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Franchise Business Plan Event
Skyline DECA Skyline High School
1122 228th Avenue SE Sammamish, WA 98075
Christian Goehner
Andrew Kremer
Will O’Daffer
March 2018
Table of Contents I. Executive Summary ............................................................................................................................... 1
II. Business History, Background, and Objectives ..................................................................................... 4
III. Business Environment ........................................................................................................................... 6
IV. Products and Services ........................................................................................................................... 8
V. Present Market ................................................................................................................................... 10
VI. Competition ........................................................................................................................................ 12
VII. Marketing Plan .................................................................................................................................... 14
VIII. Management and Organization .......................................................................................................... 16
IX. Business Resources ............................................................................................................................. 18
X. Financial Plan and Data ....................................................................................................................... 22
XI. Conclusion ........................................................................................................................................... 28
XII. Bibliography ........................................................................................................................................ 29
XIII. Appendix ............................................................................................................................................. 30
1
Description of Company: SuperGreen Solutions is poised as a unique business model in a
marketplace that is surging with a desire for sustainable, energy-efficient solutions – and the world is
taking notice. They are changing the game with a unique value to both brick and mortar businesses
and households alike in creating a complete solution to their energy conservation needs. Along with
their competitively priced products and installation fees of common goods such as LEDs and
insulation, they also offer cutting edge and innovative technologies on the forefront of green energy
development such as ENERG2 and EV charging stations. SuperGreen Solutions is truly a pioneer in
energy conservation services and has ample opportunity to grow.
Objectives: Utilizing goal setting techniques, we have outlined three major goals for our new franchise.
A more in-depth view of our goals can be viewed in section 2B.
Goals
1 Acquire funds to open a new SuperGreen Solutions in South Union region of
Houston Texas by January 1st, 2018
2 Launch advertisement campaign following the opening of the new location to
spread awareness to the public.
3 Use profits from the first 7 years to open 2 new SuperGreen locations in
Sacramento and Austin by 2025
Business Environment: Climate change is one of the most defining issues of our time around the world
and has increased awareness for conservation efforts and the impact of reducing energy consumption.
These effects have created a new market for sustainable,
energy-efficient solutions in which SuperGreen Solutions
operates. By opening a franchise in Houston, Texas we are
exposing ourselves to a burgeoning market that boasts
superior growth, ease of business, and physical
environment. Houston is the fourth largest city in America
with 2.2 million people, however, despite its size Houston
maintains the second fastest growth rate in the US at 2%.
Houston is also home to some of the most welcoming laws
for new business and is widely considered to be one of the
easiest cities for new business to thrive in. Another aspect
of business environment that would is beneficial to our
franchise is the climate of Houston. Located on the Gulf of Mexico, the weather is Houston is very
extreme in cases of heat and humidity ranking 3rd on the most humid cities in America. Along with this,
Houston has one of the highest rates of energy usage at 1,168 kWh per month per household – 5th
highest in united states. This climate creates demand for our products and services that doesn’t exist in
other locations.
Services: SuperGreen Solutions offers a wide array of sustainable products and alternatives to
conventional utilities such as solar panels, insulation, window inserts, wind turbines, and LED lights. To
complement our elite product line, we provide a free consultation service that allows us to evaluate each
of our clients’ needs and create a unique, full solution that is catered specifically to their situation.
I. Executive Summary
2
Through our location we also facilitate the installation of our products through our trusted and
experienced crew of installers and handymen. This puts us in a unique position to facilitate the start to
finish process with the client and ensure full customer satisfaction. In addition to these services, our
consultants also are trained in advising businesses on how to meet necessary requirements to qualify for
green initiative government programs and world-renowned certifications such as LEED.
Present Market: SuperGreen Solutions has 33 franchises across the United States as well as ten
franchises internationally. They are located in highly populated areas with a plethora of houses and
buildings. The stereotypical customer of SuperGreen Solutions is a middle- to upper-class homeowners
as well as businesses looking to cut down energy costs.
