2005business plan2

8/4/2019 2005business plan2

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BUSINESS PLAN

Sunny Honey

BY

GONG TAO

LIU ZI YI

CHEN YI

LIU MENG YU


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ContentsIntroduction..............................................................................................3

1.0 Executive Summary4

1.1 Objective (1-3 years)4

1.2 Mission.........................................................................................4

1.3Vision & Value...5

2.0 Company Summary.7

2.1 Company Ownership..7

2.2 Milestones..7

2.3 Potential of business8

3.0 Products and Service10

3.1Product Description..10

3.2Competitive Comparison..17

3.3Technology..18

3.4Future Products19

4.0Market Analysis Summary19

4.1Target Market Segmentation20

4.1.1Market Needs21

4.1.2Market Trends.23


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4.1.3Market Growth..23

4.2Industry Analysis..23

4.3Main Competitors24

5.0Operation25

5.1Marketing Strategy (operate marketing)..27

5.1.1Strategies on Product27

5.1.2Distribute (Place) Strategies.28

5.1.3Price Strategies.295.1.4Promotion Strategies30

5.1.5Products Sales..31

5.2Management Summary..32

5.3Management Principle.33

5.4Organizational Structure..35

6.0Financial Plan Summary.36

6.1Important Assumptions36

6.2Key Financial Indicators.37

6.3Project Income Statement.37

6.4Cash Flow38

6.5Balance Sheet..39

6.6Business Ratios41

7.0Harvesting42


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8.0Appendix45

8.1Appendix (Price)..47

8.2 Reference48


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Introduction

Tense situation in the global energy and climate warming is a serious threat to

health, economic development and peoples lives today. In order to achieve

sustainable development and development of access to a superior position in the

future, countries around the world are looking for new energy alternative strategies.

Solar energy for its clean, steady flow, security and other significant advantages

are become a focus of attention. The solar water heaters conversion technology is

undoubtedly the most mature technology, and its industrialization process are more

photovoltaic cells, solar power and other industries are always one step ahead. So

we will found a company named SUNNY HONNEY to start the solar water heater

business in Singapore.

SUNNY HONEY will be founded in 2011 as a limited partnership. It will be

located in one part of Singapore. Company SUNNY HONEY provides component

parts of solar water heater and markets solar water heater. The product will be sold

directly to the target customers. According to the information that we got from the

research, our market scope potentially encompasses 20% families in Singapore

who are living in villa, and 10% families whose houses are able to use solar water

heater. And as the developing of the science and technology, there is one type of

solar water heater that can be installed on the porch is coming up with. Therefore

we will focus on marketing this type of solar water heater to every family in

Singapore in the future.

SUNNY HONEY will be owned by GONG TAO, and there will be three more

partners in the company, each of them holds 20% of the assets.


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Company now is seeking a strategic partner contributing resource and supplying of

products. However, company Haier is the partner that we are looking for.

1.0 Executive Summary

This business plan outlines the Company Summary, Product and Service, Market

Analysis, Operation management, Web plan Summary, Management Summary,

Financial Plan, and Harvesting. And there are some other details included in each

part of them.

1.1 Objective (1-3years)

Because we are going to do a new business in Singapore, and before we start to sell

the solar water heater in this country, the families in this country have already get

used to using the gas water heater and the electric water heater, so it is very

difficult for us to start this business. But nowadays everything changed, every

country are encourage people to save energy, to attempt to use green energy,

because of this, even though they get used to using gas water heater and electric

water heater, Our major objective is to let the solar water heater take the place of

the gas water heater and electric water heater in the Singapore market. At the same

time, making people aware the renewable energy is also one of our objectives.

Besides, saving energy for this country is also our objective.


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1.2 Mission

As what I mention in Objective part, people who are living in Singapore have

already get used to use the gas and electric water heater, for them, it is not only

convenience but also very cheap to use gas and electric water heater. Therefore it is

not easy for us to just sell the solar heater to them, we should do some other things,

in another word, our mission is not only to sell solar water heater to our customers,

but also to do some publicity to remind the people that saving energy, protecting

environment is everybodys responsibility. Besides, we should also train our own

workers to have the ability to install the solar water heater and to repair the solar

water heater.

