Go Green Inc Business Plan

Go Green IncGo Green Inc Business PlanBusiness 499 Capstone

Written by Nicholas Conlin3/13/2013

Executive Summary

The following business plan outlines the possibility of success for an environmental consulting company in the city of Portland. After completing industry research it was found the environmental consulting industry is growing at an annual rate of 8.7 percent. This suggests the industry is continuing to grow and has room for new business entrants.

The Company

Go Green Inc is an environmental consulting firm that performs energy audits for companies with a minimum of 30 employees. Coupled with these audits Go Green Inc offers in depth implementation plans that reflect the changes suggested from the audit. The company will start operations during the year 2015 in the month of January and is located in Portland, Oregon. Go Green Inc will create strategic partnerships with local electric, architect, construction, and plumbing companies to ensure these implementation plans are created for clients. Once these plans have been created for clients Go Green Inc management will oversee the project to make sure all specifications are met.

The Companys Mission

Go Green Incs mission is to provide a unique and specialized service at a high quality. By improving operations and becoming greener a company can potentially save millions of dollars on energy costs. This change in operations also has a direct positive impact on the earths environment therefore increasing every ones quality of life. With the continuous passing of environmental regulations by the government companies are in greater need of environmental consultants than ever before. Go Green Inc will meet that need and exceed all other customer expectations. Below is the companys mission statement:

Here at Go Green Inc we believe in a sustainable planet and a sustainable company. Our dedication to the planet and customers gives us a unique approach and style. With our extended service plans and specific customer service standards we strive for excellence and offer a service unmatched by competitors. Go Green Inc, the place where green things happen.

Marketing and Sales Strategy

Go Green Inc will establish a strategic position in the market through the use of cold calls, billboard advertisements, and Internet advertisements, flyers through which potential customers can arrange a meeting, and tram/bus ads. The companys strategy is to heavily advertise the unique customer service standards and extended implementation plans offered. Strategic partnerships will be formed with local electric, construction, architect, and plumbing companies to create the implementation plans.

The Competition

Upon industry research Go Green Inc found only one direct competitor in the Portland, Vancouver area. Kennedy Jenks Consulting is located in Portland and is a multinational conglomerate that specializes in aeronautic and public transit energy efficient uses. The company has a smaller division who focus on environmental consulting; upon further research Go Green Inc concluded that Kennedy Jenks clientele was much different and would not a threat on any potential customers. Indirect competition within the area comes from small time sole proprietorships; because these companies are run by a sole individual data could not be found on their operations. Go Green Inc management estimates at least five potential proprietors within the Portland, Vancouver area. This data gives Go Green Inc the possibility of capturing 16.7 percent of the market potential within the first two years of operation. However, after completing a competitive matrix it was determined by Go Green Inc management that with the unique customer service standards and implementation plans offered, Go Green Inc would effectively capture a higher percentage of the market over our competitors. Taking these new variables into account management estimates that Go Green Inc can capture 25 percent of the market within the first two years of operation. Continued projections estimate an increase in market share by five percent during the third year of operation.

Target Market

The target market for Go Green Inc is companies who have a minimal of 30 employees, and who have a desire to change their operations to a greener standard. Upon completion of total market potential calculations Go Green Inc management concluded 31 businesses meet these criteria. Accounting for competition and capacity management believes Go Green Inc can capture 25 percent market share in the first two years of operation. This 25 percent market share equates to eight jobs in the first two years of operation.

Financials

Go Green Inc will obtain a loan of 40,000 dollars to help with initial investment activities. There will be two full time salaried employees of 60,000 dollars a year. The CEO Nick Conlin will not be taking a salary for the first three years and will be supported by his spouse. Upon inspection of the financial statements CEO Nick Conlin has concluded that investment in this business will be successful and profitable. Go Green Inc is expected to finish year one with a net income of 428,138 dollars, the second year with a net income of 424,303, and the third year with a net income of 918,850. If the business is unsuccessful Nick plans on selling all the companys assets and using this money to compensate any losses the consultants may incur.

Table of Contents

Company Description1Industry Analysis3Target Market6Competition7Strategic Position10Marketing Plan14Operations18Technology Plan21Management22Social Responsibility26Financials29References30Appendix A31Appendix B34i

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Company description

Company name

The company name will be Go Green Inc. The nature of the business will reflect this name by providing energy audits that encourage companies to change their operations and to go green, helping to save both the environment and their pockets. The company will go into operation at the start of the 2015 year in January.

Mission statement/objectives

Go Green Incs mission statement will be as follows, Here at Go Green Inc we believe in a sustainable planet and a sustainable company. Our dedication to the planet and our customers gives us a unique approach and style. With our extended service plans and specific customer service standards we strive for excellence and offer a service unmatched by competitors. Go Green Inc, the place where green things happen.

Form of business

Go Green Inc will be a limited liability corporation (LLC); this reduces the risk of ownership by directing all liability issues onto the company and not the owner.

Services

Go Green Inc will be offering an energy audit service to companies with a minimum of 30 employees. The purpose of these audits is to inform companies of their energy expenditure. Go Green Inc will also offer implementation plans. These plans directly reflect the companys energy usage; Go Green Inc will form strategic partnerships with local electric, construction, architect, and plumbing companies. After the initial audit is complete Go Green Inc consultants will offer the company a plan of action to change their operations and reduce their spending on energy costs. The partnerships formed will allow Go Green Inc to formulate plans based on the specifics of the client. To give an example: a client wants to reduce spending on the electric bill. Go Green Inc will work with a local electrician to draw up a plan that meets this need. A possible solution would be to change all the light systems to motion capture lights that only activate when someone is under them. This plan would also include the costs of materials and labor. If the client selects an implementation plan Go Green Inc would oversee and manage the project working directly with the strategic partner.

Management/leadership

The management of Go Green Inc will be CEO and owner of the business, Nick Conlin. Two environmental consultants will work for Nick and be paid a yearly salary. All operations and financial transactions will go though Nick and decisions regarding the company will be made by the entire working team. Nick will lead the team with professionalism and excellent customer service as the forefront for the organization. Instilling these values onto the consultants of Go Green Inc will help to foster a successful image among the community and potential customers.

Location and geographical information

The base of operations for Go Green Inc will be located on 1401 SW Naito Parkway in Portland, Oregon. This location is right along the river and will allow for the use of a water filtration system. The land around the building will also be large enough to house a water tank and solar panel technology.

Milestones achieved to date

To date a location has been established, a unique service has been created to offer customers, and thorough research has been conducted about the industry, target market, and customer base to help establish and create the company of Go Green Inc.

Financial status

Go Green Inc will obtain a long term loan of 40,000 from a local bank in Portland. This 40,000 will cover initial startup costs for the first month of operation. After the first month of operation management predicts the company will make enough in profits to sustain itself throughout the rest of the year. Go Green Inc will continue to pay off this loan over the time stipulated by the bank.