Growth Potential of Market: Forbes listed Houston as the 2nd fastest growing city in the United
States, growing at a rate of 2% per year. Within the next year, Houston is projected to add 70,000 new
jobs to its economy. This goes along with a projected $2.6 billion increase in consumer spending over
the next year, providing our franchise with an opportunity to thrive in this rapidly growing economy.
Current Pricing Policy: Using SuperGreen’s connections with United Franchising Group, we will be
able to take advantage of a network of suppliers that, through our strong relationships, provide us with
products at low prices. This will enable us to sell our products with profit margins of 60% and higher.
This network of suppliers giving us the opportunity to sell our products as competitively low prices will
enable our franchise to thrive in Houston.
Competition: SuperGreen Solutions competitors include hardware stores such as Home Depot and
Lowe’s as well as franchises such as Black Lion Heating and AC, Solar Systems, and LED Source.
These companies offer products similar to SuperGreen Solutions. However, our strongest advantage is
that though our diverse and expansive product line, we can offer a full solution to the client’s needs.
This holistic approach to green solutions is what separates us from our competitors and allows us to be
the best option for businesses or individuals looking to cut costs and live a more sustainable lifestyle.
Marketing: Over the first year there will be heavy advertising efforts towards the Houston Area. The
marketing will be used to encourage customers to purchase energy efficient products by providing them
discounts as well as creating awareness about the new franchise. The advertising to be conducted can be
found below:
Advertisements
Medium Source Type Dates Conducted Price Impressions
Per Ad
Price Per
Impression Cost
Podcast
Cool Things
Entrepreneurs
Do
Audio
Advertisement
Jan-Apr: 3 times per week May-Aug: 4 times per
week Sep-Dec: 2 times per week
$8,000
for 30
Podcasts
10,000 $0.03 $44,530
Newspaper
The Houston
Chronicle Printed
Every Saturday and Sunday
of the Year
$320 Per
Print 80,000 $0.004 $33,280
The Houston
Chronicle Online
Jan-Mar: 2 days/week
Apr-Aug: 3 days/week
Sep-Dec: 1 days/week
$280 Per
Day 45,000 $0.0076 $30,800
Total Cost: $108,610
3
Financial Request: We, Andrew, Will, and Christian, will be investing a cumulative $100,000 of
capital into our new SuperGreen Solutions franchise. We are requesting a loan of $200,000 at 8%
interest, payable over 5 years. Through analysis of Houston’s economy and geographical
advantages that our products directly benefit, we believe that our SuperGreen location will begin to
incur positive returns beginning in just the first year.
Financial Statements: The following condensed financial statements detail our projected profitability
and cashflow for the next 3 years:
Thank you for your time and consideration of our proposed business plan. We look
forward to meeting with you and further discussing the opportunity of a bank loan for
$200,000 at 8% interest, paid over 5 years.
