Solar Panel

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Solar Panel Private Limited Company.| Solar Panel Project 1

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

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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

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Particulars: Details: Pages

Submission of the report 5

Acknowledgement 6

Executive summary 7

Methodology 8

Limitation 9

Introduction 10

1.Company Profile 1.1Vision and mission statement 11 1.2Business and industry profile 12

2. Industry analysis 2.1Significance trends 13

2.2 Growth rate 13

2.3 Key success factors in the industry 13 2.4 Competitors Analysis 14

3. General description of the venture

15

4.Production Plan 4.1Machineries and equipments 16

4.2Service concern 17

4.3 Sources of Raw materials 17

5. Marketing plan 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

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7. Risk Analysis 28-29

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

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Solar Panel Private Limited Company.| Solar Panel Project 5 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

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Solar Panel Private Limited Company.| Solar Panel Project 6 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

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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.

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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.

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Solar Panel Private Limited Company.| Solar Panel Project 9 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.

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Introduction:

Clean energy is the need of today‘s 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.

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1. Company Profile:

Company name: Solar Panel Private Limited Company.

Address: Dhanmondi,1202,Dhaka

Contact Number:01737179410

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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 we‘ll 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

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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

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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 isn‘t 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

5R3M Companies Ltd AKSHAYA

Solar Power LTD

Best way Powertech Ltd Public or

Private

Private Ltd. Private Ltd. Private Ltd.

Products Home solar system,solar pump,solar IPS

Solar Energy, Inverter and Charge Controller

Alternative Power System,Batteries,Solar Energy, Companies Physical Location

Kachukhet,Karful Niketon, Gulshan-1, DHAKA

Road No.17,Banani,Dhaka

Services 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 Industry and corporate houses for alternative backup system

Mission Make solar company economical

Serve nation with quality products

Develop sustainable green energy

Vision Safeguard the future with solar energy

Bring the benefits of renewable energy

Create green living country Weakness Only city dwellers can get

services

Have no Branch in rural area

Costly for home backup as price is high for company reputation

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3.General description of the venture

:

There are diverse types of Entrepreneurship available.According to Hans Schollhammer‘s ―Analysis and Assessment of Internal Corporate Enterprenurship Strategies‖Soler 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

Production Plan Machineries and equipments Manufacturing process Physical plant Sources of raw materials

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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.

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Solar Panel Private Limited Company.| Solar Panel Project 17 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.

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5. Marketing Plan

5.1 Purposes or objectives:

We are dealing with electricity in our business plan. But it‘s a great matter of sorrow that this electricity sector of Bangladesh is not in a good position that‘s 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.

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Manufacturing cost data and different panel systems pricing as follows:

20 Wp system

20 Wp System

S.N Particulars Capacity Quantity Cost(Tk) Selling

Price Remarks 1 Panel 20Wp 1 9000 12600 2 Battery 35ah 1 4000 5250 2CFL of 5 watt each (4 hours) 3 Charge Controller 8Amp 1 1400 1500 1CFL of 3 watt(4 hours) 4 DC/AC Converter 20w 1 1400 1500 1 LED light (4 hours) 5 Structure 1 800 1500 Mobile charge 6 Installation 3000 7 Miscellaneous 1500 2000 Total 18100 27350

60 Wp System:

60 Wp System

S.N Particulars Capacity Quantity Cost(Tk) Selling

Price Remarks 1 Panel 60Wp 1 27000 37800 2 Battery 57ah 1 7500 8550 2CFL of 7 watt each (5 hours) 3 Charge Controller 8Amp 1 2000 2250 3CFL of 5 watt(5 hours) 4 DC/AC Converter 60w 1 1700 1800 3 LED light (5 hours) 5 Structure 1 800 1500 Mobile charge 6 Installation 3000 Internet router 7 Miscellaneous 2000 2850 Total 41000 57750

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80 Wp System

80 Wp System

S.N Particulars Capacity Quantity Cost(Tk) Selling Price Remarks 1 Panel 80Wp 1 36000 50400 2 Battery 100ah 1 14000 16750 1CFL of 11watt each (5 hours) 3 Charge Controller 10Amp 1 2000 2250 3CFL of 5 watt(5 hours) 4 DC/AC Converter

60watt 1 1700 1800 3 LED light (5 hours) 5 Structure 1 800 1500 Mobile charge(2hours) 6 Installation 3000 Router(2 hours) 7 Miscellaneous 2000 3000 Total 56500 78700 Discount 5 % 3935 Grand total 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. That‘s why first we will supply electrically to some portion of our country . We have

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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 bill- board and hoarding:

Using bill- board 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 country‘s 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.

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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 bill- board 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

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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 customer‘s 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

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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

Solar Panel Private Ltd.Company.

3 . Riajur Rahaman

Head of Finance Department.

Solar Panel Private Ltd.Company. 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. .

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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.

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

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.

Competencies needed: High technical awareness, Leadership, communication skills.

 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.

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 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.

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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 lines—and 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

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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 above—higher costs,the need for new transmission capacity, and variability of output—are 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.

