The Business Plan
By Muhammad Zain E16-035
“Conserve energy, achieve synergy”
The Business Plan of Vision Energy Audit
By CEO Muhammad Zain
E16-035
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The Business Plan
By Muhammad Zain E16-035
Executive Summary
The Vision Energy Audit is a moderately priced organization which offer a variety of services which is
related to energy saving audit. We will offer our small term audit for homes and residents so they can
use our services at cheaper rates. We have also other audit plans for farmhouses and industrial plants.
This business is owned and operated by 2 people. Together we have around 1 year of experience in
Electrical Engineering projects like this. We would be targeting the consumers of both small and big
plants. We will be selling all our services at the government level. We chose this as our location to sell
our services because government institutions are consuming very high electricity in office hours and our
live energy consumption app services are something that offices need. For residential customers, we
have an online appointment service that is free of charge which helps more customers to buy from us.
Our team will visit the customer’s building itself.
About our services, a short term plan is designed for the customer who just wants to avoid wastage of
power by their appliances and also gives a safety certificate after checking all their wiring connections.
The medium-term plan is for production plants in which we need time to calculate losses and after
generating the initial report then we will suggest the changes and alternatives they required to save
power. The core competencies on which our company would be competing are the quality services and
safety standards of our company.
The start-up cost for our business is not too much because we did not produce anything. We are
providing our services by ourselves. We are buying it from our equipment and use it with the amount to
gain profit. The Capital for our business was from all owners of Vision Energy Audit. Each of us
contributed one lac to run this business.
The Vision Energy Audit wants to establish a large regular customer base and will concentrate the
business and marketing with other companies. This will establish a revenue base to ensure the stability
of the business.
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The Business Plan
By Muhammad Zain E16-035
Table of Contents
Executive Summary....................................................................................................................................... 2
Idea Sketch Pad of Vision Energy Audit ........................................................................................................ 5
Marketing Analysis ........................................................................................................................................ 6
Porter’s Five Forces Factors ...................................................................................................................... 6
The threat of new entry ........................................................................................................................ 6
Supplier power ...................................................................................................................................... 7
Buyer power .......................................................................................................................................... 7
Threat of substitutes ............................................................................................................................. 7
Rivalry among existing competitors ...................................................................................................... 7
MARKETING STRATEGY ................................................................................................................................. 9
Market Research ....................................................................................................................................... 9
Energy Crisis and High Cost of Energy................................................................................................... 9
Improvements in Technology ............................................................................................................... 9
Our Competitors ................................................................................................................................... 9
Product and Services................................................................................................................................. 9
The Preliminary Audit:- ............................................................................................................................. 9
The Detailed Audit: ................................................................................................................................. 10
Short Term .......................................................................................................................................... 10
Medium Term ..................................................................................................................................... 10
Long Term ........................................................................................................................................... 10
A Market Niche ....................................................................................................................................... 11
Unique Selling Proposition ...................................................................................................................... 11
Place ........................................................................................................................................................ 11
Pricing...................................................................................................................................................... 11
Promotion (Social media utility to attract customers) ........................................................................... 12
FINANCIAL PLAN (Projected Financial Statement)...................................................................................... 13
PROJECT IMPLEMENTATION COST SCHEDULE........................................................................................ 13
SOURCES OF FUNDS TO FINANCE THE PROJECT ..................................................................................... 13
Equipment Required ............................................................................................................................... 13
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The Business Plan
By Muhammad Zain E16-035
Balance Sheet.......................................................................................................................................... 14
Break-Even Analysis ................................................................................................................................ 15
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The Business Plan
By Muhammad Zain E16-035
Idea Sketch Pad of Vision Energy Audit
Our aim to serve both residential and commercial customers. We start with only two members and we
recruit labors and technicians on a need basis from other companies. This will reduce our liabilities in
the initial phase and we will expand our team with time. We are offering energy auditing plans which
include short term, medium-term, and long term plans and each plan focuses on a different type of
customer.
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The Business Plan
By Muhammad Zain E16-035
Marketing Analysis
Porter’s Five Forces Factors
Porter's Five Forces Factors Of Energy Auditing
By Muhammad Zain
EE16-035
The threat of new entry

Amount of capital required: We need capital for buying equipment for energy auditing. For
that, we planned to find an angel investor.


Retaliation by existing companies: Our idea is unique but some solar inverters companies are
providing these services to sell their products. That is a threat to our idea.

