan must also include information of the support personnel, as well as who reports to whom and who manages whom.

If you’ll be outsourcing some of your business functions, add them to your organizational plan, too. These may include consultants , accountants , lawyers , logistics specialists, and IT specialists. This way, you’re showing that you’re planning to fill in any expertise and skill gaps in your in-house team.

Also Read: Business Process Outsourcing to the Philippines [Complete Guide]

7. Compose your marketing plan

Make this section of your business plan as comprehensive and detailed as possible. You’d want to prove that you’ll take a strategic and aggressive approach to reach your target customers and promote your brand and product or service to them.

Divide your marketing plan into five subsections: objectives, product/service description, target market profile, competition profile, and promotional activities.

A. Objectives

Zero in on the what and the why of your marketing activities. Under the marketing objectives section, list down all your goals and the strategies you’ll implement to meet them.

Your marketing goals can be any of the following:

• Raise brand awareness
• Introduce a new product or service
• Regain or get more customers for an existing product or service
• Secure long-term contracts with your ideal clients
• Increase sales in a certain market, product, or price point
• Improve product manufacturing or product/service delivery
• Increase prices without affecting sales

B. Product/Service Description

Describe each product or service you’ll offer, including its features and benefits. You can use storytelling , images, charts, tables, or any visual element that best illustrates how each item will work to the benefit of your target customers.

C. Target Market Profile

Present as much relevant data as you can about your potential customers. Make sure to include the following:

• Demographic profile: age range, gender, income level, education, interests, etc.
• Buying behaviors
• Factors that influence their buying decisions: purchasing power, personal preferences, economic conditions, marketing campaigns, social factors (such as peer pressure and social media influencers ), cultural factors, etc.

D. Competition Profile

Your marketing plan must focus not only on your own business but also those of your competitors. List down the similar products or services that they offer to your target customers.

Also, provide an assessment of your competitors’ performance. Which areas are they doing well? How can you improve on their strengths and weaknesses? How can your business stand out? Is it your more competitive pricing? Better customer service? Superior product quality?

To come up with a good competition profile, take the time to research about your competitors. When interviewing your target customers, ask them about the brands they use or businesses they deal with.

You can also do an online search of your competitors. For example, if you’ll run a pet supplies store in Pasig, search for “pet stores Pasig” on Google. The search engine results page may show you the different stores that sell the same products as the ones you plan to offer. Read customer reviews online to get deeper insights on how these businesses serve their clients.

Consider doing a “secret shopping” in your competitor’s store. This way, you can experience firsthand how they treat their customers and how they market and sell their products or services. You might even be able to get information about their product lineup and pricing.

E. Promotional Activities

The last subsection of your marketing plan must discuss how you’ll promote your brand and products or services and connect with customers. Also, be ready to allocate budget for each marketing activity you identify in your plan.

Create a list of marketing activities you plan to implement. Will you reach your audience through SEO (organic online search), paid advertising, and/or social media? Or will you go the traditional route through print and TV advertising or joining expos, exhibits, and trade shows? The right choice depends on the nature of your business and the type of audience you’re trying to reach.

8. Develop your financial plan

The financial plan is the section where you’ll crunch the numbers. Unless you’re really good at math, it’s best to hire an accountant or business consultant who will work with you to develop a foolproof financial plan.

Put simply, a financial plan explains how a business will spend money and make more money. It also estimates the amount of time it will take for the business to earn a profit.

Here are the specifics of a good financial plan:

• Total capital requirement
• Business financing plan and any loan requirement
• Collateral to put up for a business loan
• Schedule for loan repayment
• Financial statements : cash flow statement, income statement/profit and loss statement, and balance sheet
• Break-even analysis
• Return on investment (ROI)
• Financial analysis

Ultimately, these financial projections answer the question, “Is your business financially feasible?”

9. Back up your business plan with supporting documents

Books and theses have an appendix section at the end that provides additional resources. Your business plan should have one, too. This final section consists of documents, surveys, studies, charts, tables, images, and other elements that provide supporting data.

Depending on the information you’ve presented in the other sections of the plan, your appendix may include these things:

• Market research data and findings
• Resumes of the management team
• Relevant financial documents
• Lease agreements
• Bank statements
• Licenses and permits

10. Review and refine your business plan

Your business plan is almost done at this point. Now all you have to do is go over the document once more to ensure you’ve covered everything and nothing crucial is left out.

Check your final draft and be sure it has the following:

• Sound business idea – If you’ve done Step 2 properly (validating business idea), you can be confident that you have a sound business idea.
• Comprehensive and in-depth look into your business in a professional format
• Thorough understanding of your target customers , their behaviors, interests, and needs
• Competent management team – The people who make up your team must possess the skills and expertise that complement yours.
• Business focus or specialization

Aside from yourself, ask a business partner, proofreader, and accountant or financial expert to review your business plan and spot any errors and inconsistencies. You’d want to make sure that it looks professional and is accurate.

11. Write the executive summary

Lastly, get back to the outline you created in Step 4 and write it based on your final draft. Make sure to craft an engaging executive summary that hooks people into reading the rest of the plan.

6 Actionable Tips on Writing a Business Plan

Anyone can write a business plan—but it takes more than great writing skills to create an exceptional one.

Here are some tips to help you prepare an effective business plan that goes beyond the ordinary.

1. Write with your audience in mind

When drafting your business plan, you’re writing not for yourself but for people who will play key roles in starting and running your enterprise. This is why it’s important that you know whom you’re writing for and keep them in mind while preparing your business plan.

If you think you can’t create a plan that caters to all your audience groups, consider having different versions of the document. For example, you can come up with a business plan for investors, another for lenders, one for employees, and so on. But keep the data consistent across all versions.

To write a business plan that suits a particular audience, you have to use the right language, highlight the parts that interest them, and adjust the format accordingly.

A. Use the Right Language

One of the most important rules in business writing: use the language that your target audience easily understands. If you’re writing for engineers, finance people, or lawyers, your language can be technical—meaning you can use jargons and terminologies familiar to them.

However, if you’re writing for investors who barely have technical knowledge, tweak your language in simple terms that are easy to grasp and appreciate.

Likewise, if you’re writing a business plan to communicate internally with managers and employees your company’s direction and strategies, it’s best to use more casual language than you would when writing for high-level, external stakeholders.

B. Appeal to Your Audience’s Interests

It also helps to understand what interests your audience because they will influence how you’ll write your business plan.

Your management team, for instance, will be interested in knowing your business goals and strategies so that they can help you steer the company in the right direction.

Investors and lenders look at the business plan differently—they’ll be more interested in your financial statements to determine your financial health, like if your business is worth investing in or has the ability to pay back a loan.

C. Adopt a Suitable Business Plan Format

There’s no one-size-fits-all format for business plans because it depends mainly on your audience, aside from the nature of your business.