2018 2019 2020
1,617,655 1,859,114 2,230,937
561,675 645,926 775,112
1,055,980 1,213,188 1,455,825
65% 65% 65%
988,805 1,023,188 1,068,263
67,175 189,999 387,562
14,776 11,962 8,916
10,480 35,607 75,729
41,919 142,430 302,917
3% 8% 14%
Gross Profits
SuperGreen Solutions
Operating Revenue
Cost of Goods Sold
Tax Expense
Forcasted Statement of Income
For the Years Ended December 31, 2018, 2019 & 2020
Operating Expenses
Income/Loss Before Tax
Interest Expense
Net Income
2018 2019 2020
Sales 1,617,655 1,859,114 2,230,937
Profit 3% 8% 14%
0%
2%
4%
6%
8%
10%
12%
14%
16%
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
Pro
fit
(%)
Sale
s ($
)
SuperGreen Solutions Sales and Profits
$-
$50,000
$100,000
$150,000
$200,000
$250,000
End
ing
Cas
h B
alan
ce
Month
Cash Flow 2018
2018 2019 2020
- 178,830$ 288,577$
$100,000 - -
$200,000 - -
$1,617,655 $1,859,114 $2,230,937
$1,917,655 $1,859,114 $2,230,937
$129,200 - -
$561,675 $645,926 $775,112
$600,000 $618,000 $636,540
$109,974 $113,273 $116,671
$337,976 $372,167 $428,107
$1,738,825 $1,749,367 $1,956,430
$178,830 $109,747 $274,507
$178,830 288,577$ 563,084$
Net Cash Flow
Operations
Total Cash Inflows
Cash Outflows:
Fixed Assets
Loan
SuperGreen Solutions
Forecasted Statement of Cash Flows
For the Years Ended December 31, 2018, 2019 & 2020
Owner
Consumable Supplies
Payroll and Related
Customer Acquisition
Beginning Cash Balance
Cash Inflows:
Ending Balance
Other
Total Cash Outflows
4
A. Description of Company
Started in North Palm Beach, Florida in 2011, SuperGreen Solutions
focuses on providing the best methods of energy conservation, aiming to
save their customers money that would otherwise be wasted. They pride
themselves on providing products and services that not only put more
money in the pockets of their customers, but they do so through methods
that work to minimize negative the output that is harmful for the
environment. When SuperGreen Solutions services are hired, a consultant is sent to the business or household to
inspect the building, identifying where the customer can save the most money through less expensive and more
efficient means. Once the consultant has completed the inspection, they suggest how and where the business or
household can save the most energy and money through the implementation of their products.
SuperGreen Solutions offers an array of products as well as
custom plans tailored directly to the customer they are working with to
aid in the lowering of energy expenditure and costs. They emphasize
that “green” not only represents the environmentally friendly and
sustainable products that are provided, but also the money that
SuperGreen is saving its customers by switching to these types of
products.
B. Short-Term and Long-Term Objectives
In the short-term, we will focus our efforts towards penetrating new markets with affordable and environmentally
friendly products. In the long-term we will strive to provide our products and services to an extensive reach of
customers, working to change the target market’s energy consumption and loss through more effective means.
II. Business History, Background, and Objectives
Figure A: SuperGreen Solutions
Logo
Figure B: Locations of Current
Franchises in the Domestic US
5
Short-Term Goals Long-Term Goals
• Receive a loan sizeable enough to franchise a
SuperGreen Solutions in Houston, Texas
beginning January 2018
• Open new SuperGreen locations in Sacramento
and Austin by 2024
• Introduce accessible, affordable, and
environmentally friendly solutions into
Houston, Texas
• Decrease average wasted energy lost by our
customers in Houston by 50%
• Promote SuperGreen in Houston, making the
population aware of our products and services
• Move Houston towards more sustainable
energy practices through the implementation of
our products
These goals will drive our SuperGreen franchise towards its highest potential, leading to a successful new franchise
in the market we are entering in Houston.
C. Major Successes and Achievements to Date
SuperGreen Solutions has gained a
notable reputation among start-up
companies and throughout the increasingly
popular renewable energy market. As
shown in Figure C, there are currently 42
SuperGreen franchises to date, with
locations expanding outside of the United
States to countries such as South Africa,
Panama, Mexico, India, Canada, and
Australia. After only three years of
franchising, the company was named on the Franchise 500 List for 2014 by Entrepreneur magazine. The company was
also named on the “Top New” list as one of the top 75 companies that began franchising in the last five years, along
with achieving the rank of the #1 New Franchise in Industry1. Having won many different accolades and awards that
green companies strive to receive, SuperGreen Solutions now has the potential to take advantage of their strong
reputation and grow their operations domestically and internationally.
