Business Overview:
This is a rapidly growing electrical servicing company that services customers within a localized region of North Texas. This company provides a wide variety of both residential and commercial electrical services. This business was started in 2016 from the ground up by the current owner and has experienced tremendous growth since then, servicing over 4,300 clients along the way and doing over $1,200,000 in annual sales in 2021 with projections to meet or exceed that in 2022.
This business has grown from one employee at the beginning to a total of 8 employees, of which 3 are Journeyman and one is a master electrician. It also comes with a repeat customer base and highly coveted local reputation both online and in the electrical industry. This company has sustained its success by offering clients a no-pressure-sales model, not requiring service contracts, providing high quality work, and keeping a “customer first” mentality.
This current owner has the goal of expanding the staff in order to expand their service area and to have the ability to win bigger bids. However, with the current market conditions the owners have found some difficulty in hiring extra staff which impacts the ability to expand. The current owner also noted that the commercial component of this company has a lot of potential for growth and upside, but it is currently limited due to inability to hire an adequate amount of staffing to be able to service more commercial customers. This would make a great business for a current electrician looking to buy and continue to grow an electrical services business, a bolt-on to a platform company, or even strategic buyers looking to make a return on their investment.
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Property Features and Assets:
The company leases an 1,800 square foot space in a commercial warehouse facility at $1,125/month on a NNN lease. Lease expires 12/1/2024.
Assets = $268,906
Market Competition and Expansion:
The Electricians industry is expected to continue to be driven by the broader construction market, which is anticipated to rebound over the next five years into 2026. Additionally, solid growth in the value of nonresidential and residential construction, access to credit and investment in manufacturing structures is anticipated to boost industry revenue growth. Developments of increasingly complex and advanced electrical systems, and the growing emphasis on energy efficiency will likely create opportunities for broader industry expansion as well. Overall, IBISWorld projects that industry revenue will increase at an annualized rate of 1.4% to $216.8 billion over the next five years through 2026. Competition in this industry remains relatively moderate due to barriers-to-entry such as having specific skillsets, education, licensing requirements, experience, etc.
Per the owner, there are several opportunities for growth such as:
Adding in service fees to each job
Charging a fee for estimates
Charging slightly higher prices for all services provided
Hire more staff to allow for the opportunity to take on more jobs. The commercial component of this company has a lot of potential for growth but is currently limited due to an inadequate amount staffing.
Expand service area further than the current 30-mile radius
Reason for Selling:
Retirement.
Additional Details:
- The property is Leased.
- The owner is willing to train/assist the new owner.
- This is not homebased business opportunity.
- This is not a franchise resale opportunity
Relevant Links:
Asking Price: $199,000