Let’s say you’ll set up a restaurant, and you’re drafting a business plan to apply for a business loan. To convince lenders that your business is viable, details such as your restaurant’s location and possible renovations are crucial.

Meanwhile, if you’re writing the plan for potential big-time investors, you’ll take a different approach. A good restaurant business plan focuses on the business aspects that will lead to growth and profitability (Remember that investors are interested in how they’ll make money from partnering with you).

2. Keep it concise

How long should a business plan be? According to the U.S. Small Business Administration (SBA) , it depends on various factors such as the specific audience it’s written for and the nature of a business. The SBA cites surveys that found the ideal length to be at least 25 to 100 pages.

Sounds a lot? If you have a simple business idea and you’re writing a business plan for busy people who don’t have time to pore over hundreds of pages, then one page up to 20 pages should be fine.

However, you may need to provide more explanation (which will take up more pages in your business plan) if you’re planning to build a new kind of business, and a risky one at that.

The size of your business also affects the length of your business plan. Business plans for small businesses need not exceed 30 pages. Corporate business plans are expected to be longer.

What matters more than length is how concise your business plan is. Meaning, it provides all the necessary information—including solid research and analysis—using the fewest words possible. No place for wordiness here!

3. Document everything related to your business

Support your claims in the business plan with solid facts and proof. Investors, for instance, need an assurance that they won’t lose their investment when they trust you with their money. This is where documenting your business thoroughly plays a crucial role.

What kinds of documentation can you include in your business plan?

• Industry forecast or projections
• Licensing agreements
• Location strategy
• Prototype of your product or service
• Survey and FGD results
• Resumes of your management team

4. Show your passion and dedication to your business

Although business plans have straightforward, matter-of-fact content, you can still establish an emotional connection with your readers through your plan. After all, your readers are humans with feelings and motivations.

No need to be dramatic about it—you can show your passion and dedication while still sounding professional in your business plan. Write about the mistakes you’ve had (like a failed business in the past), what you’ve learned from the experience, the values you hold, and the problems of your customers you want to solve through your product or service.

5. Know your competition and how you’ll stand out

Your business won’t be the single player in your industry. Other businesses in the same niche have started way ahead of you, and some new ones will also compete for business in the future.

Write your business plan in such a way that you know your competitors so well. Identify all of them and what makes your business unique compared with the rest without belittling them.

6. Be realistic and conservative in all your estimates

In any aspect of your business, it’s better to underpromise and overdeliver than the other way around. This also holds true when writing a business plan. You wouldn’t want to set unrealistic expectations that will lead to disappointments and worse, losses, when you fail to deliver on your promise.

There’s no place for too much optimism in your business plan. Your budget allocation, timelines, capital requirements, sales and revenue targets, and financial projections must be reasonable, realistic, and conservative. These will lend credibility to your business plan and yourself as an entrepreneur. Because there are a lot of factors beyond your control, always assume that things will get completed longer and cost more ( consider inflation over time! ).

This is where your research prior to writing the draft comes extremely helpful. You have something solid and factual to benchmark against. For example, if your analysis based on the facts you’ve gathered indicates that you’ll be able to get 40% share off the market in your first year of operations, consider making your estimates a bit more conservative and attainable.

Related: The Ultimate Guide to Business Valuation in the Philippines

10 Mistakes to Avoid When Writing a Business Plan

Now, let’s explore the mistakes entrepreneurs often commit when writing a business plan. Listing them all down here to let you know what to avoid.

1. Prioritizing Form Over Substance

Spend most of your time and energy on building solid research and facts rather than obsessing about which font type or background color will look best for your document.

2. Overthinking

Many entrepreneurs take too long to complete their business plans because they worry too much about it. Don’t get intimidated by business planning—you don’t have to be an expert or a degree holder in business management or business administration to be able to write an outstanding business plan. Overthinking will just lead to analysis paralysis and get nothing done.

As long as you know your business well and are passionate about it, then writing a business plan won’t be as difficult as you think, especially if you’re using a template.

3. Submitting the Document Without Proofreading It

If your business plan is filled with typos and grammatical errors, readers will get distracted even if you’re presenting substantial information. It may also give your audience an impression that you’re careless—and who wants to deal with a person who isn’t professional and careful enough?

Even if it costs you money, pay a professional proofreader to check your work and correct any errors so that the message you wanted to convey through your business plan will get across.

4. Making Empty Claims

Any statement that isn’t sufficiently supported by solid research or documentation has to go. For example, if you want to claim to be the top player in your industry but you don’t have any evidence to back it up, rethink about including it in your business plan.

5. Writing an Overly Long and Wordy Plan

Make sure that everything you put into your business plan is relevant and serves your purpose. Otherwise, remove unnecessary statements that just add fluff to the document.

Also, don’t waste your readers’ time by using too many words—including highfalutin ones. Remember, your goal is to make your audience understand your business, not to impress them with beautiful or complex prose.

6. Using Too Many Superlatives

Even if you really feel that your business, business idea, or projection is incredible, amazing, the best, great, fantastic, or one of a kind, avoid using these superlatives because they aren’t appropriate for formal documents like a business plan.

7. Doing the Financial Projections on Your Own

Unless you’re an accountant yourself, it’s best that you get a professional to do the job for you. It will save you time and the headache of dealing with numbers and formatting your financial plan properly.

8. Overestimating Your Projections

The business plan is not a place to make impossible promises—while they look good on paper, you might run into trouble fulfilling them. To avoid this mistake, always do your research. Find out how other businesses do it and what the typical timeframes and financial projections are before you come up with your estimates.

9. Long-Term Business Planning

As much as possible, limit your projections to only a year. A lot of things can happen and make your business different from how you initially planned it. Stick with your short-term or one-year targets and estimates, then just tweak your business plan as time goes by.

10. Including Unfounded Rumors About Your Competitors

Not only do rumors make your business plan look unprofessional, but they also distract your readers from your intended message, which is to highlight what makes your business different from the competition. Avoid including details based only on hearsay. Everything in your plan must be backed up by solid, quantifiable facts.

Key Takeaway

A business plan is more than just a document that you prepare once and will never look at again. Rather, it’s a strategic tool that you should use from time to time to guide your business operations, get the buy-in of your stakeholders, and grow your business over time.

Once you’re done with writing your business plan, make the most of it for your business. Use it and modify it as often as needed!

Ready and confident to start writing your business plan? Share your thoughts and questions below!

Other Useful Business Resources from Grit PH:

• How to Sell a Business in the Philippines

About Venus Zoleta

Venus Zoleta is an experienced writer and editor, specializing in personal finance and digital marketing.

She has been a regular columnist for some of the biggest business & finance publications in the Philippines, such as MoneyMax.ph and Filipiknow.net.