Industry Analysis and Trends

Size and growth rate of industry

Currently the environmental consulting industry (NAICS code: 54162) is growing rapidly. According to IBIS World (2012) the industrys IVA is predicted to grow at an average rate of 6.7 percent annually through 2017. The combination of stricter regulatory requirements and rising corporate pressure to appear green will continue to drive the industry in the next five years. As a result of these positive conditions, industry revenue is forecasted to grow at an average annual rate of 8.7% to total $31.5 billion in the five years to 2017 (Lapowsky, 2012). With the continuous passing of government regulations the environmental consulting industry will continue to grow steadily. The services provided by environmental consultants are being further accepted, and will continue to create industry growth through the next five years. Increased regulation leads to revenue growth because businesses use industry services to comply with new laws. According to Drew Gannon a writer for Inc.com (2011) public opinion also plays into the industry's performance; as the public increasingly favors companies that use sustainable practices, businesses respond by calling on environmental consultants. According to a report published on the United States Department of Commerce website (2012), corporate profit is expected to grow at an average annual rate of 4.1% over the next five years, allowing companies to allocate more resources toward implementing sustainable practices and promoting positive public images. Natural disasters also increase industry demand because governments need environmental consultants to assist them in assessing impact and implementing remediation efforts. An example is the BP oil spill in 2010; this disaster increased revenue for industry that year by 5.1% (Company, 2013). Industry maturity

The industry has not yet reached full maturity according to IBIS World (2012). The lack of saturation in the market, the continuous passing of governmental regulations, and the increasing need for companies to use consultants are all contributing factors to the industry not yet reaching the mature phase of growth. The environmental consulting industry is still in the quality growth phase of the life cycle (IBIS World 2012).

Sensitive to economic cycles

The environmental consulting industry is sensitive to both economic cycles and to governmental regulations. Currently businesses are still struggling with the economys condition. This has led to a decrease in corporate discretionary income (Bureau, Industry Statistics Sampler, 2007). Companies are reevaluating the most important aspects of the company and are continuing to make cuts. According to IBIS World (2012) consultants hold no weight in a companys standing and are easy targets for budget cuts. A company would rather attempt a project with their own employees than hire an outside consultant.

Examples of government regulations are the Environmental Protection Agencys Clean Air Act passed in 2007, The Energy Independence and Security Act of 2007, and the Energy Policy Act of 2005 (Agency, 2013). These regulations have had a direct impact on the industry; with regulations being continuously passed by state and federal governments companies are in desperate need of experts who can aide them in meeting these standards. Corporate profit is anticipated to increase over the next five years as stated by a report published on the United States Department of Commerce (2012) which will lead to more discretionary income. Companies will be more inclined to invest in sustainable technologies and the industry will continue to grow. A change in public opinion due to the global warming campaign also puts sensitivities on the industry. This has led to private companies and governments being held more accountable for their actions. This has led to an increased need for environmental consultants which has resulted in positive industry growth (IBIS World 2012). According to the Environmental Protection Agency website (2013) the government has increased the use of federal tax credits for renewable energies, which has increased the demand for environmental consultants.

Certification

Currently there are two major forms of certification for environmental consulting; Leadership in Energy and Environmental Design (LEED), and the Living Building Challenge. According to Edwards (2010) LEED uses a credit point system to evaluate key elements of physical structures such as homes, buildings, manufacturing plants, or university housing. These elements include: site selection, water and energy efficiency, materials, and indoor environmental quality. Depending on how many of these criteria are met, and at what level, buildings will receive a certified silver, gold, or platinum level designation. The Living Building Challenge is similar to LEED certification but has more specific qualifications. As stated by Edwards (2010) the challenge has six performance criteria: site design, materials, energy, water, indoor environmental quality, and beauty and inspiration. The prerequisites include: 100 percent of energy from renewable sources, 100 percent of water from capture precipitation or re-used water, and 100 percent of wood certified by the Forest Steward Council or salvaged. Go Green Inc will be performing audits to help companies reach these certification levels.

Financial characteristics

In 2012 the industry had total revenues of 20 million and is predicted to grow by nine percent into 2013 according to IBIS World (2012). A major financial contribution factor comes from the government; as stated by IBIS World (2012) in 2009 the American Recovery and Reinvestment Act was passed which allocated 4.6 billion dollars for environmental restoration and another 4 billion dollars for wastewater treatment. The government has also allocated more than 61.3 billion in energy programs. These massive budgetary allocations have increase demand for consultants because companies seek their help to implement new energy practices. Consultants are also used to oversee and manage these projects. The industry is forecasted to reach total revenues of 31.5 billion by the year 2017 growing at annual 8.7 percent (Lapowsky, 2012).

Anticipated changes and trends in industry

According to IBIS World (2012) in the next five year period corporations will continue to gain an interest in implementing sustainable practices. This can be anything from powering plants with renewable energy to educating consumers on environmentally friendly purchasing decisions. This continuing trend will have a positive impact on the industry; with such high demand consultants can charge premium prices for their services. The private sector will become a larger market for the industry due to image (Manufacturers, 2012). Companies who want to change their image will hire consultants to analyze their operations and suggest changes that will convey a greener image to the public. According to the American Fuel and Petrochemical Manufacturer website (2012), through 2017 the continued introduction of stricter environmental legislation will be the primary driver of growth. Federal tax credits for renewable energy investment are projected to continue over the next five years as the United States strives to compete with other countries in implementing renewable energy practices (Administration, 2010). Environmental consultants will give advice on methods of developing environmentally friendly technology, such as solar power systems, and oversee the construction and implementation of plans. As more legislation is passed to regulate offshore drilling, as a result of the BP oil spill example stated above, environmental consultants will be increasingly sought out to aid private companies in following the laws (Administration, 2010). The construction sector will also contribute heavily to industry growth through the next five years. The construction industry is projected to increase by 6.4% in the next five years (Labor, 2012). Consultants will be needed to assess whether the new buildings meet specific environmental codes. Developers are increasingly interested in constructing sustainable buildings because their value is now perceived to be higher among potential buyers. Consultants will provide advice and aid builders in achieving their sustainable goals.

The Target Market

Demographics/Geographics

Go Green Inc is located in Portland, Oregon; due to the companys startup size the specific market will be businesses located within the cities of Portland and Vancouver for the first three years of operation. The company will be located at 1585 SW Naito PKY; using the ESRI database specific demographics are within 10, 20, and 40 miles from the business location. 40 miles outside of this specific location puts the demographic area in Portland Proper or the Portland Metropolitan Area (PMA). This 40 mile radius also encompasses the larger part of Vancouver. The PMA includes the cities of Beaverton, Tigard, Lake Oswego, Greshm, Durham, King City, Johnson City, Gladstone, Rivergrove, and Clackams.

Lifestyle and psychographics

Businesses with a minimum number of 30 employees will be Go Green Incs primary target. Larger buildings are needed to give employees work space and these buildings need to meet government standards. Go Green Inc will also be targeting companies who have a strong social desire to change their image. A rising increase in public support of being a green business is forcing many companies to invest in green technologies. Consultants are needed to oversee and manage this process.

Buying sensitivities

The greatest buying sensitivity for clients looking to invest in environmental consulting is the cost of consultants. Many companies are experiencing financial hardships with the current economy. This has forced them to abandon the idea of hiring outside consultants and they are attempting projects with their own people.

Market size and trend

The city of Portland, according to the United States Census Bureau (2013), has a total population of 593,820 people. The PMA has 1.2 million people currently living within the area. According to the ESRI database the greater Portland area has 300 residential businesses. These companies include car dealerships, locksmiths, insurance agencies, hotels, and a Hewlett Packard office. The city is currently expanding and a large amount of construction work is taking place along the waterfront. This gives incentive for new businesses to enter the market. Portland is a city known for its connection to being green and sustainable. The citys transit system uses trams and electric trolleys that reduce the carbon emissions generated by the city and its residents. The city has been built on a grid system to make traveling throughout the city as efficiency as possible. This strong, established connection to living green and being sustainable gives the environmental consulting industry an already established presence within the city.