D. Challenges and Obstacles
A challenge SuperGreen Solutions faces is customer perspective on energy conservation. It is difficult for people to
think long-term when considering the benefits of conserving energy, as the upfront capital seems like a burden. When it
1 supergreensolutionsfranchise.com/
Figure C: Graph of franchise growth of SuperGreen Solutions
6
comes to SuperGreen’s products, one must have an open mind and the willingness to look further into the future. In the
short-term it is much more expensive to install the greener solutions, but it will save the users of these products
hundreds and even thousands of dollars in the long-run.
There are many people that are simply not ready or prepared to make the switch from their current system to a
more ecofriendly energy system because they don’t feel any need to change what already works for them. This is where
we step in. It is our job to educate potential customers about the specific benefits of using our products, including
money that they would save and the positive impact on the environment. It is also important to inform the customers of
the tax deductions they receive for the purchase of these environmentally friendly solutions.
E. Changes in Structure, Management, Ownership, etc. in the Past Year
SuperGreen just announced the signing of Master Franchise Licenses in Puerto Rico, Europe, the Caribbean, South
America, and a six-country Middle Eastern group that includes Saudi Arabia, UAE, Qatar, Kuwait, Oman and Bahrain.
Master Franchise Licenses allow hopeful franchisees to open a flagship SuperGreen Solutions store in another country
and earn profit from this location. Once this first location becomes sustainable, the franchisees can then focus on
opening more SuperGreen stores in their country. When new stores are opened, the original franchisee will benefit
from each franchise sale, receiving the franchise fee for each location sold.
The greater Houston, Texas area is the perfect location for a new SuperGreen Solutions franchise for two important
reasons: growth and diversity. Houston is the fourth largest city in America with a population of 2.2 million people;
despite its size Houston continues to be one of the fastest growing
cities in America. In 2017, Forbes listed Houston as #2 on their
list of fastest growing cities at a rate of 2% per year, this
population growth goes hand-in-hand with business growth.
within the next year, Houston is projected to add 70,000 new jobs
and record a $2.6 billion increase in consumer spending,
indicating a strong market and growth potential. Estimates show
that Houston is expected to double its economic impact by 2040
an economic advantage that cannot be overlooked.
III. Business Environment
Figure D: Houston Employment Growth
7
The location we will franchise our new SuperGreen Solutions is at 3388 Old Spanish Trail, in South Union,
Houston. We will be leasing Space #4 on the 1st Floor of the new facility that was completed in 2017. This location is
open for lease starting December 31st, 2017. The facility is 3,200 square feet and costs $28 per square foot resulting in a
$89,600 cost per year.
Another advantage of this location is the diversity and stability of Houston's multi-faceted economy. Resulting
from monumental efforts by their Economic Development Division, tax breaks and incentives for new businesses have
been implemented, making Houston one of the most inexpensive places to do business. This has caused an influx of
new businesses in industries including energy, aerospace, defense, bio-science, manufacturing, and healthcare,
contributing to the stability of Houston’s economy. For example, during the Great Recession in 2008, while
unemployment skyrocketed, Houston’s unemployment levels remained 2 percentage points below the national average,
demonstrating the cities stability and relative ability to stave off economic downturn.
The nature of Houston’s physical environment creates demand specifically for our products and services. Houston
not only experiences 204.8 days of sun in a given year, but of those 204.8 days, 99.6 record temperatures over 90 F.2
This high level of heat combined with the close
proximity to the Gulf of Mexico has made Houston the
3rd most humid city in the United States, bearing an
average daily humidity of 74.7% year round.3 Because
many of the products that we offer are designed to take
advantage of these specific environmental factors, this
further reinforces our decision to franchise in Houston,
Texas. These products and their functions can be seen
in section IV.
However, we are presented with distinct disadvantages of our business environment. The oil industry has always
been a major contributor to the Houston economy and continues to be a driver of job growth and wealth for the area.
