Free Solar Panel Installation Service Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
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!
- All plans are updated for 2010!
1.0 Executive Summary
The purpose of this business plan is to raise $150,000 for the development of a solar panel installation company while showcasing the expected financials and operations over the next three years. Solar Panel Installation, Inc. (“the Company”) is a New York based corporation that will provide installation and sale of solar panels to commercial and residential customers in its targeted market. The Company was founded by John Doe.
1.1 Products and Services
As mentioned above, the Company will provide for the installation of solar panels (both heat absorbing and photovoltaic) to residences and commercial building owners throughout the target market. Solar Panel Installation, Inc. will generate substantial gross margins from the labor fees associated with these product installations. The Company will also generate substantial income from the direct sale of the solar panels that will be provided to customers as part of the installation service. The Company anticipates that it will earn gross margins of 50% on sale of solar panels to residential and commercial customers. With the recent rapid increase in the price of energy products, the Company sees a substantial opportunity to capitalize on the demand for energy saving measures, such as the installation of solar panels. While expensive, the return on investment for a homeowner/building owner is substantial. The third section of the business plan will further describe the services offered by the Solar Panel Installation Company.
1.2 The Financing
Mr. Doe is seeking to raise $150,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
The Company’s mission is to become the recognized leader in its targeted market for solar panel installation service and sales.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the construction 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 implement marketing campaigns that will effectively target individuals, building owners, and contractors, within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Solar Panel Installation, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, Solar Panel Installation, Inc. requires $150,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of Solar Panel Installation, Inc.
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 Solar Panel Installation, Inc. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
Below is a description of the solar panel product and installation services offered by the Company.
3.1 Solar Panel Product Installation
The primary source of revenue for the business will come from the instillation of heat absorbing and photovoltaic panel installations for consumers and residences throughout the Company’s targeted market. As stated in the executive summary, while these installations are expensive, they almost always completely eliminate a client’s heating and electric bills. As such, the return on investment for consumers is extremely high as they will not have any future heating or energy expenditures, but they will also add a significant amount of value to their properties. Additionally, if property installed, some houses and buildings can actually receive income from their solar panels by selling excess energy back into the local power-grid (for photovoltaic cells only). Mr. Doe and his staff will be properly certified to install solar panels and related products for their customers. In most jurisdictions, solar panel installation companies have the same licensure requirements as HVAC contractors.
3.2 Sales of Solar Panels
The secondary stream of revenue for the business will come from the direct sale of the solar panels to be used in conjunction with the installation services offered by the Company. Mr. Doe expects that the business will generate margins of 50% on each dollar of revenue generated through the sale of standard heat absorbing and photovoltaic panel products.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the solar panel industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2010, at which point the economy will begin a prolonged recovery period. However, with these rising energy costs, homeowners and building owners are looking to make investments into their properties that will not only reduce (or eliminate) their utility bills, but also provide less impact on the environment. As such, and despite the current housing situation, Management expects that the business will be relatively immune from change in the general economy.
4.2 Industry Analysis
Currently, the installation and sale of solar panels to the general public is a $10 billion dollar per year industry. Aggregately, there are approximately 4,000 companies that specialize in this segment of the HVAC industry (as discussed earlier, solar paneling contractors are part of the HVAC market). The industry employs approximately 50,000 people while providing payrolls of approximately $2 billion per year. The growth rate of this industry is expected to expand much faster than that of the general economy as people continue to look for ways to remove their impact on the environment while concurrently saving money on high utility costs. Based on information provided by the Federal Government, Management anticipates that the industry will grow at an annual rate of 7% to 8% over the next 10 years.
4.3 Customer Profile
The Company’s average client will be a residential property owner or commercial property within in the Company’s target market.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
Solar Panel Installation, Inc. intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Company.
5.1 Marketing Objectives
• Establish relationships with HVAC/general contractors and real estate developers.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow Solar Panel Installation, Inc. to easily residential and commercial property owners within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Foremost, the Company intends to develop relationships with HVAC/general contractors and real estate developers that will outsource the installation and sale of solar panel products in conjunction with their development projects. Solar Panel Installation will also use an internet based strategy. This is very important as many people seeking local services, such as solar paneling contractors, now the Internet to conduct their preliminary searches. Mr. Doe will register Solar Panel Installation, Inc. with online portals so that potential customers can easily reach the business. The Company will also develop its own online website, which will showcase the Company’s solar panel products, installation services, preliminary pricing costs, and relevant contact information. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the solar panel installation services and products that the Company is selling.
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 Panel Installation will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $150,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. However, solar panel installation companies are in high demand with the current state of the energy markets. As such, Management does not anticipate that the business will have any trouble generating revenues from the onset of operations.
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