The competition

Competitive position

Strengths Offering a unique service with multiple implementation plans. Having multiple fields of expertise. CEO has a finalized and detailed business plan. CEO has experience with performing an energy audit. Having consultants who deal in both startups and existing businesses allows Go Green Inc to capture a larger portion of the market. Strategic partnerships with local electricians, architects, plumbers, and contractors. Go Green Incs specific and unique customer service.

Weaknesses New arrival into market means a small client base. Finding a knowledgeable work force. Being a small start up with no experience could result in no respect from companies.

Opportunities Low barriers of entry make entrance into the market possible. With continuing regulations being passed by the government the need for environmental consultants is continuing to rise. Public image is changing and putting pressure on companies to become greener; this is resulting in an increased need for environmental consultants. Merging with another small proprietorship could expand client base.

Threats Larger consulting firms could dominate the market and remove the opportunity for new entrants.

Within the locations of Portland proper and Vancouver there are three consulting firms; KRH Consulting, Investment Management consulting, and Kennedy Jenks Consulting. Investment banking does not enter in the environmental consulting market so Go Green Inc. will not consider Investment Management Consulting a direct competitor. KRH Consulting deals with leadership coaching and team building therefore Go Green Inc will not consider KRH a direct competitor. Kennedy Jenks Consulting is an engineering firm that specializes in water, and transportation sustainability. They work with wastewater, desalination, watersheds, and recycling of water. They also specialize in operations consulting which consists of consulting with companies who are building new locations and making sure those locations are meeting environmental standards. Go Green Inc will consider Kennedy Jenks Consulting a direct competitor. Sole proprietorships account for a large percentage of the environmental consulting industry competitive market. These proprietors are not large enough to appear in databases such as ESRI. Estimates made by Go Green Inc management account for at least five sole proprietorships that perform environmental consulting work within the cites of Portland and Vancouver. Below is a breakdown of Kennedy Jenks and sole proprietorships:

Competitive Position ChartWeighted Average

Kennedy JenksSole Proprietorships GGCServices Offered:20515Price:51510Location(s):555Quality:10515Hours: 5510Customer Service:10520Knowledgeable Workforce: 2525258065100

Kennedy Jenks offers a wide array of products and services. They have physical store fronts in both Eugene and Portland. The competitive advantage Go Green Inc has over Kennedy Jenks is the price. Kennedy Jenks has programs in aerospace engineering and science technologies. This makes them an expensive firm who charges top dollar for their services. The clients that Kennedy Jenks deals with do not fall under the same market as Go Green Inc. Kennedy Jenks has an immense knowledge of the sustainable world but they are focused on water treatment and civil engineering. These specific markets do not cross into the same markets as Go Green Inc. The sole proprietorships that perform environmental consulting offer the same audit services as Go Green Inc; the competitive advantage Go Green Inc has over these proprietors is our unique customer service standards and implementation plans.

Market share distribution

Total Market Potential: 350 business X 4 services offered (large job, medium job, small job, and implementation plans) by Go Green Inc = TMP of 1400

Sales Percentage: Employee count of a minimum 30 and social model of business that supports green building. Sales Forecast: 31 business fall under these specifics. With Go Green Incs limited capacity and the direct competitor of Kennedy Jenks Consultants and sole proprietorships the market share for the first three years of operation is 25%. This equates to eight jobs per year for Go Green Inc.

Future competition

With the entrance of sole proprietorships into the environmental consulting industry future competition is predicted to be high, as stated by IBIS World (2012). With such low barriers to entry smaller companies have an easy time entering into the market. Environmental consulting is based on the regulations set by the government. As long as the government continues to pass regulations regarding sustainable business practices sole proprietorships will be able to enter the market. According to Edwards (2010) sole proprietorships will become a negative aspect for the market; high saturation within the market will result in high barriers of entry for the industry.

Barriers to entry

According to IBIS World (2012) the barriers to entry in the environmental consulting industry are low. There are two major barriers; obtaining skilled employees with the knowledge required to consult on a variety of issues and the ability to develop a strong client base during initial startup. Capital costs are minimal, and basic computing equipment is all that is required, allowing sole proprietorships to saturate the industry. These sole proprietorships will continue to grow, as stated by Edwards (2005), in direct response to the continued growth in the industry and rising demand for consulting services.

Strategic Position & Risk Assessment

Industry trends

According to IBIS World (2012) in the next five year period corporations will continue to gain an interest in implementing sustainable practices. This can be anything from powering plants with renewable energy to educating consumers on environmentally friendly purchasing decisions. This continuing trend will have a positive impact on the industry; with such a high demand consultants can command high prices for their services leading to continuing industry profit (IBIS World 2012).

Target market

Go Green Incs target market is companies with a minimum of 30 employees, have high energy bills, are located within 40 miles of the Metropolitan Portland Area (MPA) and have a strong social desire to change their company image. Vancouver, Washington is included in this 40 mile radius along with the surrounding cities of: Beaverton, Tigard, Lake Oswego, Gresham, Durham, King City, Johnson City, Gladstone, Rivergrove, and Clackamas. According to US Census data (2013) and the ESRI database there are 31 businesses within this 40 mile radius from Go Green Incs location who meet these criteria.

Competitive environment

Within the MPA and Vancouver there is only one major direct competitor, Kennedy Jenks consulting corporation. Kennedy Jenks specializes in the use of water, railroad construction, and aeronautics. Kennedy Jenks focuses on these elements alone and because they are a large corporation their fees are high. Go Green Inc has a wider field of focus and has much more reasonable prices. We believe our client list will never coincide with Kennedy Jenks. Outside of the MPA there are four other environmental consulting agencies in the state of Oregon, according to ESRI database. Go Green Inc plans to capture the market within the MPA for the first three years of operation. This long term goal makes companies throughout the rest of the state non direct competitors. According to IBIS World the majority of the environmental consulting industry is made up of sole proprietorships. Many of these are simply too small and the ESRI database does not consider them in the data. This being said Go Green Inc believes with the size of the MPA and Vancouver there are at least five sole proprietorships operating within these two cities.

Company strengths

Strengths Offering a unique service with multiple implementation plans. Having multiple fields of expertise. CEO has a finalized and detailed business plan. CEO has experience with performing an energy audit. Having consultants who deal in both startups and existing businesses allows Go Green Inc to capture a larger portion of the market. Strategic partnerships with local electricians, architects, plumbers, and contractors. Go Green Incs specific and unique customer service.

Long term company goals

Go Green Inc has three main long term goals. The first is to gain enough profit to provide the CEO and owner Nick Conlin with a salary. With plans to pay both consultants a starting salary of 60,000 dollars a year the owner cannot afford to take away any more profits to sustain himself. Nick plans to live the first three years of the business being in operation off his spouses salary. After year three Nick plans to reassess the businesses financial situation and start taking a minimal salary.

The second goal is to generate enough profits to construct a green community center in the downtown Portland area. This community center will serve as the shining example of how green technology can be brought into modern day cities. The community center will also further promote Go Green Incs commitment to the environment and local efforts to make a change. This center will be primarily funded from Go Green Inc and the project will be done in conjunction with the city and professors from the local university.

