Government support through financial incentives and the public's trend toward environmentally friendly products has opened the way for alternative energy based companies to thrive. In the French market, with little direct competition, we believe our company will experience success. Senergy Alternative Energy Consulting plans on balancing trade show exhibitions with low cost promotional techniques such as brochures, law signs and business cards. We will also develop a company website, www.senergy-consulting.fr and become a member of the ADEME association to increase our recognition in our industry and demonstrate our environmental engagement. The legal form of Senergy is a general partnership to which the five partners contribute in equal amounts. Our management team will consist of five partners with different core competencies working on a full time basis. Eventual profits will be shared equally among the partners. Revenues are projected to increase from 29100 to 49856 € (approximately 72 %) in the first year of operation, from 2006 to 2007. From 2007 to 2008, revenues are expected to grow by another 17%. These projections reflect the increasing number of customers having consultations and eventually installing alternative energy systems.
Because of the nature of Senergy Consulting as a consulting business, start-up costs are low. The five owners will make an initial investment of 1500 € each, which will be paid back to them from July to December 2006. An operating loan/line of credit is expected to be obtained in February 2006 to cover any unexpected negative cash flows in the first months of operation.
[...] We must provide the highest quality in our service, as our business' success in the early stages will depend on our ability to establish our company's consumer base and reputation. Senergy can offer a high level of expertise thanks to a good acknowledge of this new technology, geographical specificities of each region and French legislation. Senergy can offer low prices due to its low overhead costs. This is attributed mainly to our low salaries, low location cost and lack of inventory, as we will have our suppliers complete the installation of the systems. [...]
[...] Wind turbines are characterised by their range and diversity. The smallest wind turbines can generate several hundred watts (mainly for recreational uses, but increasingly of interest for charging batteries in the developing world). At the other end of the spectrum, pilot tests in New Zealand have produced 3 MW turbines, and the Danes are in the process of pilot testing turbines of 2 MW for off-shore wind electricity generation. Germany has installed over 2 GW of wind electricity since 1994, making it the world's largest wind electricity generator (installation proceeds at over 100 MW per month at present). [...]
[...] There are some barriers of entry in the alternative energy industry in the form of well established supplier-dealers networks. We are confident that we can establish a sufficient market share by means of the added value we offer to our customers, i.e. one-to-one service. Other Risks One of the other risks we have identified is that accounts receivables might not be forthcoming on the due date. In order to prevent this from happening we will seek some security by demanding a certain percentage of the overall amount in advance. [...]
[...] So it makes our work easier to convince the public administrations to use those energies. Then, they develop, in partnership with the French Agency for Environment and Energy Management called ADEME, incentives policies for the development of renewable energies, which also help us to sell our consulting expertise about wind mills and solar panels more easily to both administrations and individuals. Risk analysis Market Risks Due to the nature of the services we offer, our business is exposed to some extent to market risks. [...]
[...] On this trade fare Senergy Consulting will exhibit in the exhibition part of renovation solutions in the sub-part of boilers, heating appliances, air conditioning equipment, solar energy and water treatment. Because of the magnitude of visitors by exhibiting, Senergy Consulting can greatly increase its recognition and get in contact with potential clients. Salon des Energies Renouvelables The Salon is a more specific exhibition concentrating only on renewable energies. Starting in 2001, the Salon is the main exhibition of renewable energies in Europe and attracts each year all major players in the sector. [...]
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