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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 10,00,000 1,20,000 3,80,000 Pre-Operating Expenses 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%

(31)

8.2 Cost of Project Collection:

Solar Panel Company Private Limited

Dhanmondi,1202,Dhaka

Capital

Requirement

Amount

(TK)

Amount

(TK)

Fixed Assets: Land Building Equipment Total Fixed Asset Pre-Operating Expenses

Working Capital Total Working Capital Total Cost Project

10,00,000 1,20,000 3,80,000 18,00,000 15,00,000 7,00,000 40,00,000 40,00,000

(32)

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.

8.3. i) Loan Repayment Schedule:

Year Principal amount outstanding Installment Interest @12% Principal repayment 1 7,00000 200000 84000 584000 2 584000 200000 70080 654080 3 654080 200000 54489 508569 loan 18% OwnersEquity 82%

Source of Financing

(33)

4 508569 200000 37028 345597

5 345597 345597 - -

8.4 Pro forma income statement (1

st

year)

Solar Panel Company Private Limited

Dhanmondi,1202, Dhaka

End of Year 31

st

December 2013

Particulars

Amount(Tk)

Net sales revenue

7,99,325

Cost per installation

(45,000)

Last year inventory

0 Gross Profit

7,54,325

Operating Expenses

,

Rent

60,000

Salaries

2,20,000

Telephone

5,000

Electricity cost

5,000

Transportation

20,000

Internet

12,000

75,000

Stationary

15,000

Auditing

10,000

Other miscellaneous

22,000

Total Operating Expenses

4,44,000

Depreciation

Computer

12,000

Furniture

14,000

Fax & Printer

2,000

Electronic appliances

5,000

Scooter

2,500

(34)

Inventory

85,000

1,89,825

Tax (37%)

(70,235)

Net Income

1,19,590

Pro forma income statement (2

nd

Year)

Solar Panel Company Private Limited

Dhanmondi,1202, Dhaka

End of Year 31

st

December 2014

Particulars

Amount(Tk)

Net sales revenue

8,23,304.75

Cost per installation

(45,675)

7,77629.75

Last year inventory

85000

862629.75

Operating Expenses

Rent

60900

Salaries

2,23,300

Telephone

5075

Electricity cost

5075

Transportation

20300

Internet

12180

76125

Stationary

15225

Auditing

10150

Other miscellaneous

22330

Total Operating Expenses

4,49,660

Depreciation

Computer

12,000

Furniture

14,000

Fax & Printer

2,000

Electronic appliances

5,000

(35)

Pro forma income statement (3

rd

Year)

Solar Panel Company Private Limited

Dhanmondi,1202, Dhaka

End of Year 31

st

December 2015

Particulars

Amount(Tk)

Net sales revenue

8,80,936

Cost per installation

(47,045)

8,33,890.75

last year inventory

75,000

9,08,890.75

Operating Expenses

rent

62,422.5

salaries

2,28,882.5

telephone

5202

electricity cost

5202

Transportation

20,807.5

internet

12,484.5

78,028

stationary

15,607

Auditing

10,404

other miscellaneous

22,888

Total Operating Expenses

4,60,901.5

Depreciation

Computer

12,000

Furniture

14,000

Fax & Printer

2,000

Electronic appliances

5,000

scooter

2,500

Total Depreciation

35,500

Inventory

(75000)

3,02,469.75

Tax (37%)

1,11,913.80

Net Income

1,90,556

(36)

Total Depreciation

35,500

Inventory

(89,000)

3,23,489.25

Tax (37%)

1,19,691

Net Income

2,03,798.25

8.5 Projected Sales and profit statement:

Solar Panel Company Private Limited

Dhanmondi1202, Dhaka

Sales Praofit

1

st

Year

7,99,325

1,19,590

2

nd

Year

8,23,304.75

1,90,556

3

rd

Year

8,80,936

2,03,798.25

(37)

8.6 Projected Balance Sheet:

Solar Panel Company Private Limited

Dhanmondi, 1202, Dhaka

1st year 2nd year 3rd year

799325 823304 880936

119590 190556

203798 Sales Profit

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) 2,00,000 Equipment 5,23,600 Less: Depreciation (15,500) 5,08,100

(38)

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

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

Owner’s Equity

Common stock 33,00,000

Retained Earnings 87,665

Total stock holder‘s equity 33,87,665

(39)

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)

(40)

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:

1

st

year

2

nd

year

3

rd

year

Fixed cost

578000

595340

625107

Cost price per unit

38533

Selling price per unit

53288

Breakeven point in unit

39

41

43 Q

BE =FC/(P-V)

For the first year

Q

BE is 39 units,Second year

Q

BE is 41 units,and Third year

Q

BE is 43 units.

S

BE =

(

Q

BE

).(

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.

(41)

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.

(42)

Findings & Recommendations

1. Availability of sparing time a lot is needed. 2. To have pre-experience all of the members. 3. Availability of electricity facility.

4. Getting technological convenience.

5. Having all of the information related to the topics.

Bibliography



https://www.elance.com/.../solar-panel-business-plan-business- smallbusiness.chron.com › ... › Starting a Company

 http://en.wikipedia.org/wiki/Solar_energy

 http://ownleader.net

 faculty.ksu.edu.sa/alsalloum  www.oppapers.com

(43)

Solar Panel Private Limited Company.| Solar Panel Project 43  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.