The third long term goal of Go Green Inc is to reach capacity and expand into other cities. By expanding Go Green Inc can increase sales and generate higher profits.

Growth strategy

Go Green Inc predicts a five percent increase in market share after the second year of operation. After the second year Go Green Inc management predicts an increase in word of mouth from existing clients, continued use of advertisements throughout the city, and a stronger presence among the community of Portland. This increase comes from heavy marketing during the first three months of each year. The marketing tactics used are cold calls, flyers, billboards, Internet marketing, and tram/bus ads. Continuing after the third year of operation the best case scenario for Go Green Inc is a continued increase of at least 0.5% annually.

Milestones

The major milestone for Go Green Inc is reaching a point in sales where more consultants can be hired. An increase in employees would allow Go Green Inc to further increase sales. The addition of more consultants would also allow Go Green Inc to break into new markets such as residential, industrial, and commercial. Breaking into these new markets would bring attention to Go Green Inc and could potentially result in a buyout from a larger firm.

Risk assessment

The fundamental need for environmental consultants lies in the passing of government regulations that state companies have to meet certain environmental requirements. A major risk is the stopping of government passing these regulations. If there are not requirements to be met then consultants are no longer needed. Another risk is public image; many companies meet the minimum requirements the government has set but public outcry demands more. This is another area where environmental consultants are highly needed. If public opinion changes or becomes swayed away from companies being environmentally responsible, there will be no need for consultants. With so many sole proprietorships entering the market every year there is a large risk that the market will become too saturated. No one will be able to differentiate themselves and only the large consulting corporations will dominate the market. Environmental consulting relies heavily on human capital and the knowledge of how to operate in an environmentally friendly way. If Go Green Incs employees cannot keep up with the new trends and changes the industry their knowledge will become useless thus leading to Go Green Incs failure. The final risk has to do with being a consultant; often times when companies start to lose money the first people to go are consultants. The company changes their focus and finds a solution on their own without having to pay an outside source. If the economy continues to follow a negative pattern and companies continue to lose money, consultants will have a very hard time finding work.

Exit Plan

Go Green Inc CEO Nick Conlin plans on running the business for 10 years. If the business is successful at the 10 year mark Nick plans on selling the business to any interested buyer. If the business is unsuccessful Nick plans on selling off all the companys assets and finding work in the corporate sector as a sustainability director. Nick will also help his consultants find jobs and use the money from the sold assets to accommodate any losses they may incur.

Definition of strategic position

Taking into consideration all of the above criteria Go Green Inc has concluded that the largest threat is the economy. When companies are low on cash the first employees to go are consultants. The slowly building economy has forced companies to attempt projects on their own dime. Consultants are costly, and companies are simply not willing to pay for their services.

Despite this possible threat management is confident in their unique implementation plans and specialized customer service. Within the environmental consulting industry no other companies have, or offer, extended service plans for implementation of recommended changes. Go Green Incs specific customer service standards meet the unique criteria of the clientele. Management is confident in meeting these needs and going above and beyond what the customer wants. Go Green Incs strategic position within the market will reflect these unique customer service standards and implementation plans. Management plans to use this position to market the company more heavily and to show customers why Go Green Inc is better than the competition.

Our dedication to the environment and our real passion will also help to put Go Green Inc further into a strategic position against competitors. A common theme known as green washing has been sweeping across companies since the inception of green business practices. Essentially this means companies front their operations with the idea of green but do not actually have green practices. Go Green Inc will work with companies to create a truly green operation which will enhance both their image and their efficiency. Having such a positive image will help to generate more public awareness which in turn creates more customers. When a buyer feels good about what they are purchasing they want to continue buying from that company. More customers equal more profits, plain and simple.

In order to maintain this strategic position Go Green Inc will work hard to maintain positive relationships with strategic partnerships. These partnerships are what allow the company to offer implementation plans. To ensure continued excellent and unique customer service management will hold monthly customer service seminars. These educational seminars will allow Go Green Inc consultants to continue meeting the needs of every customer and going above and beyond what they expect.

Marketing Plan and Sales Strategy

Companys message

Go Green Incs message to customers will focus on our ability to be flexible in plan development and our unique workforce which allows us to offer customers the maximum amount of options. Go Green Inc will portray this message by focusing on the Five Fs: functions, finance, freedom, feelings, and future.

Function: Companies need environmental consultants in order to help them meet government standards. They lack the proper knowledge and skills required to take their company into the sustainable world. Go Green Incs dedicated workforce meets that need.

Finance: This will be one of Go Green Incs primary focuses in our message. By becoming green and sustainable companies will not only save money, they will also increase the efficiency of their operations. Many companies refuse to become sustainable because they do not believe the investment can pay itself back. Go Green Inc will have a maximum number of options for the client making sure they are satisfied with their investment. Our message will convey how companies do not need to be afraid to invest in green practices, because they are making the right decision for both their company, and the world. Go Green Inc will also work with clients to ensure a return on investment of at least five years. To accomplish this management will ensure clients exact needs are met. This prevents the client spending too much for equipment making it more difficult to gain a successful ROI.

Freedom: Go Green Incs variety of implementation plans gives clients the most freedom possible. They will not be forced to choose one option and will be given the maximum amount of possibilities. This makes the client feel less pressured and allows them to make the best possible decision for their company.

Feelings: This will be Go Green Incs other primary focus in our message. When a company has successful green operations the employees not only feel good but so do that companys customers. They are inclined to purchase more products because they are contributing to a greater cause other than themselves. When the employees feel good they are more motivated and work harder. This coupled with an increase in sales is guaranteed to generate higher profits for the company. The prospect of increased profits strengthens the want for Go Green Incs services and will help us to capture more clients.

Future: Go Green Inc will maintain close relationships with all clients and routine updates will take place every six months. This makes the client feel cared about and noticed. This will also guarantee that Go Green Incs clients stay in the green operation world for as long as possible. This helps both our profits, and theirs.

Marketing strategy

Go Green Incs strategy will directly reflect upon the strategic position of unique customer service and extended service plans. Management will establish this strategic position by marketing the implementation plans heavily in the first three months of operation to distinguish ourselves from the competition. In consulting with the marketing expert, Go Green Inc will also heavily advertise our unique and specialized customer service standards. This strategy will be implemented through the marketing tactics detailed below.

Marketing tactics

The marketing tactics Go Green Inc will use to implement the strategy are as follows: billboards, Internet, cold calls, flyers sent out to potential customers, and tram ads. Being that Go Green Inc is located in the city of Portland; large advertisements such as billboards are an effective way to reach large numbers of potential customers throughout the city. Cold calls and flyers have been shown to be the most effective way to reach other businesses (Edwards 2005). Management will make daily cold calls to fellow business inquiring about the possible need of an energy audit. Flyers with descriptions of the company and the services offered will also be sent out to potential customers. These flyers will also be used as contact cards; if the customer wishes to arrange an appointment with a Go Green Inc consultant they can do so by filling out a piece of the flyer and mailing it back to the company. The cities of Portland and Vancouver have strong public transit systems and Go Green Inc will use this as a major form of advertising. The city of Portland uses a tram system run entirely by electricity (this reduces the carbon emissions generated by the city) and Go Green Inc will have advertisements placed on several major tram lines that run through the downtown area. The Vancouver transit system is more traditional and relies on bus networks; these busses will also be targeted by management as a major form of advertising throughout the city.

