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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

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• Category: Small Business Energy Savings
• Published: February 25, 2021
• Updated: March 17, 2022

How to Estimate Utility Costs for a Small Business

As a small-business owner, you know that making a profit has a lot to do with how you manage expenses . And utilities make up a big part of that overhead. Especially if you’re trying to get a startup off the ground, knowing the typical utilities cost for businesses like yours will be critical to the success of your business plan.

But even if you’ve been in operation for years, it’s a good idea to get a handle on what your business utility costs are. That information can make you nimbler and better able to improve efficiency and find savings — from month to month and season to season.

Understanding the typical utilities cost for businesses

The average cost of utilities in a commercial building, specifically with regard to energy consumption, is $2.14 per square foot . Lighting and HVAC systems tend to be two of the biggest factors for most companies. But how much utilities cost for a business like yours will depend on your industry and the specific nature of your work. For instance, energy expenses from major appliances will probably be higher for a restaurant than a retailer, and a florist is bound to use more water than an accounting firm.

It also helps to define what we mean by “utility.” Some are energy-related, but not all. For small businesses, utilities include the following:

• Electricity and natural gas
• Water and sewer
• Garbage pickup

How to calculate utilities for a small business

Creating a utility cost calculator for a business will be easier and more accurate if you’ve been operating for at least a year. That data is particular to your small business and is therefore more useful. But with some research, a startup can build a utilities estimator that can help with forecasting and planning. And then, after some time has passed, you can adjust your strategy by using your own bills as input.

1. Gather all your utility bills

Established small-business owners will want to gather their utility bills over a set period of time. The billing periods may differ — for instance, electricity bills tend to come monthly, while water and sewer bills may be issued quarterly. Ideally, you’ll want at least a year’s worth so you can capture the seasonal changes in costs for various utilities in your small-business calculation of energy expenses.

What to do if you’re about to launch a business and don’t have utility bills yet

If you’re still working on your business plan, you can put together an estimate on office utilities for the year by using publicly available averages (like $2.14 per square foot for energy expenses, as noted above). Or, if you plan on starting a brick-and-mortar business, you could reach out to a property’s real estate agent or former owner for the data you need for your utilities estimator.

Contacting each utility can also get you that information. Services like garbage pickup, phone and internet are often offered in standard packages, and electric and natural gas costs can be estimated based on property size.

2. Add all your utility expenses together to find your total utility costs

Adding the totals of all your bills (or estimates of bills) for your chosen period of time (such as a year) is how to calculate utilities for your small business. Special software can help with this, but even basic spreadsheet apps can be effective. And beyond just arriving at a grand total of utility costs, you can also compare monthly, quarterly or seasonal totals to look for patterns.

For instance if you were interested in what the business utility costs were for October, and wanted to compare it to January, you may notice a big difference in how much you spent on heating. If you have no bills yet and are only working with an estimate of office utilities for the year, you can still predict needing more heat in winter and air conditioning in summer, and budget accordingly.

3. Compare your total utility expenses to your overall costs for the period

Once you’re satisfied with the quality of the data from the utility cost calculator for your business, the next step is to compare the grand total (and subtotals) to your overall costs over the same period of time. Your expense total will be the sum of your total utility expenses and the remaining business costs, like office space, equipment, vehicles and their fuel, payroll, advertising, insurance and other supplies and services.

Comparing those totals can put your utility expenses — especially your energy usage — in perspective. And if you’ve also created monthly, quarterly or seasonal subtotals of overall business costs, you can see the changing impact of your utility expenses over time.

How to project energy costs vs. total operating expenses before starting a new business

You’ve answered the question “How much do utilities cost for a business like mine?” Now, you need to estimate your overall costs for your chosen time period (such as a year). The U.S. Small Business Administration has several resources that can assist you in projecting those expenses. Some figures — like rent, insurance or fees for licenses or permits — will be fairly easy to obtain and plug into your calculations. For other, less-cut-and-dried costs, such as payroll or marketing, it can help to reach out to similar businesses for input. Once you have your total operating expenses, you can examine how your startup’s projected utility costs stack up against them.

How to calculate your business’s utilities percentage

When examining the cost of utilities for your small business, the calculation should also show it as a percentage of overall costs. You can calculate the percentage of utility costs to overall costs using a simple online percentage calculator . Or you could do it yourself, following a few simple steps:

• Divide the utility costs by overall costs. You will get a decimal amount of less than 1.
• Multiply that decimal amount by 100 to get the percentage. You can round off as necessary.

For example, if your utility costs for last year were $30,000, and your total operating expenses were $300,000, your percentage of utility costs vs. overall costs would be 10% (30,000÷300,000 = 0.1; 0.1 x 100 = 10).

You’ve estimated the utility costs for your business — now what?

Congratulations! You now have a good idea of the impact your utility expenses have on your small business. This is invaluable information to have as you budget for the coming year, and specifically quarter by quarter, or even month by month.