Legal barriers (patents, copyrights, etc.): We need permission from Wapda and Ministry of
Interior before starting our services as it is mandatory in Pakistan

Brand reputation: We have planned to create a portfolio for customers. By viewing they can
trust our services as we don’t damage any appliances during the whole process.

Product differentiation: Our services are new in Pakistan and we have to create awareness
among people that how these services save their money.

Access to suppliers and distributors: We will create a network of suppliers and distributors.
So, we can entertain more customers.

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The Business Plan
By Muhammad Zain E16-035
Supplier power

The number of suppliers: We are in the testing phase so right now we have different suppliers
none of them is confirmed.

Suppliers’ size: Small

Ability to find substitute materials: Many substitute options are available and on
complication, we can switch to other available products.

Cost of switching to alternative materials: Other products are a bit expensive but we can use
our machines multiple times. So it can not affect our business idea.

The threat of integrating forward: All new ideas are firstly rejected by people and after some
time they realized the importance of it. We are afraid that during the launching phase
someone launched a user friend energy audit device it will be a threat for us
Buyer power

The number of buyers: Every House, Industry, and commercial building is our buyers. As
everyone wants to reduce their billing costs.

Size of buyers: Mostly Industries use such services to reduce their production cost.

Buyers’ cost of switching suppliers: Multinational companies are providing such services but if
we do a cost comparison then our services are much cheaper.

Threat of substitutes

The number of substitutes: Many substitutes are available in the market. But we are providing
these at a cheaper price.

Performance of substitutes: They are also providing good services and some of them are
superior to ours.
Rivalry among existing competitors

The number of competitors: Few competitors are in the market but we are confident that we
can compete with them and make our space in the market.
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The Business Plan
By Muhammad Zain E16-035

Cost of leaving an industry: We can sell our equipment to other companies on no profit no
loss and that’s how we can exist market.

Industry growth rate and size: Developing countries are facing an energy crisis and this is our
opportunity by using this we can grow our business.