1.3 Vision & Value

Customer is the key to success for an entrepreneur. Therefore what your product or

service can bring to customer become very important, in another word, the value

that your product and service will give to customer become very important. So the

values that we will give to customers are:

y High quality productsy Good service experiencey Let customers become one part of the earth protectory Made well use of the solar energyy Good service after sells


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y Save moneyy Become the models of other peopley Innovation

And as a new business in Singapore, it is also very important for the investor to

know the value that this new business will bring to them. The values that will be

brought to investors are:

y Profity Popularityy Working Experiencey Interpersonal Relationshipy Exceed Their Old Businessy Learning More About Foreign Markety Innovation

For a successful business man, implement is the key to success, but at the same

time, the vision is also important. If we want to get success in some area, the first

things for us is to vision, to look forward, to think, if we even do not do the vision,

do think, how can we talk about implement, how can we talk about get things done.

It is like I even do not know what is apple but I tell people that I want to eat apple.

So for the SUNNY HONEY, our visions are:

y To be an excellent company


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y To be the major provider of solar water heatery To be a partner of choicey To be a sustainable affordable businessy To be a vibrant company to sell solar water heatery Never be caught up but always be learned

2.0 Company summary

SUNNY HONEY will be founded in 2011 by four students graduated from

JAMES COOK UNIVERSITY. It will be located in one part of Singapore, it will

started with a office that is 240 square meter, there are just the basic office

facilities in that office at the beginning, and we will have our own marketing

department, and we also will have our own workers who are excellent in installing

and repairing. Our company SUNNY HONEY provides component parts of solar

water heater and markets solar water heater. The products will be sold directly to

the customer.

2.1 Company Ownership

SUNNY HONEY is owned by Joyce. And there also three more partners in the

company, each of them holds 20% of the assets


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2.2 Milestones

Milestone Start Date End Date Budget

Marketing test 01/8/2011 06/11/2011 TBD

Market research 02/11/2009 onward $100

Develop Distribution Channels 04/1/2012 06/2/2012 TBD

Initial Marketing 08/3/2012 onward TBD

Web Store 08/3/2012 onward TBD

Establish Market Presence 08/5/2012 onward TBD

Product Placement 12/07/2012 onward TBD

Exit strategy/ Acquisition 01/4/2011 onward TBD

2.3 Potential of Business

According to the research we found that the population of Singapore is about 4

million, and there are 0.8 million families. And most of these families are using

electric water heater, there is just a few families use solar water heater, I even can

say there is no families use solar water heater. This is the uniqueness of our

product, so it is also tell us that there have a potential of market. But why there is

no family use solar water heater even though the sunshine in Singapore is very

strong, there are so many reasons, such as it is difficult to install solar water heater

on the roof.(because most buildings in Singapore are very tall, however the solar

water heater must be install on the roof of the building). And is also because of the

government (the government of Singapore said that if the citizens who want to add


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or remove some parts of their house, the citizens must get the permission from

them).May be because of these reasons, the Singaporean are always think that it is

difficult to install the solar water heater. But nowadays we noticed that things are

changing. Several days ago, we found a news from the Singapore newspaper that

Singapore government are testing solar water in island that nearby Singapore. This

news also tells us that there is a potential business for our company. And another

new also get from the Singapore newspaper that to save energy Singapore

government provides that the citizens who move into the HDB house within March

of 2003 to March of 2004 can get a gas water heater free. From this news, we can

notice that the government is paying more and more attention on save energy. And

this also tells us that there will be a potential business for our company. Therefore,

in summary, there are some information tells us there have a potential business for

our company:

yNo family use solar water heater in Singaporey Government is testing solar water heater in the island

that nearby Singapore

y The first time for Haier export their solar waterheater to Singapore.

y To save energy, Singapore government provides thatthe citizens who move into the HDB house within

March of 2003 to March of 2004 can get a gas water

heater free.


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y Generally every family will change their water heatereach three years.

According to the information that we got from the research, our market scope

potentially encompasses 20% families in Singapore who are living villa, and 10%

families whose houses are able to install solar water heater on the roofs. And as the

developing of the science and technology, there is one type of solar water heater

that can be installed on the porch is coming up with. Therefore we will focus on

launching this type of solar water heater to every family in Singapore in the future.

3.0 Products & Services

The products that we sell are all solar energy products, but our major product is

solar water heater, and at the same time, we also provide the repair and install

service to the customers. Next we will describe our product-solar water heater.

3.1 Product Description

Solar Water Heaters

Solar water heatersalso called solar domestic hot water systemscan be a cost-

effective way to generate hot water for your home. They can be used in any

climate, and the fuel they usesunshineis free.

