Paper, Order, or Assignment Requirements
The purpose of this essay is to elaborate on how wind energy technologies could be incorporated into a hypothetical business plan, specifically considering the following issues: appropriate business models, market size, marketing strategies, technology risks, and/or financing. References are required for this paper. A business plan framework is provided below but is not intended to be an outline for this essay.
BUSINESS PLAN FRAMEWORK
1) Executive Summary: Represents the venture, write it last and put it first, be comprehensive but be brief.
2) Company Overview: Written version of an “elevator pitch”, what is the business, founding history, communicate the vision of the venture, business model description, significant milestones of the business to date (money raised, current technologies and products being worked on, lessons learned).
3) Problem & Solution: Here is the problem and this is how we will solve it while generating revenue, match technology with a defined market need, provide quantitative and qualitative market data to validate the business opportunity.
4) Product / Technology: Wind Farm
5) Business Model: Not about the product and technology, how the business will operate, who are the clients and how will they be found.
6) Market Opportunity: What is the market size and what is the attainable market share (short term and long term), highlight customer interest in product, is market growing (it needs to be), possibility of recurring revenues.
7) Marketing Strategy & Required Execution Elements: Customer acquisition cost, sales channels (direct and indirect), pricing strategies, include product introduction milestones.
8) Management Team: Highlight management team and relevant industry experience, plans for future hires, advisors and board members with industry knowledge, compensation structure, key outsourced services (marketing, CPA, software, consulting).
9) Competition: Identify competitors and their strengths/weaknesses, plan for competitive response to market entry, include “Competitive Matrix”.
10) Financial Projections: Financial projects for 3-5 years, unit sales should reflect and equal marketing plan, summarize key “SG&A” Components, revenue and gross margin by segment, summarize income – balance sheet – cash flow, compare “burn rate” to current funding plans (keep a 90-day cash cushion).
11) Use of Funds / Investment Summary: Use of funds with associated milestones, how will cash be allocated to grow the business, what types of capital are we seeking (debt/equity).
12) Risks of Business Plan
– Business Model Risk: Overall value proposition to customers, competitive barriers, milestones and timelines for achievement.
– Technology & Product Risk: what stage is our product/technology in (conceptual, working model, prototype), competitive technical barriers –IP.
– Market Risk: Current versus future market dynamics and expected changes, defensible pricing strategy, how will we mitigate potential market risks.
– Execution Risk: Relies on management team’s ability to execute the plan, staffing must matched intended milestones, relevant managerial experience and industry knowledge/skill.
– Financial Risk: Assumptions and justification for revenue and gross profit outlook, sound strategies to achieve targeted investor ROI, reasonable and justifiable valuation.