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Free VC Directory

With any B-Plan Purchase
425 Page Capital Directory
Through Nov. 30


Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2020

Business Startup Guides
Checkout our new sister site!

Free Wind Farm 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 match the text of the business plan below. This free business plan demonstration purposes only. If you are interested in purchasing the completed editable MS Word and Excel documents for this business plan, please click the button below! Also, the text of the business plan is formatted with a fully automated table of contents.



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It should be noted that there is no special software required to use these templates. All business plans come in Microsoft Word and Microsoft Excel format. 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
  • Loan Amortization and ROI Tools
  • 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 wind turbines while showcasing the expected financials and operations over the next three years. The Wind Farm, Inc. (“the Company”) is a New York based corporation that will sell electricity into the power grid from the power produced from its wind turbines. The Company was founded 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 has almost doubled. As such, companies like Wind Farm, Inc. have recognized a tremendous opportunity to develop facilities that produce electricity from renewable and infinite sources of energy like wind. The Company intends to operate 4 turbines from its one acre land area that will produce approximately 1MW of electricity. This electricity will be then resold into the power grid. The third section of the business plan will further describe the services offered by the Wind 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 Wind 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 wind powered turbines.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Wind Farm, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Wind 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 Wind 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 Wind 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 mentioned in the executive summary, the Company is seeking to develop a 4 to 5 turbine wind power production facility that will produce 1 to 1.5 megawatts of zero emission electricity. 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 The expected cost of each turbine is $1,000,000. Despite this high cost, the Company will recognize tremendous revenues from the continued operation of these turbines on a 24 hour basis. Additionally, despite maintenance required on these turbines is minimal. Management will have a team of 8 to 12 employees that continually oversee the ongoing operation of the turbines on a daily basis. In the future, Management intends to expand its facility to accommodate up to 10 wind power producing turbines. The business may solicit additional rounds of capital or it may lease the turbines to generate a higher return on investment.

 

 

 

 

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. Inflation is also concern for the Company. As the inflation rate decreases, the purchasing power parity of the American dollar decreases in relation to other currencies. This may pose a significant risk to the Company should rampant inflation, much like the inflation experienced in the late 1970s, occur again. In this event, the Company will enlist the services of a qualified derivatives focused investment bank to manage large scale currency transactions that would offset the risks normally associated with the distribution of energy products to foreign buyers. The primary risk of rapid inflation in the economy would contribute to a slow down in spending among consumers, but it would also effect the Company’s ability to borrow funds for the expansion of the number of wind turbines operated by the business.

4.2 Industry Analysis

There are approximately 316 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 wind 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. In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.

4.4 Competitive Analysis

Energy production is one of the most free 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, wind 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 (wind), 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 Wind 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 wind energy usage. Below is a brief overview of the ways that the Wind Farm will market its operations and alternative energy production.

5.1 Marketing Objectives

  • • Establish relationships with energy wholesalers and government agencies within the Company’s targeted market.

  • • 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 wind energy.

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5.2 Marketing Strategies

Currently, there are a number of organizations, including the American Wind 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 effect direct sales). Additionally, the increased awareness of wind 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 wind 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. Additionally, industry conventions, energy product trade shows, and other public relations campaigns will be enacted in order to promote the understanding of wind electricity to the general and business public.

5.3 Pricing

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

  • • The Wind Farm 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. Wind product 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. However, the price of oil/coal is expected to continue to climb as reserves are limited and the price of oil has increased significantly over the last two years. 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

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7.8 General Assumptions

7.9 Business Ratios

Expanded Profit and Loss Statements

Expanded Cash Flow Analysis