Business Plan

TRANSCENDENCE:
Solar PV systems Provider

Bashar Hourani
Umm-Uthinah
Marib St. 13
Amman, Jordan
+962 79 594 50 20
Future.energy@outlook.com

I. Table of Contents

I.

Table of Contents ................................................................................................... 2

II.

Executive Summary ............................................................................................... 4

III.

General Company Description ............................................................................ 6

Mission Statement..6
Company Goals and Objectives...6
Business Philosophy..7
Legal form of ownership..8

IV.

Products and Services............................................................................................ .9

Products...9
Services....12
Products and Services Key advantages..14

V.

Marketing Plan ....................................................................................................... 15

Economics...15
Solar Systems Features & Benefits..20
Products Features & Benefits.......21
Customers...22
Competition23
Niche25
Strategy25
Promotion26
Promotional Budget...27
Pricing..28
Proposed Location.28
Distribution Channels...29
Sales Forecast..29

VI.

Operational Plan............................................................................................................ ...31

Location...32
Legal Environment33
Personnel.34
Inventory.35
Suppliers..37
Credit Policies.37
Receivable and Payable Accounts...38

VII.

Management and Organization .............................................................................39

Professional and Advisory Support41

VIII. Startup Expenses ................................................................... .42

IX.

Financial Plan ..........................................................................................................44

12-Month Profit and Loss Projection..44
Three-Year Profit Projection48
Projected Cash Flow..50
Opening Day Balance Sheet..54
Break-Even Analysis..56

X.

References......58

XI.

Appendices .............................................................................................................. 59
Products technical specifications sheet59
Products and Service Cost Prices in USD64
Suggested initial stock65
Owner Resume65

II. Executive Summary

Transcendence is a start-up company will be located in Amman, a full-solution provider offering

design, supply, installation, operating and ongoing-service end-to-end project execution of
reliable PV solar systems for homeowners, business owners and governmental sector to meet their
electricity demands, shift them to be less dependent on utility providers, reduce their carbon
footprints and make positive impact on environment with affordable solution based on solar
energy technology of PV systems.
Jordan has a great potential resource and ability to harness solar energy to produce electricity,
due its location within the Sunbelt, as the solar radiation intensity is 5-7 Kwh/m2. The
government of Jordan recognizes the need to invest in solar energy, as a result Jordan published
the 2007 2020 energy strategy includes ambitious targets to increase the contribution of
renewable energy sources to the national energy supply up to 10% by 2020 while its lower than
2% currently. With the anticipation of continuous hiking of electricity costs, more people will be
searching for affordable alternative energy, due to all these factors Transcendence recognizes a
promising chance to join solar energy sector here in Jordan.
Transcendence has identified main keys to success; a committed professional service understands
the real needs and considers the differences of each individual client offered in a friendly manner
that will raise the expectations of Transcendence clients later upon receiving any service from
other service providers, reliable products supported by the longest warranty period available in
the market yet offered with competitive prices, new sales techniques relying on networking and
referral programs thats rewarding Transcendence clients with money and smart promotions
presented in modern media with stylish graphic and animation designs.
Transcendence will keep the risks associated to business under control at lower levels in its early
stage by keeping adequate inventory as low as possible, hiring only a few efficient employees,
whilst trying to break into the residential sector only, yet, still planning to expand into other
sectors such commercial and governmental, which will raise the inventory up to 50,000 JOD and
to continue hiring up to 10 people during the next two years. Further expansion as an authorized
agent for international manufacturers of solar energy products, penetrate into other fields and
create different segments inside the company for home automation, building management
systems, security systems, and a showroom of cutting edge technology are just some of the plans,
however we do intend to expand into the region of neighbor countries such as KSA, Egypt, Syria
and Iraq, during the first 5 years of operation.
Transcendence will continually assess all aspects of the business, developing its marketing and
sales techniques, building step by step its team of enthusiastic loyal employees and making the
right decision at the right time to increase productivity, enhance its operational performance and
maintain appropriate level of growth; led by Bashar Hourani. Bashar received a degree in
Mechatronics engineering from Jordan University of Science and Technology (J.U.S.T) and has
had several years experience working in the service sector, recently he was very busy studying
solar systems and building proper experience to launch this business.

Transcendence is seeking seed money of 52,500 JOD to overcome the startup expenses needed to
build up initial inventory, office and storage costs and their equipment and a launch before-the
startup promotion campaign. A vehicle will be required for outdoor sales operations and a
portion of cash will need to be left on hand to cover operation expenses during early months. The
expected payoff period is three years.
Transcendence has conservatively forecasted sales of JOD 250,000 during first year, Sales are
forecasted to grow substantially in year two and three scoring JOD 400,000 and JOD 750,000,
which generates a net profit of JOD 25,966, JOD 45,851 and JOD 148,993 respectively, a total net
profit of over 200,000 JOD at the conclusion of year three was forecasted as below figure:
JOD 750,000

JOD 800,000
JOD 700,000
JOD 600,000

sales

JOD 500,000

JOD 400,000

gross profit

JOD 400,000

net profit

JOD 250,000

JOD 300,000

startup expenses
JOD 200,000
JOD 100,000

JOD 52,462

JOD 45,851
JOD 25,966

JOD 148,993

JOD 0
startup

first year

second year

third year