Executive Summary: (EXAMPLE OF WHAT IS NEEDED)
1-Introduction-The Company to be assembled will have as a primary goal to build new houses and more than houses they will be fully integrated and be able to be managed at the fingertip of our customers. For very long, houses have been working like a shell protecting the household and his or her family against all kind of possible problems that the nature or society brings in. Our main goal is to provide the same security but adding all the technology available currently and bringing the house to energy independency and using the new materials and software available to make the life at his or her home as pleasant as the modern life can bring. Our goal is to change the old way to look at a house and bring a new more fulfilling way to live in one’s house and this change is not superficial but transform the house from a shelter to a service center.
2-About the Company- The Company needs to be looked as a high tech Company were material and software are interconnected and everything else is outsourced. We are an engineering Company where different items are interconnected and this interconnection and the selection of materials is our main function. We buy the best material around the globe, we develop the project. We integrate all the equipment using as much Internet of The Things(IOT) available and intelligence needed. Our company does not have heavy trucks, blue color labor. We built Passive Houses and we certify them by the Passive House Institute (PHI). We build using sub-contractors for every of the phases of the work. Our goal is the maximum comfort with the minimum cost for our costumer. We use clean energy, we use geothermal and modern glass walls with blurring controlled surfaces and with this we use all the light available at a specific time. We look for the well been of the client and his or her family. Security systems in place, linked to a computer and to the smartphones through several applications already available in the market or developed based on a platform that we will develop. In the process of Passive House construction we are looking to spend as little energy possible and harness as much natural light as possible. In this process a highly efficient heat recovery ventilation system (HRV) is always running to provide fresh air filtered and temperature controlled house. A/C is totally replaced by our geothermal heat exchanger controlled by computer according of the planned use and we should reach up to 90% of energy efficiency. We don’t use several machines for different temperature zones. One machine but different temperatures in different rooms controlled independently, nice concept, simple but only possible by computer controlled integration. As we are integrators of different technologies and smart gadgets the trend is that the Company transforms itself in a hub of technological development as the try and error process is always a way of life. The pack, solar panel, battery pack and EMS (Energy Management System) besides of transforming the House in an energy independent house will allow each house define when to buy and sell the electricity available pumping to the grid in peak hours and buying in the idle hours. Security, Lighting and shades through the windows will be controlled by the computer, improving the house comfort. We change the way houses are build starting with the frames that they are built with, steel.
3-Market place-We are looking to serve a market that has several features:
3-1-Young professionals working in the city and looking to build a family.
3-2-Families that living in the city are looking to increase the size of their family
3-3-Profissional that working in the city want to have a lot more of privacy and willing to enjoy the services that our house(s) will be able to provide with no add maintenance cost,
3-4- The ability of having a garage, in our case at least two, a private SPA, all integrated systems that allows a better quality of life and to receive friends and family without been obliged to sponsor or worry about parking.
3-5-The market we are aiming at has an income of 200K to 400K and year and works in Manhattan.
Our potential customer works in the financial system and according of the Department of Labor from the New York State 90% of this kind of industry occurs in Manhattan and employs 436700 with an average weekly income of $5600.00. (Please refer to Annex 1).
4-Financial Considerations-The numbers below show that even if we reach a maximum negative number of around $3837910.00 the first year but finishes with a positive balance ($1964671.50 ) which increases year by year and brings us to a money chest of $72 million in the third year what will give us the push the Company needs to build 300 houses and start to be a reasonable player in the market. At this point we will have also the strength to move outside of the northeast and afar from the USA and moving the Company to reach the one billion.
Company is looking to be formed to enter the market of new construction with the first goal to reach Manhattan urbanities but as soon it reaches the third year of operation the Continental USA, Canada and Mexico will be our next markets. As the houses are energy independent they can be built in remote areas or areas that have a continuous lack of reliable electric supply. Africa and South America are locations to be studied and the houses in this case instead of been of around 2700 square feet will be of areas of 6500 square feet. This project can also build houses in cluster in the skirts of the grid without any need of grid reinforcement.
As the Business Plan for one year shows we will reach an maximum of $3837910.00 negative but will finish the year with a gross profit of $1964671.50 and will need another injection of $10 million so to keep the pace of buying land allowing the project to develop at the scheduled pace.
Six houses in the first year, 30 houses in the second year,120 houses in the third year and 400 houses in the fourth year.
It is important to stress that as these houses have a fast deployment they will be in the market to be sold in average three months after approvals and therefor even bringing good end results to keep the stream flowing more capital will be needed to beforehand land buying.
The project starts with a cash chest of $4million from the investors finishes first year having generated almost $2 million and finishes the second year with $13.5 that when adding added another $10 million from the investor in a second and final investment will allow us to buy enough land to complete 120 houses and start to buy land preparing for the fourth year when our planning is to get to 300 houses.
It is a huge deployment but not a scratch in the market that is at this point is preparing 12000 new apartment and at this time delivering and selling them promptly.
1-Services offered. We offer to our clients the option to select the kind of kitchen he or her wants. We offer the design and define with the client colors, wood and type of door. We don’t ask our client to swallow what we want which is what usually happens in the market. We with the same path we also make the project of the baths offering the client a huge option of tiles, around 1000 colors. We of course will help the client to decide in which way to go using our experience, our cad cam and our taste,
The houses will be in around 2700 square feet, three bedroom and 4 full baths and half next to the living kitchen dining rooms (powder room) baths, one full bath and always linked to the bedrooms. One full bathroom in the first floor linked to the SPA and one powder room for visiting people. We will supply two cleaning robots for each floor with the charging docks installed and not visible.
We offer also a fireplace in the first floor and eventually in the master bedroom. It will be on us the installation of the solar panels and the battery pack and all the glass walls with internal electrical activated shades.
The HRV blows all the time pushing new filtered air with controlled temperature in and pushing old air out improving the comfort in any place of the house and avoiding the stop and go currently used by the A/C available in the market and 100 years old in concept.
The two garages to be build, one of them has a charger for electric or hybrid cars. Next to the garage a SPA. Lights computer controlled and all LED lamps, 50000 hours of life, security controlled by the computer in all doors and windows.
2-Estrategy and implementation-Our houses($545.00 a square foot) will be competitive with apartments when considering the cost of the square foot (currently the average selling price is $1200 a square foot). We deliver a smart house (no competition).We deliver an energy independent house (no competition). We deliver three baths linked to each bedrooms (no competition). We deliver two garages( no competition). We deliver a house with no electrical bill (no competition).We build in areas with good school systems and low crime rate (no competition as the apartments have been planned and build in Queens and Bronx and Staten Island).
After the fourth house I strongly believe that we will be selling the houses before even the start of the construction. School district needs to be considered and worked with the city where the construction will happen.
3-1 Weaknesses We have a chance to have in some time a change in the rules of incentives for solar usage but the prices of solar overall cost is falling by the year(in recent 5 years it fell 75%). I don’t believe that this can happen in the northeast. There is a strong trend for the utilities to keep paying the beyond the meter fee as it slashes in their cost by avoiding huge investments to keep the end or grid points out of stress in peak hours. Believe also according of the latest developing of solar panels that the cost that has been falling tremendously will keep falling due to new material usage. The school district needs work as we are bringing for an area that has been contributing very little to the school system. The first year work will be all in good school district areas. The bigger problem that we can face is a huge valorization of the area next where we are doing the development as our houses will increase the value of the full area. As we start to sale we will need to establish a lot buying strategy.
4-Exit Strategy- All the investment is real estate backed. The investment add value and covers by far, as the business plan shows, the expenses incurred. It is the safest investment around. Some developments in this project will need and it will be good to be so help from a local recognized engineering school. The development of the HRV with systemic measurement calculation and actions all made computer controlled will bring to the project international media coverage. The transformation of the Company in a public Company can bring to an IPO which is the ultimate exit strategy.
5-Strong points of the project-The huge difference of what is available and what we offer. We offer a smart house. The market offers a shell which don’t react to the needs of the customer. Energy independent, electrical charger in the garages, proximity of the train station, controlling the house through apps through a smartphone. Close to movie theaters restaurants. We offer a smart shell for urbanities who are willing to build a family but packing it with systems that will help the homeowner to improve the quality of life and more able to take his or hers family for a short weekend trip with an electric car charged in the garage and offered by us like an option. We deliver the house with an option of a leasing plan for the batteries, life time of eight years and covering all the maintenance cost. No headaches.