Hoping to retire early, she started investing and bought a home in her early 20s. This crazy cat mom eats ramen like there's no tomorrow.

Education: University of the Philippines (B.A. Journalism) Focus: Personal Finance, Personal Development, and Entrepreneurship

Reader Interactions

March 3, 2020 at 10:00 am

I like it, and i want to learn more about for business

March 6, 2020 at 9:46 am

Hello Ms. Venus, Rise Against Hunger Philippines, N.G.O. , branching out into a new high ways… and i am newly hired as a social enterprise development officer… whose main tasks to launch a product line; an up-cycled tarpaulin bags.. manufactured by a group of community women (skills training’s, coordinated by life coached; aiming w-holistic transformation and sustainability program.. . with such a big tasks, i need a step by step guides, and if possible a coach for i cannot do it alone… thank you, henry reandino chua

Leave a Reply Cancel reply

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

We need your help!

Our team is currently conducting research for an upcoming guide focusing on starting a business in the Philippines . We would greatly appreciate your contribution, which should only require a few seconds of your time. 

Thank you in advance!

• Digital Marketing
• Search Engine Optimization (SEO)
• Digital PR & Link Building
• Social Media Marketing
• Digital Advertising (PPC & Social)
• Content Marketing
• Copywriting
• Email Marketing
• Conversion Optimization
• Web/App Development
• Ecommerce Development

Please enable JavaScript in your browser to complete this form. Name * Location of Business * Number of Employees * 1 - 10 11 -50 51 - 100 100 - 500 500+ Phone Number * Email * Insurance Company Standard Insurance AXA Philippines BDO AIG Submit

Please enable JavaScript in your browser to complete this form. Full Name * Company Name * Mobile Number * Email Address * Submit

Please enable JavaScript in your browser to complete this form. Name * Contact Number * Email Address * Target Location Preferred Developer * Ayala Land SM Prime Megaworld Alveo Land DMCI Homes Federal Land Robinsons Land Corp Vista Land and Lifescapes Filinvest Land Shang Properties Century Properties Empire East Rockwell Land Comment Submit

Disclosure: Your personal details will not be shared with any third-party companies. We’ll just need your contact details so our resident real estate agents can reach you to provide you with the details for any of the listed property developments you’re interested to invest in.

Please enable JavaScript in your browser to complete this form. Name * Age * Location* Phone Number * Email Address * Insurance Company Sun Life Financial Pru Life U.K. AXA Philippines AIA Philippines Manulife Insular Life BPI-AIA BDO Life Etiqa FWD Insurance Allianz PNB Life Phone Get a Quote

Disclosure: Your personal details will not be shared with any third-party companies. We’ll just need your contact details so our resident financial advisors can reach you to provide you with the details for any of the listed insurance company you’re interested in.

• List Your Business

How to Start a Hardware Business in the Philippines

Are you wanting to venture into a profitable business? Look no further! This article will guide you on how to start a hardware business in the Philippines. This type of business is ideal for those who want to start their own business for its profitability: as long as you know what you are doing.

Hardware stores are basically retail shops (usually brick-and-mortar) that sell tools and construction materials needed to build, renovate, or maintain any structure such as a house, building, and even automobiles.

The merchandise includes: building materials, power tools, electrical supplies, automotive equipment, lawn care, house ware, paint, plumbing equipment and more.

If you are wondering if it’s worth the risk, you can be rest assured that the demand has been increasing ever since the trend of do-it-yourself.

Interested? Continue reading what you need to know before starting your own!

Location, location, location!

Consider the growth factor of the neighborhood, their income class, and the amount of competition in the area. Don’t stay in a place where there is already an established business.

Accessibility is also another factor that you should consider. Places where there are construction sites for houses are suitable areas of development and likely to flourish with your business. However, since these are temporary, consider the amount of traffic that you could gain.

Know your target market

Your business surrounds a local community. It is important to know your neighborhood since they are your main source of customers. Knowing your customers include their needs and preferences; what they usually look for in hardware stores.

Additionally, provide after-sales service by giving satisfactory customer care / customer service such as free delivery or free installation of furniture.

Be updated with the price of materials

Profitability from the hardware is considerably higher than that of construction materials. The reason being is that construction materials are canvassed by customers all the time to find the most affordable one possible. This sets up a potential for competition between businesses that offer cheaper products.

While they may be sold cheaply, you may find that your location to be at your advantage. For example, you may be able to mark-up the materials you have at stock if you are the only hardware store nearby.

Have the capital needed

The money you need to start a hardware business in the philippines.

At this day and age, you need a large amount of capital to run a business, especially for hardware stores. You’ll find you need at least P300,000 to get yourself suit-up with the most basic of stores.

Surely, at first, you won’t be able to generate enough revenue to rely on it to maintain your business. Consider the rent, cabinets, salary, bills, warehouse, and the delivery trucks you will have to take care of.

Source your materials

The stock you will be selling can usually come from three sources: direct manufacturer, wholesaler, and secondary distributors. The usual route taken by new hardware stores choose is the wholesaler. They give an advantage of marketing and advertising your business.

Usually, suppliers give stocks in terms. This means that hardware items have a term of 120 days. On the other hand, construction items have a shorter term of 15 to 30 days only. This all depends on what you will negotiate with the supplier, so it is especially important for you to develop a long-term relationship with them!

Register your business

For sole proprietorship, head to the Department of Trade and Industry (DTI) to register your business. Partnerships and corporations are required to register with the Security and Exchange Commissions (SEC).

Fear not the giant!

One last tip when starting a hardware business in the philippines.

Hardware business in the Philippines is mostly played out by big companies. However, that is hardly a negative for anyone wanting to start their own and make a profit. Retail stores may dominate the country all the cities over, there is no denying that they do not have the control as people might think.

As one could observe, there are long running hardware stores in the Philippines that survive despite the numerous outlets of corporate chains seen at every mall in the country. In fact, independently owned hardware businesses are able to gain an edge over their large counterparts.

This means that you can own a slice of the market share in the hardware industry. What customers prefer traditional non-corporate owned stores is the ability to personalize their own purchases compared to the normalized marketing that big giants use as an approach over its consumers.

Satisfying customer service means that you are able to provide staff that can give personal service and support their choice for home renovation and improvement.

261 responses to “How to Start a Hardware Business in the Philippines”

I want to start up a hardware business in cavite. Pls give some tips and referrals for suppliers. Thanks

Supplier of hardware and construction materials. Pls contact: 09178858823

Hi Sir Jan, I’m planning to start a hardware business, can you provide me some information and prices.

Need suppliers for start up hardware business

Hi sir..I’m planning to start in bukidnon area..is there possible near supplier..please help me to find gud supplier or wholsaler that I can contact and communicate with…hope for ur response ..thank u

Hello, kindly contact me if you have questions: 09178858823

Could you give me an insight on the hardware detailed business set-up as I am planning to have one. Let’s communicate via email. Thanks.

