Opportunity
Problem
The population in Richmond is growing. More people mean more stores and apartments, which means more construction. The new construction requires skilled electricians who can wire everything.
Solution
Premiere Electric is a new electrical contracting firm that Robin has started to serve the former Gardner and Miller customers, as well as expand her services to new customers in the tri-county area.
Market
It is difficult to find commercial electrical contracting service providers in the highly fragmented market. Only a handful of these are large companies with at least 20 electricians. The rest are small businesses with fewer than three full-time electricians. Premiere Electric’s current niche is its relationship with ex-customers of Gardner and Miller. However, this won’t be enough to grow in a competitive marketplace.
Robin reduces the number of electrical companies competing for large projects by focusing on data, maintenance and communication. Premiere Electric has plans to become a force on the largest projects in the area, but there are still opportunities for customers with smaller projects that are not being pursued by Robin’s competitors.
Competition
There are many electric contractors in Richmond, including Frazier Electrical, Above Code Electric, and H.O. Prism Industries, Langhorne Electric, and Feild Electric Company are just a few.
All of them have years of experience and training. They also boast customers who trust their work. Their customers are welcome to have electrical contractors in their homes. They must be capable of doing excellent work and not invading the privacy of their customers.
Why Us?
Premiere Electric’s mission is to offer its customers the highest-quality electrical services. Robin emphasizes personal service and provides quick and easy service. Premiere Electric’s technological expertise allows us to install voice and data wireless systems as well as intelligence systems at any size facility. Robin has strong relationships with vendors who can ship major parts quickly (on an overnight schedule in most cases), minimising downtime for Premiere Electric’s customers.
Expectations
Forecast
There is currently $100,000 in business with former Gardner and Miller clients. Robin believes that she can grab the lion’s share and grow from this base. She will be the firm’s sole employee at first, but will soon hire additional electricians to grow her sales.
Financial Highlights for the Year
Financing Required
We will get $62,000. Robin will invest $40,000 while we receive a $22,000 long-term loan.