Sample Business Plan | Solar Panel Installation

Solar Panel Installation
Sample Business Plan

Business plan example for a solar panel installation company .

Solar Installation Company


Cover Page

 

 

SI Co.

Address

Phone number

Date

Name of business owner(s)

 


Table of Contents

Executive Summary………………………….………3

The Business………………………….....................4

Management Team……………..……………..........5

Industry Analysis…………………………................7

Description………………………….........................7

Trends……………………………............................7

Size and Attractiveness…………………………......9

Profit Potential……………………………................9

Target Market….………………………….............11

Marketing Plan…………………………….............14

Operations Plan……………………………...........20

Financials….....…………………….......................21

Risks…..…………………….................................23

Appendix (starting on)…….…………………….....27

Works Cited……..………………………................42

 


Executive Summary


With the recent social emphasis on environmentalism and the movement toward alternative energy, SI Co is committed to providing quality and excellence in the solar installation industry.  With rising utility costs and financial incentives, offered by both state and federal governments, we will meet the demand for alternative energy- namely solar panel installation.


SI Co is a family owned and operated Limited Liability Company offering over 40 years of combined electrical experience.  In conjunction with the governmental promotion of alternative energies and the social emphasis demanding green environmentalism, we will establish ourselves as the southern Illinois solar installation experts.


Our competitive advantage rests primarily on being the first mover into our market.  However, we recognize that it takes more than being first mover to establish a profitable business with longevity.  We will also place an emphasis on quality service and products, care through building professional relationships with our clients, and workmanship with passionate enthusiasm.  We will practice a competitive pricing strategy, utilizing quality products backed by both our company and the producer.  Our promotional plan is fairly aggressive, placing an emphasis on educating our potential clients of the numerous benefits of converting to solar energy.  There are several options available to ensure we receive our products in a timely manner, with little to no overhead requirement.


SI Co’s target market is small to medium sized businesses and high-end residential homes.  As there are currently no competitors within the region we seek to operate within, Madison and Macoupin counties, we are certain this area will be sufficient to establish a presence. 


SI Co offers over 40 years of experience in the electrical industry as well as experience with the multitude of responsibilities that come with administrative operations.  Susan Trip will carry out the administrative responsibilities, while Brendon fulfills all external activities.  He has 14 years of experience as an electrician and his father, Al, will provide additional counsel when necessary.  Al has 25 years of experience as an electrician.


SI Co will require an initial investment of $11,000.  However, as a result of the construction industries standards of operation, we are seeking an initial loan of $100,000.  This initial outlay will allow our company to purchase all required solar materials for our first project, insurance, bonds when drawing employees from the union, a vehicle, required tools, promotion, and employee wages.  Fortunately, we will not have any initial overhead expenses due to existing local distribution channels.  Our business has minimal requirements during the start-up phase.  Currently, we cannot offer an in depth exit strategy for potential private investors.


The Business


SI Co recognizes the profound opportunities that exist as a result of our current social emphasis on environmentalism, and the movement to alternative energies. SI Co sees the numerous benefits and potential growth for converting household electrical demand from “the grid,” to self-sustainability.  With the recent dramatic increase in household utility costs, the movement toward alternative energies, and with the legislative incentives to convert, SI Co seeks the first mover advantage to become the leader in the southern Illinois solar energy transition.


Our company seeks to set the standard and to lead the pack, with quality and a strong knowledge base as the foundation of our business. SI Co understands that potential consumers need to be better informed of the benefits of solar energy, so our initial effort will be to communicate the benefits of our product through several modes of communication.  We are confident that by communicating the cost benefits of converting to solar energy, in conjunction with state and federal incentives, with the potential to sell unused electricity back to the grid, in addition to the environmental impact of self sustainability; many of our target market prospects will take advantage of this opportunity.


SI Co will form a family owned and operated LLC.  Susan Trip will complete the daily administrative activities, while Brendon Trip performs the external labor responsibilities associated with SI Co’s business process.  These external activities include; establishing clientele, making bids on projects, installation and warranty fulfillment, and attending conferences.  Additionally, Paul Triplett will provide counsel when necessary.  Brendon possesses 14 years of experience and Paul possesses over 25 years of experience as electricians.  As a close union ally, SI Co will draw from their previously affiliated union to contract additional workers, when required. 


SI Co’s primary mission is to become the leader in the alternative energy movement that takes place in southern Illinois.  Our objective is to be the primary resource for providing consumers with the information they need, to provide quality service backed by our quality products and workmanship, with our passionate enthusiasm. 


We feel the timing of our entry will provide us with the first mover competitive advantage.  Currently there is no competition within our target area, Madison and Macoupin Counties.  Not only do we intend on promoting our “Made in America” products, but we also seek to cultivate and foster a professionally intimate relationship with our clients; emphasizing care and dissemination of knowledge. SI Co’s quality performance, in addition to well-established client relationships, will establish a solid foundation for our business growth.


Currently SI Co is a pre-venture conducting descriptive research and feasibility analysis to determine the scope of this entrepreneurial endeavor.  Our next step, to move forward with this venture, will be to conduct a refined market analysis.           


Management Team


The management team of SI Co will consist of Susan Trip and Brendon Trip. While they do not have direct management experience, Brandon has served as foreman on many jobs. Brendon is currently in the Alton electrician local IBEW 649. He is currently working for JF Electric. His technical experience includes 14 years working as a union electrician, and he is a certified electrician. Since he has been an electrician for many years it ensures that he is very knowledgeable about what he does. Through the years he has developed many contacts with contractors and suppliers. These contacts will be very helpful because they could refer customers to him. This will be especially useful during the early stages of the business. He has a commitment to develop his business to be an industry leader in all things solar. He also wants to become someone who is an expert on the subject and be able to offer consultative services in the future.


The Board of Directors will consist of four people-- Susan Trip, Brendon Trip, and two outside members, consisting of an investor and a consultant. It will help the company to secure capital if they offer the investor a position on the Board of Directors. The second position, filled by a consultant, will provide the business with a proper view of their consumers.  Additionally, this consultant will provide some leadership for the fledgling company.


The board of advisors will be composed of five individuals. This will include an attorney, an accountant, a banker, his electrical supplier, and his father Al Trip. These individuals are needed so that SI Co will have advisors to consult when it comes time to make an informed decision. The board of advisors is also helpful for an organization because it gives the firm a sense of legitimacy. An attorney will advise the company on legal issues and make sure that SI Co remains compliant with all of the regulations that must be followed when installing solar panels. An accountant will keep the business financially sound and ensure that the company is sustainable. A banker is helpful when, and if, the business needs to apply for a business loan or try to refinance a current loan. SI Co’s electrical supplier will play an important part in the business. The supplier will refer work to them and keep the business up to date on new products available in the market. Al Trip has 25 years of electrical experience. He will be able to provide advice whenever it is needed.


Susan will own 51% of the company, and Brendon will own 49%. Susan will work at the company’s headquarters in Dorsey, Illinois, and Brendon will work as the manager of all company fieldwork. Susan will be in charge of making appointments with customers and ensure things are proceeding in a timely matter. As the business grows, more managers will be added and the organizational structure will become increasingly complex. As workers are needed, they will contract workers from the union hall to complete jobs as they come in. As the company grows they will hire new managers that complement their skills and share their vision.


 The organization will be organized as a Limited Liability Company. SI Co is proceeding in this manner so that they are only held liable for the amount they originally invested in the company. This legal form also allows SI Co to decide how it will be taxed. Also, since profits are only taxed at the shareholder level they will not have to worry about double taxation.


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