Boss magandang araw, plano ko mag hardware business sa Dinagat Island may alam po ba kayong pwede good supplier at ano po ang terms kung sakali

Thank u for your reply. Appreciated. I hope I can realize my plan. Thanks again.

in what particular area sir na pwede kayong mag supply? thanks

hi sir we are planning to put up construction supply in Binmaley Pangasinan and we already started with making hollow blocks and planning to add hardware materials. May i know where’s your location and can you send us of your product details.

Hi Mr.Jan I’m planning to start a hardware business in our place in tarlac. Can you please send me some price list of materials..thanks

Pls us idea how to start the business

I want to start a business of construction supplies, please provide me the details on how to be connected with people who are granting the franchise.

Hi jan. Are you supplier for hardware And construction materials?

Hi Sir! Iam about to start small hardware and constn. supply here in Aglipay, Quirino and looking for a supplier. Please help me . Thanks!

hi sir we’re planning to start a hardware business with my business partners at ko po ang naatasang maghanap ng supplier.

hi im planning to put a hardware in my province maybe you could give me proposal for your supplies

I intend to start a hardware business in couple of weeks. Plss give me tips/advices and referrals to supplier who can assist me as start up. Tnx

Hi sir Jan.Do you supply in northern samar area?

Hi po. I’m planning to start hardware in Bicol area. Is there possible suppliers po around albay for wholesale po. Thank you.

Hi Sir Jan Chua, Am about to start my hardware supply in cagayan valley. Just finishing my store cabinets and warehouse. Do you supply hardwares also or can you refer wholesale suppliers? TIA

may bagong bukas kaming hardware dito sa pampanga…bahaha so ako ng suppier…open for terms sana

Sir ako din her in la union.. may supplier po b d2

Hello I am vishal From:Gujarat INDIA We are manufacture by ss cabinet handle

Letz talk for partnership

Hello, this is Engr Art Balajonda, we have direct access to Plant for building materials such as deform bars, angle bars, flat bars, steel sheet, channel bara, tubular, pipes and scaffolding materials, roofing materials and trusses, cement, paints). You can assure that you are dealing with lowest price as we dont have the middle man. Please contact JTP Trading and construction at 09668801300

Hello sir; I want to start a hardware business please help me to get it. Thank you.

I’m very much interested. Hope to talk with ur contact person. Tnx

I am OFW working in Saudi Arabia looking construction supply source. I have plans to start a construction supply business. Anything that you can do for me, I appreciated.

You may contact also in my personal email

Hi,I would like to start a Hardware business but dont know what to do first?

I want to start a hardware in bulacan appreciate all the tips and advices

I want to start a hardware in tuguegarao city ..please give some tips and referrals for suppliers.. How much capital do I need to start the business. Thank you

Requesting for sone suppliers as whokesalers and or manufacturers of construction materials and other items as i am planning to put up one in Sibul spring, san miguel, bulacan as soon as i retired this year. Thanks for any ibformation

Mr chua im trying to contact you but you didnt answer.thank u

Isa po ako sa nag tatarabaho sa hardware

Planning to do this kind of business in Nueva Vizcaya. Pls send me the best suppliers and wholesalers. Thank you.

hello Sherry, Let’s work things out, contact me @ 09178858823

Can you gave me email address of supplier for hardware.

pwedi po bang makahingi supplier kun meron

gusto ko po kasing magstart sa maliit lang muna Gods will…

This year me and my husband planning to start a hardware business in Odiongan Romblon. Can you please help us regarding the best supplier and wholesaler. I hope for immediate response. Thank you!

Is it possible to have this kind of business in zamboanga city? Pls let me know whose the best suppliers and wholesaler that i can count on. Thank you so much

i want to start hardware store in Guipos.please share tips on getting suppliers and managing inventory.thanks

Im planning to put up this kind of business.. san po ba pwedi mag order ng mga product for wholesaler

Are you planning to start your own HARDWARE BUSINESS today? Talk to us.

http://www.facebook.com/M.MineTrade

Hello sir; I want to start hardware business in Bacolod City. Please give me some tips a Whose the best supplier. Thank you

I want to start a hardware business in Sto. Tomas Batangas. I would appreciate if you could give me a list of reliable suppliers. Thank you

Pls give us a call, rest assured of the lowest price.. 09668801300

Anyone could provide me reliable suppliers and wholesalers.

Davao city ecoland.. Yes can we ask a supplier for this area

Nakakuha naka supplier mAam? Taga agusan ko ma’am here’s my email [email protected] need pod nako supplier

Pls give us a call. Rest assured that you will get the lowest price for building materials. 09668801300

Hello sir, nationwide ba yung delivery nyo? Iloilo in particular. Thanks

Hello sir, nagsusupply po ba kayo in QC area?

The article is so great. I’m planning with my philipina girlfriend to establish a sustainable hardware business in Philippine. Please advise. Thanks. Michael.

Can give us some of the supplier company for easy transaction Thanyou.

I’m planning to start hardwear Business in Escalante or Bacolod by 2021 I need some help by that time…Thank You!

Let’s work things out @ +919624649324

I’m planning to start hardware business in Pangasinan. I have already a store located in our lot and along MacArthur highway. I need some help. Thank you

How to look for realiable suppliers for hardware business and were I can find wholesaler in terms of hardware supplies?

I want to have a hardware business in my place

we are planning to open a hardware business in pembo makati can you pls give me a contact for the supplier and any seminar to be attended.

Hi there. I am planning to put up business for Hardware and construction supply in Pura Tarlac. Please help me to find suppliers to deal with and who could help me to guide and start the business.. thanks in advance.

im planning to have a hardware in bicol albay can you anybody refer some good supplier and how do i need to have for a capital to start

im planning to have a hardware in bicol albay can anybody refer some good supplier and how much do i need to have for a capital to start

Im planning to put up small hardware and construction materials business in mogpog marinduque,can you provide me supplier and how much capital needed.

Can you give me tips on how start a small hardware and construction materials,location is at mogpog marinduque.thank you.

I live in Butuan City. Please, send me some sources where to buy wholesale prices.

i want to franchise a hardware in davao can you give referrals and supplier

hello Janett, we cater Davao, and already have customers in your area and surrounding Cities, Tagum, Marbel and Gensan. looking forward to talk to you. 09178858823

Hello good afternoon, I want to start up hard ware and building materials business Southern part of negros Occidental, I have my own building already located in the prime location., just want to know if u have in negros area ..,

Hello sir, is it possible to put up in rural area, particularly panabo dvo norte

Im planning and dreaming of small hardware for a start in davao city. Do you have office here where we can meet up. Im interested in small hardware who knows it will be productive and bigger soon😀.