How They Work


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Solar water heating systems include storage tanks and solar collectors. There are

two types of solar water heating systems: active, which have circulating pumps and

controls, and passive, which don't.

Most solar water heaters require a well-insulated storage tank. Solar storage tanks

have an additional outlet and inlet connected to and from the collector. In two-tank

systems, the solar water heater preheats water before it enters the conventional

water heater. In one-tank systems, the back-up heater is combined with the solar

storage in one tank.

Three types of solar collectors are used for residential applications:

jFlat-plate collector


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Glazed flat-plate collectors are insulated, weatherproofed boxes that contain a dark

absorber plate under one or more glass or plastic (polymer) covers. Unglazed flat-

plate collectorstypically used forsolar pool heatinghave a dark absorber plate,

made of metal or polymer, without a cover or enclosure.

jIntegral collector-storage systems


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Also known as ICS or batch systems, they feature one or more black tanks or tubes

in an insulated, glazed box. Cold water first passes through the solar collector,

which preheats the water. The water then continues on to the conventional backup

water heater, providing a reliable source of hot water. They should be installed

only in mild-freeze climates because the outdoor pipes could freeze in severe, cold

weather.

Evacuated-tube solar collectors


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They feature parallel rows of transparent glass tubes. Each tube contains a glass

outer tube and metal absorber tube attached to a fin. The fin's coating absorbs solar

energy but inhibits radiative heat loss. These collectors are used more frequently

for U.S. commercial applications.

There are two types of active solar water heating systems:

jDirect circulation systems


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Pumps circulate household water through the collectors and into the home. They

work well in climates where it rarely freezes.

jIndirect circulation systemsPumps circulate a non-freezing, heat-transfer fluid through the collectors and a

heat exchanger. This heats the water that then flows into the home. They are

popular in climates prone to freezing temperatures.

Passive solar water heating systems are typically less expensive than active

systems, but they're usually not as efficient. However, passive systems can be more

reliable and may last longer. There are two basic types of passive systems:

jIntegral collector-storage passive systems


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These work best in areas where temperatures rarely fall below freezing. They also

work well in households with significant daytime and evening hot-water needs.

jThermosyphon systemsWater flows through the system when warm water rises as cooler water sinks. The

collector must be installed below the storage tank so that warm water will rise into

the tank. These systems are reliable, but contractors must pay careful attention to

the roof design because of the heavy storage tank. They are usually more

expensive than integral collector-storage passive systems.

Solar water heating systems almost always require a backup system for cloudy

days and times of increased demand. Conventional storage water heaters usually

provide backup and may already be part of the solar system package. A backupsystem may also be part of the solar collector, such as rooftop tanks with

thermosyphon systems. Since an integral-collector storage system already stores

hot water in addition to collecting solar heat, it may be packaged with a demand

(tankless or instantaneous) water heaterfor backup.


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Installing and Maintaining the System

The proper installation of solar water heaters depends on many factors. These

factors include solar resource, climate, local building code requirements, and safety

issues; therefore, it's best to have a qualified, solar thermal systems contractor

install your system.

After installation, properly maintaining your system will keep it running smoothly.

Passive systems don't require much maintenance. For active systems, discuss the

maintenance requirements with your system provider, and consult the system's

owner's manual. Plumbing and other conventional water heating componentsrequire the same maintenance as conventional systems. Glazing may need to be

cleaned in dry climates where rainwater doesn't provide a natural rinse.

3.2 Competitive Comparison

For our company, the major competitors are the companies who are sell gas water

heater and electric water heater. Besides, the solar energy companies who are near

Singapore will be the competitors in the future, because they have their advantage

which is nearer to Singapore. And in the future, the first type of competitor will

still be the competitor of us, because when they found that people are begin to use

solar water heater, they will also sell solar water heater. Our company has come up

with these strategies focus on these competitors:

y Providing good service after sells to get more andmore loyal customers before the competitors comes

in.


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y Providing high quality products to get more and moreloyal customer.

y Building brand experience as fast as possible.y Come up with new type of product frequently.y Lower price to compete with the new competitors in

the future.

3.3 Technology

For our company, the products that we launched is one kind of technology

products, at the same time, it is also the renewable energy products, so it will have

a good future. However, there are some other technologies are required in our

company as well:

y Use internet to do the publicityy Sell onliney Technologies that are used to install the solar water

heater

yTechnologies that are used to help customer tochoose which type of solar water are suitable to their

shape of roofs


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3.4 Future products

Within the 3 years in the future, we will focus one type of solar water that can be

installed on the porch, instead of installing on the roof. When this type of solar

water heater is produced, our target market will exceed to developed and

developing countries. Actually, this type water heater has already been invented,

but it still within the test period. Besides, as the developing of science and

technology, we think the solar energy can be used better in some aspects.

Therefore, we may be focus on coming up with solar cars as well.

4.0 Market Analysis Summary

First, after the research, we found that there are a few families use solar water

heaters in Singapore. Therefore when we found this situation, it remind me a

business story, the story is about that there is business men who is doing shoes

business send one of his marketers to Europe to do the research to found whether

there have a market, when the marketer arrive to Europe, he found there is nobody

wear shoes, so he went back to tell his boss that there is nobody wear shoes in

Europe, they do not need shoes, so there is no market in there. But there is another

business man who also did the same thing, but when his marketer come back from

Europe, he told his boss that there is nobody wear shoes, so there is big market for

us, at the end of the story, the second boss successes in this market. And now the

situation that we faced is very similar to what happen in the story. Therefore we

choose to launch solar water heater in Singapore, and there will be a big market.

Besides, if most of citizens use solar water, they will save some money and energy

for themselves. At the same time they will save a lot of money and energy for their


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country. And as what I mentioned in the potential of our business part, the

government is starting pay more attention on this kind of products, so we also have

the support of government. Therefore, these information all tell us there will be a

market for us.

4.1Target Market Segmentation

First, our target market is the families that are living in Singapore. And before we

launch the solar water heater we have divided our target market in three parts, at

the same time we also divided our launch time in three periods, we decided that at

different period we will different part of customer. We divided the target market

based on the type of the house that citizens are living. There are three types of

houses in Singapore. 67% are HDB. This type of house is usually a little bit tall,

and it is not very easy to install solar water heater on this type of house. Another

type is condo, the characters of this type of house are tall and having a big porch,

so it is also not very easy to install the solar water heater on the roof. And this type

of house has taken 12% of the total house in Singapore. The third type of house is

flat. The characters of this type of house are not tall and have a big roof s, so it is

easy to install the solar water heater on the roof. After we segmented the target

market, we also segmented our business time in several periods. They are starting

period, the growth period, and the point period. At the start period, our target

market will be the families who living in flats, because at beginning of our

business, the technology and the skills are not very mature, we may not be able tosolve some complete problems, so we choose the easiest target market to start our

business. After we found a big company to cooperate with, we will have more

advance technology and skills. At this time our second period will be started, our

target also will change to the people who are living in condo. As the growth of our


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company, when we can solve a lot of complete problems, our target market will be

the families who are living in HDB. And it can be easily understand by this way:

4.1.1 Market needs

When we do research in Singapore we noticed that there are a few families who are

living in flats have already install the solar water heater. So we interviewed them,and during the conversation we asked them a few questions. And we have written

down their answer as well.

Why there is a few family used the solar-heater in Singapore?

Starting

period

Flat(target

market)

Growth

period

Condo(target

market)

Point

period

HDB(target

market)


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Because they think the electricity heater is cheaper, and it is difficult to install a

solar heater, besides, because if we want to install the solar heater on the roof of

the building, we should get the permission from the government, so it is not easy to

do that.

How much is it to get one solar-heater?

I am one of the people who use the solar heater in Singapore, this solar heater

spend me 500 dollar, and it is very useful, if I use it for a long time, it will help me

save a lot of money.

If I want to start the business of solar heater, what should I pay attention to?

You should pay attention to the source of your products, it means that you should

make sure that where you can get the solar heater and the material that will be used

on making solar heater, and you should also pay attention to the law of Singapore,

and learn about the tax of import and export, besides the competitor in your market

is also very important, because you can learn more about how to start your new

business here.

Why you choose to use the solar water heater?

Because of my friend, he lives in China, he introduce the solar heater to me, so I

bought one from China and asked my friend brought to me. And at beginning, I

just want to try it, but I found it is really benefit to my family latter.

Did you hear of the solar heater? Do you prefer to have the solar heater in yourfamily?

Yes I heard the solar heater, I want to try it, if it better compare with the electricity

heater, I will keep on using it.


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According to the answers that the households gave to us, we can found that the

market needs for solar water heater. Even one of them bought a solar heater from

China.

4.1.2 Market Trends

In the target market segment part I mentioned that there will have three types of

target markets during three different periods of our business, so we will target the

market like this way, so the market trends will be also very clear.

4.1.3 Market Growth

At the beginning of our business, the target market will be just 20% out of the total

Singapore families, and as the growing of our business, our target market will be

most families in Singapore, and during the process of market growing, the way that

we do promotion become very important, and we will talk about the way that we

do the promotion in the Promotion Strategy part.

4.2 Industry Analysis

Flat

market

condo

market

HDB

market


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Obviously, when we do our business, there will be some industry to support our

business, such as the transport industry, advertisement industry, government

department, the publicity department, and the products supplying industry. In our

business, we are as a whole family. We may not be survived if we do not have any

of them. They are like the different organs of our body, different part have

different jobs.

y Transport Industry ( feet of our business)y Advertisement Industry & Publicity Department

(mouth of our business)

y Government Department (brain of our business)y Products Supplying Industry ( heart of our business)y Others (one tooth of our businesswe can survive

without it but we will feel pain if we lost it)

4.3 Main Competitors

In market growth part we said that our market will be all the families in Singapore

in the future, at this moment, somebody may ask that are you sure you can get all

the families in Singapore be your target market, could it be that there is no

competitors will get in to this business in the future, the answer is no, of cause

there will be so many competitors will get in to this market in the future. And our

strategies to compete with our future competitors to growing our market have

already given out in competitive comparison part. And we have another way to


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compete with others is that, after we have already get success in the market, we

will not do the business that direct sell the product to the customers, we will make

full use of the competitors, we will sell our product to the people who are selling

gas water heater and the electric water heater, we will change our role of this

market from a retailer to a wholesaler.

5.0 Operation

To win a decathlon requires the extreme best from the participant. It is a very

grueling and demanding set of events. The decathlete is usually very good and in

fact the best in one or two events and in good standing in the other eight or nine

events. The objective is to be the overall best in all ten events. Decathletes like

most athletes must complete in head to head events to know if they are able to win

the overall decathlon. They must study their competitors in the greatest detail and

know their strengths and weakness. They must learn from the other decathletes

what allows them to put out that extra 5% that means the difference between

winning and just participating. They must also compete in an environment where

the performance standard required to win is always becoming higher.

Being a project manager is similar to the decathlete and in the business of projects,

the field is very competitive. Similar to a decathlon there are events (nine

knowledge areas) in the Project Management Body of Knowledge. The decathletes

in project management are the companies that are controlling costs, schedule and

quality on a project level. The project-driven companies must find ways to learnbest practices in a competitive world and apply these lessons to their processes,

systems, and tools. This method of continuous improvement through measuring

and comparing is referred to as benchmarkingas described by Dr. Kerzner.


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Nortel aspires to win the decathlon prize, but realizes it is not possible without both

internal and external benchmarking measurements and continuous improvements.

The internal benchmarking is similar to intramural decathlons where learning

comes from watching the friendly decathletes. A significant opportunity for

learning and continuous improvement occurs when the best in class have entered

the decathlon.

Nortel has been participated in the Kerzner five-step Project Management Maturity

Model survey for the last year and a half. The five steps measure the desired

direction of Nortel in reaching the point of external benchmarking and continuous

improvement. Over 400 Nortel Project Managers globally have participated in step

one. Step one determines if a common language is being used. Nortel is using this

initial assessment as a baseline for improvements. In the fall of 2000

Nortel will confirm the improvements in step one and move to measure step 2,

common process, and step 3 common methodology. Dr. Kerzner has provided

the measuring devices for the project management decathlon in the Maturity Model.

By placing the sense of urgency around the improvement programs and

remeasuring against the initial baseline, Nortel has a tangible measure of

improvement and is encouraged to go on and participate in the external

benchmarking order to become the best in Project Management.

Dr. Kerzners Project Management Maturity Model is on the internal web in

Nortel and the results are automatically calculated to provide the participant with

an immediate score. The aggregate scores of each business unit are published

monthly as a visible proof that Nortel is focused on the ideals of the five-step

model (common language, process, methodology, benchmarking and continuous

improvement). The model leads to a strong foundation for a world-class, project

driven company to mature and evolve. If has often been said that to improve, one

must be prepared to measure the improvement and one must inspect what one


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expects. The Kerzner Project Management Maturity Model has provided this

tangible measure of maturity. The rest is up to the company to set the expectations

and to inspect the results.

Therefore, the operation management is very important, and we are going to talk

about how to operate Marketing, Finance, Management, Harvesting.

5.1 Marketing strategy (Operation of

Marketing)

Because the business that SUNNY HONEY will do are new business, and it is

known to all that the beginning of doing everything is difficult, if we want to open

this market, we should have good marketing strategies, and there are some

marketing strategies that we will use. And these strategies will focus on the 4Ps of

our product. So called 4Ps, they are product, promotion, place, and price.

5.1.1 Strategies on product

The first strategy that we decided is to build brand experience. In our opinion, if

we want the customer to buy our product, we should let them know our product

first, and most important thing is that they should trust the product as well. They

should learn about that what kinds of values that our product can give to them. So

in order to build the brand experience to customers, so we will choose Haier as our

products supplier. Because the Haier is one of the top five company in the world

that are producing solar water heater. Besides, when we buy the products from

Haier, we will not buy the finished goods, we want to buy the semi-finished goods,

it means that, we will buy all the component parts of the solar water heater, and

when we are going to sell them, we will make up are the component parts to get a

finished goods, this strategy is very important, because it not only make


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transporting easily but also cut the cost of import. Why I say that? Because

according to the law of import tax, it specified that the tax of import finished goods

will be higher than the semi-finished goods. Another strategy is the diversification

of products. In order to match different shape of the roof and the different type of

house, we take the strategy is not bad even though the cost will a little high. We are

also going to pay more attention on the quality of the product. For the package of

our product, we think it is not very necessary for us to packaging it very nice but

we should package it very well in order to protect the products, because the

components of the solar water heater are not very hard.

In summary, our strategies that will use on products are:

y Give Customer A Brand Experiencey Buy The Semi-finished Goods Instead of Finished

Goods

y Diversification of Productsy Seriously Require of The Quality of The Producty Package it to protect the product instead of to look

nice

5.1.2 Distribute (place) Strategies

For our business, the location of company is not necessary at the center of

Singapore. We will find a place that the rental is cheaper than other place. And we

will not have so many places special for sell our products during the first three

years. Actually I will make full use of the people who are selling the electric water

heater and the gas water heater. I will sell my product to them to let them be one


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part of my target market. And at the same time they become the distributer of my

company.

5.1.3 Price strategies

The setting of price is very important for a company, for our company as well. And

we have a lot of strategies on setting price.

y Based on our costThe simply rule of setting the price is that is must cover your cost, so before we

setting our price we should know our cost. And depend on the cost to decide our

cost.

y Pay attention on the competitors price settingAfter the competitors come into the market, we will decide our price based on the

how much they will sell the product.

y Evaluate the buying power of this countryIf we are going to set our price very high but not consider whether the customercan afford it or not, we will in trouble. Therefore before we set our price, we will

do the research to find the buy power of our target market.

y Based on the profit that we are willing to getWe also considered that the profit we want to get, so the price we are going to set

will be based on the profit we are willing to get.

y Based on the product itselfBefore the product that we buy from Hairer, they are just semi-finished goods.

However, after we import it to our company, we will make it up to let them be


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finished goods, and we will also do something on the package, so the price may be

set a little bit higher.

y Based on the law and the change of the rate ofexchange

Because we are going to buy product from Haier, it is a company in China, so the

money that Singapore and China are using is different, so the exchange rate is a

factor that we should consider about when we setting our price.

y Use some Psychological pricingWe also use some psychological pricing strategies such as reference pricing,

bundle pricing, multiple-unit pricing, everyday low prices, odd-even pricing, and

prestige pricing.

y Use differential pricingWe are also going to use the differential pricing strategies such as random

discounting, periodic discounting, secondary-market pricing, and negotiate pricing.

5.1.4 Promotion Strategies

There are some strategies that we will take to do our promotion.

y Do Publicity As Much As PossibleAs what we mentioned before, this is this first time that the solar water heater will

be launch in Singapore, and the citizens who are living in Singapore are used to

using gas water heater and electric water heater. Based on this, we found that the

most important thing for us first to do is not to do advertisement for our products.