Level of advertising expense: We have planned a grand launch for that we will advertise it on
social websites and media.
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The Business Plan
By Muhammad Zain E16-035
MARKETING STRATEGY
Market Research
Energy Crisis and High Cost of Energy
Pakistan is facing acute energy shortage and continuous power outages and the high electricity
price pose significant challenges to the industry and economic growth of the country. The
power supply is approximately 75% of demand and forcing the industrial sector to breakdown
their manufacturing operations persistently. It is our goal to help the government in the energy
sector by reducing losses of industries and homes.
Improvements in Technology
Our ability to easily collect, analyze, and visualize building energy use information is an
extremely important piece of the energy conservation puzzle. Many companies in Pakistan are
upgrading to the latest machinery after the recommendation of energy auditing companies.
We have developed an online tool that simplifies the data collection process so that it is easier
for us to efficiently collect data that can then be used for more advanced analysis. Our
Competitors are using old methods which are far difficult from our method.
Our Competitors
Many Multi-national and local companies are providing their services globally. The Energy
Saving Solution and the Arch Associates are our direct competitors. They both are in the market
for more than a decade. These companies are currently working on Energy Efficiency and
renewable energy projects in Pakistan.
Product and Services
Services offered by Vision Energy audit are important for both residential and industrial
projects. The services offered by the vision energy audit are both detailed and preliminary
audit.
The Preliminary Audit:The preliminary audit is carried out in the limited time say within 10 days and it highlights the
energy cost and wastages in the major equipment of the house. It also gives major energy
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The Business Plan
By Muhammad Zain E16-035
supplies and demanding an accounting. The questionnaire containing details of energy
consumption process carried out, energy needs to a unit product; load data, etc. must be
completed before the pre-audit visit.
In the preliminary audit, we preferred low tech as high tech solutions are given under a detailed
energy audit. We also recommend customers switch off lights when not required, replace
incandescent lamps by the fluorescent lamps, automatic thermostat control, use of solar water
heating panels, etc.
It will help to spots energy waste spots and recommend short, intermediate, and long term
solutions.
The Detailed Audit:
The Detailed energy audit service includes engineering recommendations and well-defined
projects with priorities. It accounts for the total energy utilized in industrial plants. It involves
detailed engineering for options to reduce energy consumption and also reduce cost. The
duration of such studies will be from 1 to 10 weeks. The action plan divided into short term,
medium-term, and long term actions.
Short Term
The short term action plan requires the least investment to avoid energy wastages and
minimizing non-essential energy uses and improving the system efficiency through an improved
maintenance program.
Medium Term
The medium-term action plan requires a little investment to achieve efficiency improve­ment
through modifications of existing equipment and other operations.
Long Term
The long term action plan is aimed to achieve the economy through the latest energy-saving
tech­niques and innovations. The capital investments are required to be studied thoroughly
while finalizing the long term action-plan.
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The Business Plan
By Muhammad Zain E16-035
Our Long term plan is too exhaustive.in that, we will analyze and quantifies the amount of
energy consumption in each subsystem of the plant and compares the same with the target
energy consumption. Target per unit energy consumption is the optimum energy consumption
per unit product.
A Market Niche
Increasing demand by homeowners and businesses to make their buildings more energy
efficient is spawning a growing niche for energy auditing. We are focusing on all three types of
clients. We have a short term plan for homes and small plant owners. For Production plants, we
are offering medium-term plans and if they are willing to sign a long term plan (detailed
analysis audit) we are also providing that services for them.
In peak session summer and winter, the demand for energy auditing was high.
Unique Selling Proposition
“Conserve energy, achieve synergy
Place
The business location of the Vision Energy Audit is Islamabad, Pakistan. Our Vision is to solve
the energy crisis of Pakistan by solving issues of power transmission which causes higher energy
bills and productivity losses.
Pricing
Vision Energy Audit is offering many services of energy auditing. And we have set Energy Audit
Costs per Square Foot. Home audits typically cost 10 to 20rupees per square foot with a
minimum cost of Rs 10,000. For a 1,200 square foot home, expect to pay Rs24000 to Rs30000.
For industries, the rate will be determined after a pre-survey which will cost around Rs 10,000
for a small industry.
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The Business Plan
By Muhammad Zain E16-035
Promotion (Social media utility to attract customers)
Vision Energy Audit Co. will use social media platforms for the promotion. We will encourage
people to use our services as it will reduce their bills.
In industrial sectors, capital expenditures for production purposes are substantially higher. And
Energy audits appear to be more beneficial for smaller firms. As they have a very little margin
between production cost and retail price. So if they used our services they can reduce their
production cost.
Our Tagline is “Conserve energy, achieve synergy”
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The Business Plan
By Muhammad Zain E16-035
Financial Plan (Projected Financial Statement)
Project Implementation Cost Schedule
No.
Items
COST (Rupees)
1
Administrative Budgets
2,00,000
TOTAL
2,00,000
Sources Of Funds To Finance The Project
SOURCES
AMOUNT (Rupees)
A. Equity/Own Contributions
Each member contribute capital to start the business
1,00,000
TOTAL
2,00,000
Equipment Required
Equipment
AMOUNT (Rupees)
Temperature Indicators
Rs 10,000
Power Analyzer
Rs 70,000
Digital Multimeter
Rs 2,000
Frequency Meter
Rs 1,000
Clamp-on amp. Meter
Rs 2,000
Clip-on Dig. PF Meter
Rs 2,500
Clip-on Dig. Watt Meter
Rs 5,000
Demand Analyser
Rs 33,000
Luxmeter
Rs 5,000
Total
Rs 135,000
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The Business Plan
By Muhammad Zain E16-035
Balance Sheet
Liabilities
Amount
Assets
(Rs)
Capital
2,00,000
Amount
(Rs)
Furniture and
50,000
fittings
Office rent +
1,00,000
expenses
Additions
50,000
During the year
Commission
11,875
Bank
1,00,000
Salaries
50,000
Cash
1,61,600
Total
3,61,875
Total
3,61,600
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The Business Plan
By Muhammad Zain E16-035
Break-Even Analysis
BREAK-EVEN ANALYSIS
FIXED COSTS
COSTS
Salaries (Includes Payroll Taxes)
Rs100,000.00
Supplies
Rs50,000.00
Repairs & Maintenance
Rs10,000.00
Advertising
Rs15,000.00
Car, Delivery, And Travel
Rs10,000.00
Accounting And Legal
Rs50,000.00
Rent
Rs0.00
Telephone
Rs12,000.00
Utilities
Rs15,000.00
Insurance
Rs0.00
Taxes (Real Estate, Etc.)
Rs0.00
Interest
Rs0.00
Depreciation
Rs0.00
Other (Specify)
Rs10,000.00
Miscellaneous Expenses
Rs50,000.00
Principal Portion Of Debt Payment
Rs0.00
Owner's Draw
Rs100,000.00
Total
Rs422,000.00
BREAKEVEN SALES LEVEL @0.32
Rs669,841.27
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