The tactics involved for marketing an environmental consulting firm relate directly to the image of the company. If you are trying to sell a green product or service, your company has to also be green. Go Green Inc plans to operate out of an entirely sustainable location making marketing ourselves to customers simple. The crucial tactic when marketing our services will be convincing potential customers that investing in green operations saves them money. Many companies believe environmentally friendly business practices are not successful; Go Green Inc plans to convince them otherwise and show our customers that being green is good for both the environment and profits.

Strategic partnerships

Go Green Inc will have strategic partnerships with construction, plumbing, electrical, and architectural firms in the Portland proper area. These partnerships will allow our consultants to create contracts with companies who are looking to change their operations. An example; a company approaches Go Green Inc and says they want to change their lighting system in order to save money on their electrical bill. Go Green Incs consultants will use the partnership with the electrical company to make the change happen. Brining business to the electrical company will result in payment from both the client and the electrical company which will lead to increasing profits.

Online marketing tactics

Go Green Inc will have a strong online presence with the continuing rise of both Internet media and strictly online companies. Our website will have two primary functions: selling services via customer testimonials, project pictures/videos, and detailed narratives of how the company operated. The other function will be for creating contracts; potential customers will be able to fill out a form requesting Go Green Incs services. Once this form has been filled out management will contact the customer and arrange an energy audit. Our website will also be in conjunction with other environmental organizations; the LEED certification will grant websites a level of sustainability based on avoidance of paper use (our online forms will meet this criteria) and minimum use of alternative resources (Essentially our website should be detailed enough so that customers do not have to use additional resources to contact us). Receiving a certification such as this enhances the companys image and shows other companies how serious Go Green Inc is. Having links and mentions of other environmental organizations on the website can potentially create partnerships and generate clients. An example would be the Environmental Protection Agency; by giving them some free publicity they might return the favor to Go Green Inc in the form of a government contract.

Sales force and structure

Go Green Inc is a consulting based firm and does not require an immediate sales force. Consultants sell themselves with their knowledge and skills of a specific industry. Environmental Consultants have an immense amount of knowledge about how to create green businesses and how to turn existing businesses into green ones. This knowledge is used to create a contact between Go Green Inc and a client. We will have two consultants, one for each market; existing businesses and startups. Each consultant will have prior experience in their specific field as well as being knowledgeable on current green business practices. Each of our clients will have an energy audit performed by our consultants to determine the areas that need the most change. These changes will be presented to the client along with the best possible solution to take. As stated above Go Green Inc will have strategic partnerships with construction, electrical, plumbing and architectural firms located within the cities of Portland and Vancouver. These strategic partnerships are what give Go Green Inc an edge over the competition. When Go Green Inc approaches a client we will have five implementation plans to offer them. Each of these plans is in conjunction with one of Go Green Incs partnerships. After the client selects the specifics of each plan management will work in conjunction with the partners to make sure those details are met. We will present an already detailed plan to our partners so the only cost on their end is labor and equipment. Below is a breakdown of each implementation plan:

Electric: The electrical plan will focus specifically on the electrical components of a companys operation. These would include, but are not limited to: lighting, appliance usage, water usage, computer usage, and the wiring itself. Each client will have different needs but some examples of solutions Go Green Inc would present would be: solar panels, motion capture lighting, and energy star efficient appliances, automatic shut off computers, and sustainable wiring that uses minimum amounts of copper and other materials.

Construction: The construction plan will be specifically targeting startups. Companies can use recycled materials, design the building a certain way to capture more energy, choose specific building sites that are least harmful to the environment, and design the building in the most efficient way possible. The partnership Go Green Inc will create with local construction companies will allow us to work hands on during the project. Our consulting experts will work directly with the construction company to oversee the project and make sure the new building is as green as possible. This will also allow Go Green Inc to charge more for services and knowledge further increasing profits.

Architecture: The architecture plan is encompassed into the construction package. Architects are needed to design the buildings and Go Green Inc will partner with local architecture firms to make sure the designs are green friendly. For existing businesses this package is offered for a specific section of the building. Rooms or offices can be redesigned to more efficiently capture latent heat which can then be used to heat rooms or even entire buildings. Architects and construction contractors will work together to make these changes happen. As before Go Green Inc will be overseeing the project making sure everything is done in an efficient and green way.

Plumbing: The pluming plan is also in conjunction with the construction package but can stand alone for existing businesses. The main focus of plumbing involves the use of water. Examples would be the direction of pipes, the amount of water used, how the water is heated and cooled, how much energy is being used to move the water, and the type of piping used throughout the building. When working with startups Go Green Inc will make sure that the plumbing designs recycle water usage throughout the building and use latent heat to heat the water. When working with existing businesses Go Green Inc will evaluate their current system and recommend changes. Plumbing requires large amounts of piping and specific building designs. Go Green Inc recognizes this and presumes the majority of clients for this package will be startups.

Startups plan: This is an all-encompassing plan for new stat up businesses. Go Green Inc will work directly with the startup to incorporate all these elements to create the most sustainable green building possible.

Operations

Plant and facilities

Go Green Incs location of operation will be 1401 SW Naito Parkway in Portland, Oregon. This location is along the Willamette River; this riverside location will provide Go Green Inc with the water it needs to create a water recycling system. The physical building is approximately 2,000 square feet. The building will have two restrooms, a small kitchen area, a storage room, three offices, and an open entrance with a seating area/lounge. The land around the building will be large enough to house a water tank and electrical equipment.

The building will operate at a LEED certification level of silver for the first three years of operation. This certification level will be acquired by using green technologies to power the building. Three sets of solar panels will cover the roof; these panels will provide electricity to the building minimizing the use of fossil fuels. A water tank will be placed behind the building and is used for the water recycling program. This tank is coupled with a grey water system that will clean and filter all the water used from the building. The lights used inside the building will use motion capturing technology to ensure minimum use of electricity. The lights will only activate when someone is under them or moving therefore reducing the amount of electricity used to power the lights. These technologies will allow Go Green Inc to make a minimal impact on both the earth and the environment.

Labor requirements

Go Green Inc will require two consultants, working full time, to ensure company success. Each of these consultants will be paid 60,000 dollars a year and will receive full benefits. Go Green Inc will require both consultants to have a full functional vehicle. Many of the jobs will be located somewhere within the Portland or Vancouver area.

Equipment and furniture

The small nature of Go Green Inc will require only minimal equipment and furniture. The office will have three desks with a computer, one for each employee. There will also be a small lounge area in the front of the office with a small table, two chairs, and a love seat. The walls will be decorated with outdoorsy themed pictures and a small fountain located on the table will provide a calming and relaxing environment. Management believes this will promote the companys commitment to the environment and show the passion Go Green Inc has for the business. There is also a small back room where all financial documents are kept; a filing cabinet is necessary to hold these documents. A small kitchen area is available for employees to use if they wish to bring any food to work. This area will contain a microwave, fridge, sink, and a small cabinet for storage. There are also mens and womens restroom located in the office for use by employees and customers.