Thanks Gemarie

Hi Mr. Jan Chua,

planning to put up Hardware and construction materials here in Rodriguez Rizal. can you help me for some “tips” and suppliers for the said business?

i have plan to put up Hardware and construction materials here in Rodriguez Rizal. can you help me for some “tips” and suppliers for the said business?

Hi sir, I am planning to have a Hardware and construction business in Isabela would you pls direct me to a good supplier or will you able to work with me to supply my hardware and construction business?

Hello, i am from naga city,ill plan to start s hardware and construction supply, any suppliers recommended?

I need a supplier for may newly open hardware store

Good article, want to know more about this hardware business i think it was a good business to our province. In nueva ecija

Hello , i am Jun from bacolod city i have a plan to start a small hardware and constuction supply can you give me I need some help and advise on how to start and how much the capital

Hi i’m Jun from bacolod city i have a plan to start a small hardware and constuction supply business can you give me I need some help and advise on how to start and how much the capital

I’m looking for a hardware and construction supplier as i am starting a business of this kind..Pls can you help me find a supplier..TIA

hello Ms. Nora, wholesaler of hardware and construction, lets talk. 09178858823

Meron po ba kayong presto sa Albay or Cam Sur?

Please give me details and pricelist. This is my number 09178287569/09199584533. Thanks

Thank you for the reply! I will contact you soon..i’m in Canada and my niece is looking after the business but i would prefer talking to you Sir.

I’m planning to start a hardware business at Pag-asa, Binangonan, Rizal. Please help me to be referred to the good suppliers.

Im from diffun quirino.i woukd love to start this business to thanks

30 years in wholesale of hardware and construction, contact me: 09178858823

Do you cater customers in Iloilo. I just recently open an small contruction supplies outside the City. We are looking for supplier to provide us for all kinds steel bars, hollow sections, plywood, and etc.

Regards, Jessie

Hi po. I’m planning to start hardware in Bicol area. Is there possible suppliers po around albay for wholesale supplier. Thanks po.

I’m planning to start in Bicol Area, Is there possible suppliers around Albay? Thanks! For wholesales

hi! I’m a wholesaler of hardware and construction items. 09178858823

Good day sir. I just open my hardware store and I need a supplier. Thank you.

I need whole seller hardware and Instructions materials misamis oriental area

Hi Jan. Interested to put up a small hardware store. Can u help me more info, or any step by step guide how to proceed and any recommended suppliers I can approach.

pa assist naman po. Interesado po ako sa negosyo

good pm sir pwede ba humingi price list?thank you this is james from bulacan planning to start hardware business next year.

09665494553

May ilo2x area po ba kayo sir?

hi! any known wholesale supplier near calaca batangas?

Hi! I’m looking for direct suppliers of Construction materials asap. I’m putting up a hardware in Quezon City.

hello i want to start my hardware business in guimba,nueva ecija…. my capital is 1000000P,, i need wholesaler and how to start? my location on the highway

many thanks

Im planning to start hardware business in davao del Norte, particularly in Panabo, Carmen and Tagum City area. To start up i need supplier, distributor and wholesaler and i will assure for a long term business relationship.. I reach thru my mobile nos. Smartline: 0948-320-6148, globeline: 0977-249-1837.

saan ang area of coverage ninyo sir? thanks

Hello everyone! Im from Antique and i wanted to put up a hardware store in our area.hope to find a reliable and competitive supplier so that i can stand against other giants. Thanks for whoever will respond. Hoping for a positive feedback and reply.

I’m planning to start a hardware business in laguna…is there anyone here can give me some information about this business.?

I’m planning to start my hardware business in pampanga , the place is not to busy it’s just in the barrio but contain lots of houses and people living in. Would you think this will click?

Hello, I’m planning to start hardware and construction supply business in Balamban, Cebu. Can somebody share their start up knowledge and strategy? Also wholesale suppliers please.thank you.

I want to start a hardware business in Sindangan , Zamboanga del Norte. I have already the building and the big space for the extension of the building and parking area.

I’m planning to put-up small hardware and construction store here in Longos, Malabon..Can you please help me to find reliable supplier…thanks to your reply..

It is possible to have this kind of business in Zamboanga Sibugay province, let me know the best supplier and contact number, or any email address to contact,

I want to have this business in Pasig

I like to have this kind of business here in tacloban city..need more ideas about suppliers. Thank you

Can you please recommend a best supplier of construction materials? I am planning to start a business here in Nueva Vizcaya?

Hello.. we are planning to put up a hardware store in zamboanga del sur.. Any advise on what to purchase first?

Hello! I’m planning to put up this kind of business. Anyone here who can reffered to me a supplier? Our location will be in Pangasinan. Thank you.

I am planning to start hardware business at Mangatarem Pangasinan. Could you please guide, and help me to be referred to the best supplier. Thanks God Bless

Hi there. Im planning to put a hardware business in Binan Laguna. Tips ang advice will be highly appreciated. Thanks

Good day! Planning to start up hardware business here in Baguio—though having second thoughts coz numerous hardware are already operating. Still thinking of something unique to offer–hope you can help me out….

Can you assist a wholesaler Or Direct suppliers OF hardware And construction materials in Iligan City And Cagayan de Oro. Thank you

I want to start a hardware store in Bulakan, Bulacan. Pls. give me some advise an a good supplier.

Hello guys,

The popular Marawi City will start its reconstruction. Citizens will move forward to bring another city that is complete with facilities. Marawi now is peaceful and open. I am constructing a hardware business situated at the Capitol area and the Philippine Army Headquarters. Any interested suppliers to go business with me and my wife, please contact us.

GM Ashary Maongco

Interested to start retailing at bacolod,

Hello sir i am intetested in hardware and construction supplies business. I am from butuan city, i need your help

Hello will you please give me a tip how to start the business hardware

Planning to do this kind of business in MaganG, Daet, Camarines Norte. Pls send me the best suppliers and wholesalers. Thank you.

Hello I’m planing to start a hardware business in pakil Laguna can you please help me for the supplies thank you so much

My partner is interested in hardware and construction supplies business.

Hope you could give us tips or idea to make it possible.

We still have second thoughts because lots of competitors are already operating.

We are from Lapu-lapu City, Cebu.

Your feedback will be greatly appreciated.

I need supplier for a hardware business in quezon province,can u provide me one with the cheapest price.thank u

planning to put up that kind of business..pls give us some info. on the manufacturer n supplier at low price…thanks

i am planning a hardware here in samal islanmd davao del norte any advise where to find nearby wholsale

Hi I want to start a hardware business in Bulacan. can you help me about that.

My desire to put up and start Hardware Business in our hometown Gonzaga Cagayan.

