Business Plan

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George Stolz

George Stolz

Moderator
Staff member
Location
Windsor, CO NEC: 2017
Occupation
Service Manager
So, I've read here, there, just about everywhere, that it is absolutely essential for a business to have a business plan. I did a search here, and found very little discussion about the topic, aside from "Make one!"

I don't suppose someone would like to discuss the importance it has for a company, what it should look like, etc. What is the benefit for a small company?

Will a business plan make the phone ring? :)

It seems to me like many say, "Who would you like to focus on, and how will you reach them?" My response, right now, would be "People with money to spend on electrical services, and I would go so far as to offer to walk their dog to get them to do so." :D

So, from the top, what makes it important? How do you build a good one?
 
W

wireguru

Senior Member
some wise words from here http://blog.makezine.com/archive/2010/02/maker_business_venturing_out.html

Plans are worthless, planning is essential.
That quote from Winston Churchill sums up nicely a lot of what you'll need to do when you start a business. You don't need a perfect plan, with every step already outlined, in giant Gantt charts. But you do need a plan. And you need to be smart enough to change that plan as circumstances change. Running a business is more like sailing a ship than launching a rocket. What I mean is that you need a plan, and to be prepared, but honestly, at some point you'll just point yourself at the horizon and go. And then everything will change, you'll need to change direction, plans, and ideas. You'll re-aim for that spot you wanted to get to constantly as the world around you changes in response to what you're doing. And heck, sometimes you'll find when you're halfway there, you actually want to go somewhere else. So don't fret too much and over-plan everything (and therefore never get started), or freak out when things don't go according to your plans. But at the same time, don't aim for that horizon without one!
 
J

jes25

Senior Member
Location
Midwest
George Stolz said:
So, I've read here, there, just about everywhere, that it is absolutely essential for a business to have a business plan.
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A business plan is essential when you are seeking a loan or capital investment by others. If you don't need these things I wouldn't say a formal business plan is essential, but a general plan or idea of where you want to go is obviously worth some thought.
 
H

handy10

Senior Member
Location
western suburbs, chicago
In a way, I should not comment on the plan because my business is really small---me alone. I am a handyman, and I mostly don't do electrical work. My plan states that I will be on time or call the customer, I will do the best work I can, I will not advertise beyond giving out cards, I will endeavour to leave the work site at least as clean as I found it. I think that these principles separate me from some of the competition. At least, I do not lack work.

PS: I have found the answers to my forum questions and the answers to the questions of others to be both interesting and helpful. (I will never change a fluorescent ballast in a hot circuit again.)
 
electricmanscott

electricmanscott

Senior Member
Location
Boston, MA
ty said:
50% or more of business is based on 'luck' no matter what the plan is.
So be prepared to stray from the 'plan' as necessary.
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This is more than true. Of course don't let some of the guys here see this you will be run out of town. If you don't have a fortune 500 company corporate structure in place when you start wiring a bathroom job you're doomed! :roll:
 
T

ty

Senior Member
Location
3rd Rock from the Sun
electricmanscott said:
This is more than true. Of course don't let some of the guys here see this you will be run out of town. If you don't have a fortune 500 company corporate structure in place when you start wiring a bathroom job you're doomed! :roll:
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If only my business plan included selling snow shovels and rock salt :)
Then I'd surely be a Fortune 500 company.:grin:
 
J

JES2727

Senior Member
Location
NJ
I don't have a business plan. I hired a "business coach" once to help me get some things set up and she told me I needed a business plan, but she wasn't very helpful in writing one. So I signed up for one of those one-to-one type of sessions with the local SCORE chapter. I told the guy I didn't have a business plan. He said " No big deal. I'm not a big proponent of business plans"
We're in business almost six years, still without a business plan. Still not sure how the business would be different if we had one.
 
S

shepelec

Senior Member
Location
Palmer, MA
I think of it as more of a HOPE plan.

Hope you get the work.
Hope the suppliers are on time.
Hope that you get paid.
Hope you have the money when taxes are due.
Hope you have the money when your comp/ liability are due.
Hope you have enough left over to pay your own bills.

I better be careful this is starting to look political. ;)
 
M

muckusmc

Senior Member
Location
Roebling, NJ
shepelec said:
I think of it as more of a HOPE plan.

Hope you get the work.
Hope the suppliers are on time.
Hope that you get paid.
Hope you have the money when taxes are due.
Hope you have the money when your comp/ liability are due.
Hope you have enough left over to pay your own bills.

I better be careful this is starting to look political. ;)
Click to expand...