Order fulfillment

Customer Service

Customer service is about the customer; each business has different customer service standards because each customer has different needs. The key is to go above and beyond what the customer expects to achieve the ultimate customer service standard. Go Green Inc understands these needs and plans on providing excellent customer service to our clients. The following are the specific customer service needs that pertain to Go Green Incs clientele base: on time meetings, professionalism, knowledge, understanding, flexibility, and politeness. Go Green Inc will meet these needs and go above and beyond what customers need. Approaching every situation with a sense of professionalism shows the client Go Green Inc cares about getting the job done right. Being professional also creates a sense of respect which management plans to use when working with clients. Many times clients may feel pressured into choosing a plan of action to solve their problem; Go Green Inc will approach every situation with an open mind and understanding making the client feel less pressured and leading to a more productive discussion. Consulting relies heavily on meetings at various locations throughout the course of the project; Go Green Inc will make sure to be on time at every meeting with a client. This will show the companys dedication to the client and will make the client feel cared about. Go Green Inc will also make the client feel cared about by sending them a personalized thank you card after the final transaction. Management feels this will generate potential repeat business from clients, or can lead to publicity among companies in the Portland area. Being on call 24/7 for clients is another way Go Green Inc plans on going the extra step. By being there for clients and offering help with anything they need clients will feel noticed and cared about. Going this extra step exceeds the expectations of clients and promotes a positive image for Go Green Inc. Management feels this positive image will help to increase business over the first three years of operation. Go Green Inc will also provide clients with a small survey at the end of each consultation. This survey will ask questions about their satisfaction with the consultants work. This information will then be used to generate new ideas within the company and to help further promote our specific and unique customer service standards.

Research

Go Green Inc will be working directly with an advisory committee of professors from Portland State University. The primary purpose of working with this committee is to continually keep Go Green Inc on top of the every changing market. With so many regulations being passed by the government it can be difficult to know them all. Go Green Inc plans to meet with this committee once a month to continue research practices to ensure success with clients. The secondary purpose of this committee is to further investigate new ways of integrating green systems into already existing ones.

Financial control

Go Green Inc will ensure financial control by utilizing the pre-determined space for all financial documents mentioned in the above layout of the building. An accounting firm will be consulted after each payment to ensure that the proper procedures have been taken. Management will check all financial documents weekly and keep track of all company expenditures to ensure quality financial control.

Contingency planning

Go Green Inc plans on having a line of credit with a local bank. The company feels that 10,000 dollars will be enough to cover anything that may happen unexpectedly. This contingency will prepare Go Green Inc for any changes in industry regulations and technology. This line of credit will also cover any damages or emergency updates needed for the technologies used in the building of operation. Technology Plan

Internet goals and plan

Go Green Inc will have a fully functional website for clients. This website will have six major components; background of the company, employees bios, packages offered, before and after pictures, client testimonials, and a form to request a consultation. The companys website will also fulfill the requirements needed to put the label of LEED certified on the websites front page. Go Green Inc will also work with search engines Google and Yahoo to ensure the name Go Green Inc appears in the top five selections. Go Green Incs major goal regarding the Internet is to be advertised on customers websites. After Go Green Inc has completed a consultation with a client the company will work with the client to have Go Green Incs name put on their website; this will require gaining the permission of the client first. This will increase visibility throughout the online community.

Technology personnel needs

All employees of Go Green Inc will be required to have their own personal smart phone. This will help keep all members of the company in contact with one another. The use of smart phones will also allow consultants access to the companys whereabouts at any time. If a consultant is at a job site and needs to be given the newest blueprints the use of a smart phone is needed. Everything can be kept up to date and in real time with the use of these devices. A dell desktop will be given to each consultant along with quicken software to keep track of all financials.

Management & Organization

Key employees/principals

Go Green Inc will be comprised of three employees; the CEO, Nick Conlin, and two consultants. Each consultant will have a different specialization. The first consultant will specialize in existing businesses. The second consultant will specialize in new businesses and startups. The reason for these differences is because the two markets require difference expertise. When working with existing businesses the consultant needs to know how to integrate systems into an existing operation. When working with startups and new businesses the consultant needs to know how to integrate systems in a way that works with the construction plan. Having to change anything major in the design of the plan can result in lost profits and time. Below is a breakdown of the major characteristics and skills of each consultant that Go Green Inc will be looking for:

Compensation and incentives

Go Green Inc will be offering employees a full compensation package. This package includes salaried pay, vacation time, sick days, personal days, and family days. The starting salary for each consultant will be 60,000 dollars a year. The CEO will be receiving a salary based on the amount of profits Go Green Inc makes per year. Management plans on providing the following incentives to consultants: salaried pay, vacation time, sick days, personal days, and family days. Managements decision in offering consultants these incentives is to create a positive work environment and to keep consultants motivated. Normally consultants are paid based on each job; this can lead to low motivation and the mentality of only working when there is a work.

Advisory Committee

Go Green Inc will form a relationship with the local university Portland State University. Management will form an advisory committee with the graduate professors from PSU in order to ensure continued innovation and to maximize our wealth of knowledge.

Consultants/specialists

Go Green Inc will have strategic partnerships with local electricians, plumbers, construction contractors, and architects. Each of these individuals will be experts in their respective fields who will specialize in emphasizing green.

Management to be added

After the third year of operation Go Green Inc will hire two more environmental consultants. This will increase the companys capacity which will in turn increase revenue. Go Green Inc will also be working with a marketing consultant during the first three years of operation. This consultant will provide marketing expertise during the initial months of startup. After the first year the marketing consultant will be used on a limited basis.

Organizational chart

For the first three years of operation Go Green Inc will have three employees: a consultant for existing businesses, a consultant for new businesses and startups, and the CEO of the company who will oversee both these consultants. The company will follow a vertical structure because of the small number of employees. Both consultants will report to the CEO but the CEO will also consult with the consultants. In chart form the structure would look as shown below:

With the addition of new consultants after the third year of operation the company structure will change slightly. The existing structure of CEO reporting to consultants and vice versa will still be in place. The change will come with the addition of two more consultants. Below is the chart for this new structure:

Management style/corporate culture

The management style of Go Green Inc will be fun and encouraging. Meetings will be held in a semi-casual to keep employees attention and to keep them feeling relaxed. Long drawn out meetings can hinder creative thinking and inhibit poor work ethic. Some meetings will be held outside as it has been scientifically shown being outdoors inhibits more creative thinking and leads to better ideas. The CEO will treat employees with kindness and friendship. Often times this friendly relationship can create stronger bonds among employees which promotes further productivity.

Go Green Inc's company culture will follow the below values: Respect Professionalism Understanding

The environmental consulting industry is based off knowledge and skills. The key to this knowledge is respecting the fact that each individual has certain things to bring to the table. As CEO Nick Conlin has a wealth of knowledge when it comes to management and sustainability; this does not mean he knows everything about sales and how to approach a potential customer. Go Green Incs consultants have this sales experience and are able to create a client list. Respecting the fact that everyone has something special to offer creates a positive and healthy work environment. This also contributes to the vertical employee structure. The consultants report to the CEO but the CEO also reports to the consultants; this show that he respects their knowledge and is willing to learn more about how to best approach potential clients and guarantee a sale. This vertical structure can also be used to exchange knowledge; consultants can be taught how to better manage a situation from the CEO and the CEO can better learn about current regulations and standards.

Professionalism can help induce a greater sense of purpose and direction when working. There is a saying, dress for success, the management at Go Green Inc feels this saying can be applied into reality. Every client approached by Go Green Inc will be done so with a professional and respectable manner. The idea of being professional encompasses four different aspects; dress, work ethic, the handling of situations, and dealing with customers. All consultants who work for Go Green Inc will be required to wear a suit and tie. This professional attire will show customers that Go Green Inc cares about image and will work hard to uphold a positive image with customers. Working hard and handling situations professionally can show customers that Go Green Inc has what it takes to be successful and makes the customer feel secure about their decision in working with Go Green Inc.