You can also dig into that data to look for inefficiencies and savings. For example, as you break down your energy price , you may realize that your energy plan isn’t working for you as well as it could, and decide to change your energy procurement strategy . Perhaps you’ll realize that you’ve been making some energy mistakes , like using older, inefficient lighting and appliances. Or you may see how changing your business hours or better preparing for winter and summer temperature extremes could reduce costs.

Why should you track your small business’s utility costs?

Knowing how to calculate the utilities for your business is useful for the purposes of annual planning. But actively tracking how much you spend on utilities, especially the energy-related expenses, can also be valuable. There are many benefits of calculating utility costs regularly:

• Make your business nimbler. The sooner you know about changing costs, the sooner you can try to address them. For instance, if you see a spike in the number of kilowatt-hours your business used in last month’s bill, you might be able to pinpoint the reason and take cost-cutting measures.
• Spur innovation. When you think about a challenge more often, solutions will come to mind more quickly. Many small-business owners turn to smart technology to help with automation or monitoring their energy usage .
• Avoid paying for errors. Mistakes happen; even utilities make them on occasion. Paying attention to irregularities in your statements can help you get them corrected ASAP and avoid potentially overpaying.
• React quicker to rate hikes. If you’re just paying your bills without studying them, you may miss price changes. And then you would be paying more money over a longer period of time than if you made an early decision to go with a cheaper competitor.

Once you know how to estimate the utility costs for your business, try to make it a regular habit. That information gives you valuable insight into your operating expenses in both the near and long terms. And the more you know about your costs, the more power you have at keeping them under control — like reducing your business’s energy consumption — ensuring that you consistently turn a profit.

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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.

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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.

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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 .

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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.

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Supply Chain Management Business Plan Sample

NOV.28, 2014

Do you want to start Supply Chain Management Business?

Do you want to start a supply chain management business? Well that can be an amazing idea if you want to quickly start a business. One of the main reasons is that this supply chain business plan will not need you to have any specific technical knowledge or degree. You can start this business with just a few contacts and grit.

Even though it is relatively easier to start a career in supply chain management, it still doesn’t mean you should go in unprepared. The best thing you can do is go through a business plan for supply chain management. You can get a business chain management plan supply from anywhere on the internet. And if you want, this document is also a great place to look for help supply chain business plan .

Executive Summary

2.1 the business.

Clark’s Management will be a supply chain management startup owned by Clark Bridgers. The main objective of the supply chain business plan is to guide and assist companies in streamlining their supply chains in Oakland. It will offer versatile resources and services for the best supply chains.

2.2 Management of Supply Chain Management Company

To ensure that your company is well managed, you need to develop a supply chain management business plan as the first step.

In this supply chain strategy model, we will including all the important aspects of a business for buy side due diligence .

In order to make your supply chain business plan , you can study a sample pdf of supply chain management like this one. You can also use the internet to go through a plan for supply chain management filetype pdf. These will give you a good idea of what you should include in your supply chain business plan . And this will apply even if you are developing a business plan for video production .

2.3 Customers of Supply Chain Management

Our clients will be from all industrial and professional domains since supply chain is a part of the lifecycle of any product or service. Keeping that in mind, our recurring customers will include:

• Product Businesses
• Service Businesses
• Hybrid Large/Small Businesses
• Manufacturing Units

2.4 Business Target

The primary goal of our supply chain business plan is to become the most reliable and trusted option for our clients whenever they want to improve their supply chains.

The financial targets that we aim to achieve in the first two years are shown below:

Company Summary of Supply Chain Management

3.1 company owner.

Clark Bridgers will own Clark’s Management. Clark completed his Bachelor’s in Management about 3 years back. After his studies, he pursued a job in a corporation as a business management consultant. But he left job in pursuit of starting his own supply chain business plan .

3.2 Why the Supply Chain Management Company is being started

Clark observed that a lot of businesses are looking for ways to reduce their production costs. But there are very few businesses that offer any help in the area. He quickly realized that he could use his innovative ideas and knowledge to improve supply chain management for these companies.

3.3 How the Supply Chain Management company will be started

Step1: Plan Everything

Before you look into things like what is supply chain strategy definition, you need to consult supply chain business plan experts. They will guide you in development of supply chain organization models.

Clark decided to offer his services to both service and product based companies. So, you can use this or any related supply chain management project report pdf to get started with your own supply chain business plan . These documents will help you understand the role of supply chain management in business plan.

Step2: Define the Brand

A crucial step in starting a new supply chain business plan is to get noticed. You will have to identify and highlight your core values and market those to your potential customers to gain attention.

Step3: Establish a Web Presence

The most important part of any business in the digital age is online promotion. For this, Clark decided to establish social media presences for his supply chain business plan . He also decided to outsource a simple website through which people can book appointments and reach out.

Step4: Promote and Market

As the final step, you need to create and follow a marketing plan to promote your supply chain business plan .

Services of Supply Chain Management

When you are starting supply chain business , one of the major things you need to figure out the services you will be providing to your customer base. You can refer to a sample business plan supply chain management for an idea.

The requirements of supply chain management in a business plan is different as compared to other plans such as aerial tourism business plan .

