Electrical store business plan
A review of startups that appear in America every year revealed an interesting pattern: when starting a new business, people increasingly rely on an idea rather than on equipment or off-the-shelf technologies. This is due to the fact that the total cost of many types of finished production is calculated in such a way that their payback will have to wait for years.
"Of course, manufacturers of machine tools and machinery set a certain level of profitability that makes the use of the equipment they sell profitable, but the risks associated with lending and external factors often nullify production undertakings," explains the well-known economist from Chicago John Wasser. “Another thing is an idea or professionalism, which can be sold well, while investing in starting a business with a minimum of funds.” Among these startups, Wasser named electrical companies. Let's figure out why.
Electrical work is mandatory for all types of building operations, as well as for almost any activity in production and other areas of the economy. In the estimate, a special item is allocated for their implementation, which sometimes reaches several percent of the project budget.
“In general, we are talking about the Russian market for the installation of electrical systems worth 20-30 billion rubles a year,” said construction expert Rinat Askerov. - But this is the tip of the iceberg, since the private sector is served by gray electricians. However, consumers are increasingly realizing that it is better not to trust such specialists, because if something happens it will be impossible for them to make any claims. "
A typical order for electrical installation is the laying of electrical lines in the room from the source in the switchboard to the points: sockets, switches, circuit breakers, and so on. For example, in an ordinary two-room apartment with an area of up to 60 square meters, up to 16 points can be installed, to which you need to bring cables, hiding them in the walls using the chasing method. You will also need a shield with machine guns, of which there can be up to ten pieces for a given object.
Thus, with an increase in the area of premises and with an increase in the tasks set, the volume of electrical work increases exponentially. In other words, those who decide to open an electrical installation company are currently on the green light.
The firm is serious
And reading posts of professionals is a very interesting activity. There you can find as many fresh thoughts as you will not read in hundreds of clever articles. That is why various Internet platforms are popular where certain narrowly professional problems are discussed. For example, there are forums entirely devoted to the opening of electrical companies.
“I have experience plus a natural understanding of electrical engineering,” writes a guy_Vasya. - But I'm tired of working for my uncle or interrupting with covens. There is an understanding that I am capable of more. The question is where to find stable orders, especially if there are enough competitors in my small town. "
Several dozen businessmen who already have experience of establishing their own electrical installation companies took part in the discussion.
“At the first stage, it will be unclear why he registered the company, and not just continued to fulfill individual orders,” explains the forum member hdykd @. - It seems like he got married. Everything is the same as before the registry office, only there are more worries and less pleasure. But then comes solidity and self-respect, as well as responsibility for their work. You will begin to understand that the firm does not knit brooms. Then serious customers will be drawn to a serious status. Shabay will never be offered the middle object. So you will fix the wiring in the apartments and change the sockets. "
Indeed, only a firm in the form of a legal entity can apply for contractual relations with large and medium-sized customers. This business attraction is documented in dozens of American startup textbooks. That is why opening an electrical installation company is an obligatory step on the way to major contracts.
Hypermarkets offering their visitors a variety of different products are highly popular among the population. An increase in the number of such outlets leads to a decrease in traffic to stores with a narrow specialization. However, according to experts, highly specialized retail outlets will not disappear from the market in the coming decades. This says that opening a store specializing in the sale of a specific product group is still profitable. Below we propose to talk about how to open an electrical store from scratch.
Tips for businessmen opening an electrical store
Each market sector has its own characteristics. One of the features of the sale of electrical goods is fierce competition. When preparing to implement the idea, to create his own store, a future merchant needs to develop a strategy that will highlight his merits against the background of competitors. The preparatory stage is one of the most important. The financial well-being of the entrepreneur himself depends on the quality of collecting information about the selected market segment. Before starting to develop step-by-step instructions, a businessman needs to choose a format for his store.
Today, all stores specializing in the sale of electrical goods can be divided into two conditional groups. Stores from the first category are focused on working with wholesale customers. Most often, construction crews, electricians and other people who use electrical appliances in their work acquire various parts in such outlets. In such stores, various products are in high demand: from electrical cables to professional soldering stations. Stores belonging to the second group specialize in retail. These outlets offer their customers sockets, plugs, lighting fixtures and other equipment.
There are many different details to consider when choosing a concept. The location of the outlet, the number of products, the pricing policy and the quality of service have a direct impact on the height of income. The opening of a supermarket, where the bulk of the assortment will be represented by electrical goods, requires a detailed analysis. Competently formed prices allow not only to "survive" in the competition, but also to get the most effective business. Newbie traders are encouraged to combine the above concepts.
The presence of regular customers purchasing large quantities of products will reduce the return on investment, and retail sales will improve the store's image.
Business Competitive Advantages
In commercial areas that are characterized by fierce competition, it is very important to draw up a methodology for dealing with similar stores in advance. The content of the entrepreneur's proposal determines the speed of creating a customer base and the volume of average monthly revenue. Having decided to work in this direction, an entrepreneur must be ready to spend a lot of time and effort on the development of his business.
During the preparatory stage, it is necessary to highlight a number of advantages that will distinguish the created point from other stores. This can be either a better location or a lower cost of the products presented. The choice of the location for the store is one of the important nuances. Opening a point in the area of new buildings, where there are no competitors, allows the entrepreneur to reach the maximum percentage of the consumer audience. The use of various payment methods allows you to establish cooperation not only with retail customers, but also with wholesale buyers.
One of the competitive advantages that a novice entrepreneur can take advantage of is the quality of service. Experienced employees who are able to provide competent advice are one of the main advantages of such stores. An equally important role is played by additional services in the form of the ability to order goods at home through an Internet site or a phone call.