Im looking a direct manufacturing suppliers to start with.

I hope you can help me start a harware business.

Hello good day..I am planning to put hardaware business,,please help me..location Bayawan,Negros Oriental..Is there possible supplier near? THank you..God bless..

hello i am planing to set up a hardware store in kalibo aklan can you advice me if there is a supplier for materials near by

I want to put up a hardware and construction supply in Victoria, Tarlac. Please give referrals of suppliers in the area. Thanks.

good day,after the ECQ lockdown i will open my Hardware and construction suooly business here in Camarines Sur,i have my own warehouse and location already.Pls.suggest name of supplliers and contact numbers.thank you

Hello. I am a young professional in Cainta with a stable income that’s far from being able to fund a small hardware but I have a burning passion when it comes to doing business in the hardware industry and am looking for possible arrangements to start operations, partnering with a willing supplier to support supply of all products and ofcourse with bigger returns of your investment. In short – I do not have the products, but I can sell. If anyone here is willing to partner, you may reply to this comment and I will respond to you as soon as I can. I am also open for anyone wanting to share knowledge or best practices when starting this business. I appreciate you all!

Hi! I’m planning to start a hardware and construction supplies business in the nearby town of Cagayan de Oro City. Any help is appreciated! Thanks

Hello Sir, Can you help me with a Direct Suppliers of Hardware and Construction materials. I’m from Sorsogon city. Thank you

Have a blessed day .Kindly assist us on how to put up a Hardware buseness in Camarin Caloocan. Where do we get a whole products for hardware items. Thanks po for the sharing.

Have a blessed day !!!.Kindly assist us on how to put up a Hardware buseness in Camarin Caloocan. Where do we get a wholesale products for hardware items. Thanks po for the sharing. God bless.

Hi sir, I’m planning to open small hardware in cabatuan city. Pls give me tips and strategies how to start, manage and make it grow. Thanks a lot

Hello. Really interested in starting a hardware. May mga pricelists po ba kayo for reference ❤️ super thank you po.

Any suggestion please for good hardware supplier (wholesaler) for Maramag, Bukidnon?

how to be distributor of roofing and steel or aluminum materials .and im planning also to build hardware for the stocks.

Hi Sir, I’m planning to start a hardware business here in Cebu. Would like to seek for advice. Thank you

Hi sir, I’m planning to start a hardware business here in Cebu. Would like to seek for advice. Thank you

I would like to start a small hardware business can anyone help me to find a trust worthy supplier? thank you.

I would like to interested to open in bulacan.

Hi, Am planning to set up hardware in tuguegarao. Can you help find suppliers or manufacturers for the materials needed? Thank you and appreciate your assistance.

Need hardware/paint suppliers for Cadiz City Negros occ.

Hi i want to start hardware business in esperanza sultan kudarat can you give me direct supplier or distributor

Teach me how to buy direct supplier gor hardware

IM planning to start hardware and construction business in Aklan. Please Let me understand what basic things I should sell first? Need advise. Thanks

I am planning to set up a construction supply in Nueva Ecija. Could you pls share some advises and tips in running the business, also where to get supplies. Your response will be much appreciated.

Hi! I’m Licel Supplier of lumber Pls. Contact 0997-977-5825 0925-514-1071 Thanks!

Hello i’m planning to start an Hardware Business in San Jose Northern Samar, can you guide me if where i can find suppliers and much better consignment.Thank you

hi i want to start hardware and construction supply in Sta. Barbara, iloilo. would like to seek for advise and can help me to find supplier or manufacturer. thank you

hi i want to start hardware and construction supply in Sta. Barbara, iloilo.

I want to start a hardware in Tulay na Lupa Labo Camarines Norte

Hi, Im planning to start my hardware business ni Iloilo. Do you have a recommended supplier/manufacturer? Thanks

Hello, I am a public school teacher here at palawan. I want to start a business in my home town, narra. I’d like to try putting up a small hardware store in my barangay. I’f like to ask if I can make it with a 350k capital?

Hi! If you are still interested contact me 09062305049

hi, we are planning to start hardware business in mindoro. can you give me supplier details for the basic materials, plesae

I’m considering to put up a hardware store but i do not have any idea on start up to operate but this is one business i consider.

I want to start a business hardware in zamboanga city.. please help me ..

I want to start a hardware store in Taytay, Palawan. Can you give me some supplier contacts from Puerto Princesa, Palawan please.. Thank you

I am planning to start business in the Philippines located in Quezon Nueva Ecija ,Would you give me some details or which can i get the best product to sell it in all my kababayan!

Hi Sir Jan, Im planning to put up a hardware business in Castillejos, Zambales, I would like to your adivse on how to start the business and suppliers. Thank you

Interested in Hardware business. can somebody help. Location : General Santos City

Hello planning to have one store although marami kalaban dito s area namen me and my son wanted to try atleast. thank you 09171892912 contact us please..

I need supplier for a hardware and construction supplies with the cheapest price here in quezon,can u provide me one?

Hello! We are interested at starting a small to medium scale hardware business in Camarines Norte. Can you kindly share with is list the cheapest suppliers for Civil, Mechanical and Plumbing works? Also, can you kindly share with us a start-up operational plan? Thanks in advance for your help.

Hello! We are interested at starting a small to medium scale hardware business in Camarines Norte. Can you kindly share with us a list of the cheapest suppliers for Civil, Mechanical and Plumbing works? Also, can you kindly share with us a start-up operational plan? Thanks in advance for your help.

i need Wholesaler Fulgencio Norte Balete Aklan

Roxie Hardware 09461365038

im about to start a small Plumbing and electrical supply and services in Sucat Paranaque and i need PVC Fittings a nd electrical supply can anyone close to my area could supply these type of items?

we will soon open (as early as 1st quarter of 2021) our Construction materials and supplies here in Bobon, Northern Samar. Pls, help us on the details of managing & operations. And also help us find direct supplier/distributor with or offering consignment (15-30 days)

I already have one but its hard to find a supplier will able to help me pls.. im from Bangui Ilocos Nprte.. thanks

Need your tips/and for a wholesale and retail supplier for hardware materials details and contacts, please. Possible location San Pedro Laguna.

Thank you & God Bless

How to start a hardware business in San Isidro Nueva Ecija. Can you give me suppliers contacts regarding this business.

Hi good day! I have plan to open hardware and construction business.i’m looking a supplier in good price. Here in north cotabato please free to contact my # 09952593069 thank you.

I would love to start a hardware store and construction business please help me how to start and where to get the supplies , location is in Bailan Rizal Pontevedra Capiz thank you very much

All hardware products dealership

I want to start a Hardware business in Canlaon City Negros Oriental. I would appreciate if you could give me a list of reliable suppliers.

Good day! Anyone can provide me a reliable suppliers and wholesalers for my hardware and construction supply.