But since Clark decided to provide a whole array of services so this example of supply chain strategy can also be used for other ventures like internet radio business plan . You can gain a lot of insight from this plan for operations and supply strategy.

• Identifying and Dealing with Logistics Problems

Our company will offer solutions to all basic problems that may occur in the supply chain. If, for instance, a customer complains about service quality, it can reflect poorly on the supply chain business plan . But our company ensures that most problems are identified beforehand through data analysis.

• Price Optimization

Many businesses offer products or services that are seasonal. Since seasonal offers are not needed throughout the year, businesses have to find a way to reduce their prices and sell them. Our company will help businesses set these marketable prices through analytical software. This will ensure that:

• Products are sold, and
• Business is still profitable
• Dynamic Resource Management

Businesses have limited resources. Our company will help businesses organize and allocate their resources such as equipment and workforce in a way that optimizes performance.

• Supply Chain Consultation

Our company will also provide consultation experts that can help businesses with supply chains reduce their costs and improve their performance.

Marketing Analysis of Supply Chain Management Company

When you are describing your company for supply chain management in a business plan, you will need to describe your customer base. Identifying your customers is one of the essential steps of starting a supply chain business plan . And you have to include this information in your plan even it is a business plan template for summer camp .

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You should have detailed information about your customer. And the best way to get these details is through a market analysis. The market analysis included in your supply chain development strategy, should have all information regarding past, present and future market trends.

The supply chain strategic management is used to analyze the market prices and to figure out the financial goals of your own supply chain reporting structure. You can use a supply chain management project pdf sample like this to see how the market analysis is presented.

5.1 Market Trends

According to ExploreWMS, the number of warehouse in US have grown by 6.8% in the last five years. This means that more and more companies need better supply chain management techniques and services. And due to the shift for efficiency, supply chain management positions are increasing faster than economic averages. So, there is no deficiency of demand in the market for a supply chain management or services.

5.2 Marketing Segmentation

The potential customers of Clark’s Management are divided into the following categories:

5.2.1 Product Businesses

Our main customers will be the product based businesses that rely on the sale of their products. Since the sale of a product is affected by a lot of factors in the supply chain so these businesses are more likely to regularly use our services.

5.2.2 Service Businesses

Our second target customers will be service providing businesses much like ours. Services are also provided as a result of a supply chain that involves ideation, planning and development as some of its parts. So service businesses are also expected to utilize our services quite often.

5.2.3 Hybrid Small/Large Businesses

Every supply chain business  works for an endpoint through a series of pre-defined steps. These steps form a supply chain even in hybrid (product and service) businesses. Since these businesses are usually big corporations with their own management departments so they are likely to use our services every so often.

5.2.4 Manufacturing Units

Manufacturing units on their own also require management tips to work more smoothly. They are expected to avail our services often to streamline their operations.

5.3 Business Target

• To become the best supply chain management company throughout Oakland
• To increase the range of our offered services over time
• To earn a net profit of around $30k per month by the end of the second year
• To achieve and maintain customer satisfaction above 90%.

5.4 Product Pricing

Our prices will be a little bit higher than the market average. But we will offer more services over a longer period of time as a compensation. This will help our customers more in the long run as compared to our competitors.

Marketing Strategy of Supply Chain Management

To gain attraction in a huge industry, you need to find areas where you have competitive advantage. For this, you need a solid marketing strategy and branding so that people can recognize your offers.

In the present supply chain management report template, we are describing the marketing strategy for Clark’s Management. You can also refer to an example such as business plan supply chain management to improve your business proposal. This is helpful even if you are just starting a paintball business .

6.1 Competitive Analysis

• We have amazing customer support available. We will deal with all customers patiently and also gain feedback for future improvement.
• Through our physical shops, website and social media, customers have different ways to contact us. And we will respond to them at the earliest.
• We will provide consultations and services in accordance with all the standard practices so that our customers can focus on their work without worry.

6.2 Sales Strategy

• We will advertise through word of mouth, Google Ads, Social Media, and billboards.
• We will provide long-term services in reasonable and market-competitive prices.
• We will also provide special discounts to first-time and long term customers.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan of Supply Chain Management

No business can run without the diligence of its workers. The success of any business actually depends a lot on the behavior of employees. Clark knew the importance of hardworking and patience workforce and so he developed a selection criterion for employees. This criterion will be a part of business plan for supply chain management.  You can also find examples of this in a sample business continuity plan supply chain management on the internet.

7.1 Company Staff

• 1 Co-Manager for overall assistance
• 2 Purchasing Agents
• 3 Logistics Analysts
• 1 Operations Manager
• 3 Planning and Expediting Clerks
• 2 Storage and Distribution Managers
• 3 Operations Consultants

7.2 Average Salary of Employees

Financial plan.

You can’t become successful by just selling products or services. To be profitable, you need to carry out a detailed financial analysis. Usually, like in this supply chain business plan sample, financial analysis is included. Every good supply chain management business plan has a thorough financial plan included.

