Download Team Turquoise presentation1

Turquoise Solar
Solutions, Inc.
Founders
Daniel Draven—CEO/CFO
Bunmi Akinnifesi—VP of Marketing
Saheed Bello--COO
John Roland—VP of Sales
Problem to be solved
•
The energy industry in the US has a huge potential
for growth, development and opportunities for
investment and policy makers like the Obama
Administration are doing everything possible to
ensure the sector drives the economy.
•
The basic economics of energy and developments
in technology are making the area of solar energy
system Installation structurally attractive.
•
Well known investors like Warren Buffet have made
long term investments in the power sector.
Problem to be solved
•
The current trend is that a lot more individuals,
corporations and governments are becoming more
environmentally conscious and striving towards
green solutions.
•
Solar panels and solutions are now becoming more
affordable due to the continuous research and
innovations going on in the industry as well as the
government subsidies available that reduces the
startup cost of purchase of solar panels.
•
Every year more companies are committing to
transitioning from fossil fuels to renewal able
energy.
Solution
•
Turquoise Solar Energy Solutions is established to be financially
profitable, technically feasible and good for investors, customers,
staff, the community at large and the environment.
•
TSS has been positioned to grow in this segment of the energy
market.
•
The objective is for Turquoise Solar Energy System installations to
be one of the leading providers of solar installation and repairs,
ensure profitability and provide investors low risk and safe
investment opportunity and most importantly customers get a
good return for their money.
•
Mission Statement: To be the first choice in installation and repairs
of solar panels and related solar electricity equipment among
homeowners, developers, and property managers.
Opportunity & Target Market
• Our
target market is Georgia.
• With
an investment of US$79 million in
2014 alone…
• Georgia
stands out as the fastest growing
solar market in the US.
• Georgia
ranks 15th in installed solar capacity
in the US.
Opportunity & Target Market
• The
consumers of solar electricity in Georgia
are primarily:
• Home owners
• Small firms
• Large firms that have huge electricity
requirements.
Technology
•
Turquoise Solar Energy Solutions aims to avoid much of
the risk associated with energy costs and economic
expansion/contraction.
•
Via three steps:
•
(1) we don’t produce the cells used.
•
(2) we broker for our customers for a set (small) markup.
•
(3) our marketing heavily appeals to environmental
conscientiousness combined with cost savings as
opposed to one or the other.
Competition
• At
present, there are more than 173 solar
companies engaged in all parts of the solar
electricity value chain in Georgia.
• These companies have over 2,900
employees engaged in various activities in
the course of serving the market.
• Some of the firms engaged in the solar
electricity trade in the Georgia area include:
Georgia Power, Southern View Energy, and
Turnsol Energy.
Competition
• Growing
demand for solar power
still leaves a large market
unserved.
• Federal and state laws help
incentivize electricity consumers
to install photovoltaic systems.
Marketing & Sales
• TSS
plans to install 600 units monthly
at the rate of $360/panel.
• Our
client base includes residents and
business firms within the United
States.
• Marketing
Budget of $20,000.
Marketing & Sales
• Turquoise
Solar Systems will target
• Home owners that earn above USD50,000
per annum
• Small firms with an annual turnover of
USD100,000 and above
• Large firms that require huge solar
installations like solar farms.
Marketing & Sales
•
TSS aims to provide one-stop shopping for customers who want
to increase their renewable energy consumption.
•
Our product mix will offer several sizes and ranges of solar cells,
from $150 single panels to $20,000 arrays as the customer’s
power needs and budget constraints allows.
•
Because we are free to contract from every manufacturer on the
market, we can create a customized package, purchase the
hardware, and install it for our customers regardless of maker or
origin.
•
We will offer discounts during the winter to try to shift demand
from spiking in the leadup to summer months (when solar cells
will produce the most immediate benefit) and capitalize on the
tax credit window of December-January.
Marketing & Sales
•
Sales Tactics
•
The residential team will review newspapers and trade journals for
new home purchases (often new buyers have a budget set aside
for improvements that can be applied to solar energy cells).
•
In print, we will take out half-page advertisements in local
newspapers in order to reach a broader audience.
•
Online, we will pursue keyword advertising with search engines for
customers searching for information on “solar cells” “renewable
energy” and “home solar”, in addition to banner and sidebar ads on
news articles concerning rising solar power adoption.
Marketing & Sales
•
Sales Tactics
•
The Corporate team will reach out to local firms’ Facilities
Management teams to determine if they would be interested in the
cost savings involved in renewable energy, as well as those same
companies’ PR teams to see if they would find value in the positive
sustainability branding.
•
Similarly to the residential team, they will also reach out to the
buys of large property transactions to see if there is an
improvement budget that could be well matched with solar energy
installations.
Management Team
• Daniel
Draven will serve as dual CEO/CFO.
• Bunmi
Akinnifesi heads up the marketing
and advertising program.
• John
Roland leads the sales teams.
• Saheed
Bello manages the installers,
inventory, and company equipment as Chief
Operating Officer.
Management Team
• Board
of Directors
• The
board will include the four founders:
Daniel Draven, Saheed Bello, Bunmi
Akinnifesi, and John Roland; with three
seats available to debt and equity investors.
• While
the founders intend to retain majority
control, significant influence will be yielded
to financing partners.
Financial Projections
•
TSS’s revenue will come from two sources: one,
an 8% markup on the hardware panel costs
themselves; second, an installation fee for
placing the product within the home’s electric
system.
•
The installation fee will be based on an hourly
rate (currently set at $60/hour), and the
estimated number of hours required to complete
a given installation (currently projected at 6
hours).
Financial Projections
• This
protects the company from variability in
hardware prices by adopting transparent
pass-through pricing.
• We
expect that 85% of our installation
customers will purchase equipment from us,
however 15% will acquire their own solar
panels (possibly after expecting to be able to
install it themselves and being overly
optimistic), and our revenue will come only
from installation services.
Financial Projections
•
Fixed costs will include office rent estimated at
$9,000/month, licensing and liability insurance
estimated at $12,000/month, and
$60,000/month in employee payroll.
•
Variable costs will be the hardware required for
the job (cost passed through to customers),
installer hourly rates, and fuel for company
vehicles.
•
Additionally, the company will put $20,000
towards marketing its services.
Turquose Solar Solutions –
Break Even Analysis
Turquoise Solar Solutions - Break Even Analysis
$160,000.00
$140,000.00
$120,000.00
$100,000.00
$80,000.00
$60,000.00
$40,000.00
$20,000.00
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Monthly Installations
Fixed Costs
Contribution Margin
Current Status
• Source of
capital is seed money of $50,000
from the owners.
• We
expect a monthly growth rate of 2
percent.
• We
expect a total revenue of $ $390,609 by
the end of the first year.
Financing Sought
• Startup
costs consist of $198,000 for an
opening inventory of solar panels, $120,000
for company vehicles and installation
hardware, and a reserve of $142,000 to
cover rent and liability until we reach our
volume target plus an additional $100K
general cushion.
• This, assuming an interest rate of 4.5% and
a term of 60 months, will require
$7,661/month to service.
Financing Sought
• The total of all these costs equals
$108,661/month, and the profit per hour of
work is $37.50 ($60 gross – $20 for installer
wage - $2.50 in hardware costs) as a result
will require 2,898 hours at our expected rate
of $60/hr.
• If we expect each installation to take 6
hours, this requires 483 installations per
month to cover fixed costs (this ignores
potential hardware revenue and is based
entirely on installation revenue).
Pro-Forma, First Six Months
Conclusion
Open for Questions