This reliance on the oil industry creates risk and instability due to the volatility of oil prices. For example, in September
2017 the Iran Nuclear Agreement was signed bringing Iranian oil back to the US, causing mass layoffs on Houston
2 https://www.visithoustontexas.com/travel-planning/weather/ 3 https://www.currentresults.com/Weather-Extremes/US/most-humid-cities.php
Figure E: Job growth in Houston post-2008 Recession
8
based oil rigs. While this is a risk that must be accounted for, diversification of Houston’s markets has decreased
economic reliance on the oil industry and will give us a healthy business environment to develop and run our franchise.
A. Products and Services Offered
SuperGreen Solutions offers a top to bottom service that can be catered to the specific energy saving needs of
the individual or business. When a client contacts our franchise, a consultant is sent at no expenses to the customer
to assess the best methods of energy conservation at their location. The goals of our clients vary greatly, from
individual homes or businesses looking to optimize their
energy consumption and cut back costs to taking advantage of
tax rebates and sustainability certification to build their brand.
For this reason, we offer a wide variety of products and
services.
For individuals or businesses that are looking to reduce
costs of energy consumption we offer a variety of options that
create a total solution for the consumer. There are five
categories of energy optimization that we address, containing
their own subcategories and individual products best suited for: Energy Management, Lighting, Power, Air, and
Water. These products are sourced from trusted local and national companies such as Owens Corning, BP Solar,
and Suntech.
As awareness of risks associated with carbon dioxide emissions increases, more government incentives are
offered to businesses and individuals who commit themselves to sustainable practices. These include federal, state,
and local programs that incentivize energy efficient utilities and actions. SuperGreen Solutions is well developed
and has the information necessary to clients in taking advantage of these programs. In addition, we are well versed
in the steps necessary for businesses to attain universally recognized sustainability certification standards such as
Leadership in Energy and Environmental Design (LEED). Companies can use these certifications to build a brand
around sustainability and community awareness.
IV. Products and Services
Figure F: LEED Certification categories
9
While the physical products offered by SuperGreen Solutions serve an important purpose to all of our clients,
another service provided is guidance of taking advantage of government subsidies and rebates. For example, if a
client were to purchase and install solar panels they would have the opportunity to deduct 30% of the cost from
their federal taxes. This can be upwards of $3,500 of refunds for a 10 kwh solar panel system. SuperGreen helps
clients take advantage of offers like this and many more through nearly two decades of experience in the industry.
Below we have included a comprehensive list of our physical products:
Category Product Description
Energy Management
EnerG² • A retrofit device that reduces the energy consumption of
commercial grade coolers and freezers
Indow Window Inserts • Thermal panels that fit inside your window frames, providing
double pane support reducing heat loss
Insulation • Installation of optimal types of insulation for the surrounding
environment
Home & Business Automation • Installing smart technology into existing energy systems such as
automated lighting and heating systems
Lighting
LED Lighting • Replacement of fluorescent or halide lights with more efficient
LEDs
Tubular Skylights • Specially shaped skylights that more effectively use daylight to
illuminate a room than a traditional skylight
Power
Lightening Pak • Hand-held solar-powered portable phone, tablet, computer, etc.
charger with power storage of 12,000 mAh
Solar Power • Solar panels connected to main power lines ranging from 3-10
kwh of production
Distributed power solutions • Integration of solar panels and energy storage systems, with a
capacity of 12 megawatts (12,000,000 watts)
EV Charging Stations • Installation of electric car charging stations in front of businesses
or households
Generators • Gas generators used for power outages
Wind Power • Installation of wind turbines which are connected to a battery or
main power lines
Water
Water Purification • Installation of water purifiers
Air to Water • Installation of dehumidifiers that can be used to reduce humidity
and harness drinkable water from the air
Water Heaters • Installation of solar, tankless, and hybrid water heaters
Air
Air Purification • ODOROX air filtration devices used to reduce odors and purify
air
Ventilation • Solar powered roof ventilators used to cool attic spaces and
reduce risk of mold buildup
This diverse range of green products is what give us an advantage over our competitors and allows us to offer a
complete and multi-leveled solution to our client’s needs.
