Financial Plan

FINANCIAL PLAN $$$

The average entrepreneur’s salary is about $51,000 a year

The price of international shipping is around $60 with a 30kg maximum

The price of average insurance is $10,000 per month with a maximum benefit period of 5 years.

 

Below is a chart of what my financial state is currently at for this and the table of information for the chart as well.

 

Total Price Manufacturing Profit Wages Advertising Delivery Insurance
Plain $38,000 $32,000 $6,000 0 0 0 0
With Advertising $37,000 $32,000 $5,000 0 $1000 0 0
With Wages $93,000 $32,000 $61,000 $51,000 $1000 0 0
With Deliveries $92,940 $32,000 $60,940 $51,000 $1000 $60 0
With Insurance $82,940 $32,000 $50,940 $51,000 $1000 $60 $10,000

The costs per month and year depend on how many people purchase my product, the excess fees will come out of the profit, it I have any.

It was very challenging to find the right information for this table.

For a better version of the table click the link below for a PDF version:

My Product’s Financial Plan PDF

 

Unfortunately that is all for this term! I will do a presentation on how my product will work and why people should buy it. I hope you enjoyed my Innovation and Enterprise Blog Posts for 2018!

Until another blog post!

POTENTIAL MISTAKES

3 problems and 3 mistakes

What could be a problem?

What could be the solution/adjustment?

 

1st problem that I would face:

Finding someone to manufacture the tiles would be a challenge as it I probably wouldn’t be taken seriously because of my age. Another factor that contribute to this challenge is that there might not be companies interested in manufacturing for my business or helping it. Furthermore, if I do get a company that wants to manufacture and it is overseas, I would have to pay for the cost of shipping them to Australia.

 

1st Solution:

To solve this problem, I could instead open up my own custom solar panels manufacturing business instead of a specific company for solar on rooftops. With this business, I could not only still create solar panels, but also create them for the use of many other purposes. With this, I will be able to gain money from other businesses requesting manufacturing for their solar panels.

 

2nd Problem that I would face:

Another problem that I could face by bringing it out into the market is that I won’t get any customers that want to buy my product. They may doubt the quality of my product because of coming out suddenly and trying to sell my product. They may want to turn to another company that is better known for its quality.

 

2nd Solution

I could furthermore, advertise that my product introduces new technology and guarantee a long and non-needed warranty that will last for many years. I could start advertising using different platforms such as social media and radio. If this does not work, I will need to change my idea to something that customers are actually looking for instead of putting time and effort into a solution that no body uses.

 

3rd Problem

The final problem that I may face is the price of my product. The price of my product may deceive customers. Being so cheap for a whole roof of solar panels, customers may assume that they are bad quality or knock offs of another big brand.

 

3rd Solution

To solve this problem, I could highlight the most important points of my product that make it smart, safe and strong in my advertisements. I want to draw attention to my product because of the environmentally friendly factors it possesses and not just the fact that it saves your electricity bills. I could always increase the price of my product to draw attention to people who can afford products at the high end of the market. It will also bring the profit of my business up and bring higher wagers for my employees.

Marketing Plan

1. Partner:

I have a few partners in mind that may help me advertise and support my brand. SA Power Networks or power networks across the globe. They may be a potential partner as both the product and company is involved with electricity. NBN, Telstra and Apple are also big companies that specialise in data and electricity that could also be potential partners for my product. Elon Musk, although he has his own business, Tesla, may also be a ideal partner for my brand. As well as all these brands, SunPower, another solar panel business states on their website that you can become a potential partner to them as well.

2. Product:

My product will come in 4 kinds of aesthetics, including, a glass – smooth textured look, roof tile – tuscan look, a stone slate and a textured look to add sophistication to the location. It will also come in a few colours including, black, blue, terracotta, orange, red and for an extra fee a custom colour. It will furthermore come in shapes (only tessellating) such as triangles, rectangles, squares, triangles, pentagons and an ‘L’ shape that can be used for a layer effect. The tiles are approximately 10kg per square metre (depending on the shape of tile), which is safety within the weight that your roof can hold. They will come in packs of about 15 and will be delivered to your door and installed. Ordering the tiles, the dimensions of your roof will be needed to ensure that the tiles fit right. I will make sure that the warranty is long lasting, further ensuring its quality.

3. Price:

Figuring out a price for this product is difficult as I also need to consider excess costs manufacturing and competition. On average, an Australian home uses approximately 18kW per day.

https://www.greentechmedia.com/articles/read/how-much-does-it-cost-to-manufacture-a-solar-module-in-2014#gs.1kFUbHc

This link, helped me with understanding how much it costs to make solar panels alone from a company in China. Their deal is 50c per watt. Starting with a $7,000AUD battery, then a 20kW system will cover 128m2 of roofing on a house. If there is 50c per watt and 1 watt is 0.001 kW, 20kW would equal 30,000w which is about $15,000AUD for a 128m2 roof. Plus the battery which is $7,000AUD, the total is $22,000AUD. Plus the cost of colouring and texturing the solar tiles will be at least $10,000AUD which will bring the total to $32,000AUD which beats other competitors prices which are at least $36,000AUD and around $60,000AUD. With extra costs to make profits and paying for the installation, the total cost is about $38,000-40,000 AUD.

https://www.forbes.com/sites/sleasca/2017/05/16/tesla-solar-roof-cost/#127b8877621f 

 

4. Position:

I am planning that my product is around the Mid to High end to ensure quality at a reasonable price. By making my product high end, I can gain product and make people think that it must be high quality if it is expensive. Also by increasing the price, I can make sure that employees and staff are getting paid at a fair rate and have their entitlements. If I did place my product at the Low end of the market, not only would there be a high chance that I would be in debt due to all of the costs to manufacture my product, there would also be a chance that the customers might doubt the quality of my product due to it’s cheap price.

5. Promotion:

I could encourage my customers to buy my product because of it’s quality and how they can customise their own to make it unique to them and their house. I could also encourage my customers by making them feel that they will be the best house on the street and even in the neighbourhood. To get the message across to the buyers, I will create a website and use traditional advertisements to persuade them into buying my product.

Shouting Cleverly

1: Target Market

My target market is to those who cannot afford the current price of living, or those who want to live for a lower expense. My product is also targeted to those who want to live off the grid and want a more sustainable life. Finally, my product is targeted to people that own industries or businesses that want a cheaper energy bill, helping them gain more profit.

2. Message Motivation

My message motivation is a combo of the topics rational, emotional and moral. Mainly moral and rational. In my message I will display how my product will improve their lives, what it does and why it is important. My product will be left with a positive environmental message. In my message, I will also add what would happen if they didn’t purchase my product.

3. Media Type:

to advertise my product, I am going to set up a website and traditional advertisement on television. This way, people at home will be able to notice and spread the word about my product. I am also thinking about designing posters to put on bus stops where lots of people can view it. By creating a website, I can have mobile advertising that everyone can view. If my product is lacking in business and profit, my last advertisement plan is to get flyers that can be posted in letterboxes.

4: Face of my message/Message source:

I don’t yet have the face of my message, but I think my business will either have my own face or be faceless. If I have a face, I might be able to draw more attention to by business, but if I have no face, my product may not draw attention. Maybe later, when I have a greater idea of the potential of my product, I may be able to find a ‘face’ for my message.

MY BRAND NAME

The first name that I am thinking of doing is:

LIGHTiles

I decided to combine the world Light – because the sun light is what’s used as the source. I also used the word Tiles (- because I am selling tiles) and used the same ‘T’ from the end of light to make it look smart. I also put the ‘light’ word in capitals to differentiate the word light, from tiles. I haven’t formed a logo yet, but I am happy with the name.

The second name that I am thinking of doing is:

SOLARPlate

This name encapsulates the whole idea of solar tiles. I found another word for tile, which was plate and replaced it. I also used, what I like to call, the ‘no space’ technique where you don’t put a space in between the two words to create a better effect, so the customer can read the brand in one go.

The third name that I am thinking of doing is:

PowerSLATE

This name also encapsulates the meaning of the product in one word. I also used the ‘no space’ technique and another technique where I put one of the words in capitals (similar to the first one). I am still debating which name to pick as they all are related to the product, but I would also like a name that is easy to say and remember. For this name, I really wanted to use alliteration and call it PowerPlate, but that name is already taken by another company.

This is going to be a hard decision, but I think that picking the right name helps your company succeed.

Strategies – SWOT

In this lesson I did a SWOT analysis…

I&E SWOT scan-27fuqwz

The link above is a mind map called a SWOT analysis which present some of my Strengths, Weaknesses, Opportunities and Threats. With this I also had to come up with some strategies to help enhance my strengths and opportunities and mitigate my threats and weaknesses.

At this point, I still need more strategies to help my business succeed and find ways to minimise the problems that are stopping me so at this point, I am still building on the ideas I have with some more points for each SWOT topic.