In your financial plan, you need to show how you will cover your expenses with your sales and profits. You also need to identify ways to reduce your expenses and increase your efficiency.

We have provided a comprehensive financial plan for supply chain management business. But you can also refer it for business plan movie selection .

8.1 Important Assumptions

8.2 break-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.

• How do I write a business plan for supply chain management?

You can write a business plan for supply chain management by reading business plans like the one here or by consulting a business plan expert.

• What is supply chain in business plan?

Supply chain consists of processes that are involved in the production of a product or the provision of a service. And in reference to a supply chain business plan , it includes all the details needed to start a business in supply chain management.

• What are the examples of supply chain management?

Supply chain management is involved in all kinds of supply chains including product design, manufacturing, farming, packaging, and transportation etc.

Download Supply Chain Management Business Plan Sample in pdf

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.

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Business Plan Template for Utility Professionals

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In the fast-paced world of utility professionals, having a solid business plan is essential for success. Whether you're in the energy or telecommunications industry, ClickUp's Business Plan Template for Utility Professionals has got you covered!

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Use a Doc in ClickUp to write a compelling executive summary that captures the essence of your business plan.

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Use custom fields in ClickUp to gather and organize information about your company's background and key differentiators.

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Use the Table view in ClickUp to analyze market data, track competitors, and identify market trends.

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Use Goals in ClickUp to set and track your business objectives, ensuring that your team is aligned and working towards a common goal.

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Use Dashboards in ClickUp to visualize your financial data and track your progress towards your financial goals.

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Utility professionals in the energy or telecommunications industry can use the Business Plan Template for Utility Professionals in ClickUp to effectively outline their strategic objectives and operational plans.

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• Utilize the custom fields, such as Reference, Approved, and Section, to add additional information and categorize your plan
• Update statuses and custom fields as you work through each section to keep stakeholders informed of progress
• Monitor and analyze your business plan to ensure it aligns with your objectives and maximizes potential opportunities in the utility sector.
• Business Plan Template for Doctors
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For issuers considering selling stock in the company or selling debt securities to investors a well-tailored and written business plan is mandatory, particularly in light of the current economic conditions. A business plan offering document can bring added protection to your business and is often required to raise either debt or equity capital in the public and private markets. A well written business plan will tell the story of the company, from the minute details of the types of securities being offered, e.g. stock versus bonds, to the management team, the market, the risk factors and the overall business plan model of the company, among many other features. The final part of the business plan is reserved for the subscription agreement, which is an essential component of any business plan as the subscription agreement is the contract between the issuer and the person buying the debt or equity securities.

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Office Supplies Retail Business Plan

Start your own office supplies retail business plan

Green Office

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.">.

Green Office addresses the market need of environmentally-friendly office supplies. Green Office has been formed as an Illinois Corporation with Stan Cooksey as the main shareholder. Green Office will service a wide range of customers including corporations and government agencies.

Products Green Office will sell eco-friendly products that use recycled materials, reuse “recharged” existing parts, or use non-toxic alternatives. Green Office will sell recycled paper ranging from notepads to envelopes to copier paper, a wide range of laser toner, inkjet cartridges and common office supplies such as correction fluid.

Customers Green Office has identified three market segments. The first is corporations, with an 8% growth rate and 12,000 potential customers. The second is government agencies, with a 11% growth rate and 7,886 possible customers. The last category is assorted customers with a 7% growth rate and 56,888 possible customers.

Competitive Edge Green Office will offer a complete range of office supplies, to become a one-stop shopping place for supply needs. Green Office will offer an unprecedented level of customer attention. It recognizes that shopping must be the the most trouble free, pleasant experience if it expects to form long-term relationships with customers.

Management Green Office will be lead by Stan Cooksey. Stan received his undergraduate degree from the University of Chicago. Stan worked for Symantec Software as the Regional Sales Manager for the Government Agency Unit. While working at Symantec, Stan received his Executive MBA.

Green Office is supported by a proven business model, carefully identified market segments, and a top notch management team. Green Office has forecasted sales for year two of $818,000, rising to $1,004,000 in year three. We will become profitable in the second year.

1.1 Objectives

• To become the premier source of environmentally-friendly office supplies.
• To offer green office supplies that cost no more than a 10% price premium, often at the same price as non “green” supplies.
• Quickly grow in size and become a profitable business within the first two years.

1.2 Mission

It is Green Office’s mission to become a leading vendor of environmentally-friendly office supplies. Green Office will become a market leader offering a wide, price competitive selection with the finest customer service.

1.3 Keys to Success

• Offer environmentally-friendly office supplies at competitive prices.
• Secure large contracts with corporations and government agencies.
• Ensure fiscal efficiency through strict financial controls.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Green Office is an Illinois corporation founded by Stan Cooksey.

2.1 Start-up Summary

Green Office will incur the following start up expenses:

• Office desk sets with chairs and assorted supplies (6)
• Workstations and a central file server, two laser printers, and Internet connection (6)
• Copier, fax machine
• Assorted pieces of office furniture
• Assorted shipping material
• Unit phone system with answer service (7)
• Shelving units for storage
• Used fork lift
• Intercom system
• Warehouse build out

Start-up funds will be supported predominantly through equity investment, but in addition Stan will obtain a $50,000 SBA backed loan to assist in the purchase of start-up inventory.

