1、Green Power Consultancy Business Plan Executive Summary Mission It is Green Power Consultancys mission to provide the finest green energy solutions for new constructions as well as existing building owners/lessors. Through careful analysis, attentive customer support, and cost effective solutions, G
2、reen Power will become a stable business serving the Burlington community. Keys to Success Green Power has identified several keys to success that will be instrumental in creating a sustainable business. If these keys are followed, the likelihood of success will significantly increase. 1. Offer solu
3、tions that are demanded by customers. 2. Ensure all of the solutions have economic considerations built into the respective models. 3. Only provide 100% customer satisfaction. All customers must have their expectations exceeded. Objectives Green Power has identified three objectives that it will pur
4、sue for the long-term success of the business: Proven cost-benefit analysis environmental approaches to structure building, maintenance and energy consumption. Become the premier environmental energy consultancy in the state within five years. Reach profitability within three years. Company Summary
5、Green Power is a Vermont-based L.L.C green energy consultancy. Green Power offers its services both to architects who are constructing new businesses as well as existing building owners/users who are looking to make their existing structure more environmentally sound. Start-up Summary Green Power wi
6、ll require the following equipment in order to begin operations: Computer system including three workstations, standard laser printer as well as a wide mouth printer, Internet access, and assorted software such as Microsoft Office, QuickBooks and CadArchitect (the premier architect industry software
7、). Three work areas including two drawing tables and the assorted office supplies for the standard workdesks as well as the drawing tables. Various bookshelves, lights, and couches (for clients). Bike storage unit/locker. Refrigerator, microwave, and assorted utensils for the lunch room. Start-up Fu
8、nding Start-up Expenses to Fund $7,150 Start-up Assets to Fund $32,850 Total Funding Required $40,000 Assets Non-cash Assets from Start-up $9,000 Cash Requirements from Start-up $23,850 Additional Cash Raised $0 Cash Balance on Starting Date $23,850 Total Assets $32,850 Liabilities and Capital Liabi
9、lities Current Borrowing $0 Long-term Liabilities $0 Accounts Payable (Outstanding Bills) $0 Other Current Liabilities (interest-free) $0 Total Liabilities $0 Capital Planned Investment Investor 1 $20,000 Investor 2 $20,000 Additional Investment Requirement $0 Total Planned Investment $40,000 Loss a
10、t Start-up (Start-up Expenses) ($7,150) Total Capital $32,850 Total Capital and Liabilities $32,850 Total Funding $40,000 Start-up Requirements Start-up Expenses Legal $2,000 Stationery etc. $200 Brochures $200 Rent $500 Research and Development $3,500 Expensed Equipment $750 Total Start-up Expenses
11、 $7,150 Start-up Assets Cash Required $23,850 Other Current Assets $0 Long-term Assets $9,000 Total Assets $32,850 Total Requirements $40,000 Company Ownership The two principal owners of Green Power is Dan and Sue Lang. Services Green Power offers a wide range of environmentally-conscious energy so
12、lutions related to new and existing structures. The main areas of consulting that Green Power will offer are: Passive heating: This applies to the construction of the new structures, designing the structure to capture and utilize heat that is either generated naturally or as a by-product of the buil
13、ding. Examples of passive heating include specific placement of the heating vents, the design and placement of the building and the windows. Grey water: This is the capture and utilization of grey water. Grey water is water that has been used for some other source such as in the faucets or rain wate
14、r that can no longer be offered as potable, but still can be used for toilet flushing or land irrigation. Renewable energy: This service offers customers the information needed to make intelligent decisions regarding the use of renewable energy sources. Renewable energy sources can be defined as sou
15、rces of energy where the rate of energy depletion is not faster than the production rate. Examples include: wind power, photovoltaics, hydro power, biomass, solar energy. Employee transportation: This service is to reduce the energy consumed by employees traveling to work. Typical aspects of the pla
16、n are outlining public transportation options, developing a company subsidized public/alternative transportation voucher, building covered bicycle lockers and shower facilities as well as other activities designed to increase the number of employees using bicycles as their main source of transportat
17、ion to work. Efficient building construction: This focuses on the use of local building materials thereby decreasing energy needed for transportation as well as the utilization of recycled materials for construction decreasing energy demands for the manufacture of new building materials. Market Anal
18、ysis Summary Green Power has segmented the market into two distinct target market groups. The first group is architects who are building a structure either speculatively (infrequently) or for a client (generally). The second customer group is individual customers who desire environmental elements de
19、signed into their building. The niche that Green Power has chosen to participate in is a fairly new field. Green Power faces competition from eco-architects as well as from the local utilities that may have a small department that offers green energy consultation advice. The industry often operates
20、to satisfy clients; it is the end customer that typically requests green energy designs and they either seek out a specific architect or they request their architect to receive guidance from firms such as Green Power. Market Segmentation Green Power has segmented its target market into two different
21、 customer groups, both equally attractive. Architects This customer group is made up of professional architects that design buildings and additions for clients. Architects have developed a strategic relationship with Green Power to offer value-added-services for their clients. The architect firms ty
22、pically have two - nine partners. Offer both residential and commercial design work, however 67% of their work is commercial. The firms typically have only a handful of service providers that they work with. This means that once they find someone they trust, they develop a long-term relationship wit
23、h that service provider. Yearly revenue ranges from $200 thousand - $5 million. Individual customers This segment contains consumers who are either having a residential home, or a commercial structure, designed. Due to their personal environmental concerns and a recognition that it can be cost effec
24、tive to have building decisions with environmental considerations, they have requested Green Powers assistance. They are generally working directly with Green Power for their design needs and will likely then take this design criteria to their builder. The individual is an environmentalist and they
25、take into account how their action will impact the environment. The age range of clients is 35-49. Average household income is $65,000. Please note that while the overriding concern in using Green Powers services is the positive impact on the environment, a cost benefit analysis indicates that in th
