Electrical Contractor

Words in [brackets] are blanks you fill in with your own details when you adopt this sample in Supreme Plan AI.

Executive Summary

Brightline Electric is an electrical contractor serving homes and small businesses in the west side of our city and the nearby suburbs. We repair outlets, switches, lighting and panels, and we handle larger projects like panel upgrades, new circuits, lighting, ceiling fans, EV charger installations and small remodels. Electrical work is not a place to cut corners, but good electricians are hard to book and hard to reach. Customers worry about safety, surprise charges and work that will not pass inspection. We will win customers by being licensed and insured, giving clear prices before work starts and doing every job to code. Here is what our numbers show. We expect sales of about $181,800 in Year 1, growing to about $727,200 by Year 5 as we add licensed electricians and a second vehicle. We expect losses of about $64,000 in Year 1 and $50,000 in Year 2 while we build our customer base, then a profit from Year 3 (about $27,500), growing to about $128,100 by Year 5. We need $168,500 in total. That covers $52,300 in startup costs (a used service van, electrical tools and testers, safety gear, opening supplies, license fees, insurance and advertising) and a cash cushion of about three months of bills. I am putting in $20,000 of my own money, and I am asking for $144,000 as an SBA 7(a) loan, plus $4,500 from an investor or partner. The startup costs include a used service van, so I do not need to buy a truck on the first day. I am Rachel Martinez, the owner. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Brightline Electric will be a limited liability company (LLC) in Minnesota, owned by Rachel Martinez. We will work from my home, with the van parked in my driveway and tools stored in a locked shed. What we believe. Do every job safely and to code, explain what is wrong and what it will cost, show up on time and leave the home clean. What we offer:
- Repairs: outlets, switches, lighting, breakers and troubleshooting. - Panel upgrades and new circuits. - Lighting, ceiling fans and smart home wiring. - EV charger installations. - Electrical work for remodels, small businesses and rental properties. Licenses and insurance. Electrical work is a licensed trade almost everywhere, usually requiring years of work under a licensed electrician, an exam, a contractor license and permits and inspections for most jobs. Our state requires a master electrician to hold the contractor license, so I will work under my master electrician partner until I earn mine. I will not take paid electrical work until the right license is in place, or I will work under a licensed master electrician. We will carry general liability and commercial auto insurance, and workers' compensation once we hire. Where things stand today. I have worked as an electrician for several years, I have priced a used service van and tools, and I have done weekend repair jobs for friends and neighbors.

Problem & Opportunity

Homeowners and small businesses near us need an electrician they can trust, and it is hard to find one. 1. Safety worries. Bad wiring causes fires and shocks, and many people do not know if their home is safe. 2. Hard to book. Good electricians are often booked for weeks. 3. Unlicensed work. Some cheap options are not licensed or insured, which can cause failed inspections and insurance trouble. 4. Surprise prices. Customers often get one number on the phone and another at the end. How we know people want this. Six homeowners asked me to upgrade their old panels last year, and a property manager said she would hire a reliable electrician for 20 rental units.

Products & Services

What we sell. 1. Service calls. A repair or troubleshooting visit: a dead outlet, a tripping breaker, flickering lights or a safety check. Our plan assumes an average of about $185 per call in Year 1, rising to about $205 by Year 5. Parts and direct costs run about $55 per call. We expect about 550 calls in Year 1 (about 11 a week), growing to about 1,860 calls a year by Year 5. 2. Installation and upgrade projects. Larger jobs: a panel upgrade, new circuits, lighting, a ceiling fan or an EV charger. Our plan assumes an average of about $1,600 per project in Year 1, rising to about $1,792. Materials cost about $750 per project. We expect about 50 projects in Year 1, growing to about 193. Our prices. Service call $140 plus parts. Outlet or switch replacement from $90. Panel upgrade from $2,200. EV charger installed from $900. How it works for the customer:
1. A call answered quickly, and a rough idea of the cost before we come. 2. A time window, and a text when the electrician is on the way. 3. A written price for any larger job before work starts, with permits handled by us. 4. A clean finish, an explanation of what we did and a warranty on our work. Gross margin, explained. "Gross margin" is the share of each sale left after paying for materials and direct job costs. Our plan shows about 63% in Year 1. That money pays the owner and crew, vehicle costs, insurance and other bills.

Market Analysis

Who will hire us:
- Homeowners who need repairs, upgrades or safety checks. - Homeowners adding EV chargers, hot tubs or workshops. - Landlords, property managers and small businesses. - General contractors and remodelers who need a reliable electrician. Where we will work. A service area close enough to reach customers fast, starting with five neighborhoods and two nearby towns within 20 minutes of my home. Less driving means more jobs per day. Season. Electrical work is needed all year. Storms and heat waves create repair calls, and spring and summer bring remodel and outdoor lighting projects. We keep open hours for urgent calls. Our plan is careful on purpose. About 11 service calls a week in Year 1 is a pace the owner and one licensed electrician can handle well.

Competitive Landscape

Other choices customers have:
1. Larger electrical companies. Northside Electric (a made-up name) charges about $140 for a service call; known for quality, but booked three weeks out. 2. Handymen and unlicensed workers. Cheaper, but a risk to safety, inspections and insurance. 3. Doing it yourself. Free, but electrical mistakes can cause fires and injuries. How we will win customers: licensed and insured work, fast replies, clear prices, jobs that pass inspection and a warranty on our work.