2.2 Company Ownership

Green Office is a privately held corporation owned by Stan Cooksey. Green Office has been incorporated in Illinois.

Green Office offers a wide range of office supplies, all of which are environmentally friendly, they either use recycled content materials, sustainable products, or substitute toxic chemicals with non-toxic substitutes. Products include:

• Recycled clip boards
• Non-toxic correction fluid
• Recycled note pads (small and legal size)
• Recycled paper clips
• Recycled copier and printer paper
• Recycled envelopes
• Erasable boards
• Reusable coffee filters
• Recycled, refillable laser toner cartridges and inkjet cartridges
• Solar calculators
• Refillable pens and pencils made out of recyclable materials
• And many other items

Market Analysis Summary how to do a market analysis for your business plan.">

Green Office believes that it faces a market with many opportunities and significant demand. Green Office’s three main customer segments will be corporations, government agencies, and others which is a “catch all” category.

The office supply industry operates with several different large companies and many small ones. Within the office supplies industry there exists a niche of environmentally-friendly companies that Green Office competes against. Some of these companies serve local markets, others are Web-based for broader coverage.

4.1 Market Segmentation

Green Office has identified three customer segments that it will go after:

• Other: This is a catch all segment that contains a wide range of entities such as small companies, individuals, school districts, etc.

4.2 Target Market Segment Strategy

As mentioned previously in the Market Segmentation section, three customer groups have been identified. Two of these, corporations and government agencies are quite attractive as customer segments. The third is used as a “catch all” category. The strategy will be the use of a targeted sales campaign that uses specific sales agents each of whom are responsible for a specific customer group.

The hiring process for these sales agents will be done with the specific group in mind. The agent responsible for the government agencies will be chosen based on his past experience and proficiency in selling to government agencies if possible. Green Office will therefore provide each experienced sales person with an exclusive territory, assisting them in achieving high sales marks for the respective customer group.

4.3 Industry Analysis

The broader industry that Green Office competes in the office supplies industry. Within that industry there are several market leaders:

• Office Depot

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4.3.1 Competition and Buying Patterns

Competition comes from two sources, direct and indirect competitors. Direct competitors are companies that offer similar lines of environmentally-friendly products. The main companies are:

• EcoProducts
• The Good Humans

The indirect competitors are companies within the office supplies industry who offer eco supplies, but do not concentrate on these products. Customers’ buying patterns are based on two main factors:

• Price: Both a relative comparison to standard office supplies as well as eco-friendly ones.
• Convenience: Ease of ordering, shipping schedule, variety of products.

Strategy and Implementation Summary

Green Office’s goal of becoming a major vendor of environmentally-friendly office supplies is an ambitious but achievable goal. Green Office will leverage its two part competitive edge to achieve this goal. The first edge is an unbeatable selection of green office supplies.

This all inclusive product catalog creates a compelling one stop shopping venue. This wonderful product selection will be supported by a customer-centric company culture. The marketing and sales strategies support these two competitive edges.

The marketing strategy seeks to develop an awareness of Green Office and its ability to offer a wide selection of eco-friendly office products. All products will be priced competitively, often at the same low price as non eco-friendly products.

The sales strategy will use specially engineered economic incentives that channel account manager behavior into the mode of ensuring, happy, long-term customers. This entire strategy is based on the company’s philosophy that it is far cheaper to maintain a current customer than it is to attract new ones.

5.1 Competitive Edge

Green Office competitive edge is two fold, a wide selection of office supplies making it a one stop shopping place and a strong customer service oriented organization where the customers are assigned a specific sales agent/account manager to assist them.

By offering a strong product catalog, customers are able to place all of their office supplies orders at one place instead of having to contact multiple vendors each week or month, whatever the interval may be. Creating the perception that all of the company’s office supply needs can be met by one company, Green Office has a competitive edge.

The second edge is Green Office’s focus on customer service. The company recognizes that if long-term sustainable growth is desired, the customers must feel like that they are being offered the finest service. This will ensure the building of a loyal customer base that will assist Green Office in becoming a sustainable operation.

5.2 Marketing Strategy

The marketing strategy will be based on a communication effort that announces Green Office’s two competitive edges, their selection and customer service. To be able to order all of an office’s supply needs from one easy-to-work-with vendor is a significant value. Backing up the extensive product catalog with top rate customer service will retain customers.

Green Office will undertake a marketing campaign that communicates its competitive edge. The campaign will rely primarily on print advertising. The media outlets to be used will be determined based on the readership levels and targeted companies. The campaign will develop an awareness of Green Office to the targeted customers. The development of an awareness or image of Green Office is the first step in the implementation strategy, the second step is the sales strategy detailed in the following section.

5.3 Sales Strategy

Green Office’s sales strategy will be based on the conversion of qualified sales leads into paying customers. The key emphasis here is customer service. Green Office recognizes that customers desire that their needs are taken care of.

