Free Green Energy Products Distributor Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
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Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- Loan Amortization and ROI Tools
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the
development of a green energy products distributor while showcasing the expected
financials and operations over the next three years. Green Energy Products, Inc.
(“the Company”) is a New York
based corporation that will provide for the wholesale distribution of green
energy products to retailers and HVAC companies. The Company was founded by John
Doe.
1.1 Products and Services
The primary revenue center for the business will come from the ongoing purchase orders of
wholesale low energy and green energy products from retailers and contractors
based in the Company’s target market. The business will earn contribution
margins of 70% on each dollar of revenue generated through the wholesale
distribution of green energy products through the Company’s sales channels.
The business will also earn substantial secondary incomes from ancillary distribution
fees and services rendered to customers that operate outside of the Company’s
target market radius.
The third section of the business plan will further describe the products offered by
Green Energy Products, Inc.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan
agreement are to be further discussed during negotiation. This business plan
assumes that the business will receive a 10 year loan with a 9% fixed interest
rate. The financing will be used for the following:
-
Development of the Company’s location.
-
Financing for the first six months of operation.
-
Capital to purchase the Company’s inventory of green energy products.
Mr. Doe will contribute $10,000 to the venture.
1.3 Mission Statement
Green Energy Product’s mission is to become one of the foremost distributors of low
energy and green energy products for retailers within the Company’s targeted
markets.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the
general distribution industry. Through his expertise, he will be able to bring
the operations of the business to profitability within its first year of
operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the
expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three
years of operation. Mr. Doe intends to implement marketing campaigns that will
effectively target retail locations and contractors within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Green Energy Products, Inc. The
Company is registered as a corporation in the State of
New York.
2.2 Required Funds
At this time, Green Energy
Products requires $100,000 of debt funds. Below is a breakdown of how these
funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an
investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of Green
Energy Products, Inc.
2.5 Exit Strategy
If the business is very
successful, Mr. Doe may seek to sell the business to a third party for a
significant earnings multiple. Most likely, the Company will hire a qualified
business broker to sell the business on behalf of Green Energy Products, Inc.
Based on historical numbers, the business could fetch a sales premium of up to 4
times earnings.
3.0 Products and Services
Management is currently in the
process of sourcing a number of companies that produce and market wholesale low
energy products and green energy products for selected retail stores. The
business intends to offer a broad selection of green energy products that are
related to the sale of wholesale distribution to the general public. These
products include, but are not limited to:
Management anticipates that the
Company will be able to mark-up purchased inventory 65% of its actual cost.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the green energy products industry, the
customer profile, and the competition that the business will face as it
progresses through its business operations.
Currently, the economic market condition in the United States is in a state of moderate
growth. Unemployment rates have declined while asset prices have risen
substantially. As such, now is a strong market for developing a green energy
products distributor.
4.2 Industry Analysis
Within the United States, there are more than 2,000
companies that specialize in the wholesale distribution of green energy products
to retail locations and contractors that generate more than more than $10
billion per year. The industry employs more than 50,000 Americans and annual
payrolls of $3 billion year.
The growth rate of this
industry is expected to remain strong as the demand for low energy and
ecologically friendly products has grown significantly over the past five years.
This has been primarily attributed to increased awareness and care for the
environment as well as rising energy prices.
4.3 Customer Profile
Green Energy Product’s average
end user will be a retail seller or contractor operating within the Company’s
target market. Common traits among clients will include:
-
Annual revenues exceeding
$1,000,000 per year.
-
Will spend $2,500 to $10,000
per month with the Company.
-
Operates within 15 to 25 miles
of the Company’s operational radius.
4.4 Competitive Analysis
This is one of the sections of
the business plan that you must write completely on your own. The key to writing
a strong competitive analysis is that you do your research on the local
competition. Find out who your competitors are by searching online directories
and searching in your local Yellow Pages. If there are a number of competitors
in the same industry (meaning that it is not feasible to describe each one) then
showcase the number of businesses that compete with you, and why your business
will provide customers with service/products that are of better quality or less
expensive than your competition.
5.0 Marketing Plan
Green Energy Products, Inc.
intends to maintain an extensive marketing campaign that will ensure maximum
visibility for the business in its targeted market. Below is an overview of the
marketing strategies and objectives of the Green Energy Products, Inc.
5.1 Marketing Objectives
-
Develop an online presence by developing a website and placing the Company’s name and contact
information with online directories.
-
Implement a local campaign with the Company’s targeted market that will connect the business to
retailers and contractors.
5.2 Marketing Strategies
Mr. Doe intends on using a
number of marketing strategies that will allow Green Energy Products, Inc. to
easily target retail stores and contractors within the target market. These
strategies include traditional print advertisements and ads placed on search
engines on the Internet. Below is a description of how the business intends to
market its products to retail locations.
The Green Energy Products, Inc.
will also use an internet based strategy. This is very important as many people
seeking local products, such as wholesale green energy products distributors,
now the Internet to conduct their preliminary searches. Mr. Doe will register
the Company with online portals so that potential retail customers can easily
reach the business. The Company will also develop its own online website.
The Company will maintain a
sizable amount of print and traditional advertising methods within local markets
to promote the green energy products that the Company is selling.
5.3 Pricing
In this section, describe the pricing of your services and products. You should provide as much
information as possible about your pricing as possible in this section. However,
if you have hundreds of items, condense your product list categorically. This
section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
The Company has based its
proforma financial statements on the following:
-
Green Energy Products, Inc.
will have an annual revenue growth rate of 16% per year.
-
The Owner will acquire $100,000
of debt funds to develop the business.
-
The loan will have a 10 year
term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of a more severe
economic downturn, the business may have a decline in its revenues. However, the
high gross margins generated by the business will ensure that the business will
maintain profitability despite deleterious economic conditions.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
.
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis