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1.2 Highlights

The following are some highlights from this business plan for Lights On Electrical:

  1. Andy Powell and Jose Garcia are looking to start an electrical contracting firm called Lights On Electrical. They have more than 50 years of experience as master electricians in the Cuyahoga County, Ohio target market.
  2. The company will be located in downtown Cleveland with plenty of residential and commercial structures presenting Andy and Jose with plenty of business opportunities for the installation and maintenance of electrical systems and components.
  3. The overall residential population and labor force in the target market declined 10.6% and 8.23% respectively. The poverty rate is 18.8%.
  4. 71.9% of all the folks in the target market make less than $75k per year.
  5. The largest occupations in the target market is the Management, Business, Science & Arts occupation - these occupations represent 38.2% of the total for Cuyahoga County.
  6. 90% of the housing stock of the target market is composed of homes whose value is less than 300k.
  7. Almost 30% of the target market population of the target market has a high school education and another 30% have achieved either a bachelors or graduate degree.
  8. About two third of the population of the target market are between the ages of 18 and 65.
  9. The Manufacturing, retail trade, Finance, Insurance, real estate, and health care industries combined employ 50% of all workers in the Cuyahoga County.
  10. After declining during between 2002 and 2010, the overall labor force in Cuyahoga County, has remained fairly constant at around 620k people. The level of unemployment has been declining steadily during the past 5 years and is currently below 6%.
  11. Almost 60% of the total housing stock of Cuyahoga County is 1 unit structures.
  12. 84.6% of all homes in Cuyahoga County were built before 1979 reflecting an aging housing stock.
  13. Approximately 75% of all homeowners moved into their homes after 1990 in the Cuyahoga County.
  14. Homes with mortgages in the target market are 66% of the total.
  15. There are 190 electrical contracting firms in Cuyahoga County employing a total of 3,190 employees averaging approximately 17 employees for each establishment.
  16. The annual payroll for the average employee in the electrical contracting business in Cuyahoga County is $58,933
  17. 53.7% of all electrical contracting firms in the County employ less than 4 people.
  18. Sales projections for the first three years in business are $285,000, $315,000 and $335,000.
  19. Andy and Jose will be paying themselves a modest salary of $45,000 and $37,000 for each of the first three years of operations.
  20. As business grows Lights On Electrical will look to hire one administrative staff and later look to add sub-contractor for larger jobs.
  21. Andy and Jose will be contributing $49,000 and $27,000 toward the total estimated start up costs of $136,000
  22. The company will be applying for a five year term loan in the amount of $60,000.
  23. Operating Income is projected to be $73,920, $102,570 and $120,156 representing margins of 25.9%, 32.6% and 25.9% of sales for 2015, 2016 and 2017 respectively.
  24. The debt to equity ratio is projected to be 0.41, 0.21 and 0.10 for each of the first three years of operations.
  25. Lights On Electrical is looking to open its doors for business by the second week of July 2015.

Quick Links:

  1. Go to the Corresponding Questionnaire section for this industry.

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