Energy Conservation Contractor Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Energy Conservation Contractor Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start an Energy Conservation Contractor business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
Your Business Planning Package will be immediately emailed to you after you make your purchase.
Product Specifications (please see images below):
As more people are concerned about the environment and volatility of energy prices, and energy conservation contractors have become very popular businesses over the past 10 years. The nice thing about owning and operating one of these businesses is that they are able to produce revenues through a number of channels. Foremost, these contractors can generate very high gross margin revenues from the ongoing advisory services to commercial enterprises, industrial firms, and related entities as it relates to reducing current energy costs. In many instances, these businesses will focus on ways and provide detailed assessments as to how a firm can reduce their carbon footprint, energy efficiency, and get a greater return on any renewable energy source installed within the facilities. Second, energy conservation contractors are able to generate substantial revenues through the installation of wind turbines as well as photovoltaic cells in existing or to be established facilities. While the gross margins associated with the sale of photovoltaic cells and the installation of these products is moderate, the revenues generated can be significant often ranging anywhere from $500,000 all the way to $5 million depending on the scope and scale of the requested installation.
The demand for these services is only expected to grow over the next 20 years as more companies and governments shift away from fossil fuels to renewable energy sources. Additionally, many real estate developers are also seeking to create buildings that are highly efficient and have a minimal carbon footprint. The barriers to entry for this type of business are considered to be moderately high given the skill set required by the owner.
As it relates to economic stability, there are a number of programs available through governments that provide strong tax incentives for the installation of energy saving devices. The startup costs associated with a new energy conservation contracting business usually ranges anywhere from $100,000 to $500,000 depending on the number of vehicles purchased, whether an inventory of renewable energy equipment is going to be held, and the underlying operating costs. One of the best things operating this business is that during times of economic recession or slow growth – overhead can be substantially reduced by eliminating independent contractors and certain non-key employees from payrolls.
Given the strong demand for the services on an ongoing basis – most banks, lenders, and private investors are willing to put up the needed capital in order to establish one of these businesses. Of course, and energy conservation contractor business plan is going to be required. This business plan should include a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page that features industry statistics that are similar to that of other contracting businesses. The business planning document should also have a significant demographic analysis as it relates to the commercial enterprises and industrial firms that will be targeted for the company’s contracting services. While there are homeowners that will require these types of services from time to time – they are usually very wealthy homeowners who want to reduce their carbon footprint print substantially. Given the nascent nature of energy conservation contracting businesses the costs are associated with providing the services for a home are still very expensive. As such, a limited amount of information regarding the demographics of individual homeowners can be done on a shorter basis. One of the things that should be examined as it relates to working with businesses is that an overview of revenues, estimated net profit, estimated amount of money spent on electricity, and related information should be included within this demographic analysis. The business plan should also include a thorough examination of the number of competitors with any given market. Given that this is a newer industry the number of energy conservation contractors is still somewhat limited. Many of many other contracting businesses do provide the service but not on a full-time basis.
Once the business plan is developed, it is time to establish the energy conservation contractor marketing plan. As it relates to marketing, it is important that the firm work closely with real estate developers, property management firms, and large industrial companies in order to develop ongoing purchase relationships with these firms. Again, many real estate developers that produce commercial and industrial properties are already integrating specialized materials and construction methods in order to reduce the carbon footprint while concurrently providing for the usage of renewable energy. As such, these ongoing relationships will prove to be invaluable throughout the life of the energy conservation contracting firm. A presence on the Internet is usually required for all businesses these days, and energy conservation contracting businesses need no different. The website should feature information about the services offered, products offered if applicable, contact information, preliminary pricing information, and how the usage of energy conservation services can substantially reduce the amount of money spent each month on energy costs. Many energy conservation contractors will often frame their information as it relates to a return on investment for engaging in this type of activity. A presence on social media is not required but is recommended as it will boost the visibility of the business in the long run.
And energy conservation contractor SWOT analysis should be produced as well. As it relates to strengths, the demand for these services is expected to mushroom over the next 20 years. Additionally, the mix of service revenue coupled with product sales allows for a substantial amount of profit to be made on each job completed by the business. Relating to weaknesses, there are going to be a number of new contracting business enter this market as demand increases. However, given that there are only a limited number of companies within this newer industry – a firm can fly given that they will be highly established once demand increases further. For opportunities, these businesses are able to expand rapidly by simply acquiring additional staff, additional trucks, and expanded working capital base that will allow the business to expand into other geographic areas. For threats, one of the things that may impact the way that these businesses operate is that special tax incentives, tax credits, and related tax abatements may decline over the years as these businesses become more commonplace. However, this is not expected to happen for a significant amount of time given that the governments within the United States wants to see a rapid increase in the amount of a new energy used.