Free Solar Energy Farm Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
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in this complete free business plan are completely fictitious and may not
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Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $5,000,000 for the development of an alternative energy business that produces electricity from photovoltaic cells while showcasing the expected financials and operations over the next three years. Solar Energy Farm, Inc. (“the Company”) is a New York based corporation that will sell electricity into the power grid from the power produced from its photovoltaic cell structures. The Company was founded in 2008 by John Doe.
1.1 Products and Services
As the prices of traditional fuels has skyrocketed (oil, natural gas, and coal), the demand among consumers for ecologically friendly and economically viable alternatives has increased. As of mid 2008, the prices of crude oil and its related energy products have almost doubled. As such, companies like Solar Energy Farm, Inc. have recognized a tremendous opportunity to develop facilities that produce electricity from renewable and infinite sources of energy like solar power. The Company intends to develop approximately 700 individual solar energy producing structures that will sit on approximately 4 acres of land. The Company anticipates that this field will produce approximately 1MW of electricity to be sold into the power grid. The third section of the business plan will further describe the production of the Solar Energy Farm.
1.2 The Financing
Mr. Doe is seeking to raise $5,000,000 from an investor. The preliminary terms of this agreement call for an investor to receive a 45% ownership interest in the business coupled with a recurring stream of dividends starting in the first year of operations. The investor will also receive a seat on the board of directors.
1.3 Mission Statement
Management’s mission is to develop the Solar Energy Farm into a profitable and ecologically friendly venture that will provide the Company and its owners with a steady stream of income from the sale of environmentally friendly energy productions services.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the alternative energy industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to aggressively solicit additional rounds of capital will concurrently reinvesting a significant portion of the Company’s after tax income into the acquisition of new photovoltaic cell structures.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Solar Energy Farm, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Solar Energy Farm requires $5,000,000 of investor funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
At this time, Mr. Doe is seeking to sell a 45% interest in the business in exchange for the capital sought in this business plan. The investor will also receive a seat on the board of directors as well as a recurring stream of dividends starting in the first year of operations.
2.4 Management Equity
John Doe owns 100% of the Solar Energy Farm, Inc. Once the requisite capital is raised, he will retain a 55% ownership interest in the business.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Solar Energy Farm. Based on historical numbers, the business could fetch a sales premium of up to 4 to 6 times the previous year’s net earnings.
3.0 Products and Services
As stated in the executive summary, the Company intends to acquire/lease 4 acres of property which will house 700 photovoltaic cell structures for the production of electricity harnessed through the sun. These photovoltaic cells capture solar energy (photons) and then convert them to electricity. This process is known as the photovoltaic effect and it was first discovered by Albert Einstein in the early 20th century. The retail energy price of electricity is $.09-14 KWh, which is what residential customers pay on average within the United States. Wholesale pricing is lower than that based on the utilities expenses and profits. Management believes $.045 - $.06 per KWh is possible price that the Company can sell its energy to the local utilities and municipalities
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the alternative energy industry, the customer profile, and the competition that the business will face as it progresses through its business operations. The current geopolitical environment has led Management to believe that energy prices will continue to increase in the near future. The war in Iraq, faltering nuclear production talks with Iran, and general Middle Eastern instability has led many economists to believe that there is a fifteen to twenty percent risk premium now associated with the price of crude oil and related energy products. While these issues bring worry to the general economy, Management sees a significant opportunity to enter the market with a source of alternative energy. Many politicians and special interest groups have promoted the development of alterative energy solutions to combat the continually increasing energy prices in the United States. Additionally, the fast growth of Asian nations (namely India and China) has prompted further increases in the global demand for energy. This trend is expected to continue in perpetuity.
4.2 Industry Analysis
There are approximately 400 companies that provide non-nuclear and non-fossil fuel power generation to the general public. Each year, these businesses aggregately provide more than $18 billion dollars of energy to the open market. The trend among these alternative energy sources is expected to grow significantly as the need for alternative fuels and power grows. Currently, the price of oil and other fossil fuels has skyrocketed to the point where many consumers are looking for alternative methods of power. Collectively, the industry employs more than 18,000 people. Aggregate payrolls exceed $4 billion dollars per year.
4.3 Customer Profile
For the Company’s solar electricity production capabilities, Management expects two core groups of purchasers: government agencies and electricity wholesalers. Among the first group, Management expects that agencies such as counties, state governments, and the US federal government will acquire large scale electricity delivery contracts from the Company with the intent to use the energy within their large scale applications. At the onset of operations, the Company will immediately begin developing relationships with local county governments as well as the state government for ongoing divestiture and purchase agreements.
4.4 Competitive Analysis
Energy production is one of the freest markets in the economy. These markets operate on a global scale, and as such, it is difficult to determine the exact competitors that the Company will face as it progresses through its business operations. Any business that produces electricity is a potential competitor for the business. However, solar energy is becoming an increasingly popular method of producing electricity, and the Company’s primary competitive advantage will be its low cost operating infrastructure, its completely renewable input (solar), and the demand among consumers for cleaner alternatives to traditional oil, natural gas, coal, and nuclear energy power plants.
5.0 Marketing Plan
As the Solar Energy Farm intends to sell its produced energy directly into the electrical grid, the marketing required by the business will be minimal. However, Management is committed to increasing the awareness of solar energy usage. Below is a brief overview of the ways that the Solar Energy Farm will market its operations and alternative energy production.
5.1 Marketing Objectives
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories to further increase awareness of solar energy.
• Establish relationships with energy wholesalers and government agencies within the Company’s targeted market.
5.2 Marketing Strategies
Currently, there are a number of organizations, including the Solar Energy Industries Association that are pushing initiatives, lobbying legislatures, and informing the general public about the benefits about alternative energy products. Management feels that it is important to invest in these public relations campaigns (even though they will not affect direct sales). Additionally, the increased awareness of solar produced electricity, its zero emissions, and ability to wean the United States off of foreign energy sources may prompt consumers and lawmakers to further expand the rebates, tax credits, and other incentive programs available for making solar produced electricity an economy viable energy product now and in the future. Approximately $10,000 to $20,000 per year will be spent to support these causes.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• Solar Energy Farm, Inc. will have an annual revenue growth rate of 5% per year.
• The Owner will solicit $5,000,000 of equity funds to develop the business.
• The Company will invest 25% of its after-tax profits back into the Company’s operating infrastructure.
7.2 Sensitivity Analysis
The Company’s revenues are moderately sensitive to changes in the general economy. Solar produced electricity is comparatively priced with their petroleum/coal based counterparts, and in the event that prices decline, the Company may see a reduction in its revenues. Only in the event of a steep drop in the price of petrol based energy products does Management anticipate that the Company will have issues regarding top line income.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis