Creating a Successful Solar Biz Generic

8/8/2019 Creating a Successful Solar Biz Generic

1/1212010 Johnson Controls, Inc.

Creating a Successful Solar Business

Bill GuineyProgram ManagerRenew able Energy SolutionsJohnson Controls, Inc.

Have a Plan

Licensing and Qualifications

Ca ital

Vendor/Supplier

Go to Market Strategy

Office and Employees


Insurance & Financing


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22010 Johnson Controls, Inc.

What Do You Want To Be ?

Focus on Technology Solar Thermal

Solar Photovoltaic

Both/ Plumbing/ HVAC/ Electrical

Focus on Market

Residential


Industrial

Licensing and Qualifications

Corporation - Sub-S - Limited Liability Corporation (LLC)Partnership -Sole Proprietorship (DBA)

Contractors License

Training and Certifications MREA

Site Assessor

NABCEP


erma an or nsa er Focus On Energy (Approved Contractor)

Technical Training Manufacturer, Technical College, Industry Association Porgrams


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Capital

Self Funded

Need sufficient capital to fund the total operation

Partial cash and bank financing (Dont use Credit Cards)

Partners

Existing Business, Minority or Women Owned Enterprise

Venture Capital

Know what they expect as rate of return and when they want out

Angel Investors

The must realize the investment ma be lon term The also


want to know what the up-side to the investment is.

Friends and Family (can by tough in tight market)

What Will You Need?

Business Plan

Complete description of business organization, marketing plan, competitors,risks and rewards

3 to 5-years of operation to include operating costs, income, debt service,taxes and retained earnings

Growth forecasts

Investment Prospectus

What does the investor or partner get out of the deal? What is your share?What are the long range and short range goals? Complete a CommitmentLetter ----------Use of funds


Board of Directors or Business Advisors

Not Mom and Dad Successful and Knowledgeable individuals


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Business P lan

Business Opportunity Company Summary

Market Size/Potential

Technology

Product Lines

Market Strategy


Company Location & Facilities

Engineering Services

Business P lan

Market Strategy

Market Needs

Market Trends

Industry Analysis

Industry Participants

Distribution Patterns

Competitive Analysis

Management Summary


Organizational And Personnel Profiles

APPENDIX Financial Statements


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Income SummaryProposed Solar Technologies LimitedIncome Summary 17-Nov-04

Year 1 Year 2 Year 3

Total Sales 812,754$ 1,893,501$ 3,241,653$

Cost of Goods SoldCollectors 82,769$ 211,698$ 362,075$Flush mounting hardware 3,990$ 8,914$ 15,245$Tilt roof mounting 9,660$ 28,651$ 49,003$50-gal Tank 31,980$ 53,800$ 93,578$80-gal. Tank 23,115$ 53,322$ 91,199$In t ll ti n 1 11 7 4 17I ll i , , ,Complete 50-gal System 58,523$ 121,766$ 208,261$Complete 80-gal System 152,675$ 370,073$ 632,951$Freight 72,000$ 72,000$Total Cost of Goods Sold 414,311$ 967,602$ 1,656,490$Gross Profit 398,442$ 925,899$ 1,585,164$

Gross Margin 49% 49% 49%Operating Expenses

Sales & MarketingAdvertising 30,000$ 30,000$ 42,000$Commissions 16,255$ 37,870$ 64,833$Entertainment 12,000$ 12,000$ 24,000$Literature 21,000$ 21,000$ 21,000$Promotions 16,200$ 16,200$ 30,000$Trade Association Dues 21,000$ 21,000$ 21,000$Trade Shows 41,250$ 41,250$ 41,250$Travel 72,000$ 72,000$ 84,000$Total Sales & Marketing Costs 229,705$ 251,320$ 328,083$

General & Administrative

Salaries 270,018$ 430,020$ 433,604$Social Security Tax 6,756$ 10,752$ 10,840$

l I


Health Insurance 21,240$ 30,960$ 36,000$Engineering 32,000$ 12,000$ 24,000$Testing & certification 10,000$ -$Accounting 6,000$ 6,000$ 7,200$Insurance 6,000$ 6,000$ 7,200$Legal Fees 600$ 600$ 1,200$Office Expenses 12,000$ 12,000$ 24,000$Telephone /Long dist. /DLS 4,800$ 4,800$ 9,600$Utilities 6,000$ 6,000$ 9,000$Total G & A Costs 375,414$ 519,132$ 562,644$

% of Total Sales 46% 27% 17%Total Operati ng Expenses 605,119$ 770,452$ 890,727$Income From Operations (206,677)$ 155,447$ 694,437$