I’m planning to start a hardware and construction supply business here in Sto. Nino, South Cotabato. Is there any supplier or distributor that is near to our place, with cheaper price?

Planning to open a small hardware store in Surigao City. Could you give us a list of wholesalers who could give us the cheapest price. preferably supplier in cebu. Thank you.

Good morning sir …i also planning to start up small business in mamburao ocv.mindoro im also interested in hardware business can u plz guide us for more information regarding thos matter …thank you stay safe and godbless po

Good day. I am planning to open a hardware store in Laguna or Batangas. Can you help me about the suppliers of interm . Thanks.

Hello, I am planning to put up a hardware here in Iloilo. May supplier po ba dito? Thanks

Looking for supplier of hardware, electrical supplies. please email me your pricelist and proposal at [email protected]

Is there a short course on How to start a Hardware Business?

Preferable in Cebu or in Mindanao

I’m planning to put up a Hardware Business in Bunga, Toledo City. Cebu and in Tagoloan, Misamis Oriental. Each has at least 500k initial capitalization . Can you help me find suppliers?

uhelp me find C

I want to start a Hardware and Construction Supply Business in Marinduque, Can you please suggest or help me find good suppliers nearby. Thanks

I’m planning to put up a hardware store in Occidental Mindoro with at least 500k capital. Can someone share the list of suppliers nearest?

We are planning to start a hardware Business here in Bohol, can you help me find good suppliers nearby?

hi im planning to put up a small hardware in cavite. pa help naman sa list ng supplier. thanks!

I want to start in Camsur Presentacion

Please any supplier for steel sheets, pipes, scaffolding material, cement, and roofing materials that dealing with lowest and competitive price please be in touch and send your proposal [email protected] hardware owner in Bicol area.

Please any supplier for steel sheets, pipes, scaffolding material, cement, and roofing materials that dealing with lowest and competitive price please be in touch and send your proposal [email protected] hardware owner in Albay Bicol area.

I want to start a mini hardware in my place at Inaghuban Pilar Bohol please enlighten me about this business need the supply’s

Hi any supplier , insights about this business supplier planning to open business here in Bani Pangasinan thank you

Hi, I plan to start an Aluminum and Glass business at Bacolod. Looking for suppliers for such.

Hi, I plan to start an Aluminum and Glass business at Bacolod. Looking for suppliers for such, not necessarily located at Bacolod.

Hi, I am planning to start a Hardware business as I have started already my Hollow blocks, gravel and sand business. Can you guide me by providing suppliers/list of fast moving materials/and estimated capital.

I have small stall 4×13 meters, located along the highway and seems good location for the business.

Thank you for your time

Regards, Marlo

Hi!I’m planning to start a hardware business here in Cavite and now I’m looking for direct supplier I hope you can help me to find a good and reliable supplier. Thank you in advance!

Hi Sir/Mam, I’m planning to start construction supply business in Bacnotan, La Union, How and who will be ir where we can get a goid and reliable supplier, thank you very much Sir/Mam ang God Bless po…

is there anything that i may called a micro hardware? i have a limited capital.. and i want to start small.

Hi. Were planning to start a hardware business, ayaw from the city in masbate and ayaw from the construction supply from the location that already have it.

Gusta sanang magtayo Ng Ng maliit na hardware kailangan ko po sanang Ng mapagkukunang Ng wholesale na supplier thank you po

hello. we are planning to start a business which is a hardware store. I am looking for a direct supplier. can you pease help me. thank you in advance.

Hi Sir/Mam, I’m planning to start construction supply business in Marikina, How and from who will I be getting goods and reliable suppliers, thank you very much Sir/Mam. God Bless po…

Sir please send me the direct information whom I should contact regarding supplier. I’m in Albay bicol region Thank you

Im planning to start up small hardware business in Cauayan Isabela specifically in Minante 2.

Please give me and advise

Am starting a hardware store. Anyone here a distributor within Central Visayas area?

Is there any wholesalers & suppliers can supply to E. Samar? Need help & suggestions for I am planning to open a hardware & construction supply. Thanks

Hi,I am planning to put up business for Hardware and construction supply in Montalban, Rizal. Please help me to find suppliers to deal with and who could help me to guide and start the business.Thanks.- JENNY.

Hi.I am planning to put up business for Hardware and construction supply in Montalban,Rizal. Please help me find suppliers to deal with and who could help me to guide and start the business.Thank you.- JEN

Hi,We are planning to put up a business for hardware and contruction supply in Montalban, Rizal.Pls can you help me find a good and reliable wholesaler, distributors & supplier to deal with. Thank you.-JEN.

planning a hardware/construction business in san enrique negros occidental

Planning to start a hardware and electrical supply in Bukidnon. I’m looking for suppliers that could help me.

I have started my small hardware business here in lipa, batangas. I am looking for wholesale price hardware for some assorted materials, that could be added to my retail store.

I have started my small hardware business here in lipa, batangas. I am looking for wholesale price supplier for some assorted materials, that could be added to my retail store.

Hi meron ako small hardware business , naghahanay po ako nang supplier, please contact me [email protected] ,

Hello ma’am/sir, need a permanent supplier for construction material with the lowest orice, here in san jose, dinagat islands Contact me: 09105569470

I am planning to have a small hardware business in Kalaisan Kidapawan Cotabato

Im planing also to open hardware store can you also help me and where to find supplies? thank you

Dear Sir, I’m thinking of setting up a small hardware Construction supply business on our area in Zamboanga City. Appreciate your feedback regarding minimum investment and suppliers.

Regards Mannan Alam

Hello good day Sir/Madam, I want to start a small hardware store in my place. Can you pease give me some direct supplier or wholesaler store that I can avail my store’s needed…. I am from ISABELA region 2 Philippines…Thank you for your kind support..

any hardware direct supplier, wholesaler or secondary distributor please contact me asap..planning to put up hardware soon thanks…. +639770312354

I am planning to have a small hardware business in palompon leyte

any supplier near Bustos Bulacan?

I am planning to have a small hardware business in LLanera Nueva Ecija i need supplier please

I am planning to have hardware business in LLanera Nueva Ecija i need supplier please

Hi, I am planning to start my Hardware business in Nueva Ecija. Could you please give some ideas and a good and trusted supplier.? We can communicate via email.

Hi Planning to put up hardware/construction business in my hometown Borongan Eastern Samar. Anyone here who can give me idea how much is the minimum starting capital & also any friendly budget suppliers here?

Supplier of hardware and construction materials. Pls contact: +919714890018

fastener factory from China,please contact:+86 15227461601

I can give wholesale price for hardware materials for inquiry pls email [email protected] 09674728551

For those looking for hardware supplier kindly leave your email so we can send you the price list

For inquiry you may send me an email [email protected] Thankd

Hallo sir Jan, I would like to start my own hardware business,nearby lanang area davao city,will you help me to figure it out,do you know the updated prices of hardware materials.