26、e long term it is cost effective to adopt green energy considerations. 89% of the group have at least an undergraduate degree, 26% have a graduate degree. Market Analysis Year 1 Year 2 Year 3 Year 4 Year 5 Potential Customers Growth CAGR Architects 7% 23 25 27 29 31 7.75% Individual customers 9% 16,
27、009 17,450 19,021 20,733 22,599 9.00% Total 9.00% 16,032 17,475 19,048 20,762 22,630 9.00% Target Market Segment Strategy Green Power has chosen these two market segments for compelling reasons. The architects have been focused on because they are the service providers that do the bulk of the design
28、 work for residential and commercial structures. The architects are used as sales people for Green Powers services, they are the ones that can then sell these services to their customers. It benefits the architects because they are able to offer a wider range of value-added-services to their custome
29、rs without spending capital of learning the information themselves. By aligning itself with architects, Green Power is able to offer their services to a larger group of people. Green Power will also serve individual customers. These are people who know that they want environmental considerations mad
30、e in the design of their structure and will seek out a firm such as Green Power to have this work done. Burlington is a wonderful place to locate Green Power as there is a high population of environmentally-conscious people in this city. This provides Green Power with a large market of interested cu
31、stomers. Additionally, this market group is attractive because people that have environmental tendencies are often vocal about their commitments or causes. By offering green energy services, Green Power allows this group of people to act on what they believe in on a personal level, adhering to the w
32、ise saying think globally, act locally. Service Business Analysis The environmental power consultancy industry is fairly new. Only recently has there been an emergence of firms that offer these services. This can be explained by several factors. First, people are becoming more environmentally aware
33、these days, a function of many things including the recent problems with the Middle East and Fundamental Islamists. These recent problems have forced people to reconsider Americas dependence on oil and the need to maintain good relationships with Saudi Arabia only because of their oil. Another facto
34、r that has contributed to the growth of green power is that it has become increasingly cost effective to make business decisions while taking into account the decisions impact on the environment. For years an environmental decision was based on personal consciousness and ethics, not overriding econo
35、mic factors. Now money can be saved when environmental impacts are taken into account. Please read the following section which will indicate the different players within the industry. Competition and Buying Patterns The competition generally takes two different forms: Eco-architects These are archit
36、ects that specialize in environmental design considerations. Typically their entire practice is based around structures that have environmental elements. Green Power could actually be within this industry niche, however they are able to serve a larger customer baser, therefore earn more revenue as w
37、ell as make a positive impact in our world by offering its services to both end consumers as well as regular architects as opposed to the business model of only serving one set of customers. Local utility The local utilities often have a department that offers free consultation for environmental des
38、ign considerations. There are incentives for the utilities to attempt to curb their customers use of their energy. These incentives take the form of not needing to make as many capital expenditures to develop the power delivery infrastructure to accommodate the increased load for energy demands. The
39、refore, the more the utility is able to get their customers to conserve, the less money they have to spend on infrastructure improvements, the more money they earn. That being said, the utility often has a small department that offers tips on energy conservation. While these tips can be quite helpfu
40、l, since they are offered for free for the power customers, they are not nearly as comprehensive as they could be. So while they provide good initial tips, the local utility is not a strong competitor to serve a client who is committed to making as much of a positive environmental difference as can
41、be achieved by using a specialized firm. The buying pattern for consumers is currently being defined as we speak, a function of how new the industry is. Currently, purchasing decisions are based on customers typically making requests for these services from their architect or they do a bit of resear
42、ch to determine who offers these services. As the industry becomes more mature, firms will become more established and reputation and visibility/awareness will shape buying decisions. Since there is a wide range of options regarding implementation, price is less of a consideration for the decision s
43、ince most of the service providers can offer a wide range of inexpensive to expensive options. Strategy and Implementation Summary Green Powers business strategy recognizes and will leverage the fact that a lot of business will be transacted through networking and word-of-mouth referrals. With this
44、in mind, Green Power will work diligently to build alliances with architects who can co-brand their services with Green Power thereby increasing Green Powers potential qualified customers. Green Power will rely on its competitive edge of adopting a cost effective environmental solution so in additio
45、n to meeting environmental concerns of the customer, Green Powers services will save the customer money over time.The marketing strategy will highlight both environmental attributes as well as economic ones.The marketing campaign will recognize the existence of two distinct market customers. Lastly,
46、 the sales strategy will offer a compelling economic analysis of how the customer can save money by adopting Green Powers designs. Competitive Edge Green Power will use its competitive edge of economic justification to turn potential customers into qualified sales customers. While some of the other
47、similar companies often highlight the positive environmental impact that their designs offer, Green Power will also offer economic justifications for their designs. This is an important competitive edge as it provides evidence that the customer can save money in the long term and make a positive imp
48、act on the environment. Providing a cost benefit analysis for the green design is important because it makes the potential market larger, moving from people that want to do good for the environment to people that also want to save money. By offering an environmental solution that saves the person or
49、 business money creates a compelling reason to adopt the suggestions. There are too few people that will act only for environmental reasons, but when you save people money, there are far more people interested. Marketing Strategy The marketing strategy is based on developing an awareness regarding Green Powers services to both architects and the end use consumers. Green Power will strongly use networking as a means to develop relationships with many of the citys architects. Although Burlington is a reasonably-sized city, the architect
