Starting any business without proper planning is like sending a train to its destination only to find out that it has sputtered to a stop mid-track. Nobody wants a failed endeavor under their belt. Even so, more than 50% of startups fail in their first four years of launching. You wouldn’t want that for your solar installation company.
Hence, before you start a solar services company, it is critical to conduct thorough research and prepare a solid business plan. Don’t just have a plan A, chalk-out a plan B and so on before taking the plunge.
Five factors to consider when starting a solar installation company
In the pre-business phase, it is essential to be clear about the kind of company you want to start. Since you intend to be in the solar industry, which has grown by 53% in the last four years, the scope of your business is clear.
Besides the focus of your business, here are five more factors to consider:
- Learn about the solar market in your target location
An essential characteristic of a successful entrepreneur is that he envisions the demand for his product or service. When starting a company, it is crucial to learn about your service’s demand and whether it would be needed in the coming years.
As a solar startup, you already have a green light concerning the growth of your business. This is because solar power is a source of clean energy generation. An increasing number of people are realizing the need for green energy production via solar panels for one reason or another.
In the US, a photovoltaic system is installed in every four minutes. As a startup, your aim should be to dig deeper into your solar installation service’s demand. Unearth how much the people in your target location (where you will set up your business) know about solar power. In doing so, you will find out about your service’s demand. While you are at it, check out your competitor too.
- Research and identify the target audience
Numerous companies start their business without conducting thorough market research. This move is akin to attempting to establish a company on a weak foundation instead of a strong one. Your focus should be on knowing your potential customers.
Market research sits at the helm of every business including solar companies. If you find it hard to believe then you have the example of Amazon. The e-commerce giant doesn’t take market research lightly.
You need to dig out the reasons why your target audience will invest in solar panels. From your viewpoint, they should invest in the solar power because it is a clean energy source that reduces greenhouse gas emission. It also cuts down electricity costs by 40-70% over the lifetime of the photovoltaic system.
However, customers don’t agree to invest dollars outright. Thus, you need to learn about the audience that you will be targeting, for example, commercial businesses or residential units. Besides, you need to learn their reasons for making such investments so that you can use those reasons to market your solar installation service.
- Think of a suitable name for your solar installation company
The name of your business should give a clear idea of the product or service that you offer. A case in point is NJ Solar, a PV installation company based out of New Jersey. The ‘Solar’ is the name ‘NJ Solar’ sets a clear idea in the audience’s mind that the company is a solar-based business.
Ensure that the company name that you choose has an Internet domain name and trademark available. The risks for your fledgling business only multiply if you fail to get a trademark properly. Moreover, the effort, time, and money that you invest in your company could go to waste if someone else has the trademark.
A pro tip is to set a company name the syncs with the search engine optimization (SEO) standards. This makes it easier for potential customers to discover your services.
- Harness the potential of the web for your solar business
Considering your marketing options before starting a solar installation company is another important matter. Fortunately, the web provides a host of ideas for marketing your services. To this end, you can use the social media networks to your advantage.
More than 50 million small businesses use Facebook to connect with their customers. Furthermore, 50% of the shoppers have purchased something based on a recommendation via a social media channel. Hence, social media is a good means of attracting new clients, engaging with them, and retaining customers too.
Likewise, the web offers you the chance of setting up an official business website. Research highlights that 81% of the shoppers research online before they make a purchase. This sets the need for a web page for your company. Thus, consider the potential of the web as a marketing tool for your solar services company.
- Learn the legal requirements for running a solar installation company
Lastly, it is essential to take the legal matters into account before your company is up and running. You don’t want a legal noose tightening around you once your business picks pace. Therefore, understand the licenses, taxes, and regulations concerning the solar industry in your location.
Once you have researched, consult a lawyer and understand the depth of all the legal matters relevant to your work. After the comprehension part is over, structure your business in compliance with the law.
Generally, make sure that you are charging the right amount of tax on your solar installation services. Plus, you need to obtain the license to run your company.
Summing up, there is a lot of planning that you need to do before launching a solar installation company. Learn about your target market and dig deeper into your potential customer’s interests and needs. Select a good name for your company and check out all the legal requirements before setting up a business. Don’t forget to tap into the potential of the Internet as part of your business marketing efforts.