Solar Panel Business Plan

COURSE CODE
: 3208
COURSE TITTLE
: Entrepreneurship Development
ASSIGNMENT ON
: New Business Plan
COURSE TEACHER
: Nafisa Rounok
Assistant Professor Dept. Of Finance
Jagannath university
SUBMITTED BY
: Group 2
Dept. of Finance
Jagannath university
Batch 4,3rd year 2nd semester
BBA, 2012
SUBMITTING DATE
: 30/09/2012
Solar Panel Private Limited Company.| Solar Panel Project
Introducing: (Group
Members)
NAMES
ROLL
SAKIB TANVIR
105319
RIAJUR RAHAMAN
105276
ADNANUR RAFI
105270
ARIF HOSSIAN BHUIYAN
105324
ABDULLAH AL MAMUN
105269
MD.SALAH UDDIN
105206
MD. OSMAN GONI
105261
SHIMUL CHANDRA BISWAS
105231
AHMED IMTIAZ SHAMIM
105224
MOHAMMAD NOOR NOBI
105235
TABLE OF CONTENTS
Particulars:
Details:
Pages
Submission of the report
Acknowledgement
Executive summary
Methodology
Limitation
Introduction
10
1.Company Profile
2. Industry analysis
3.
General
description
of
1.1Vision and mission statement
11
1.2Business and industry profile
12
2.1Significance trends
13
2.2 Growth rate
13
2.3 Key success factors in the industry
13
2.4 Competitors Analysis
14
15
the
venture
4.Production Plan
5. Marketing plan
4.1Machineries and equipments
16
4.2Service concern
17
4.3 Sources of Raw materials
17
5.1Purposes and objectives
18
5.2 labor supply
18
5.3 Manufacturing cost data and pricing 19

5.4 Marketing Strategy
20
5.5 Advertising
21
5.6 Target Market
21
5.7. Marketing Mix Analysis
22
5.8 Sensitivity analysis
22
5.9 SWOT Analysis
23
24-27
6. Organization plan
28-29
7. Risk Analysis
8. Financial plan
8.1 Particulars of required resources
30
8.2 Cost of project collection
31
8.3 Financing Plan and loan required
32
8.4 Pro forma income statement
33-35
8.5 projected sales and profit statement
36
8.6 Projected Balance sheet
37
8.7 Ratio analysis
38-39
8.8 Break-even analysis
40
9. Appendix And conclusion
41
10. Bibliography
42
30th September, 2012

Nafisa Rounok
Assistant professor
Department of Finance
Jagannath University.
Subject: Submission of the report.
Dear Madam,
We the student of 4th batch 6th semester department of Finance group-2 Jagannath University, are
very grateful to you for giving us such an interesting and important topic for the course term
paper. As per your direction, we have completed the report successfully.
While preparing the report, we faced few problems. But we could go for solving them and at the
same time we got a lot of new experiences. For this reason we are thanking you heartily. We
tried our best to make this report the best one. We think this report can serve us in our future life.
Submitting this report, we are feeling very happy. We conclude here and again unending thanks
to you.
Yours ever,
Group -02
Acknowledgement
This is high time we conveyed our deepest gratitude and sincere submission to the Almighty
ALLAH for giving us the opportunity to accomplish such an enjoyable and tough task of
preparing this report in time.
We express our thanks to our dear course instructor Nafisa Rounok for assigning us a term paper
dealing with Developing New Business Ideas which includes recognizing opportunities and
generating ideas, feasibility analysis, writing a business plan, industry and competitor analysis
and developing an effective business model. In this regard, we would also like to thank ourselves
for our good teamwork and successful team spirit.
The presentation of this term paper is of a great expectation in our B.B.A program and we are
quite happy to submit it duly applying that we think should have to be included .The knowledge
should be valued when we enter into job market.
So lastly, we would again like to express our heart full thanks to our course teacher for providing
the knowledge and valuable guidelines related to our assigned report.
All the members of the group

Group- 2
EXECUTIVE SUMMARY
We are the students of Finance, so we have to know significance knowledge about the sectors of
entrepreneurship and finding new ideas on different business. Here we prepared a report on the
basis of new business plan in the product of SOLAR PANEL. From the preparation of this
report we gather significance knowledge about various business sectors in Bangladesh.
Our country is a developing country and so the capability of our government is very low. In this
regard we have to utilize our natural energy for the development of our country and creating a
great flow of our development process. Solar Energy is one of the most important and successful
source of natural energy. By using this Solar Energy we can make the SOLAR PANEL
project.
In the report we show a complete structure of the process of making this product. Here we
explain the whole process, how we make our product and how we marketwise the essential
product. First of all we start our business with the money we receive from our project maker and
then we collect loan from various commercial bank for the fulfillment of our powerful project.
We have been communicating some expertise on this field for the suggestion on the successful
process of our project.
For the success of our project we collect various matters from different sources. We make the
production process on the basis of various steps. We also identified some key factors on which
we acknowledge a great concern for the success of our project. We design our project a
systematic way so that the production process goes to the main structure.
In the ending of this new business plan project we provide a great concern on the activities of
marketing of the product because we know that marketing is one of the most important factors
for the success of new business plan. We make a good procedure for the whole marketing
arrangements. We gather significance knowledge about marketing from some marketing
Expertise. At last we tried our best for making a new successful business plan for the
development of new successful product.
So in the circumstances we are very glad that we try to start a new business on the basis of new
product which is very important of our nation in this stage.
Methodology of the study:

Correct and smooth completion of the research work requires adherence to some rules and
methodologies. Rules were followed to ease the data collection procedures. Accuracy of the
study depends on the information and the data analysis. To make a smooth and watchful report
we have collected, summarized and arranged data of the every possible source. We also prepared
the report in a decent way that it will be attractive for the readers.
Sources of data:
We collect data from both internal and external sources for preparing our report which are shown
below:
Relevant documents provided by different research.

Group discussion.
Discussion with our superior.
Wikipedia
Research papers.
Various analyses.
Documents provided by the various news papers.
LIMITATION OF THE STUDY:
While preparing this report, we have faced some problems. The problems that we find while
preparing this report are as follows:
Due to assumption this report may not be perfect to the scent percent.
Lack of enough experience in analyzing of the data.
Due to inadequate time we cannot furnished our report properly.
Lack of availability of data and documents.
Up- to date information is not available.
Time constraints.
As we are not perfect analyst thus lack of presentation is must here.
Our analysis may contain some sorts of data which is not correct to the percent.
Introduction:
Clean energy is the need of todays world. The world is suffering
from the energy crisis and the existing source of energy is too expensive. Fossil fuels are at its
end stage and these fuels creating environmental problems like global warming, climate change,
etc. The whole world is moving towards renewable energy sources which are cheaper and
effective source of energy and solar power has stood in front as the solution to it. New
technology has been developed to trap the alternative sources of energy of which solar PV
technology is being mostly used worldwide to solve the present solution.
The increase in the load shedding in the context of our country
Bangladesh is a major problem at present. There is uncertain to solve this problem until we
depend on the existing source i.e. hydroelectricity. So the time has arisen to go for alternative
like solar power. Most of the works in the government as well as private offices, banks,
hospitals, hotels, etc are stopped due to this growing load shedding. There is a need of backup
systems for them. At the household level, people are bound to stay in the darkness, apart from
news, television, radio, water pumping problem in the valley and so on.
In the next 10 years there is no chance of getting rid of load shedding
in Bangladesh. Similarly, most of the western part and hilly region of Bangladesh is not linked
to the electricity grid. People living in those part are under hardship life. Some sectors like
vaccines refrigeration, hospitals instruments and equipments etc essentially require electricity
power for their operation.
The people are afraid of investing in Bangladesh in the industrial and
manufacturing sector due to insecurity, political instability, and energy problems. They want
quick return of their investment. Investment in the hydropower, factories, projects, etc is a long
term return.
Realizing this entire problem, establishment of more Solar
Companies is essential in Bangladesh. The market is growing up as well. At present Solar
business in Bangladesh is like a hot cake. More number of solar companies providing efficient
solar PV system is to be established to solve the present problems. So with this objective, this
venture is proposed.
Solar Panel Company Pvt. Ltd. is a form of organization which deals
with the installation and operation of various systems to solve the problems of energy crisis in
the present situation. It provides backup system in the present load shedding problems with
minimum investment and long run benefit. It is situated at Rangpur. The company will start its
business from installation of Solar home system and expand its business to total solar solution in
future.
10
1. Company Profile:
Company name: Solar Panel Private Limited Company.

Address: Dhanmondi,1202,Dhaka
Contact Number:01737179410
www.solarpanelpvt.bd.com
11
1.1 Vision and Mission statements

1.1.i) Vision statement
To change Bangladseh Into a nation where solar energy provides power to
everyday needs.
1.1.ii)Mission statement
The mission of Solar Energy Private Limited Company is to increase the
quality of life of people of urban areas by eliminating the problems created by load shedding. For
this, SPC provides high tech, high quality green energy alternative to home or office use.
1.2 Business and Industry profile:

1.2.i) Stage of growth :
The solar electrification companies of Bangladesh at present are at an infant
stage. It is in introductory stage but consciousness as well as needs of people is increasing at a
good rate and the existing companies are getting popular among upper class of residents. We
think at this rate, the popularity and the use of renewable energy will increase.
Our Company SPC is in the start up phase of business. As initial market
well serve the residential customer and offices. Then we will proceed to large organizations and
apartments after getting publicity. After covering our initial market, we are likely to attract the
customers outside the valley.Besides we are planning to expand our firm that deals only with
parts of solar products
1.2. ii) Company History:
Our company is a newly introduced company on solar panel manufacturing
and electricity supply purpose. We started to think about this company from our social
responsibility. We discoussed about the issue of electricity problem and found that this sector is
the needy of help for shorting out the backings in this sector. Our company was incorporated on
June 03, 2012 under the companies Act, 1994 and registered with register as a private limited
company. The company started to manufacture and produce electricity from January 01, 2013.
The company is situated at Rangpur in Bangladesh.
1.2. iii ) Uniqueness of the Service:
Solar system is a better electronic system. In preset world electricity is
produced by different ways. And its raw materials are too costly. But solar system is such kind of
system which is cheaper than other electronic system. For example a 20WP system plants cost is
12
BDT 18100. Which is too much cheap than other electronic system, for producing solar system,
we need only sun light which we get from nature not only this. We will use it maximum 20 years
after establishing solar panel. It is also free from environment pollution. No load shedding and
no monthly bill are one of the facilities in this project. Its cost is also cheaper than fuel, dine etc.
2. Industry Analysis
2.1 Significant trends
The trend of existing renewable energy companies is to collect money from
different rural development projects. None of the existing companies focuses on urban areas and
hence they are untapped opportunities.
2.2 Growth rate

Currently lotus energy installs 15-20 systems per month in urban areas and this
number is increasing even though lotus has no advertisement campaigns. This shows that this
rate will increase once people are aware of the availability of such systems. Moreover, the main
reason for people not being attracted to solar systems is due to the initial high cost. From our
installment provision, people will not be burdened by initial high cost and hence sales will
increase.
2.3 Key success factors In the industry

2.3.i) Load shedding:
It has become a huge burden on the life style of urban people. People need
other sources of energy to do their jobs as well as for recreation. Also, load shedding problem is
forecasted to continue and grow till the next 10 years. So sooner or later, people will search for
alternative sources.
2.3.ii) Renewable source of energy:
Solar energy is renewable source of energy and due to this reason customers
are not burdened by any running cost. Once they install the system, they get energy for their
lifetime without having to pay any penny.
2.3.iii) Pollution free energy:
Photovoltaic (PV) modules (Solar Panels) gives free and environment
friendly electricpower whenever we want it. PV modules generate electricity directly from
sunlight and their operation is completely noise and pollution free. Because they have no moving
parts to wear and tear, they will provide reliable power for decades.
2.3.iv) Outlook for the future
Presently in many developed countries, there are laws which enable people to
sell excessive electricity generated from solar home systems to their regional electricity
13
company. Similarly, such types of laws are being discussed to be applied in Bangladesh. This
process might be completed in the coming few years. So after few years, demand for our
products will increase rapidly.
2.4 Competitors Analysis:

As solar energy business in our country is on a primitive stage
so the business isnt spread mostly. But still there are some few solar organizations who provide
solar energy and services to different sectors. Some Information about our likelihood competitors
are given below:
Competitor A
Competitor B
Competitor C
Name of
Company
Public or
Private
Products
5R3M Companies Ltd
Best way Powertech Ltd
Private Ltd.
AKSHAYA
Solar Power LTD
Private Ltd.
Home solar system,solar

pump,solar IPS
Solar Energy, Inverter

and Charge Controller
Companies
Physical
Location
Services
Kachukhet,Karful
Niketon, Gulshan-1,
DHAKA
Alternative Power
System,Batteries,Solar
Energy,
Road No.17,Banani,Dhaka
Engeneering,Installation
Design ,Installation
Design,Installation
Additional
Ser vices
Alternative Power System
Customer Service and

Warranty Issue
Consultancy,Wind Energy
Targeted
Customers
Solar Home System For

City Dwellers
City Peoples
Mission
Make solar company

economical
Serve nation with

quality products
Industry and corporate

houses for alternative backup
system
Develop sustainable green
energy
Vision
Safeguard the future with

solar energy
Only city dwellers can get
services
Bring the benefits of

renewable energy
Have no Branch in
rural area
Weakness
Private Ltd.
Create green living country

Costly for home backup as
price is high for company
reputation
14
3.General description of the venture:

There are diverse types of Entrepreneurship available.According to Hans
Schollhammers Analysis and Assessment of Internal Corporate Enterprenurship
StrategiesSoler Panel Project is Administrative and Imitative Entrepreneurship.We need both
General management and Scientific technical personnel.
The Idea of this business generating through Focus group and Problem
Inventory Analysis.The query of the list of problems provided by the customers are the method
of the developing this new idea.Our business name is Soler panel Project which is mainly
service oriented. We will produce electricity and supply it.
4.Production Plan :
To accomplish the production process we need to follow four major steps. They are
Machineries
and
equipments
Sources of raw
materials
Production
Plan
Manufacturing
process
Physical plant
15
4.1 Machineries & Equipments:

For our production process we need four major machineries they are
a)Panels
Panels are the main part of this project. Because sun shining on solar. Panel
produces direct current electricity or DC. our system is designed for 120 watt Panels. It
means per panel capacity vary to different panel system.
b) Preserver:
Reserves is another most important device. It reserves the power what we
want to for emergency save with the help of experts we will establish our reserves. It will be
maintained by engineers.
c) Converter:
The converter is inverter is the major component that converts the DC
current into 120 volt AC current.
d) Transformer:
Transformer is essential for supplying electricity to each area. It will again
covert electrify from AC to DC. Because DC current is stand and for household appliances.
e) Power Zone:
For power zone 25000 sq. ft area is allotted. In this Zone we will set up our
panels and towers. We will establish our reserves room and converter room here. Power Zone
will be restricted for civilians.
f) Power Productions:
i) Producing electricity:
We will be producing 800Wt per day by using 15 panels.
ii) Reserving & Supplying Electricity:
15 panels will produce 800Wt electricity per day which we with supply. And the rest 3 panels
will produce 160Wt electricity per day which we will reserve for bad weather & any emergency.
For our office usage we will get electricity from our reserve energy.
16
4.2 Service Concern:

I) Service related facilities, utilizes & equipment etc:
A consumer will be facilitated in different wax like we will ensure there
will be no load shedding except major breakdown.
We will provide energy saving lights and other equipments.
If there is any problem in home electricity service, our technician will solve it. We will provide
electricity in cheap rate.
ii) Service delivery Plan:

The AC currant converted in the corrector will be supplied to people
through cables; every area will have a point with a transformer which wills again covert Ac
current to DC.
4.3 Sources of Raw Materials:

At other Raw materials which are essential for our project is available in
Bangladesh .Japan is the main suppliers for panels. We will import panels by ways. We will
receive it in Chittagong port, than we will fetch them to our plant by we will collect other Raw
materials in a convenient way.
17
5. Marketing Plan
5.1 Purposes or objectives:
We are dealing with electricity in our business plan. But its a great
matter of sorrow that this electricity sector of Bangladesh is not in a good position thats why we
need to upgrade our production of electricity. The present condition of Bangladesh is like that.
a)To establish a customer base of 10% of the define target market in the first year.
b)To generate BDT 1,50,000 in Net income for the first year.
c)To increase sales by 20% in only for the first three years.
d)To expand at least two new locations by end of the first three years.
5.2 Labor Supply:
About 40% of the people have access to grid electricity most of them
living in the urban areas. The need of the movement is to find an energy source that would serve
the needs of rural people, help them to develop economically without further damage
We will hire electrical engineers, computer engineers, programmers,
technicians for managing our power systems. Also we will need officers for managing our
business & 4th class labor for other maintenance.
5.3 Manufacturing cost Data and Pricing:

For producing 800 wt we need 5,78,000 Tk. including all costs .To
produce 800wt electricity we use 3 types of panel systems with various capacity. From each type
of panel system we use five panels from which the electricity of 100wt(20wtsystem,)300wt(60wt
system) and 400wt(80wt system) will be generated.
18
Manufacturing cost data and different panel systems pricing as follows:
20 Wp system
20 Wp System
S.N
Particulars
Capacity
Quantity
Cost(Tk)
1
2
Panel
Battery
20Wp
35ah
1
1
9000
4000
Selling
Price
12600
5250
Charge
Controller
8Amp
1400
1500
DC/AC
Converter
Structure
20w
1400
1500
800
1500
1500
18100
3000
2000
27350
5
6
7
Installation
Miscellaneous
Total
Remarks
2CFL of 5
watt each (4
hours)
1CFL of 3
watt(4
hours)
1 LED light
(4 hours)
Mobile
charge
60 Wp System:
60 Wp
System
S.N
Particulars
Capacity
Quantity
Cost(Tk)
1
2
Panel
Battery
60Wp
57ah
1
1
27000
7500
Selling
Price
37800
8550
Charge
Controller
8Amp
2000
2250
DC/AC
Converter
60w
1700
1800
Structure
800
1500
Installation
Miscellaneous
2000
2850
Total
41000
57750
3000
Remarks
2CFL of 7
watt each (5
hours)
3CFL of 5
watt(5
hours)
3 LED light
(5 hours)
Mobile
charge
Internet
router
19
80 Wp System
S.N
80 Wp
System
Particulars
Capacity
Quantity
Cost(Tk)
1
2
Panel
Battery
80Wp
100ah
1
1
36000
14000
Selling
Price
50400
16750
10Amp
2000
2250
60watt
1700
1800
Charge
Controller
DC/AC
Converter
Structure
800
1500
Installation
Miscellaneous
Total
Discount 5 %
Grand total
3000
2000
56500
Remarks
1CFL of
11watt each (5
hours)
3CFL of 5
watt(5 hours)
3 LED light (5
hours)
Mobile
charge(2hours)
Router(2
hours)
3000
78700
3935
74765
5.4 Marketing Strategies:
5.4.i) STP Analysis:

Every business has marketing strategies and to ours business marketing
strategy is basically STP analysis bared. The marketing strategic of our business are given
below:
5.4.ii)Segmentation:
The prime theme of our business is to provide electricity to remote
villages and in the industrial areas where electricity supply is short reducing our electricity
problems. Thats why first we will supply electrically to some portion of our country . We have
20
made this regimentation mainly for the remote villagers who are sufferer for not having
electricity. With the help of our project they will be able to lead a smoother life.
5.5 Advertising:
In the process of marketing the advertising process is very much important.
Because, the more powerful our advertisement is the more we can express ourselves in this riddle sector.
Only the proper advertisement can show and teach general people about us and encourage them to use our
product .Advertisement of our project in the ways are mentioned below:
Advertise Through Newspaper:

We can advertise our product through newspaper. It will draw attention of general people.
Leaf Letting:
We can publish leaf let to serve the general people which will provide them
knowledge about the main theme of our project.
Using billboard and hoarding:

Using billboard and hoarding can be a helpfully method for advertising our product. It
can make delicate progress.
Public promotions through camping:

This kind of advertisement is generally conducted by the consumers of our
product. General people who are receiving our services or products can advertise our project just telling
about it to others. It can gain maximum response from public.
5.6 Target Market:

Our main target is to provide electricity to the people who are willing to use
electricity but do not have any source. And also to make available electricity to industrial areas, helping
them to continue their industrial works more effectively without consuming so much of countrys
electricity or natural resources. The areas in which we will provide electricity and our solar energy are
given below:D= Dhaka, R- Rajshahi, K- Khulan, B- Barisal, C- Chittagong, S- Sylhet, (v) = Industrial areas (o)
Remote area.
21
5.7 Marketing mix Analysis:
Marketing Mix Variable
Critical Decision
Product
Our business is service oriented; we will install

solar plant and produce electricity plant as well
as supply it to different places.Various
materials we will use including:
Panels,Reserve system,converter,power
zone,transformer to supply electricity.We will
provide 2 years Warranty to our potential
customer .
Pricing
About 20Wt system price estimated BDT

27,550,60Wt system price estimated BDT
57,350 and 80Wt system price estimated BDT
78,700 along with 5% discount rate.
Channels of distribution
Self distribution.
Promotion
We will promote our business through the

advertisement, Leaf Letting, Using billboard and hoarding, camping.
5.8 Sensitivity Analysis

In the event of an economic downturn, the business may have a decline
in its revenues. However, solar panel installation companies are in high demand with the current
state of the energy markets. As such, Management does not anticipate that the business will have
any trouble generating revenues from the onset of operations
22
5.9 SWOT Analysis:

The SWOT analysis system mainly used for finds out the over focuses to
the direct and indirect area and all other sector of an organization. Here, by all position and also
using strengths we can find aggressive advantage in meeting the need of its target markets and
weaknesses refer to any limitations that a firm faces in marketing strategy development and
execution.
Opportunity is mainly positive conditions in any environment that could
produce a Great profit for the organization if it works properly and threats are mainly the
negative side or barrier that may prevent the firm from reaching its objectives.
SWOT Analysis :
SWOT Analysis for SEC is done as follows:
Strength
Good quality of service.
Strong public relationship.
Highly skilled manpower .
Understanding and Unity among the partners .
Strong relation with the manufacturers .
Weakness
Inexperience.
Inadequate information about customers needs .
Opportunities
Load shedding
Target customer are unsatisfied with current available services
Promotion of renewable energy from government level
Subsidies and tax credit on the solar products
Threats
Political instability
Existing competitors
23
6. Organizational plan:
6.1 Company Name: Solar Panel Private Ltd. Company.
6.2 Legal Form of Business: Private Ltd. Company.
6.3 Liability of owners: Amount of capital contribution is limit to share holder liability.
6.4 Continuity of Business: Death or withdrawal of owner(s) will not affect legal existence of
business.
6.5 Capital requirement: BDT 40,00,000 (BDT 33,00,000 is owners equity & BDT 7,00,000 is
Long term loan)
6.6 Management Control: Majority share holder(s) have most control from legal point of view..
6.7 Distribution of Profits and losses: Shareholders can share a profits by receipt of dividends.
6.8 Management Team:

1. Adnanur Rafi
Chairman
Solar Panel Private Ltd.Company.
2. Sakib Tanvir
Vice Chairman
3 . Riajur Rahaman
Head of Finance Department.
4. Md.Salah Uddin
Head of the Marketing Department.
Solar Panel Private Ltd. Company.
5. Mohammad Noor Nabi
Electric Manager
Solar Panel Private Ltd. Company.
.
24
6.9 Graphical Chart of Management Team
6.10 Roles and responsibilities of members of the organization:
Operational manager:
Responsibilities: General Management of the whole project.
Authorities: Go / No-go Decisions
Competencies needed: Leadership, communication, financial and management skills
Installation dept 1st line manager
Responsibilities: performance of his dept, coordinating with other depts.

Authorities: can take important decisions within his dept.
Competencies needed: technical awareness, Leadership, communication, financial &
management skills.
25
Installation team leader engineer
Responsibilities: Following up on his team's KPIs, coordination within his own team.
Authorities: dividing team members upon different tasks.
Competencies needed: High technical awareness, Leadership, communication skills.
Installation Engineer
Responsibilities: Following up on installations performed by technicians, quality assurance.
Authorities: subdivision of work within his team of technicians.
Installation Technicians
Responsibilities: Equipment installation
Authorities: None.
Competencies needed: High stamina, ability to understand what is needed to be done.
Commissioning dept 1st line manager

Responsibilities: performance of his dept, coordinating with other depts.
Authorities: can take important decisions within his dept.
Competencies needed: technical awareness, Leadership, communication, financial &
management skills
Commissioning team leader engineer
Responsibilities: Following up on his team's KPIs, coordination within his own team.
Authorities: dividing team members upon different tasks.
26
Commissioning Engineer
Responsibilities: Software installation and configuration.
Authorities: only within his task.
Competencies needed: high technical awareness.
Power Engineer
Responsibilities: Determine and follow up installation of the power needed.
Authorities: only within his task.
Competencies needed: high technical awareness.
Program Manager
Responsibilities: Managing/coordinating multiple projects
Authorities: upper level decisions, for example, which project needs to be prioritized?
Competencies needed: All Project management skills.
Project manager
Responsibilities: Managing only one project most of the time.
Authorities: project level decisions.
Competencies needed: All Project management skills.
Project coordinator
Responsibilities: Assistance to the project manager
Authorities: low level decision with regards to the project he/she is involved in.
Competencies needed: basic project management skills.
27
7. Risk analysis:
For the solar power project, there could be the following challenges
Because Solar Energy is very new to the region, Local Human resources will not have the
skill set to work on the project. So SEC need to provide the training to the Human
resources. The knowledge workers / High skilled workforce, will have to be trained to
interact with the local low skilled workforce- who will be used to carry out routine
activities
Since the Project Manager is not a local person, (s)he will need a local person as assistant
to help deal with local administrative work.
Since the region is not a completely developed country, during production / execution,
they might run into addition, unknown (to the Project manager) delays. Thus they will
have to take in extra buffer time during planning.
7.1) Evaluation the weakness of this business:

High costs:
Solar photovoltaic (PV) and concentrating solar power (CSP) generating plants,
for example, produce electricity at costs significantly higher than for electricity produced
from wind or fossil-fueled power plants.
Transmission:
Transmission lines carry electricity from power plants to cities, industry, and
other locations where it is needed. As explained below, utility-scale wind and solar power
plants are often located more remotely than fossil-fueled plants. Therefore, they require
construction of new, expensive, and controversial transmission linesand this has proven
very difficult.
Variability/intermittency:
The wind and the sun are variable resources, meaning that their availability as an
energy source fluctuates due to weather patterns, clouds, and cycles of day and night. The
28
electricity output from power plants dependent on these variable resources varies
accordingly. The demand for electricity, however, does not follow the same pattern. In the
case of wind electricity, electricity generation is sometimes greatest at night when electricity
demand is lowest.
There are other barriers as well, including siting and permitting challenges for
the renewable power plants themselves and for the transmission lines that connect them to the
grid, higher perceived technical risk, high ratio of capital to operating costs, and policy
uncertainty. However, the three barriers noted abovehigher costs,the need for new
transmission capacity, and variability of outputare currently the most significant and thus are
the focus of this report.
We will be able to know about project risk, management, obstacles and
competitive market from risk analysis. There are three parts of risk analysis. And they are
a)
Potential Problems
b)
Obstacles and Risks
c)
Alternative course of action
7.1.i) Potential Problem:

a) Service cost:
In our project, service cost is the main problem. Bangladesh is a developing
country, so here cost is a great factor. It we produce 20 Watt from a single panel which capacity
is 20 W system the production cost will be Tk.18100 Tk. And about 60 Watt from a single panel
which capacity is 60W system the production cost is Tk. 41000 and about 80 Watt from a single
panel which capacity is 80W system the production cost is Tk.56500. then according to the
present situation it may be costly for our people.
b) Natural Calamities: Different types of natural calamities can create different type
of problems.
7.1.ii) Obstacles and Risk:

a) Autocracy Problem: Autocracy problem means different types of political
problems. Political collaboration can hinder our service of power supply.
b) Other problems: Unfairness of labors demand and high wage, variation of cost
etc.
29
7.1.iii) Alternative Course of Action: In near future nuclear power plant is the main
alternative of this project. It can be one of our main competitors. So, we will have to over
come it by our competence.
8. Financial Plan:
8.1 Particulars of Required Resource

Solar Panel Company Private Limited
Dhanmondi,1202,Dhaka
Particulars
Owners Equity
Loan
Total
Fixed Capital
Land
Building
Equipment
10,00,000
1,20,000
3,80,000
Pre-Operating
Expenses
10,00,000
1,20,000
3,80,000
7,00,000
7,00,000
Working Capital
18,00,000
18,00,000
Total
33,00,000
7,00,000
40,00,000
Percent
82%
18%
100%
30
8.2 Cost of Project Collection:

Dhanmondi,1202,Dhaka
Capital
Requirement
Fixed Assets:
Land
Building
Equipment
Total Fixed Asset
Pre-Operating Expenses
Working Capital
Total Working Capital
Total Cost Project
Amount
(TK)
Amount
(TK)
10,00,000
1,20,000
3,80,000
15,00,000
7,00,000
18,00,000
40,00,000
40,00,000
31
8.3 Financing plan and Loan Required:

Sun power company plans to contribute taka 40,00,000 covering the cost
of the land, building and Equipment cost, A loan with be required for the rest of the project cost.
Source of Financing
loan
18%
OwnersEquity
82%
8.3. i) Loan Repayment Schedule:
Year
Principal amount
outstanding
Installment
Interest
@12%
Principal
repayment
7,00000
200000
84000
584000
584000
200000
70080
654080
654080
200000
54489
508569
32
508569
200000
37028
345597
345597
345597
8.4 Pro forma income statement (1st year)

Dhanmondi,1202, Dhaka
End of Year 31st December 2013
Particulars
Amount(Tk)
Net sales revenue

Cost per installation
Last year inventory
Gross Profit
Operating Expenses
Rent
Salaries
Telephone
Electricity cost
Transportation
Internet
Advertisement
Stationary
Auditing
Other miscellaneous
Total Operating Expenses
Depreciation
Computer
Furniture
Fax & Printer
Electronic appliances
Scooter
Total Depreciation
7,99,325
(45,000)
0
7,54,325
,
60,000
2,20,000
5,000
5,000
20,000
12,000
75,000
15,000
10,000
22,000
4,44,000
12,000
14,000
2,000
5,000
2,500
35,500
33
Inventory
85,000
1,89,825
(70,235)
1,19,590
Tax (37%)
Net Income
Pro forma income statement (2nd Year)

Particulars
Net sales revenue
Amount(Tk)
8,23,304.75
(45,675)
7,77629.75
85000
862629.75
Last year inventory

Operating Expenses
Rent
Salaries
Telephone
Electricity cost
Transportation
Internet
Advertisement
Stationary
Auditing
Other miscellaneous
Depreciation
Computer
Furniture
Fax & Printer
Scooter
Amount(Tk)
60900
2,23,300
5075
5075
20300
12180
76125
15225
10150
22330
4,49,660
12,000
14,000
2,000
5,000
2,500
34
Total Depreciation
35,500
Inventory
(75000)
3,02,469.75
1,11,913.80
1,90,556
Tax (37%)
Net Income
Pro forma income statement (3rd Year)

Particulars
Net sales revenue
Amount(Tk)
8,80,936
(47,045)
8,33,890.75
75,000
9,08,890.75
last year inventory

Operating Expenses
rent
salaries
telephone
electricity cost
Transportation
internet
advertisement
stationary
Auditing
other miscellaneous
Depreciation
Computer
Furniture
Fax & Printer
scooter
Amount(Tk)
62,422.5
2,28,882.5
5202
5202
20,807.5
12,484.5
78,028
15,607
10,404
22,888
4,60,901.5
12,000
14,000
2,000
5,000
2,500
35
Total Depreciation
35,500
Inventory
(89,000)
3,23,489.25
1,19,691
2,03,798.25
Tax (37%)
Net Income
8.5 Projected Sales and profit statement:

Dhanmondi1202, Dhaka
Sales
Praofit
1st Year
7,99,325
1,19,590
2nd Year
8,23,304.75
1,90,556
3rd Year
8,80,936
2,03,798.25
Forecast of Profit First Three Years:
36
Sales
Profit
823304
799325
119590
1st year
190556
2nd year
880936
203798
3rd year
8.6 Projected Balance Sheet:

Dhanmondi, 1202, Dhaka
Particulars
Amount (Tk.)
Amount (Tk.)
Amount (Tk.)
Current Asset
Cash
25,10,800
Accounts Receivable
37,500
Pre-operating expenses
14,200
Total current Asset
25,62,500
Fixed Asset
Land
10,00,000
Building
2,20,000
Less: Depreciation
(20,000)
Equipment
5,23,600
Less: Depreciation
(15,500)
2,00,000
5,08,100
37
Total Fixed Asset
17,08,100
Total Asset
42,70,600
Current Liabilities
Accounts Payable
24,700
Tax Payable
70,235
Dividend Payable
88,000
Total Current Liabilities
1,82,935
Long Term Bank Loan
7,00,000
Owners Equity
Common stock
33,00,000
Retained Earnings
87,665
Total stock holders equity
33,87,665
Total Liability
42,70,600
8.7 Ratio Analysis:

8.7. i) Net profit on Sales ratio:
Net profit on Sales ratio = Net profit net sales
1st year
2nd Year
3rd year
Net Profit
119590
190556
203798
Net Sales
7,99,325
823304.75
880936
Profit Sales Ratio
14.96%
23.14%
23.98%
8.7.ii) Net profit to equity (Return on Investment Ratio) :

Net profit to equity Ratio= net profits before tax / shareholders equity
First Year
38
Profit
1,89,825
Equity
33,00,000
IRR
5.75%
Conclusion:
The earning of SPC is 5.75%on the money the partners have invested in SEC for first year.
8.7 iii) Times Interest earned ratio:

Times interest earned ratio= (earnings before interest and taxes)/ (total interest expense)
First Year
Earnings Before Tax
1,89,825
Tax Paid
70235
Profit tax ratio
2.7%
Conclusion:
SEC earned 3 times more than its tax expenses.
8.7 iv) Return On Asset (ROA):

Return On Asset=(Net Income/ Average Total Asset)
First Year
39
Net Income
1,19,590
Average Total Asset
42,70,600
ROA
2.8%
8.7 v ) Return On Equity (ROE):

Return On Equity = (Net Income/Total Equity)
First Year
Net Income
1,19,590
Average Total Equity
33,87,650
ROE
3.5%
8.8 Breakeven Analysis:
Fixed cost
Cost price per unit
Selling price per unit
Breakeven point in unit
BE
1st year
578000
38533
53288
39
2nd year
595340
38533
53288
41
3rd year
625107
38533
53288
43
=FC/(P-V)
For the first year
BE is
39 units,Second year
BE is
41 units,and Third year
BE is
43 units.
SBE = (QBE).(V) + FC
For the first year SBE is BDT 20,81567,Second year SBE is BDT 21,75,193 and Third year is
SBE is BDT 22,82,026.
40
8.9 Graphical Presentation of Breakeven Point:
Appendix and Conclusion

Although it may be somewhat unfamiliar to us Entrepreneurship Development is neither
sophisticated nor complicated. It is nothing more than enhancing our knowledge about how
entrepreneurship can be developed.
The business plan of Solar Panel Company Pvt. Ltd. can be implemented in the Rangpur. We are
very confident that our business will reap lots of benefits economically as well as socially in the
country. The market area of SPC will keep on rising day by day within short period of its
establishment.
The company will provide lots of facilities and services regarding solar technology. It will
mainly focus on the customer satisfaction and need. We are sure that it will solve the problems of
energy crisis, load shedding and backup systems in the various sectors like banks, offices,
hospitals, houses, etc.
So, at last we can say that Entrepreneurship Development helps us to develop our efficiency
proficiency.
41
Findings & Recommendations

1.
2.
3.
4.
5.
Availability of sparing time a lot is needed.

To have pre-experience all of the members.
Availability of electricity facility.
Getting technological convenience.
Having all of the information related to the topics.
Bibliography
https://www.elance.com/.../solar-panel-business-plan-businesssmallbusiness.chron.com ... Starting a Company

http://en.wikipedia.org/wiki/Solar_energy
http://ownleader.net
faculty.ksu.edu.sa/alsalloum
www.oppapers.com
www.wbiconpro.com
42
Collection of Books:
Robert D Hisrich, Michael P Peters and Dean A Shepherd

Entrepreneurship Bruce R. Barringer and R. Duance Ireland
Others:
Engineer of solerhydry shop
Sciencelab,Dhaka
The industry weekly magazine
Free boss firms report.
The daily sun report.
43

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: New Business Plan

Solar Panel Private Limited Company.| Solar Panel Project

ARIF HOSSIAN BHUIYAN

MD. OSMAN GONI

SHIMUL CHANDRA BISWAS

AHMED IMTIAZ SHAMIM

MOHAMMAD NOOR NOBI

Submission of the report

1.1Vision and mission statement

1.2Business and industry profile

2.2 Growth rate

2.3 Key success factors in the industry

2.4 Competitors Analysis

4.1Machineries and equipments

4.3 Sources of Raw materials

5.1Purposes and objectives

5.2 labor supply

5.3 Manufacturing cost data and pricing 19

5.6 Target Market

5.7. Marketing Mix Analysis

5.8 Sensitivity analysis

5.9 SWOT Analysis

8.1 Particulars of required resources

8.2 Cost of project collection

8.3 Financing Plan and loan required

8.4 Pro forma income statement

8.5 projected sales and profit statement

8.6 Projected Balance sheet

8.7 Ratio analysis

8.8 Break-even analysis

9. Appendix And conclusion

30th September, 2012

Solar Panel Private Limited Company.| Solar Panel Project

All the members of the group

Solar Panel Private Limited Company.| Solar Panel Project

Solar Panel Private Limited Company.| Solar Panel Project

Methodology of the study:

Relevant documents provided by different research.

Solar Panel Private Limited Company.| Solar Panel Project

LIMITATION OF THE STUDY:

Solar Panel Private Limited Company.| Solar Panel Project

Company name: Solar Panel Private Limited Company.

1.1 Vision and Mission statements

1.2 Business and Industry profile:

2.2 Growth rate

2.3 Key success factors In the industry

2.4 Competitors Analysis:

5R3M Companies Ltd

Best way Powertech Ltd

Home solar system,solar

Solar Energy, Inverter

Alternative Power System

Customer Service and

Solar Home System For

Make solar company

Serve nation with

Industry and corporate

Safeguard the future with

Bring the benefits of

Create green living country

Solar Panel Private Limited Company.| Solar Panel Project