Department of Electrical and Electronic Engineering Business Planning for Engineers (H63BPE


Group Assignment: Business Plan

Group Members: Russell Carter, Yinan Miao, Yuli Bao, Ahmad Batoot, Valentine Okeke, Jiayang Tong Submission Deadline: Friday 17th May 2013

Business Idea
The business idea basically involves establishing a company for selling a photovoltaic renewable energy system which is aimed to provide energy at night as well as during the day. The company is mainly aimed to small applications like home-using. The company that we would establish is an assembly facility for manufacturing the system and a research lab as well as a marketing sector for selling. The company provides customers with the products and have a negotiating side for buying products in bulk, design, raw material, production process, services and the manual work for each type of product. The aim is to able customers to use renewable energy everywhere in their lives and save money. The product comprises of a photovoltaic panel, a battery bank and an automaton that can simultaneously switch between the panel and the battery depending on the sun irradiation strength. The solar panel chosen for the design is made of Cadmium telluride nature. The product is designed to prevent as less electricity costs as possible and to be highly self-efficient. During the absence of sunlight, the automaton will switch off the panel and will simultaneously turn the battery bank on. When solar irradiation has is again apparent the automaton will switch off the battery, turn the panel back on and then would therefore recharge the battery. There are three reasons why this was system was chosen. 1. Environmental awareness is recently growing rapidly among people, and people are willing to buy products using renewable energy rather than traditional ones with similar prices and quality. 2. The world is now facing many environment issues, so the demand on pollution-free productions will definitely grow in the future. 3. The government also encourages the renewable energy industry.

Benefits to potential users
The cost for first stage is high to start with because of the high price of the solar power devices. Nevertheless, after the system has been installed the costs of electricity aren’t an issue as most of the electricity people need can be generated by our system. Due to this reason the users can save a large amount of money. This feature is mostly aimed towards families. The electricity of our system is continuous regardless of day or night. This product is more efficient for powering small applications rather than using the main power grid. The system is independent and self-efficient. This feature is mostly aimed towards the government setting up street lights and other public applications. The weight of our product is very low and it is very portable. Although it is light, it is high efficient. Due to this reason, it can be installed in places such as fishing boats who could use renewable energy whilst away from the mainland. Our company will provide a nice service. For example, we can help the customer set up or repair the device. The system is environmentally friendly.

Target market and potential market size
Markets targeted would include any clientele interested in buying a photovoltaic system for personal. Most photovoltaic systems redirect generation in the national grid and is sold by the user. The system designed would be used for actual power usage. After research, a system that involves a battery and an irradiation sensor equipped automaton doesn’t seem to be an already existing product.

The competitors involved would include companies who specialise in selling photovoltaic cells used for low power generation. The difference of our photovoltaic system is that no other system uses irradiation sensors to trigger an automatic switching between the panel and the battery.

Route to Market
The company would buy components from a manufacturer to produce the device. It would possess an assembly facility used for building the product using the components and a marketing sector. This company would be situated in Nottingham, UK. Research was carried out to pick a company to supply the components based on the quality, level of production, success rate and also the marketing strategy of the company. Reasons the following characteristics were picked include: • As a starting up company, our product has to be up to standard to compete with the other products in the market to be able to be properly appreciated by other buying companies so they can purchase our product.

Looking at the companies level of production, they should be large product producing company due to the fact we would be buying components in bulk, they we should be able to meet our needs so as not to delay the process of production for our company with in turn would affect our end users

The company should also possess a good success rate, this would help boost the sale of our own product because if our product is known to buying from a company with high success rate, this gives an extra reason to why a company would come to us than to another company.

If the company is not well known, this might reduce percentage of companies that would coming to check out our product, because if a commercial user wants to know where our components are gotten from, and the manufacturing company is mentioned and is not known, the company might be reluctant in purchasing the product.

With respect producing this components there are 5 top companies which are called Suntech, first solar, Yingli, Trina and Canadian. Among this companies Suntech was selected because of the fact that compare to all the companies above, it’s the largest power producing company with the supply of power of about 2000MW for his annual production in the last three years, delivering more

than 13,000,000 components to thousands of companies in more than 80 countries. The main headquarters is in china, one of the distributing company they have is in Germany which is the closest to where our company is located. This manufacturing company passes all the checks we set for a manufacturing company, including the fact that it is well known. For sales, it was mentioned above that we would be creating a distributing company, also we would be carrying out direct sales from this company. Seeing that this is a product where the company would have to come see for itself, there would be no need for online sales but we would have website where information about the company and its products would be stored.

Action Plan

Key Objectives Establishment

Task Register business and trademark Research and purchase licences

By Whom RC YM YB

By When 15 Jun 15 Jun 1 Aug

Finalise premises

- Rental agreement - Redecorate - Finalise office set up

Legal Contracts Consult with lawyer Finalise contracts Sign Finance Determine fixed overheads Determine financial objectives Finalise cash flow - Get costing - Meet with accountant Identify amount to reduce loan - Review P&L with JT RC/AB/ VO 1 Aug 1 Aug VO 15 Jun AB AB RC/YM/YB/AB/ VO/JT 15 Jun 15 Aug 1 Sep


managers - Complete cash flow plan

Finalise initial finance Marketing Determine marketing objectives Determine launch plan

Review finance documents


1 Oct

Identify sales in each quarter for first year Outline plan Agreement and decision on implementation


1 Aug


1 Sep 1 Oct 15 Oct 30 Nov 10 Dec 1 Jan

Create brochure and leaflet

Agree concept Approval of copy Print Distribute them

Summary of main financial projections

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