However, it is doing advertisement for our idea. We should change their mind first,


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and let them aware that they should do something for saving energy for our next

generation. So we should to do some education for them.

y Hold Solar Water Heater Show.We will do more shows instead of doing so much advertisement to let customer

learn about our products. Because if we want the customer learn about the

technology product well, the better things for us to do is let customer look at the

example of product, and this idea for us is like what the computer company did,

during one year, they will hold computer show once or twice, and it is also did by

the car company, they also hold the car show to let the customers to learn about

their product, and depend on the nice look and the nice design to apple the

customers. Besides, on the show, I will do the auction. How will we do the auction?

Before the show, we will do the advertising so that we can tell people that they

have the chance to get a solar water heater which is value 1500 or 2000 by one

dollar. How can they get the solar water heater by one dollar? The people who

come to the show, they will have a match which is about send message, we will

give a number to people, we will see who is the first one send the message to us,and the people who is the first one send message to us, he or she will get a solar

water heater by one dollar, by doing this, we will let people easier to recognize that

the solar water heater is better than other water heater. And you will think that if

we do this we will lose a lot of money, in fact we will not lose money by doing this.

Because every message will be one dollar, if there are 4000 people come to join

the match, and they will get 4000 dollar, but one solar water heater just worth 1500

dollar, so we get profit by doing this, at the same time we also let more people

know our product.

5.1.5 Products sales


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According the research, we found there is a potential market for us, and we also

have already analyzed the market, now we are going to sale the solar water heater.

And our sales strategies are as follow:

y Directly SellWhen we start our business, we do not have so much money, so we will do more

direct sell buy ourselves, and direct sell is the way that we open the market. At this

period, we are like the retailer, and our purpose is to sell the product.

y Be a WholesalerWhen our business start to grew, and most of people are accept our idea and

product, at this moment, the competitor will get in to this market, may be someone

may say, it is not good for us to let others come in to this market, however, it is

good for the people who sell gas water heater and electric water heater to be our

competitor as a retailer, at this time we will not continue to sell product directly to

customer , we will sell our product to the people who want to sell the solar water

heater directly to customer, and now we will be a wholesaler. This strategy will

make two things become meaningful, the first thing is the cooperating with Haier,

if now we are a wholesaler, it means that we will buy more product from Haier,

and the speed of the supply circle will be improve, this will improve the

relationship between our company and Haier. And another thing is that our

distribute team become stronger. They will be more and more people help us to

sale the solar water heater. It let everything be done faster.

y Sales OnlineIt is necessary for us to do the online marketing, because this way can help us cut

the cost of inventory. It is known to all that the rental in Singapore is very

expensive, and the solar water is not a small product, it will take up a lot of space


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to keep, so our company just keep a few inventory in our company, and the most

product that we want to sell are temporarily kept by Haier, in another word, we

will sell product first. And we will deliver the products to the customer later,

during this period. We will order the product from Haier. And sales online is a

better strategy to get thing done by this way.

5.2 Management Summary (operate

Management)

Simply stated from an organizational perspective management is the achievement

of [organizational] objectives through people and other resource. A more detailed

examination of the principle of management would reveal that it is also the process

of setting and achieving goals through the execution of the five basic function of

management (planning, organizing, staffing, directing, and controlling utilizing

human.

5.3 Management Principlesy Division Of WorkSpecialization allows workers and managers to acquire and ability, sureness and

accuracy which will increase output. More efficient work will be produced with the

same effort.

yAuthority

The right to give order and the power to exact obedience are the essence of

authority. Its roots are in the person and the position, it cannot be conceived of

apart from responsibility.


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y DisciplineDiscipline is comprised of obedience, application, energy, behavior, and outward

marks of respect between employers and employee, it is essential to any business.

Without it, no enterprise can prosper. It is what leaders make it.

y Unity of CommandAn employee should receive orders from one superior only. It is generally better to

have one supervisor than a duality of command.

y One Head One PlanOne supervisor with one objective should lead a group of activities having the

same objective.

y Subordination of Individual Interest to General InterestThe interest of one person or group in the business should not prevail over that of

the organization.

y Remuneration of PersonalThe price of services rendered should be failed and should be satisfactory to both

employee and employer. A level of pay depends on an employees value to the

organization and on factors independent of an employees worth-such as cost of

living availability of personality, and general business conditions.

y CentralizationEverything that serves to reduce the importance of an individual subordinates role

is centralization everything that increase the subordinates importance is

decentralization. All situations call for a balance between these two positions.

y Scalar Chain


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The chain formed by managers from the highest to the lowest is called a scalar

chain of command, managers are the links in the chain, they should communicate

to and through the links as they occur in their chains. Links may be skipped or

circumvented only when superiors approve and a real need exist to do so.

y OrderThis principle is simple advocacy of place for everyone, and every one in his or her

place, a place for everything and everything in its place. The objective of order is

to avoid loss and waste

y EquityKindness and justice should be practiced by person in authority to extract the best

that their subordinates have to give.

y Stability of Tenure of PersonalReducing the turnover of personal will result in more efficiency and fewer

expenses.

y InitiativePeople should be allowed the freedom to propose and to execute ideas at all levels.