I was beginning to think you were running for President :D
 
K

Kdog76

Senior Member
Location
The Dairyland State
shepelec said:
I think of it as more of a HOPE plan.

Hope you get the work.
Hope the suppliers are on time.
Hope that you get paid.
Hope you have the money when taxes are due.
Hope you have the money when your comp/ liability are due.
Hope you have enough left over to pay your own bills.

I better be careful this is starting to look political. ;)
Click to expand...

(You may have said these things in jest, but here's my input if you were actually serious)


I would say 1st & foremost you sound like my old boss who is now out of business. I learned from him how NOT to do things. And the first of which is not to HOPE. Seems obvious to me, but it didn't to my old boss who was one of my best teachers on what not to do in business. He stated all of the above on a regular basis, and now he's folded because he waited around and "hoped".

My rule about "hope" is this. I will first try everything humanly possibly OR imaginable to do any of the above before I "hope" it happens. You can "hope" for this that or the other thing and I'll bet you someone who has ALREADY done it did it by not just HOPING it would happen but that they put effort to MAKE it happen.


1) If you "hope" you get the work that's fine. I think it's better to check your market and TRY to get the work you want then just hope you get it.

2) If keeping jobs going are a priority either get money down for materials or pay suppliers when the job is done. Obvious, but "EVEN IF" you don't have the money maybe call them, pay what you can, set up a payment plan? Something? Hope does not pay the bills.

3) Hope you get paid? My last boss did and he's out of business. You got to do better then that.

4) Taxes are due when they are due. The due dates do not come out of the blue. You should know WHAT & WHEN taxes are due. Extensions are available as a last resort.

5) Workmens comp & liability insurance, same as #4 (although my liability is paid once a year unlike federal quarterly's) Hope does not pay the bills.

6) Paying your own bills is your own problem. I can't help it if someone needs a 40" flat screen and BMW. YOUR OWN PROBLEM. Hope does not pay the bills.

Good luck.
 
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N844AA

N844AA

Member
Location
Los Angeles
I've always felt that the business plan of an electrical contractor was self evident: Market and sell electrical wiring services at a profit.

That's it, end of story. Whether you're a general practitioner or choose to specialize in one area, it will be a choice based on maximizing profits.
 
S

shepelec

Senior Member
Location
Palmer, MA
Kdog76 said:
(You may have said these things in jest, but here's my input if you were actually serious)


I would say 1st & foremost you sound like my old boss who is now out of business. I learned from him how NOT to do things. And the first of which is not to HOPE. Seems obvious to me, but it didn't to my old boss who was one of my best teachers on what not to do in business. He stated all of the above on a regular basis, and now he's folded because he waited around and "hoped".

My rule about "hope" is this. I will first try everything humanly possibly OR imaginable to do any of the above before I "hope" it happens. You can "hope" for this that or the other thing and I'll bet you someone who has ALREADY done it did it by not just HOPING it would happen but that they put effort to MAKE it happen.


1) If you "hope" you get the work that's fine. I think it's better to check your market and TRY to get the work you want then just hope you get it.

2) If keeping jobs going are a priority either get money down for materials or pay suppliers when the job is done. Obvious, but "EVEN IF" you don't have the money maybe call them, pay what you can, set up a payment plan? Something? Hope does not pay the bills.

3) Hope you get paid? My last boss did and he's out of business. You got to do better then that.

4) Taxes are due when they are due. The due dates do not come out of the blue. You should know WHAT & WHEN taxes are due. Extensions are available as a last resort.

5) Workmens comp & liability insurance, same as #4 (although my liability is paid once a year unlike federal quarterly's) Hope does not pay the bills.

6) Paying your own bills is your own problem. I can't help it if someone needs a 40" flat screen and BMW. YOUR OWN PROBLEM. Hope does not pay the bills.

Good luck.
Click to expand...

My post was serious, I only saw the jest after I posted it.

My post was more on the idea of how do you budget when you do not know when you will be paid?
My "cushion" was used up when I was on orders for the reserves (they don't pay nearly as well). Since then it has been month to month, do the work, bill the work, and hope they pay on the due date. Suppliers are always paid first. The problem I run into is, work is slow so revenue is down and not consistant but the costs are the same or higher, and I have no employees.

Sorry no BMW's or plasma tv's here, I still have the old 50" projection from 15yrs ago and it works fine. No extra vehicles, work truck and family car.

I dumped the "big house" before the market crashed so I have a reasonable mortgage and the only other payment is my truck which only has a year left.

So how do you plan this? I would much rather have a plan instead of hope.
No matter how much you try, you still have no control over when they will cut the check.
 
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