Understanding is the key to life; by encouraging understanding throughout the work environment Go Green Inc can help employees feel safe and welcome in their work environment. Consulting can be a high stress job and sometimes these stressors can enter the workplace. This high stress can come from relying on accounts receivable style of pay. Many consultants are not paid directly until the job is finished; Go Green Inc will not operate this way to help ensure consultants productivity. Having a negative atmosphere at works causes deviant behavior which detracts from productivity and gives the company a bad name. By encouraging understanding throughout the work environment employees can learn to communicate better about issues they are having and they can feel comfortable approaching their co-workers to discuss any issues they are having. By having everyone be on the same page stronger bonds can be created among employees and furthers productivity.

Social responsibility & Sustainability

Social responsibility goals

Go Green Inc is an environmental consulting firm whose primary mission is to help companies within the Portland area become more sustainable. This being said Go Green Inc has three primary goals in regards to social responsibility; provide funding efforts for local projects that encourage sustainability, be sustainable within ourselves to practice what we preach, and finally to help ensure sustainable profits for both Go Green Incs clients and Go Green Inc. Our final goal of being sustainably profitable will help management reach a group of sub-goals. These goals include; providing employees with proper compensation, allowing employees to have their families involved with the company, and providing proper recognition for employees who go above and beyond. These goals with be further reflected in Go Green Incs image which will follow the triple bottom line; people, planet, and profit. Operating with this mentality will create a positive image, one that Go Green Incs clients will feel good about. This in turn will generate increased profits, more clients, and stronger public support.

Company policy

Go Green Incs company policy will also reflect managements goal to practice what we preach. The company policy will be as follows; All employees of Go Green Inc will encourage sustainability both in the workplace along with the home front. We believe that in order to truly understand what it means to be green, one must embrace it in all aspects of life. Employees who can embrace this notion will be better equipped to generate clients and create contracts for the company. Consultants will also be required to wear a suit and tie to the office.

Social responsibility certifications

Currently there are two major forms of certification for environmental consulting; Leadership in Energy and Environmental Design (LEED), and the Living Building Challenge. According to Edwards (2010) LEED uses a credit point system to evaluate key elements of physical structures such as homes, buildings, manufacturing plants, or university housing. These elements include: site selection, water and energy efficiency, materials, and indoor environmental quality. Depending on how many of these criteria are met, and at what level, buildings will receive a certified silver, gold, or platinum level designation. The Living Building Challenge is similar to LEED certification but has more specific qualifications. As stated by Edwards (2010) the challenge has six performance criteria: site design, materials, energy, water, indoor environmental quality, and beauty and inspiration. The prerequisites include: 100 percent of energy from renewable sources, 100 percent of water from capture precipitation or re-used water, and 100 percent of wood certified by the Forest Steward Council or salvaged. These certifications will help Go Green Inc fulfill our goal of practicing what we preach. A large part of operating in a sustainable fashion is image. Adhering to Go Green Incs second goal, having our building of operation be completely green and sustainable reflects how strongly Go Green Inc cares about the environment. This passion and commitment will make potential clients feel more strongly about forming a contract with Go Green Inc and public support will also be increased.

Community involvement

As stated in the above goals Go Green Inc will provide funding towards local projects that encourage sustainability. An example of a project management would support is a local high school wanting to plant more trees around their campus to help carbon emissions and bring more life to their campus. Portland State University is located in downtown Portland and they have a very strong sustainability program. They are one of only a handful of universities that offers a masters program in sustainability. Go Green Inc will work directly with PSU in creating projects that focus on sustainability within the local community.

After the fifth year of operation Go Green Inc plans to work with PSU to construct a local community center in the downtown Portland Area. This community center will achieve a LEED certification level of gold and will be a shining example of sustainability. The community center will offer multiple services including day care, a small gym, possibly an indoor track, a small health center, basketball courts, a rock gym, and possibly a pool. The effect of a green community center in Portland will have a positive effect on both the surrounding businesses and the individuals living within the community. By having a centralized location within Portland that represents sustainability, surrounding businesses will be more inclined to make their operations green therefore increasing Go Green Incs clientele. Community members who use the center will see that living life in a green and sustainable fashion is both possible and economically viable. This will help to increase public support of the movement which will lead to more community involvement from Go Green Inc.

Sustainability

Go Green Inc operates sustainably in both profits and operations. Managements main image follows the mentality of the triple bottom line; people, planet, and profit (let it be noted that Go Green Inc places value on these three items in the order they are listed above).

Being sustainable for people means providing the resources to Go Green Inc employees so that they can live their lives in a sustainable fashion; this entails providing a salary that meets their family needs and allows them to live in a green fashion. Being sustainable for people also means giving back to the community in a sustainable fashion. As mentioned above Go Green Inc will work directly with the local university to provide a green community center in the fifth year of operation. Management also plans to work with local high schools and provide funding for sustainability projects. Examples of projects would be tree planting, sustainable building development, a recycling program for the school, and the use of bio-degradable materials in the cafeterias. CEO Nick Conlin will also work with local high schools and give lectures on how to be greener in the home.

Being sustainable for the planet means operating in a green way. Go Green Inc will have its building of operations located along the river that runs between Portland and Vancouver. Having this location along the water provides Go Green Inc with an opportunity to maximize its potential green operations. Managements goal is to have a building with a LEED certification level of silver. Ideally Go Green Inc would like a building that operates on the level of gold but with limited funding for the first three years of operation this will be unlikely. Go Green Inc estimates that by the seventh year of operation the headquarter building will have a LEED certification level of gold. Go Green Inc will invest in the following technologies to ensure that our building of operations meets the silver level of certification; water re-usage programs (the building being located along the river will ensure these programs are successful), solar panel technology on the roof to provide power for the buildings electricity needs, the building will be constructed out of recycled materials, a zero waste program and facility, motion censored lights throughout the entire building and the location site will have minimal impact on the surrounding environments. All of these initial investments and projects will help to ensure that Go Green Inc operates out of an entirely sustainable building.

Being sustainably profitable for Go Green Inc means providing our clients with the best possible solution to save them the most money. By continually pushing the company to invest in new technologies and keeping up with current government standards Go Green Inc can work to ensure continued profits. This essentially creates a feedback mechanism; if Go Green Inc can ensure that it continues generating profit we can ensure our clients the best possible options. In regards to the business being a sustainably viable option; as long as the government continues to pass regulations that force companies to operate in a green way Go Green Inc will always have a place in the environmental consulting industry.

The Financials

Financial Overview

Go Green Inc is expected to finish year one with a net income of 428,138 dollars, the second year with a net income of 424,303, and the third year with a net income of 918,850. According to Total Market Potential calculations with the level of competition in Portland and Vancouver, and Go Green Incs limited capacity the first three years of operation the TMP for Go Green Inc is 25 percent market share. This equates to eight jobs per year available for Go Green Inc to capture. Of these eight jobs the number of sales for the first year is estimated to be four small audits, three medium audits, and one large audit. The sales for the second year are estimated to be the same. The sales for the third year are estimated to be six small audits, five medium audits, three large audits, and three implementation plans. After the second year Go Green Inc management predicts an increase in word of mouth from existing clients, continued use of advertisements throughout the city, and a stronger presence among the community of Portland. This increase is estimated to result in an increase of market share by five percent. This increase is also brought forth by growth in the industry of 8.7 percent a year. This increase also comes from heavy marketing during the first three months of each year. The marketing tactics used are cold calls, flyers, billboards, Internet marketing, and tram/bus ads.

