The following are the goals and objectives for Andy and Jose of Lights On Electrical:
- To secure a five year term loan in the amount of $60,000 so that we may raise enough cash to cover our anticipated startup expenses of $136,000.
- To have all the elements of our business plan executed and in place to facilitate the opening of Lights On Electrical by July 9th, 2015.
- To continue to build our clientele by offering them excellent solutions for their residential and commercial electrical needs.
- To expand on our existing alliances by joining networking groups, the local better business bureau, accepting sub-contracting work from larger established electrical contracting firms in the Cuyahoga County, Ohio target market. This will ensure that as we grow we are able to meet our sales objectives of $285,000, $315,000 and $335,000 for the first years of business.
- To ensure that our accounts receivables are some of the lowest in the industry by initiating a cash based payment policy where the payment for services will be due upon the completion of the job. This will help us meet our objectives of keeping accounts receivables to less than 0.25% of sales.
- To make prompt payments to supplies for all the parts and that we purchase for our various jobs. This will ensure that we are paying the least amount of financing costs and ensure that we have high gross margins on every job. We are estimating that this policy alone will allows us to keep our accounts payable down to $428, $472 and $503 for the first three years of business.
- Ensure that there is on average at least at 60% profit margin on each job by using estimation and bidding software to streamline our estimation process and ensure fiscal
discipline when bidding for jobs.
- In order to gain the most our of our existing clients, we will request each of our clients refer us at least 3 new clients per year. We intend to keep in front of all our clients by sending them newsletters that will provide them with valuable advice about their home and business electrical appliances.
- Go to the Corresponding Questionnaire section for this industry.