Electrical contractors and other wire installation professionals are the driving force behind many of our communication and travel networks. From installing telecommunications lines and security systems to updating and maintaining our traffic signals and airport runway lighting, individuals serving in this line of work serve a critical role in life as we know it.
That’s why BFS Capital chooses to work so closely with businesses within these industries. We strive to help them achieve greater success in the field of electrical contracting or wiring installation, whichever they’ve decided to cater to customers within.
And one of the most basic ways to do this—to create, build, and grow a solid company—in this particular type of industry involves taking the time to create an in-depth electrical contractor business plan.
How to Write a Comprehensive Electrical Contracting Business Plan
As the U.S. Small Business Administration (SBA) explains, “a good business plan guides you through each stage of starting and managing your business.” Thus, whether you’re just now contemplating how you will create your electrical contracting business or wiring installation company, or you’ve been servicing customers for years, a comprehensive business plan can direct you down the paths necessary to achieve all of your business-related goals.
If you don’t already have one in place, the SBA points to the following essential elements of a solid, traditional business plan:
- Executive summary. Share your company’s mission statement and briefly talk about what it does, how it operates, and how it will achieve success.
- A company description. What problem(s) do you solve? Who will you serve? How are you better than your competitors? Answer these types of questions in this section.
- A market analysis. Identify your competitors and their strengths and weaknesses. Also state any industry themes and trends relevant to your company.
- Your organizational structure. This section addresses your company’s structure, both from a management/employee basis and its legal structure. An organizational chart can often help relay this type of information more easily.
- Your service and/or product lines. List your services and products, sharing how each one helps make your customers’ lives better. This is also where you’ll want to share any research and development you are engaged in or plan to do in the future.
- Marketing and sales. How will you find and attract new customers? Then, how will you keep them happy so they continue to use you as their service or product supplier?
- Your funding needs. This section specifies how much funding you need to build or grow your electrical or wiring business, as well as what you intend to use the money for.
- Your financial projections. What will you do to establish and retain your business’s financial stability over the next year? The next five years?
Though this may seem like a lot of work, creating an in-depth electrical contractor business plan can help you see your company’s current status and its path to greater success more clearly. It can also help you obtain the funding you need.
Costs Associated with Starting and/or Running an Electrical Contracting Business
If your electrical contracting or wiring business is in the beginning stages, you can expect equipment-related costs related to compiling materials and installation equipment, as well as acquiring company vehicles. The exact materials, equipment, and vehicles you need depends on the type of services you offer.
Once you’re established, some of these costs will be recurring, as is the case with materials. You’ll also have to update or replace equipment over time, so you’ll want to consider these costs as well.
Other costs associated with starting a business in these fields include any licenses you may need. If you’re unsure of what is required, the National Electrical Contractors Association (NECA) offers an online search that connects you to the list of electrical regulation listings and low voltage licensing requirements based on the state where you operate your business.
There are also generally costs related to establishing your business structure, especially if you choose to make your company a limited liability company (LLC) or a corporation. Additionally, there are insurance costs, permits, and the expense of either building or buying a business headquarters or, at a minimum, setting up a home office.
How can you cover these types of expenses? Fortunately, there are many different funding options for electrical contractors and wiring installation and maintenance businesses.
Here at BFS, we connect business owners with two basic funding options. The first is small business loans.
Small business loans can be used toward expenses related to construction, mergers and acquisitions. You can also apply for business lines of credit or working capital loans, equipment financing or refinancing loans, and accounts receivable loans—all of which fall into the small business loan category.
The second basic type of funding offered through BFS Capital is a merchant cash advance. This type of financing is designed to help businesses make it through slower periods or to support lower-cost projects in which it wouldn’t make much sense to go with a conventional small business loan. This provides a flexible payback option as it is based on future credit sales.
Other financing options include angel investors or venture capitalists, crowdfunding, and, in limited cases, business-related grants. Any of these can help you operate and grow your electrical or wiring company.
Different Ways to Use Your Funding
One of the questions that some newer small business owners have is about how they can use the funding they obtain. The answer to this question depends in part on the type of financing obtained. For instance, a construction loan can only be used for construction-related expenses and an equipment loan can only be used for purchasing or updating equipment.
That being said, you can obtain funding to cover any of these types of expenses:
- New building construction
- Existing building remodel or renovation
- Vehicle purchase and/or maintenance
- Purchase or updating of equipment
- Purchase of materials
- The costs of permits, licenses, and business set-up
- To cover payroll and other recurring business expenses during slow seasons
As you can see, you can adequately fund nearly any expense associated with owning and operating an electrical contracting business or a business that centers on installing wire-based systems.
BFS: Your Electrical Contracting Partner
When you choose BFS as your funding partner, you no longer have to ask how to run an electrical company. Instead, you’ll have someone who will walk through the process with you every step of the way, helping you make the best financial decisions to meet your particular needs and goals.
Some of the electrical and wiring businesses we’re proud to serve include:
- Cable television hookup contractors
- Telephone equipment and wiring installers
- Computer and network cable installers
- Electrical wiring contractors
- Fire and security system installers
- Electric fence installers
- Lighting system installers
- And more!
If you’re in any of these types of business and are looking for finance options that are quick (as little as two days for acceptance) and easy (minimal paperwork), give BFS a call today. We are here to serve you so that you can serve others, keeping them connected with each other and the outside world.
Fast and Easy Process
1. Complete an Application
Simply answer a few questions about your time in business, monthly sales and business type, and your application will be submitted for review.
2. Fast Approval
Once you fill out your application, one of our funding advisors will contact you.
3. Funds in Your Account
When approved, you’ll have the money in your hands, for any business use, in as few as 2 business days¹.