Additionally, customers want a seemless experience where their expectations are managed. Green Office will accomplish these lofty goals by assigning a specific account manager/sales agent to each customer (assigned by the customer type). The sales agent receives a commission not just for the individual sale but also using a complex formula that takes into account long-term customer satisfaction of the client.

Green Office therefore has developed an economic incentive for its account managers to develop long-term customers. This incentive based system is key to the sales strategy because it creates an incentive for the sales agent to take into account Green Office’s strategic survival, not just the agents short-term compensation. In addition, long-term customers are more profitable than new customers.

5.3.1 Sales Forecast

Green Office adopted a conservative forecast for the business plan. These conservative estimates will help ensure that the company does not face any cash flow shortages within the first couple of years The sales forecast also takes into account that Green Office is a start-up organization and it will take time to generate a level of sustainable sales. Sales will increase at a slow but steady rate. Please see the three following table and charts for graphical representation of the sales forecasts.

5.4 Milestones

Green Office has identified four specific milestones that will serve as goals for the organization to achieve. While the milestones are lofty in terms of qualitative standards and the timeline deadline, they are achievable.

• Business plan completion.
• First major government agency account.
• $200K in sales.
• Profitability.

Web Plan Summary

The website will be developed to offer customers a product catalog for online orders. The overriding design philosophy of the site is ease of use. Green Office wants to make the process of placing an order as easy and fast as possible thereby encouraging increased sales. Green Office will incorporate special features such as a section that is specific to each customer so the customer can easily make purchases of repeat items. Instead of going through the website every month and locating their monthly needs, the site captures regularly ordered items for that specific customer, significantly speeding up the ordering process. This ease-of-use feature will help increase sales as customers become more and more familiar with the site and appreciate how easy it is to place an order.

6.1 Website Marketing Strategy

The marketing strategy for the website will begin initially with a simple strategy of search engine submissions and the use of pay-per-clicks which is a service of Google and Overture where the company pays the search engine every time a surfer clicks through to the Green Office site.

6.2 Development Requirements

Green Office has secured a start-up website design company to design and develop the site. As a result, the company is able to negotiate a favorable rate for the development and maintenance of the site.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

7.1 personnel plan.

• Stan: Operations, business development, some finance, some accounting.
• Willma (Stan’s wife): Procurement, marketing.
• Sales: Account manager functions.
• Accounting: Part-time accounting clerk.
• Shipping: Responsible for order filling.
• Administrative/customer support.

Financial Plan investor-ready personnel plan .">

The following sections will outline important financial information.

8.1 Important Assumptions

The following table details important Financial Assumptions.

8.2 Break-even Analysis

The following table and chart show our break-even analysis.

8.3 Projected Profit and Loss

The following table will indicate Projected Profit and Loss.

8.4 Projected Cash Flow

The following chart and table will indicate Projected Cash Flow.

8.5 Projected Balance Sheet

The following table will indicate the Projected Balance Sheet.

8.6 Business Ratios

The following table shows common Business Ratios, specific to Green Office as well as to the industry as a whole.

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Solar Energy Business Plan Template & Guidebook

As the world works to reduce its reliance on fossil fuels, solar energy has become an increasingly popular alternative for meeting energy consumption needs. Taking full advantage of this opportunity requires a detailed plan for success, and that is where the #1 Solar Energy Business Plan Template & Guidebook comes in. This comprehensive guide offers all the information needed to get started in setting up a successful solar energy business, from creating a detailed financial plan to understanding the potential risks and rewards associated with investing in solar.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Solar Energy Business [11 Steps]
• 10+ Best & Profitable Solar Energy Business Ideas [2023]
• List of the Best Marketing Ideas For Your Solar Energy Business:

How to Write a Solar Energy Business Plan in 7 Steps:

1. describe the purpose of your solar energy business..

The first step to writing your business plan is to describe the purpose of your solar energy business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a solar energy business:

Our mission is to create a sustainable and affordable solar energy source for households and businesses by leveraging innovative technologies. We will strive to reduce global emissions through improved energy efficiency, providing clean, renewable energy that is cost-effective and accessible. We are dedicated to making the world a cleaner, greener, and more efficient place.

2. Products & Services Offered by Your Solar Energy Business.

The next step is to outline your products and services for your solar energy business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your solar energy business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your solar energy business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your solar energy business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a solar energy business?

• Solar Panels and installation equipment
• Inverters and other electrical components
• Batteries, if applicable
• Monitoring systems or software
• Business license or permit from your local jurisdiction
• Workers' compensation and liability insurance

5. Management & Organization of Your Solar Energy Business.

The second part of your solar energy business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your solar energy business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Solar Energy Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a solar energy business varies based on many different variables, but below are a few different types of startup costs for a solar energy business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your solar energy business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your solar energy business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your solar energy business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Solar Energy Business Plans:

Why do you need a business plan for a solar energy business.