Marketing & Sales Strategy

How people will find us. - A free Google business listing with photos, and a simple website with a phone number that gets answered. - Asking every happy customer for a Google review. - Door hangers, magnets and a lettered van in the neighborhoods we serve. - Relationships with general contractors, property managers, real estate agents and home inspectors. - Content on EV chargers and panel upgrades, which many homeowners search for. Marketing budget. About $6,000 a year. The van lettering, business cards and website are paid for from startup costs.

Operations Plan

How the business runs day to day. Calls and jobs. Customers call or book online, and the owner (or an office helper) schedules each job by area and urgency. In Year 1 the owner and one licensed electrician start by working jobs together, then split into two trucks as soon as we can add a second vehicle, by lease or a used purchase, from the first profits. We grow to three licensed electricians by Year 5. Permits and inspections are arranged for every job that needs them. Equipment. About $38,000 to start: used service van with shelving and racks; hand and power tool sets; conduit benders and wire-pulling tools; multimeters, circuit tracers and testers; ladders and fiberglass equipment; hammer drill and core drills; tablet and estimating software; arc-rated protective gear and lockout/tagout kits; second set of tools for the electrician. We set aside about $4,000 to $5,000 a year for repairs and replacements. Upkeep. Testers checked and calibrated on schedule, tools cleaned and the van restocked every night. Safety. Power shut off and locked out before work. Arc-rated protective gear, insulated tools and ladder safety on every job. All work done to the electrical code and inspected. Running costs in Year 1: vehicle and equipment maintenance about $15,000, licensing, permits and insurance about $11,000, marketing about $6,000. Scheduling and billing. A simple scheduling and invoicing app on my phone, with customers billed after each job and larger jobs billed in two parts.

Management & Organization

Who runs the business. Rachel Martinez, owner. As owner I will do electrical work, quote jobs, schedule, order materials, handle permits and handle the money side of the business. I plan to pay myself $64,000 a year in salary in Year 1. Crew. Licensed electricians at about $56,000 a year each (or part-time pay): one in Year 1, two in Year 2, two in Year 3, three in Year 4 and three in Year 5. People who will help us: a bookkeeper or tax preparer, an insurance agent, and a free mentor from SCORE or the Small Business Development Center (SBDC). Luis Johnson serves as a key volunteer advisor.

Milestones Narrative

Our goals and when we plan to reach them. - Before starting: get the license and insurance, register the business, buy the van and tools, and set up the phone and website. Target start: March 2027. - First year: complete about 550 service calls and 50 installation projects, for about $181,800 in sales. - Year 2: add a second licensed electrician, about $295,400 in sales, and a loss of about $50,000. - Years 3 to 5: grow to three licensed electricians and about $727,200 in sales by Year 5. Growth depends on hiring good people and winning the work, so treat the later years as goals, not promises. What we check every week: calls answered, jobs done, inspection results, return visits, new quotes, parts and fuel costs, and cash in the bank.

Funding Request

How much we need and how we will use it. Total needed: $168,500. The Funding Need Calculator in this plan shows a minimum, and we plan to raise a little more than that so the loan payments in the early years are also covered. The calculator's number adds up: - Startup costs of $52,300, listed item by item in the Startup Costs section (about $38,000 for the van, tools, testers, safety gear and software, $5,000 for opening wire, breakers and fittings, $1,800 for license, exam and permit fees, $4,500 for the first insurance payment, $800 for business setup and bookkeeping software, and $2,200 for van lettering, business cards and a website). - A cash cushion of about $116,200: the deepest cash dip in the early months plus about three months of bills, so slow weeks do not put the business at risk. Lenders call this "working capital." - Together that comes to about $164,000 (rounded up to the nearest $500), which is the minimum the calculator shows. We are planning for $168,500, which adds room for the early loan payments. Where the money comes from: - My own money: $20,000. - Amount requested: $144,000. - From an investor or partner: $4,500. Kind of funding we are looking for: an SBA 7(a) loan through a local bank or community lender, plus investor or partner money, which is not paid back with interest but gives that person a share of the business. How we will pay it back. We expect losses of about $64,000 in Year 1 and $50,000 in Year 2 while we build our customer base, then a profit from Year 3 (about $27,500), growing to about $128,100 by Year 5. With this funding, the business has money in the bank every year of the plan. The loan is planned at 12.75% interest over 10 years, the most the SBA allows for a loan this size, so payments of about $2,129 a month are already included in our cash flow. What we are offering the lender: our van and tools as collateral and my personal guarantee A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan: - Phase 1: start as a licensed electrician on evenings and weekends with your own truck and tools, taking small repair calls while keeping your current job. Startup can be under $3,000. - Phase 2: once you have more calls than you can handle part-time, buy the service van and tools and follow this plan. To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match. All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume (one page is fine) and any licenses or certificates. - A personal financial statement (a list of what you own and what you owe; lenders usually provide a form). - Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov). - Proof of insurance, or a quote. - Quotes for the van and tools. - Your price list. - A list of current customers or repeat clients, if you have them. If you don't have any of this yet, no worries - let's continue. The assumptions behind our numbers (change them in the Financials section to match your own):
- Service Calls: about $185 per call in Year 1, rising to $205; about $55 per call in direct costs; about 550 calls in Year 1, growing to 1,860. - Installation & Upgrade Projects: about $1,600 per project in Year 1, rising to $1,792; about $750 per project in direct costs; about 50 projects in Year 1, growing to 193. - Owner salary: $64,000 a year. Crew: $56,000 a year each, from one in Year 1 to three in Year 5. - Other yearly costs in Year 1: vehicle and equipment maintenance about $15,000, licensing, permits and insurance about $11,000, marketing about $6,000. - Tax rate: 21%. - Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs