Business Plan

OWNERS

Solaris Energy Systems

658 Edgebrook lane
West Palm beach, Florida 33411
732-272-3099
Hbrown0131@aol.com
 I. Executive Summary
Solaris Energy Systems has introduced many concepts that will revolutionize the
lighting and energy management industry. Solaris Energy Systems Company is an
unlimited lighting contractor specializing in the ILN (Intelligent Lighting Network),
lighting upgrades, retrofits, and maintenance. We have completed projects in a
wide range of facility types for a varied customer base and are a leader in the
design, installation, and maintenance of energy efficient lighting systems under
other companies.

Our clients will include some of the country’s best-known corporate headquarters,
retailers, office buildings, school and university campuses, warehouse and industrial
complexes, and multi-location corporate clients.

Our system will allow major corporations, retailers, government facilities gain
control of their lighting equipment by monitoring the operation of the equipment in
real time. The ILN system will reduce operational cost and increase cash flow.
 II. General Company Description
Solaris Energy Systems designs and sells products that will help our
customers reduce their operating costs. We offer the ILN (Intelligent Lighting
Network) which will allow our customer to see in real time what fixtures in
their locations are not operating as designed. We also offer new energy
efficient technology. This new technology will allow our customers to reduce
their operating expenses.

Solaris Energy Systems mission statement is: To provide our customers with
the highest quality in products, customer service, pricing, and reliability. We
will strive to be profitable and a leader in energy saving technology. We will
always put our customer satisfaction first.

Our company goals are to be the leader in new technology that will help our
customers reach their operating objectives. Solaris Energy Systems will
continue to develop technology that will be beneficial to the everyday
operations of businesses throughout the world. We will have a healthy,
successful company that is a leader in customer service and that has a loyal
customer following. Our objectives are to reach our targeted annual sales, to
position ourselves as a company that our customers will look to for solutions
to their energy and operating issues. We want our customers to give us
quality ratings in product, support, service and ingenuity.

Business Philosophy: Solaris Energy will maintain the highest degree of

ethics in the business environment. We will not over promise and under
deliver. We will do as we say. We will listen to the needs of our customers
and always be honest in what our limitations are in respect to their needs.

We will market our products to Retail, Government, Utility Companies,

Manufacturing, Petroleum Companies, and any other company that is in
need of assistance in reducing or monitoring their operating costs.

We are in the energy services industry. This industry has grown and
flourished in the last decade. With the new initiatives by government on all
levels the energy services industry will continue to grow at a rate of over
200% per year. We predict that as operating cost increase companies will
continue to look even deeper on how to reduce their costs. By Solaris Energy
Systems developing and implementing new technology to monitor the
efficient operation of their equipment we will be able to show them how to
reduce their operating costs. By having the right sales and marketing plan in
place we will be able to penetrate the market with the only product available
for the monitoring of the customers equipment but, will also be able to
pinpoint the exact failure of such equipment.
Solaris Energy Systems most important strength is our ability to think
outside the box. We have developed a product that no-one has and there is
currently no competition. We will succeed by being ahead of any competition
and by taking our product to market with a strong sales blitz before other
companies can design and produce a similar quality product. Combined we
have over 150 years of experience in the energy technology field. Our staff
and ownership has developed relationships with many of the major
companies in the market place today and this will be a defining point in the
successful startup of the company. Our staff understands how energy
products and technology will serve as a benefit to our customers and as
stated earlier we think outside the box and overcome obstacles to find
solutions to any problem.

We are currently set up as an LLC (Legal Limited liability corporation )and

there are 4 members. Three of the members have 30% ownership each and
the forth member has 10% ownership. However, we are willing to
redistribute ownership or form a Corporation as deemed necessary for an
investor.

Products and Services

Solaris Energy Systems main product is the ILN (Intelligent Lighting

Network). Attached is the outline of the ILN. Our secondary product is the
plasma lighting system, we have attached cut sheets on this technology as
well.
The biggest factor and advantage Solaris Energy Systems has in the market
today is we are the only company with the technology. This will give us an
advantage over any other company for a minimum of one (1) year. During
the first year we will be able to saturate the market with our sales force. Also
during the first year we will be able to make adjustments to the product to
expand in other areas. We expect that after the first year other major
companies will be developing similar products.

We have calculated that our price for the ILN will be $30.00 per unit
installed. However, this price may have to be adjusted after final
negotiations with the product manufacturer.

The plasma lighting system will be in the $950.00 ranger per unit. We are
currently negotiating with the manufacturer to decrease this cost as it
currently will have a negative effect on ROI’S (return on Investments).
 III. Marketing Plan

Market research -
Solaris Energy Systems has contacted major chains and conducted a survey
into the desire to have the ILN system. The companies contacted are as
follows, 1) Walmart Corporation, Pilot, Bed bath & beyond, Barnes & Noble,
Flying J, Circle K, Sally Beauty Supply, Kroger’s and Publix. Out of these
customers all, except one (Kroger’s) determined that it would be extremely
important to assist them in controlling their operating cost and to insure that
their lighting system were operating as required. These customers also
realized that they would no longer need monthly service contracts with
companies such as Sylvania, Rogers Electric, and Design Electric. All
companies have asked for a demonstration and three (3) companies
(Walmart, Sally Beauty Supply and Flying J) have requested to install in test
stores with a commitment that if system operates as stated they would
continue a rollout at all locations.

Solaris Energy Systems used two kinds of market research: primary and
secondary.

Secondary research means using published information such as industry

profiles, trade journals, newspapers, magazines, census data, and
demographic profiles. This type of information is available in public libraries,
industry associations, chambers of commerce, from vendors who sell to your
industry, and from government agencies. From this research we have found
no product internationally that will perform as per the product information
sheet.

Primary research means gathering your own data. Solaris Energy Systems
used this as the main focal point of launching the business. As stated above
we utilized actual customers for determining the desire and needs for our
product.
Economics

• The energy market is over a billion dollars annually.

• In the first year we will have 100% of the market share.

• From our study we estimate that 9 out of 10 companies will install our
product.

• Current trend in the market are companies looking to reduce their overall
energy costs. This includes reducing the maintenance costs. The growth
has been in new technology that is cost effective and helps customers
lower the operating costs. Growth potential and opportunity for a business
of your size.

• At this point we do not have any product barriers unless demand exceeds
our estimates for the first year. The one barrier we have at this point is
the financial capabilities to mass produce the product. We have listed
those barriers below.

o High capital costs

o Initial high production costs

o High marketing costs

o Training a sales force

o Unique technology and patents

• In order to overcome our barriers we are avidly looking for the investor
that will be part of our team for a percentage of the company. We want to
insure that this partner will carry the same ethics and values as we do.

• The following can affect your company in positive and negative ways.

o Change in technology- we have to be able to continue to adapt

to our customer needs. If we do not then our competitors can
surpass us on developing newer and better units.

o Change in government regulations- Typically this will help us. If

we are awarded government contracts with our products then we
can lobby to have these systems pushed from federal to local
level governments. Many states will adopt incentive programs
such as tax rebates.
 o Change in the economy- As the economy gets worse more
companies will look for ways to save money. However,
interesting enough even as the economy strengthens companies
will still be determined to reduce operating cost and run more
efficiently.

o Change in your industry- Our industry changes frequently with

new technology. However, the negative side is new technology is
usually over priced and lengthens the ROI’S. This causes new
products to take years before the market accepts them. Our
product does not have a high investment and we have been able
to show ROI’S in 2 years or less.

Product
From the customers point of view this product will reduce their operating
cost by 50% in maintaining their lighting and equipment. As an example Bed
bath & beyond spend an average of $225.00 per store per month. On 3000
stores that equates to $675,000 per month and $8,100,000 per year. BBB
spends money on service agreements. Most of the time the maintenance
companies charge for work never provided. Every month a maintenance
company technician visits the store and if no work is performed the customer
still has to pay a service charge. With our product the customer can cancel
these expensive maintenance contracts and only us a maintenance company
as they deem needed since the will know exactly what is out and the
problem causing the outage. BBB estimated that they could save over
$4,000,000 per year in these cost alone.

Features and Benefits

The ILN has many benefits as listed below.:

• The ILN will be able to tell a customer what lamp or ballast is out in what
fixture.

• It will enable the customer to end service contracts and reduce operating
cost.

• Allow customer to redirect funds to other energy projects

• The system will give real time information 24/7

After-sale services will be for us to set up a maintenance contract for up-

keep of equipment and replacements as needed. Also, we will be able to
establish a network for making any repairs to lamps and ballast as needed.
 Customers
Our targeted customers consist of large box and small box retail with
multiple locations, Government facilities, Manufacturing, industrial, and
distribution companies. Typically these companies will be nationwide or
regional. A few of them will be international.

Our customers will be dedicated to seeking solutions to decrease their

operational cost and actively looking for solutions to manage the
appearances and operations of their retail stores.

Competition
Currently there is no competition in the market for the ILN system. We do
expect that after one year we will see some type of product on the market
similar to ours. Exactly who will be the competitors at this moment is
uncertain.

If and when we see competition it will be across the board. However, Solaris
Energy Systems will have a year to a year and a half advantage of market
exposure. Also during this time frame we will have made advancements in
what the product will produce.

While we will have indirect competition they will be our customers at the
same time. For instance, companies such as Sylvania will sell the product to
some of their existing customers but they will have to purchase the products
from us. They will however be able to secure the installation portion from us.

Table 1: Competitive Analysis

Solaris Energy Streng Weakne Importance to

Factor GE Honeywell
Systems th ss Customer

Only product in X N/A N/A 2

Products market

Set market X N/A N/A 1

Price standard
 Solaris Energy Streng Weakne Importance to
Factor GE Honeywell
Systems th ss Customer

Highest X N/A N/A 1

Quality standard

Only one X N/A N/A 4

Selection currently

National X High quality High quality 2

Service capabilities international international

Reliability Exceptional X Exceptional Exceptional 2

Financially X Strong Strong 3
Stability weak

Expertise Strong X Strong Strong 3

Company Unknown in X Excellent Excellent 4

Reputation market today

Can perform X Excellent Excellent 5

Location anywhere

Appearance Exceptional X Excellent Excellent 4

Sales Cold call B2B X Multiple Multiple avenues 3

Method avenues

Credit Low cash X Multiple Multiple avenues 3

Policies revenues avenues

Advertising X Strong Strong 4

Image X Well known Well known 3

Niche
Solaris Energy Systems niche is having the only ILN system in the market. It
will change the industry on monitoring equipment that is essential to
operating a business.

Strategy
Our strategy is to take the current customers and install in their retail
locations. By April of 2010 we want to have a showing at the Prism show held
in Orlando, Florida. This show has major retailers throughout North America.
These retailers look for new technology that will help reduce their cost and
assist them in running a smoother operation. In June 2010 we want to have a
booth set up at Light fair for an international showing of the product. We will
utilize those customers that have product installed as strong references for
other companies to follow suit. We will develop marketing material which will
instill confidence, need and desire for our product.

Promotion

Initially to get our word out to the customers will be done by B2B cold calls
and simple marketing materials. As we grow we will increase the standards
for marketing material. We will utilize existing customer base and trade
shows for maximum exposure.

Advertising: We will use print media and CD’s. The CD’s will be sent to
customers for demonstration. We will have an established web site that will
also provide a demonstration as well. Other advertising methods will be at
trade shows.

We want to portray an image of industry leaders and out of the box thinkers.
All of our promotions and advertising will be directed in this philosophy.

We will develop a logo that will be catching to the eyes and portray our
philosophy in business.

Promotional Budget

We will keep initial cost low. The budget will be based upon the final material
layout during the startup phase. We expect to keep cost below $10,000.00.
This will include the web site.

Ongoing the advertising and promotion budget will increase as sales

increase

Proposed Location

Our proposed corporate headquarters will be established in West palm

Beach, Florida. The exact address has not yet been determined.

Distribution Channels

As we grow we will set up distribution channels through majors chains.

Rexel

Grainger
Jesco

HD Supply and others as we deem needed.

Own sales force

Agents

Independent representatives

Bid on contracts

Sales Forecast
See attachment
 IV. Operational Plan
The operations will be the sales and installation of the ILN units. We will be
open daily Monday through Friday 8:00am to 5:00pm and later as required
by customers. Initially there will be 4 people on staff. We will increase our
staff as required by increase of sales and revenue. We will call on potential
customers and set up appointments to give demonstrations and pricing for
the ILN system.

Production
The ILN system will be produced by a company located in Indiana. This
information will be released as needed.

• Production techniques and costs will be released later as needed.

• Quality control units will be selected during production and tested for
quality

• Customer service will be handled by the initial staff and we will set up an
after hours call service.

• Inventory control will be minimal. We will keep about $15,000 of the units
on hand in order to meet customer needs after startup. However, units
will be made according to customer orders.

• Product development has already been completed.

Location
The location we choose will consist of about 2,000 square feet of office and
warehouse. The warehouse will be no more than 500 square feet and 1500
square feet of office.

Access:

Is it important that we are located to an airport to be convenient to

transportation.

Inventory
• We will keep an initial inventory of $15,000 for replacement parts or to fill
quick orders by customers.

• Average value in stock will be $7.00 per unit.

• Rate of turnover should be low as our on hand stock will be for
replacement parts and quick orders.

• Lead-time for ordering will be 2 to 4 weeks.

Credit Policies
• We plan to sell on credit with net 30 terms.

• We need to sell on credit as most corporations have vendors that sell on

credit only. It is a standard industry policy.

• Before we extend credit there will be a D&B check along with credit and
bank references.
 V. Management and Organization
Who will manage the business on a day-to-day basis? What experience does
that person bring to the business? What special or distinctive competencies?
Is there a plan for continuation of the business if this person is lost or
incapacitated?

If you’ll have more than 10 employees, create an organizational chart

showing the management hierarchy and who is responsible for key functions.

Include position descriptions for key employees. If you are seeking loans or
investors, include resumes of owners and key employees.

Professional and Advisory Support

List the following:

• Management advisory board will consist of Howard Brown, David Meece,

Larry Meece, and investor.

• Attorney will be determined at a later date.

• Accountant will be David Meece on the startup

• Insurance agent will be determined at later date.

• Banker is currently Wachovia.

 VI. Startup Expenses and Capitalization
See attachment
 VII. Financial Plan
We have constructed an initial financial plan and the following sections will
be routed to the attachments.

12-Month Profit and Loss Projection

See attachment

Four-Year Profit Projection (Optional)

See attachment

Projected Cash Flow

See attachment

Opening Day Balance Sheet

See attachment

Break-Even Analysis
Expressed as a formula, break-even is:

Break-Even Sales Fixed Costs

=
1- Variable
Costs

(Where fixed costs are expressed in dollars, but variable costs are expressed
as a percent of total sales.)