A business plan for a solar energy business is essential for setting goals and outlining the resources, costs, and strategies needed to achieve those goals. It also provides potential investors and partners with a clear view of the company's mission, objectives, and projections for growth. Additionally, a well-crafted business plan can help secure financing for the venture and establish an organized path for the business’ future development.

Who should you ask for help with your solar energy business plan?

You should ask a solar energy expert or consult with a solar energy company specializing in developing business plans. Alternatively, you could also consult with an experienced business consultant or financial advisor who has experience in creating business plans.

Can you write a solar energy business plan yourself?

Writing a solar energy business plan requires a deep understanding of the solar energy industry, business fundamentals, and other related topics. It is best to consult with an experienced business plan writer who can help guide you through the steps and provide insight that’s tailored to your specific needs.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

Energy & Utilities

A five-point plan to ensure business and services continuity.

On the whole, utilities are well-equipped to handle disruptions caused by disasters. The COVID-19 pandemic, however, is testing the most robust of emergency preparedness plans because of extended business lockdowns, transport restrictions and stay-home mandates.

The latest GEP bulletin, Energy & Utilities: A Five-Point Plan to Ensure Business and Services Continuity, evaluates key challenges that utility companies face and recommends actions for procurement teams to mitigate cash flow and supply risks, and ensure customers continue to get uninterrupted power and gas. It also discusses the urgent need to plan for concurrent disasters, as the hurricane season draws near.

What’s Inside:

• Leverage technology to avoid disruptions, improve safety
• Reach out to suppliers for mutual benefit
• The need to anticipate and prepare for parallel disasters

A must-read for procurement and supply chain professionals who want to reduce supply continuity risks and be prepared to handle other crises in the future.

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Energy and utility companies have mature emergency preparedness plans, especially to handle natural disasters, but the current situation — an economic slowdown on the back of the coronavirus pandemic and an extended global shutdown — is unprecedented.

Utilities play a critical role in maintaining global stability. Among one of the essential services required for ensuring public health and safety, protecting critical infrastructure and national security, utility companies have to ensure that they can continue to provide uninterrupted service as the COVID-19 crisis deepens.

The coronavirus impact on the energy supply chain is as wide-reaching as on other industries, and companies must be prepared to handle continued supply chain and resource disruptions for a while. Here we look at some challenges and recommend preemptive actions:

CHALLENGE #1: STAFF EXPOSURE

Utility workers are critical for ensuring that the supply of gas and electricity remains uninterrupted to end customers and local communities. As these workers need access to residential, commercial and industrial buildings, they remain at a high risk of continued exposure to the virus. However, the utility industry is facing the same shortages of personal protective equipment as medical professionals — masks, gloves, sanitary disposables and disinfectants are all in short supply.

Recommendation: Leverage Teleworking and Digital Technology

A portion of the workforce can work remotely using technology for web meetings and collaboration on projects — procurement can source the required tools to facilitate teleworking. For personnel on the field, utilities can leverage technology to minimize the amount of manual work required. This will reduce both labor costs and the risk of employees getting exposed to the coronavirus. For example, basic geocoded photos can be used to document issues and verify completion of work, such as the replacement of a defective meter or pipe. More advanced technologies, such as drones coupled with LiDAR, can be used for remote sensing to inspect transmission lines, distribution poles and right of ways.

CHALLENGE #2: ONGOING MATERIALS SHORTAGE

The longer the global economy is shut down, the greater the risk that critical materials will become unavailable. Components such as generators, transformers, SCADA systems, meters and valves are at high risk due to high demand, existing shortages and long lead times, in a concentrated supplier market.

Recommendation: Find Alternative Sources of Supply and Improve Inventory Management

Utilities must review their critical inventory, especially highly engineered, long lead-time and single-sourced items. In the short term, consider sourcing materials from distributors who have a stockpile of this inventory. In some cases, the distributor may have a stronger relationship with the original equipment manufacturer because of the volumes purchased. Technology can also make a difference here. An AI-powered inventory management software can provide complete visibility into inventory, unify inventory management activities, monitor stock levels, generate replenishment orders and forecast demand.

CHALLENGE #3: IMPACT ON SUPPLIERS

• With the economic downturn, a significant number of companies have been downgraded, many have cut dividends. The oil and gas sector has been hit hard because of declining demand, low price of oil and high debts. As many oil and gas suppliers also sell products and services to utility clients, those suppliers may try to shift their business strategy to increase sales across the utility sector. Utility companies should be wary and do a thorough check on the financial health of these suppliers to determine if they are close to declaring bankruptcy, or looking to be acquired in order to survive.
• Most utilities have internal goals of purchasing from small or diverse business entities. The economic impact on these suppliers will probably be even harsher because of thinner margins, smaller cash reserves, and less access to capital.

Recommendation: Payment Terms and Supplier Outreach

• As the demand for most products and services declines, many suppliers will likely need cash to continue their operations. Renegotiating payment terms with early payment discounts can be mutually beneficial — it will help reduce your inventory risk and ease cash flow for suppliers. Utilities should identify their critical suppliers to help ensure that business is not disrupted.
• While the $2.2 trillion infrastructure stimulus package is expected to make $377 million available for small business loans, it might take time to reach your smaller suppliers. As a short-term strategy, utilities should consider reaching out to small and diverse suppliers and help retain their most productive and talented workers.

CHALLENGE #4: MAJOR SHIFTS OF QUALIFIED LABOR RESOURCES

Utilities may be at a high risk of losing their most productive contractors. The utility industry is highly dependent upon migratory construction labor. If the COVID-19 situation continues for much longer, the lockdown of regions and localized travel restrictions could affect the supply of qualified labor. Also, workers typically relocate during boom or bust cycles, to support major capital projects. With an impending recession, construction companies may put a significant number of projects on hold, or cancel them entirely. In addition, unemployment numbers are showing a rising trend — as per U.S. government data, 6.6 million people have filed for unemployment claims in the week ending March 28. These factors cumulatively suggest that workers will likely relocate across state lines — causing a greater shift of resources.

Recommendation: Partner with Your Contractors to Secure Labor

Utilities should partner with their critical contractors to help secure the contactors’ best teams. Companies may want to go so far as to set up a formal alliance or preferred partners program to help retain these key resources.

CHALLENGE #5: CONCURRENT DISASTERS

Utility companies have invested in emergency preparedness for years and are well-prepared on the whole. However, at this stage, they will be ill-equipped to handle a concurrent disaster — for example, hurricanes and storms or a cybersecurity breach — and may be forced to choose between which disaster to manage in order to maintain gas and power supplies.

Recommendation: Develop a Supply Chain Business Continuity Plan

Utilities should quickly re-evaluate their business continuity plan and anticipate other disruptions. Being proactive will yield significant benefits during an emergency. In particular, supply chain organizations should consider having a plan if technology goes down and if purchases need to be issued immediately. Having a strong plan that communicates roles and responsibility and levels of purchasing authority during emergency operations is critical.

RAPID RESPONSE SOLUTIONS FROM GEP

As the coronavirus crisis intensifies, managing your supply chain is going to get even more challenging. It may be worth finding a partner with deep experience in procurement and supply chain management to reinforce your capabilities and help you stay on course.

If you would like to have a conversation about how we can help, please reach out to our supply chain leadership.

LET'S TALK  

Jason Allukian

Director, Consulting

Jason is responsible for managing large-scale strategic sourcing and supply chain projects in the energy and utility sectors at GEP. His areas of expertise include supply chain transformation, procurement, operations and maintenance strategy, negotiations, category management and supplier management. Prior to GEP, he has worked with a consulting firm, leading client-facing teams to develop and execute sourcing strategies of over $15 billion for Fortune 500 energy companies.

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Business Continuity Plan Template for Utilities

What is a Business Continuity Plan for Utilities?

A Business Continuity Plan for Utilities outlines the steps a utility company should take to maintain essential services and infrastructure during times of emergency or disaster. This plan will include identifying potential risks and developing protocols for responding to those risks, as well as establishing backups and emergency response teams. It is an important tool for ensuring the continuity of vital services and protecting the utility company’s infrastructure.

What's included in this Business Continuity Plan for Utilities template?

• 3 focus areas
• 6 objectives

Each focus area has its own objectives, projects, and KPIs to ensure that the strategy is comprehensive and effective.

Who is the Business Continuity Plan for Utilities template for?

The Business Continuity Plan for Utilities template is designed for utility companies, such as electricity, water, and gas providers. This template provides a comprehensive outline of the essential elements that should be included in the plan, enabling utility companies to quickly and easily develop their own business continuity plans.

1. Define clear examples of your focus areas

Focus areas are the broad categories that the plan should cover. For example, a Business Continuity Plan for Utilities may include focus areas such as Emergency Preparedness, Risk Management, and Business Continuity. Within each focus area, there should be specific objectives and actions identified.

2. Think about the objectives that could fall under that focus area

Objectives are the goals that need to be achieved within each focus area. For example, under Emergency Preparedness, one objective might be to create an Emergency Response Plan. Another objective might be to establish Emergency Response Teams. For each objective, there should be related actions that should be taken.

3. Set measurable targets (KPIs) to tackle the objective

Key Performance Indicators (KPIs) are measurable targets that can be used to track progress against objectives. For example, under the objective of creating an Emergency Response Plan, a KPI might be to evaluate the plan regularly. This KPI should have an initial value, a target value, and a unit of measurement.

4. Implement related projects to achieve the KPIs

Projects, or actions, are the steps that need to be taken to achieve each KPI. For example, under the Emergency Response Plan KPI, the related action might be to develop a comprehensive plan and protocols for responding to emergencies. For each action, there should be a measurable KPI associated with it.

5. Utilize Cascade Strategy Execution Platform to see faster results from your strategy

Cascade is a strategy execution platform that helps businesses achieve their strategic goals faster and more effectively. Cascade allows users to set clear objectives, track progress against key performance indicators, and collaborate with stakeholders in real-time. With Cascade, businesses can easily develop and implement business continuity plans to ensure smooth operations during times of emergency or disaster.