A manger who is able to permit the exercise of initiative on the part of

subordinates is far superior to one who is unable to do so.

y Esprit De corpsIn unity there is strength. Managers have the duty to promote harmony and to

discourage and avoid those things that disturb harmony.

In summary our management will all obey the principles that we designed.

5.4 Organizational Structure


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Since we are targeting a new product to Singapore, and at the beginning of our

business, we do not believe that a big gun CEO and management team are required,

so we will fill these positions ourselves.

y Founder and management teamBen Ford CEO Ben is a Senior at Washington State University majoring in

Computer Science and minoring in Entrepreneurship and

Philosophy. He was a founding member of eRisk Security,

Inc, a network security startup.

GONG TAO VP of Marketing Entrepreneurship Major, self-employed artist

Liu zi yi CFO Accounting Major

Chen yi COO Architecture Major, Computer Aided Drafting experience.

Liu meng yu CTO Electrical Engineering Major, extensive embedded systems

background, parent

6.0Financial Plan Summary

The following sections include the annual estimates for the standard set of

financial tables. Detailed monthly pro-forma tables are included in the Financial

Plan. Ideally, HaierTechnologies would bring in $250 thousand of equity

investment from investors compatible with our growth plan and vision in exchange

for 15-20% equity ownership.

Estimated Date Amount

Seed Funding May, 2012 $100 thousand

Series A Round 1 November, 2012 $150 thousand


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6.1Important Assumptions

This financial plan depends on several important assumptions.

y We assume a slow growth economy without major recession.y We assume a high growth market segment for up to five years that will taper

off once we reach market saturation.

6.2Key Financial Indicators

High volume sales do not begin until near the end of the first year, but once they

begin, we assume an exponential growth, with a growth factor of 1.25. In later

years, we expect more tame growth. We are estimating 25% annual growth.

We expect to maintain net margin at about the 60% level without major changes.

6.3 Projected Income Statement

The following table shows that we expect to break even in year two. The single

most important factor in the improving profit margin is the economies of scale in

our general and administrative expenses.

We don't expect to decrease sales and marketing expenses as a percent of sales.

Maintaining market share in this industry will require heavy marketing expenses.

We will set our price at 1,500$-2,000$ and if we can sell 185 set of our product


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one year will get 278,550 revue, so this is what showed in the income statement.

And in the second year, as our product become more and more popular, the people

who is selling electric water and gas heater will also buy the solar water heater

from us, so at the second year, our sales will goes up to 843,750$.


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6.4 Cash Flow


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6.5 Balance Sheet


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6.6 Business Ratios

Standard business ratios are included in the following table. The ratios show a plan

for balanced, healthy growth.


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7.0 Harvesting

At the end of our business, we will decide how to deal with our business based on

the situation at that moment. We may decide to sell our company. We may decide

to be one part of Haier. We may pass our business to the next generation to do it.


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8.0 Appendix


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8.1Appendix (price)


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Reference

http://detail.zol.com.cn/solar_waterheater_index/subcate414_list_1.html

This website also provides some information of the price of solar water

heater.

http://www.rental-singapore.com/shop/

This website provides us the rental in Singapore

http://www.guidemesingapore.com/tax/c647-singapore-tax-system-overview.htm

We found some information of the tax in this website

http://www.ecitizen.gov.sg/nonresidents/

When we analyzing the percentage of the different type of the houses in

Singapore, we found the information in this website

http://www.haier.com/index.htm

This is the company profile of Haier

http://siva-my.jobstreet.com/_profile/previewProfile.asp?advertiser_id=38444

This website provide us some information of Singapore

http://www.kingbull.com.cn/article3/200708/81.html

This is the legal system that we want to start a business in Singapore


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2005business plan2

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Transcript of 2005business plan2