10
B. Planned Changes or Additions to Present Line of Products and Services within the Next Year
SuperGreen solutions gives franchisees the opportunity to add new
products to their product mix if the franchisee sees the opportunity. Due to
the strong relationships we have built with international business groups
such as Allsafe Energy Efficient Products of Australia and Green Power
Solutions of USA, we will have an efficient process to add new products.
Within the next year we intend to bolster our water conservation department
by introducing three new products to our line that fall within our water
category: aerator faucets, low flow shower heads, and low flow toilets.
We will also be adding the Lightening Pak to our product mix, a solar powered charger for phones, tablets,
computers, etc. These Lightening Paks are hand-held and small in size, making it a likely purchase by our customers
that prefer portable devices.
Lightning Pak
Battery:
12,000 mAh
Charges iPhone X
four times
Ideal for people out of the
house for long periods of
time
Can be charged via solar
energy or alternative energy
sources
These Lightning Paks are ideal for individuals who are frequently away from power sources for long periods of
time. This product could be most useful for people participating in activities such as hiking and backpacking.
A. Present Market
The present market for SuperGreen Solutions is middle- to upper-class homeowners as well as businesses in
Houston, Texas. The initial payment needed for many of these products seems very high to new customers, but
once the long-term benefits of our products have been made clear to our customers, they will likely be more willing
to venture into the green market. Individuals and businesses that purchase environmentally friendly solutions
receive tax-deductions and government subsidies that make the purchase of these products more attractive. Bigger
business will also be able to install eco-friendly products into their buildings in order to cut down energy bills.
These large businesses can profit on a large scale from the implementation of our products because they can now
V. Present Market
Aerator Faucets
Low Flow Shower Heads
Low Flow Toilets
Figure G: New water saving product line
11
regulate the energy use within their buildings. A substantial amount of energy and money is wasted in large office
buildings through inconsistent methods of air conditioning and heating regulation.
The total median income of a household in Houston is about $85,6344, compared to the national median household
income of $59,039.5 This increased income level represents opportunity for our SuperGreen Solutions to market to a
wealthy demographic that is looking for methods to save money and earn tax credit and subsidies for doing so. Because
50% of Houston’s households earn incomes greater than $85,000, many households pay 25%-39.6% of their income to
the federal government through taxes. These individuals will be especially enticed by tax deductions as a method to
save themselves money. For example, they can replace their current light bulbs with LED lightbulbs, which use 75%
less energy than average bulbs and last for 20 years or more6.
B. Growth Potential of Market
Being the 4th largest city in America7, Houston allows us to market towards large segments of new customers who
have not yet been exposed to our products. What makes Houston of on the most viable locations for SuperGreen
Solutions is that it has one of the highest job growth rates in the United States, so there is great potential to market and
sell our products to both new and existing companies. In August of 2015, the average electrical energy bill for
households of Houston was $172.658 per month. Businesses and households interested in cutting down their utility and
energy prices can utilize our products to make their energy consumption more efficient. Additionally, new and
innovative businesses in Houston are familiar with modern technology, making them more willing to try new methods
of conserving energy and saving money.
C. Current Pricing Policy
To support our wide range of products, SuperGreen solutions
is proud to be backed by and linked to international buying groups
including Allsafe Energy Efficient Products of Australia, Green
Power Solutions of USA and United Franchise Groups. These
organizations allow us to have access to the top brands at the
lowest prices on the market, reflected in our pricing policy.