Cash Flow3-Year Cash Flow Projections

1-12 months 13-24 months 26-36 Months

Total Sales 812,754$ 1,893,501$ 3,241,653$

Total Cost of Goods Sold 414,311$ 967,602$ 1,656,490$

Gross Profit 398,442$ 925,899$ 1,585,164$

Total Sal es & Marketing Costs 229,705$ 251,320$ 328,083$

Total G & A Costs 375,414$ 519,132$ 562,644$

Total Operating Expenses 605,119$ 770,452$ 890,727$

, , ,

Capital Investment 1,500,000$

Pla nt & Equi pm ent 2005 (1,030, 649)$

Income/Loss 2005 (206,677)$

To ta l Ca sh Ex pe ns ed 20 05 ( 1, 23 7, 32 6)$

Ca sh Bala nce Dec. 2005 262,674$

Income/Loss 2006 155,447$

Ca sh Bala nce Dec. 2006 418,121$

Income/Loss 2007 694,437$

Ca sh Ba la nce De c 2007 1,112, 558$

Stockholder Equity

Assets Plant / Equ ipment & I nventory 1,030,649$ 2005

Cash 469,351$

Income/Loss 1st year (206,677)$


Equity Balance 1st year 1,293,323$

Income/Loss 2nd year 155,447$ 2006

Equity Balance 2nd year 1,448,770$

Income /Loss 3rd year 694,437$

Equity Balance 3rd year 2,143,207$ 2007

Estimated Net Gain after 3-years 643,207$

Forecasted Per Share Earning 0.4288$

Expected 3-year R.O.I. 43%


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Summary

Mission Statement

xecu ve ummary

Summary Of The Offer

History And Nature Of The Business

Use Of Proceeds

Planned Capital Expansion


Secondary Market For The Shares

Key Investment Information


Directors

National Market Overview

Regional Market Overview

International Market Overview

Forecasted Financial Statement

Client Verification Requirements


Subscription Form (Commitment Letter)


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Vendor and Suppliers

Technology Supplier(Solar Systems and Equipment) Distributor

Minimum shipping costs Quick and reliable service

Manufacturer Market differentiator Higher Shipping and Inventory costs

Financing and Delivery Program


COD, Where is it received? Is a check available?

Negotiated or Standard Terms Floor Plan or Lines of Credit

Vendor and Suppliers

Technology Supplier (equipment) Country of Origin

me n e mar epace

Warranty and Terms of returns and repairs

Engineering Support System Design Structural details Wind Load testing and information Project Management Support Services


er ca ons SRCC (Solar Rating and Certification Corporation)


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Go to Market Strategy

What are you going to offer? Sales

Installation

O&M

Engineering

How will you generate leads? Advertising

Trade or Consumer Shows/Exhibits


Seminars

Referrals (Paid and/or Self-Generated)


Employees

Will Make or Break a Company

Identif in Advertisin Fillin O enin s

Technical College Graduates

Internships

Union Trade Apprentice Programs

Qualifications Journeyman or Entry Level

Driving Records/ Background Check


, .Consider the cost of retraining new workers


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Office Many options available, depends on levels of funding andinvestment.

n us r a ce an are ouse Indoor materials storage - trucks in secured area

Office Park (indiv idual address and entrance One or multiple offices for administrative and sales force Will need installation subcontractor or storage/warehouse

Show Room Displays of Product and Company information. Seminar room, may

have warehouse and service door.

Sales and Administrative Staff


are pace - us ness ncu a or - Home Office

Small Business (one or two trucks) Phone Answering ServicePaging Call Forwarding


Office Furnishing the office

Fixtures -

Phone system

Internet Services

Safety Equipment

Computers

Printers

Software

Legal and Accounting Support


In-house Bookkeeping / Contracted Services

Accounting and Tax Services

Banking & Attorney relationships are a must havefor any business


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Insurance

Business and Contractor Liability

nmums

Commercial sub-contracting opportunities

Workers Compensation

Inventory and Property

Vehicles

Health Insurance


Management and Employees


Finance

Product and Inventory

Line of Credit

Vendor or Su lier Financin

Work in Progress (project)

Project and Sales

Bonding

Commercial and Retail Sales Financing

Installment loans

Utility or State Finance Programs

Incentive Programs and Grants


Who does the paperwork and application?

How does it impact the sale?

Timing and funding cycles Who holds the paper?


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122010 J h C t l I

Conclusion

We used to have a saying in the solar business:

Do you know how to make a little bundle of money in the solar business?

Start out with a big bundle

We need new companies to c reate the jobs and handle the anticipated


.

But more importantly, we need to create sustainable companies whowill become the success stories of the new century.

Questions?


Creating a Successful Solar Biz Generic

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