Want to start hardware is general trias cavite

FOR CONSTRUCTION MATERIAL SUPPLIER CONTACT ME 09190089607

I want to be started a small hardware business. please tell something on how to be starting. than you

Hi planning to start a small hardware here in Bohol? Any tips for a supplier/manufacturer of hardware supplies esp in Cebu?

This is Layden, residing in Qatar, and planning to open a start-up hardware and construction materials supply in Picong, Lanao del Sur. Any help. Please email me at [email protected]

Hi this is Lani. We supply cement and paint in Cavite and Laguna. You may contact me at 09476325819 for more details.

Viber # 09753785193 Email [email protected] Cp # 09476325819

We supply cement and paints in Cavite and Laguna.

Sir Jan, I’m planning to start a hardware business, can you provide me some information and prices.

I want to star hardware business in my barangat at lebak sultan kudarat.can you gave me direct supplier? Also for gasoline station supplier.09397370348

hello Sir Jan please sebt me the information data how to start up harware business please sent me any information how to atart And you email me [email protected]

Planning to start a hardware business in Castelijos, Zambales. Can you please assist me regarding the best supplier and wholesaler. I hope for immediate response. You can reach me MOB.nos.09284282738 Thank you!

Leave a Reply Cancel reply

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

Save my name, email, and website in this browser for the next time I comment.

Check These Related Posts!

Find Us on Facebook

Price Drop! Food Carts Starting at 39k!

I've traveled to 9 out of 10 countries in Southeast Asia. Here are the 5 biggest mistakes I made along the way.

• I've traveled solo to nine countries in Southeast Asia.
• I've made many mistakes, from traveling during monsoon season to forgetting to bring enough cash.
• Travelers should make sure they plan ahead and research each country's culture.

Over the last two years, my journey as a travel enthusiast and Business Insider's travel reporter in Singapore has brought me to almost every country in Southeast Asia.

In total, there are 10 countries in Southeast Asia , and I've traveled to nine of them — Singapore, Philippines, Malaysia, Vietnam, Thailand, Indonesia, Cambodia, Laos, and Brunei. Myanmar remains the only country in the region I have not visited, and while I am keen to explore it, I have held off on visiting because of the country's ongoing civil war.

I've watched the sun rise in Angkor Wat in Cambodia and cared for elephants in Chiang Mai, Thailand. I've explored the Bornean jungle in Brunei and crawled the Cu Chi Tunnels in southern Vietnam.

But it hasn't always been easy. I've made several mistakes traveling across the region , especially as a solo traveler. Here are five mistakes I made and how to avoid them.

1. Going during monsoon season and not planning for the weather.

In July, I traveled to Thailand on a reporting trip to cover the budding cannabis industry . There, I was met with heavy rain nearly every day. In Bangkok, I was staying in a hostel in Chakkrawat , a district with narrow, meandering streets, which made it difficult to walk anywhere in the pouring rain.

I didn't plan for the weather, so I didn't have an umbrella or poncho with me and had to rush to get one at the last minute. I also had a packed itinerary with a lot of travel between meetings, which was a hassle in the constant downpour.

Before traveling to Southeast Asia, make sure to avoid two seasons — the monsoon season, which often comes with strong typhoons in countries like the Philippines, and the burning season, where farmers burn land for fertile soil. This is a common occurrence in countries like Laos, Thailand, and the island of Borneo, which is shared between Brunei, Indonesia, and Malaysia.

When I traveled to Laos in April last year during the burning season , most of my plans — including a hot air balloon ride — were canceled because of the thick smog. I also didn't have an N95 mask with me, and I ended up with a sore throat.

If you do plan to come during these seasons, make sure to pack accordingly and plan a flexible schedule.

2. Traveling during Ramadan and expecting the same practices everywhere.

Having grown up in Singapore, I'm familiar with the practices during Ramadan , the holy month for Muslims, where they fast for most of the day. I studied Malay for seven years, and in school, I often fasted with my Muslim classmates and ate only in private.

Still, in many cities in Singapore, Malaysia, and Indonesia , non-Muslims are free to dine in public, so long as they do so respectfully. But on my trip to Brunei in April — at the height of the burning season and in the middle of Ramadan — there were more practices I needed to observe.

Most restaurants were closed, and diners weren't allowed to eat there even if they were open — only take-out was allowed. Eating in public was a major faux pas even for non-Muslims, and if you want to drink some water, you can only do so when nobody is around.

It wasn't easy, especially as Brunei was sweltering at 100 degrees Fahrenheit on some days. I made do by returning to the hotel for lunch and grabbing a big dinner with the locals at the night market after they had broken their fast.

3. Not packing enough modest outfits when visiting temples and mosques.

Southeast Asia is pretty liberal, and you can wear whatever you want in many places. In popular destinations like Phuket, Thailand, and Bali, Indonesia, lots of tourists walk around in bikini tops and shorts, and locals mostly tolerate it.

But there are certain places you do need to cover up, like places of worship, which include temples and mosques. When I visited Angkor Wat — the famed temple complex in Cambodia — in February last year, I found some tourists being told off by the local tour guides for wearing shorts and tank tops — "Tomb Raider" style.

I've learned to err on the right side of caution and bring a sarong wherever I go. It's an easy way to cover up and make an outfit more modest when you need to.

4. Forgetting to pack medication, especially when I plan to eat street food.

Southeast Asia has some of the world's most flavorful food. In every country, you can find food that is cheap and delicious, and that includes Singapore , the world's most expensive city. In countries like Malaysia and Vietnam, street food dishes can cost as little as a dollar.

I eat mostly street food when I travel in Southeast Asia, so medicine for tummy-related illnesses is a must. I've only gotten sick twice from eating street food — and it was the same dish both times— and unfortunately, those were the few times I didn't have medicine with me.

I'm a pretty adventurous eater. I've eaten everything from pufferfish stew to frog porridge and dishes made with intestines off the street. I've learned to wash the utensils provided before digging in and make sure the food is cooked to order and heated up before being served.

5. Relying on my card and not bringing enough cash with me.

In Singapore, I don't really use cash and often use Apple Pay, mobile payments, and cards. But I've found that many stores in other countries in Southeast Asia only accept cash.

For example, on my third trip to Vietnam, I spent an hour trying to make payment via bank transfer after the staff at a luxury perfume shop — which was selling items priced upwards of $200 — informed me at the last minute that they didn't accept card or contactless payment.

I've also found the majority of street vendors in the region only accept mobile payment — which is limited to local banks — or cash. I've learned to change a considerable amount of money before leaving the airport and keep whatever I didn't use for my next trip.

• Main content