4 https://www.forbes.com/places/tx/houston/ 5 https://www.census.gov/data/tables/2017/demo/income-poverty/p60-259.html 6 https://www.supergreensolutions.com/energy-efficient-home-and-commercial-lighting/led-lighting/ 7 http://worldpopulationreview.com/us-cities/houston-population/ 8 https://data.houstontexas.gov/Utilities-and-City-Services/Residential-Average-Monthly-kWh-and-Bills/d9pb-3vh7
Solar Panel Pricing
Size SuperGreen
Solutions
Avg.
Market
Price
3 kwh $7,500 $8,850
5 kwh $12,500 $15,000
8 kwh $15,000 $17,700
10 kwh $20,000 $24,500
Figure H: Solar panel pricing policy comparison
12
SuperGreen touts competitive prices in comparison with both wholesalers such as Costco and retailers such as Lowes
packaged with inexpensive and reliable installation. An example of our solar panel prices its shown in Figure H. Even
with the low prices we offer on our products, the decline in the cost of solar energy continues to give us profit margins
of 60% and higher.
D. Seasonality
The products that customers are demanding
change throughout the seasons. In the summer, the
demand for dehumidifiers and ventilation will be
higher than other seasons. During the winter,
demand for heating and insulation will increase
because a consumer will be less likely to purchase
a heater in the middle of the summer than in the
winter when the weather is colder. The windiest
season is the fall, so demand for wind turbines will
increase since they will be able to effectively
produce energy. The demand for more energy
efficient methods will always be notable, but the products that are pursued will change by the seasons.
A. Strengths and Weaknesses of Primary Competitors
There are two categories of competitors of SuperGreen
Solutions: hardware stores such as Home Depot, Lowe’s,
and Ace Hardware and other franchises operating in the
same space as us. These franchises include Black Lion
Heating and AC, Solar Systems, and LED Source who provide a
similar service to SuperGreen in their respective markets. Below
is a chart laying out the strengths and weaknesses of these competitors:
VI. Competition
Figure I: Most Popular Products by Season
Figure J: SuperGreen Solutions competitors
•Dehumidifiers
•Ventilation•Air Purification
•Solar Panels
•AC units
•Dehumidifiers
•Insulation
•Water Heaters
•Wind Turbines
Fall Winter
SpringSummer
13
B. Advantages Over Primary Competitors
While other department stores offer similar products, SuperGreen Solutions offers a unique service that is not
offered by any of our primary competitors in its holistic approach to finding sustainable solutions. Any department
store can sell products similar to those we provide, however our knowledge of tax rebates, installation connections,
sourcing, sustainability certification, and ability to create a total solution specific to the client sets us apart.
Our consultants are specially trained to know the ins and outs of improving sustainability in homes and business
environments, allowing them to give an educated and specific plan to the client on how to amplify their conservation
efforts. The opportunities that are offered benefit the client in the long run with reduced energy costs as well as the
positive impact they are making on the environment.
SuperGreen Solutions brings a multi-faceted plan for businesses and homeowners to save money, reduce energy
waste, and build a brand around sustainable practices and ethical principles, something that none of their primary
competitors can bring to the table.
C. Disadvantages Compared to Primary Competitors
A disadvantage of SuperGreen Solutions is the many hardware stores that already exist. These chains have a large
customer base who trust the dependability of the companies. SuperGreen Solutions do exist is Texas, but the closest
location to Houston is Fort Worth, Texas, which is 261.8 miles away. It is much more convenient for customers to
make day-to-day purchases at Home Depot than it is at SuperGreen Solutions.