How to open an electrical store
More and more entrepreneurs are studying the question of how to open an electrical goods store. If you take care of the details, you can quickly make your business self-sufficient.
♦ Capital investments - 750,000 rubles. ♦ Payback period - 6-10 months.
Everyone always needs electrical goods.
Shops selling light bulbs, lighting fixtures, cables, sockets, voltage stabilizers and more are visited not only by electricians or professional builders, but also by ordinary people who take care that their homes are lit.
The constant demand for this group of goods has led to the fact that more and more entrepreneurs are exploring the question of how to open an electrical store.
They are not afraid of either the high level of competition, or the relatively low mark-up on goods sold in electronics stores, or the many nuances of this business.
Experienced business people know that if you take care of the details, you can quickly make your business self-sufficient.
Two options for businessmen looking to open an electrical store
As already mentioned, the level of competition is very high in this sector, so even at the stage of writing a business plan, you need to take care of the formation of competitive advantages and thinking through all the details (location, product range, personnel), and about the concept of your store.
The concept of an electrical store largely depends on which customers you intend to target:
- Wholesalers, professional electricians and builders who buy everything they need to complete an order in one store, from cables to power plants.
- For retail clients who do not leave large sums in the store, but take goods (bulbs, sockets, flashlights, etc.) quite often.
You need to choose a concept based on the location of the future store, the range of goods that you are going to sell in it, and the pricing policy.
If you are going to form prices that will be slightly lower than those of competitors, and open a mini-supermarket where all kinds of electrical goods are sold, then you can focus on wholesalers.
An electrical goods store is a popular business area that does not need large investments, obtaining a license and a large-scale advertising campaign. The assortment of the outlet can number up to 5,000 items, satisfying the demand of consumers in full. Lamps, lamps, extension cords, batteries, sockets and many other goods that people need on a regular basis can be purchased in one place. The main advantage of the project is that a potential buyer comes to the store for a specific type of product, but in 50% of cases purchases additional consumables. There are practically no people walking by chance in the electrical department, so every visitor is a real buyer. The business plan of an electrical goods store is a painstaking process of analyzing the market and competition, finding a place for a retail outlet, choosing a work format, creating competitive advantages, as well as a number of organizational measures in accordance with the legislation of the Russian Federation.
Description of the electrical goods store, relevance of the idea
This business plan is for an electrical store located in a city with a population of 300,000 or more. Store characteristics:
- The location of the outlet is a residential area, a shopping center or a free-standing pavilion in a busy place.
- Room area - 35 sq. m.
- Assortment - consumer electrical goods, consumables, electrical appliances.
- Target audience - residents of the area, visitors to the shopping center.
- Store format - a standard mode of operation with one or two sales counters and several product departments. The exhibited samples are available for reference only, and the products sold are in stock.
- Working hours - from 10 am to 8 pm, seven days a week.
- Staff - 2 salespeople per shift, 4 people in total.
Help. The above criteria for an electrical goods store is a generally accepted standard for a business in this area, but an entrepreneur has the right to organize a retail outlet at his own discretion, thus forming a competitive advantage in the form of an original design and work format.
The relevance of the electrical store is explained by the natural demand for electrical goods. The same bulbs, wires, lamps are for the most part consumables that are constantly needed in the household. People buy these products for future use, and not only for home use, but also for use in the country, in the garage, at construction sites.
Where to start?
Wholesale or retail?
The electrical store business plan provides several options:
- Complex activities.
Having worked his way up from an electrician to a team leader, Yuri Rozumov decided to create the ProfiElectric service that connects clients with performers. The project is still working in three cities, but the entrepreneur wants to create a brand that will gradually cover all of Russia, including small cities.
Yuri Rozumov told Kontur. log on how to hire worthy candidates in different cities, how to deal with Yandex. and Google AdWords and why you need to participate in public procurement and work with corporate clients.
After returning from the army in 2021, I took a job and did electrical jobs from time to time to increase my income. Someone asked to fix the outlet, someone - to make the wiring. A gradual series of orders did their job - they launched word of mouth. When I stopped handling orders myself, I started looking for other people who wanted to earn extra money.
Having received several large orders in 2021, I decided to switch to a different format and found a company, but it didn't work out, so I had to return to work for hire. For several years I built up a client base, developed communication skills and, in the end, created my own website and started buying ads.
In 2021, I watched the series Silicon Valley and thought that I could create a service that would bring together customers and electricians all over Russia. The idea was such that a client in his city could call an electrician directly, and not a call center manager or an administrator who accepts an application and looks for a contractor. The electrician is given a separate SIM card so that he knows in advance where the application is coming from.
In the spring of 2021, I ordered a new website in installments and bought an advertisement in Yandex. I was directing Google AdWords in ten cities at once, but it turned out that advertising itself is ineffective. After a few months, we left only three cities.
This winter, I decided to deal with advertising in Yandex and Google myself, redesigned the site and launched a new advertising campaign. Landing pages help you work with search queries, which tell you how to hang a chandelier or repair an outlet. We will soon launch Yandex. erect, add videos to the site to increase loyalty, and improve the design. I try to take as many photos of the residents as possible because they look better than just bare walls with sockets and light bulbs. I always use only my own materials.
I opened an individual entrepreneur for free, spent about 60,000 rubles on the site. and at first he paid 10,000 rubles. per month for advertising launch in each city. At the start, I also bought tools for working with concrete and brick - rotary hammers and vacuum cleaners to do everything quickly and accurately.
Earn more than 50,000 rubles yourself. a month is difficult. I decided to move from handicraft to business and help electricians who do not want to search and wait for applications themselves.