The financial assumptions can be found in Appendix A. The financial documents containing the income statement, balance sheet, and cash flow can be found in Appendix B.

Reference List

Administration, N. O. (2010). Federal Environmental Regulations. Washington DC: United States Department of Commerce.Agency, U. S. (2013, March 24). Laws and Regulations. Retrieved from www.epa.gov.Billboard Prices. (2009). Retrieved from www.askville.amazon.com.Bureau, U. S. (2007). Industry Statistics Sampler. Washington DC: United States Department of Commerce.Bureau, U. S. (2013, January 10). State and County quick facts. Retrieved from www.quickfacts.census.gov.Commerce, U. S. (2012). U.S corporate Profit Inreases. Washington DC: United States Department of Commerce.Company, H. D. (2013). Environmental Consulting Services Industry Overview. Retrieved February 12, 2013Edwards, A. R. (2005). The Sustainability Revolution . Gabriola Island: New Society Publishers .Edwards, A. R. (2010). Thriving Beyond Sustainability . Gabriola Island: New Society Publishers .Gannon, D. (2011, April 11). Best Industries of 2011 For Stating A Business. Retrieved February 23, 2013, from www.inc.com.Internet Advertising. (2010). Retrieved from www.ehow.com.Labor, U. S. (2012). Construction Industry. Retrieved from www.osha.gov.Lapowsky, I. (2012, June 4). Best Industries of 2012 For Starting A business. Retrieved February 23, 2013, from www.inc.com.Manufacturers, A. F. (2012). Environmental Regulations. Retrieved from www.afpm.com.World, I. (2013). Environmental Consulting . Retrieved from www.ibisworld.com.

Appendix AFinancial Assumptions

Sources and use of funds

Go Green Inc will acquire a long term loan of 40,000 for initial start up costs from a local bank in Portland. This will cover initial purchasing of building equipment, rent, utilities, website creation and startup, computers with software, and office equipment.

Plan assumptions

Unit Sales: With the direct competition of Kennedy Jenks Consulting and the sole proprietorships management estimates Go Green Inc will capture 25 percent of the market in the first two years of operation. According to TMP calculations this equates to eight consultations per year. Management estimates that each of these consultations will result in an energy audit. According to data from the ESRI database there are a larger number of small businesses than large ones; taking this into account management estimates of these eight jobs per year half of them will be small jobs and the other half will be divided between medium and large jobs. This further breaks down to four small, three medium, and one large job. Management estimates that no implementation plans will be sold the first two years of operation. The new formation of the company and entrance into the market means the company will have no reputation among customers. With an increase in the companys marketing budget management estimates by year three market share will increase by five percent resulting in a larger presence within the market. By the third year of operation management estimates three of these plans being sold. At the end of year two there is a slight decrease in net income; an increase in the marketing budget, coupled with no change in sales from the first year to the second year accounts for this decrease.

Sales Price: According to IBIS World with the continuous passing of government regulations companies constantly need to change their environmental standards. This puts a large amount of demand on the environmental consulting industry which results in consultants charging a premium price for their services. Energy audits are priced based on the square footage and complexity of the building. According to the University of California, Irvine, the average square footage of a large office building is 14,900 square feet. Medium sized buildings are 10,000 square feet on average and small sized buildings are 5,000 square feet on average. Green Inc will charge 15 dollars per square foot. The sales price for the implementation plan is based on time for the creation of the plan and a small management fee for overseeing the completion of the project.

Cost of Sales: The cost of sales for energy audits is based on only the gas required by Go Green Inc consultants to reach their destination. The cost of sales for each implementation plan is based on the materials and time needed to draw up the plan.

Operating Expenses: Go Green Inc will be spending 10,000 in the first three months of operation on marketing. This will allow the company to make a large push in the market early on for our services, helping to establish a strategic position within the competitive market. The use of green technologies including solar panels, grey water system, and motion capture lights will allow Go Green Incs building of operation to have minimal utilities. Go Green Inc will have a high website maintenance cost to keep the website looking both professional and fully functional. In order to keep Go Green Inc in a positive financial situation, management plans on consulting an outside accounting firm after each sale to ensure proper financial control. Go Green Inc plans on working with local high schools to generate awareness about how to live and operate in a sustainable way. Management will be donating 2,000 dollars for the months of May, June, and July. This money can be used to improve the technology of the schools, make changes to the physical grounds of the school, and anything else the administration sees fit.

Marketing: Management will spend 10,000 each month for the first three months of operation on marketing. The majority of these funds pay a marketing consultant who has expert knowledge in the field. This consultant knows exact pricing structure for different types of advertisements, the best way to use advertisements, and the best locations to place advertisements. Go Green Inc will use the following forms of advertising to implement their marketing strategy and establish a strategic position within the market: cold calls, flyers, Internet advertising, tram/bus ads, and billboards. The cost of cold calling is already paid for by the phone and internet expense. A local print and copy in the city of Portland quotes for 1,000 flyers in full color with front and back the cost is 1,200 dollars. According to the website ehow.com (2010) the cost of online advertising varies considerably depending on the type of ad, advertising arrangement, and advanced options like targeted delivery. Google informs new businesses that a 10 to 50 dollar per day budget for internet advertising would be satisfactory. Billboards range in price from 900 to 2,500 dollars a month for city and rural areas (askville.amazon.com 2009). Management will try and negotiate a discount for purchasing two different billboards. Management estimates the price can be negotiated down to 1,200 dollars a month per billboard. These billboards will only be active during the first three months of Go Green Inc being in operation. According to wiki answers bus ads in large markets such as Portland range from 600 to 900 dollars per bus per month. Go Green Inc will advertise on two busses for the first three months of operation. Below is a breakdown of the above costs:

Flyers- 1,200$Internet- 30$ per day for a month = 1000$ Billboard- 1,200$ per billboard per month (2 billboards) =2400$Bus ads- 700$ per bus per month (2 busses) = 1400$Marketing Consultant Fee- 4,000$ (charge is based on hourly rate)

Total=10,000$

Labor Costs: The CEO will be taking no salary for the first three years of operation and will be supported by his spouses working salary. Both consultants will be paid a 60,000 per year salary with included benefits. During the second and third years of operation each consultant will get a 5,000 dollar increase in salary. After the third year of operation Go Green Inc plans to hire two more environmental consultants; with an estimated increase in market share due to an increased marketing budget, more consultations will take place needing a larger amount of consultants. These consultants will also be compensated starting salaries of 60,000 dollars a year.

Cash flow: At the end of year three Go Green Inc will have about 1.8 million dollars cash. This cash is being saved for a sustainability project in conjunction with the city of Portland beginning construction in year five of the companys operation. Go Green Inc will be building a green community center to promote sustainability within the city of Portland. This community center will serve as a shining example of what green technology can bring into a modern city and will show the residents in Portland how green can be integrated into their homes.

Appendix B Monthly Financial Statements

Income Statement

Balance Sheet

Cash Flow

Yearly Financial Statements

Income Statement

Balance Sheet

Cash Flow