Swimming Pool Contractor Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Swimming Pool 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 a Swimming Pool 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.
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Swimming pool contractors are extremely popular businesses especially in markets where the weather is consistently warm throughout the year. One of the nice things about owning and operating a swimming pool contractor is that they are able to generate revenues not only from the installation of new swimming pools and spas but also from the ongoing maintenance of these installations. In fact, the maintenance of pool and spa facilities allows these businesses to remain profitable and cash flow positive at all times.
Pools and spas are complicated to manage, and for the wealthy people that are able to afford these luxuries in their home – they’re willing to put up the necessary money each month to have their pool or spa properly maintained. The very large streams of revenue generated from pool contracting installation services allows these businesses to generate substantial profits during times of economic growth.
In economic recessions, the maintenance services provided by these businesses allows them to remain profitable and cash flow positive. As such, this business is relatively immune from substantial negative changes in the economy. The start up cost associated with developing a new pool contracting business to arrange about from $150,000 to $300,000 depending on the ongoing equipment that will be used in conjunction with pool installations and maintenance. The gross margins generated from pool sales to around 50% while the gross margins for maintenance services is in the 95% range. Given the strong economic stability of these businesses, most banks and lenders are willing to provide business loans as well as working capital lines of credit in order to have these businesses launch and expand their operations.
A swimming pool contractor SWOT analysis is typically developed as well. As it relates to strengths, swimming pool contractors can become very lucrative businesses given the large expenses associated with the installation of a new pool. These businesses generate high gross margins from installation services as well as ongoing maintenance services. Once established, the barriers to entry for these businesses is relatively high.
For weaknesses, during times of prolonged economic recession – the top line revenues of these businesses does falter. Again, the pool and spa maintenance services allows these businesses to remain afloat but they are not making substantial profits from the installation of new pools. However, if the business is located in a highly valuable market where people have substantial incomes in this risk is somewhat muted.
For opportunities, swimming pool contractors can readily expand by hiring additional maintenance staff will concurrently developing additional offices allows them to provide services in numerous metropolitan areas. Additionally, new pool equipment and related services are always one of the ways that these businesses can expand on ongoing basis.
For threats, outside of competitive issues or a major economic recession – there’s very little that would impact the way that these companies can conduct business. People are always going to want to go swimming, and as such there’ll always be a strong demand among people that are looking to have coming pools.
A swimming pool contractor business plan should also be developed especially if the entrepreneur is going to be sourcing capital from private investors or from financial institutions. As with all business planning documents, this document should feature a three-year profit and loss statement, cash analysis, balance sheet, breakeven analysis, and business ratios page. As it pertains to industry research, there are approximately 50,000 swimming pool contractors within the United States and each year these businesses generate about $9 billion in revenue. Also within the business plan a full demographic analysis that showcases the population, population density, annual household income, median family net worth, and average home value should be included as well. Given that this business primarily caters to residences, a substantial marketing campaign that is based on the demographics within the business plan should be developed as well. Additionally, a competitive analysis regarding other pool installers as well as pool maintenance services should be included within the documentation to. Almost all financial institutions as well as private investors are going to want to see a thorough analysis as it relates to the local and market research in order to ensure that the business will have longevity as well as economic staying power.
Finally, a swimming pool contractor marketing plan should also be developed. Initially, many swimming pool contractors develop ongoing relationships with real estate developers, general contractors, and associated tradesmen in order to develop referral relationships. Many real estate developers as well as general contractors will work directly with swimming pool contractors in order to have them install pools and spas into their clients homes. As such, it is imperative that the swimming pool contractor develop a marketing plan that heavily includes the use of marketing and regional trade journals that the company’s brand name is well-known from the onset of operations.
Although this creates a little bit of a lower gross margin for the swimming pool contractor – operating a subcontracted capacity – these businesses are able to aggressively use these third-party referrals in order to build their operations initially. Beyond the development of relationships with third-party contractors, almost all swimming pool contractors directly market to homeowners within the target market. This includes the use of traditional mail advertisements especially when these businesses are looking for pool maintenance services. Although the expense of mailing thousands of advertisements to a community is substantial – the return on investment can be significant especially in markets where there are a number of people that need the services on an ongoing basis.
As always, a swimming pool contractor marketing plan should also include the development of expansive online presence as well. The company’s website should feature a number of images regarding work that has been previously completed while providing a number of insights as to the services offered, pricing information, information about pool maintenance services, location information, and general contact information. This website relisted among all major search engines. A presence on social media is also a benefit for many swimming pool contractors especially when homeowners post pictures of their new pools on popular social media platforms such as FaceBook, Twitter, Instagram, and Google+. These images can be tagged so that people looking at them will know who the installing business was. Over time, this can create a substantial benefit for the business as it relates to showcasing the business as a trustworthy organization will concurrently being able to showcase the work to potential clients. This is one of the foremost ways in which these businesses can expand their visibility at the onset of operation.
Swimming pool contractors can be highly lucrative businesses among individuals that have an understanding of how to properly install these facilities will concurrently being able to produce a positive cash flow from maintenance services. In warmer climates in areas where there is a significant amount of wealth, these businesses tend to do very well given that busy professionals are going to need to have maintenance services rendered on an ongoing basis. These can be highly lucrative small businesses that have a substantial upside potential and room for growth moving forward.