Competitor Strengths Weaknesses
ACE Hardware, Home Depot,
Lowes
• Strong customer base
• Daily convenience
• Consumer autonomy (in store)
• Lack of personal service
• Higher Prices
• Lack of coordination
Black Lion Heating and AC
• Personalized service
• High quality products
• Quality installation
• Lack of product range
• Lack of brand recognition
Solar Systems • High demand product
• Personalized service
• Undifferentiated prices
• Lack of product range
LED Source
• Strong supplier connections
• High growth potential
• Personalized service
• Specific market
• Susceptible to technology
changes
• Lack of product range
14
A. Description of Customers and Geographic Territory to be Targeted for Marketing Efforts
We have two main customer segments that our marketing will be targeted toward, brick and mortar businesses and
middle- to upper-class homeowners. We have two main customer segments that our marketing will be targeted toward:
brick and mortar businesses and middle- to upper-class homeowners. Due to our wide product and service range, the
vast majority of brick and mortar businesses can benefit from the replacement of inefficient utilities or the
implementation of energy saving strategies and technology. Houston is home to 122,517 private-sector businesses9 that
are located in an area affected by hurricanes and tropical storms, bringing climate change to the forefront of the
community’s minds. As a result, businesses are socially drawn to being environmentally conscious and are more likely
to invest in our products. Additionally, our sustainability certification service is more beneficial to the image of a local
business as result of the geographic territory and values that surround it.
The geographic location where we will be franchising SuperGreen Solutions is just south of downtown Houston, in
a high-income area. Houston, being the second fastest growing city in America, demonstrates the opportunity to market
to a constantly growing population as time goes on. The number of new houses being built plus the quantity of
businesses relocating to Houston make it an ideal place to begin our franchise.
B. Existing Marketing Techniques, Strategies, and Tools
SuperGreen Solutions has created and brand image that is centered around energy conservation. Currently they
take advantage of co-op advertisements, ad slicks, and regional media to advertise. Since SuperGreen does not produce
any of their products, this is the main way they promote the products they have for sale. Each franchise is responsible
to pay a small portion of their profits that goes towards future advertising. The money is used for printing and
distributing ad slicks and purchasing advertisements located in regional media. There is not currently a television
commercial that airs. They mainly rely on word of mouth from past customers to draw in potential customers.
9 https://www.bizjournals.com/houston/news/2012/07/23/houston-has-more-than-100000-small.html
VII. Marketing Plan
15
C. Future Marketing Techniques, Strategies, and Tools to Further Promote the Business
Through local advertising in Houston, SuperGreen Solutions will be able to reach a large number of potential
customers. Multiple methods of advertising will be used to ensure that we are able to communicate with as many
different consumers as possible. We will advertise
through the local newspaper, The Houston Chronicle,
and a Texas based podcast called Cool Things
Entrepreneurs Do. For the newspaper, we will run an
advertisement in the Business section every Sunday
for four weeks (February 25, 2018-March 18, 2018).
This advertisement will encourage potential clients to schedule the first consultation, since the advertisement
emphasizes that the consultation is of no cost to the client. Cool Things Entrepreneurs Do airs every Tuesday and
Thursday. An advertisement will be run once per podcast for 28 podcasts in which the hosts will read a written
advertisement encouraging business owners and homeowners to consider utilizing our services. Within this
advertisement, a promotion code will be dictated and offer a discount to those who use the code. This will allow us to
evaluate the effectiveness of this mode of marketing for the future. These will begin running a week before SuperGreen
Solutions opens until three months after it has opened. On average, the podcast receives 15,000 listeners, 8,000 of those
living in Houston. Below is a chart listing the methods of advertising that will be implemented.
Advertisements
Medium Source Type Dates Conducted Price Impressions
Per Ad
Price Per
Impression Cost
Podcast
Cool Things
Entrepreneurs
Do
Audio
Advertisement
Jan-Apr: 3 times per
week May-Aug: 4 times per
week Sep-Dec: 2 times per
week
$8,000
for 30
Podcasts
10,000 $0.03 $44,530
Newspaper
The Houston
Chronicle Printed
Every Saturday and
Sunday of the Year
$320 Per
Print 80,000 $0.004 $33,280
The Houston
Chronicle Online
Jan-Mar: 2 days/week
Apr-Aug: 3 days/week
Sep-Dec: 1 days/week
$280 Per
Day 45,000 $0.0076 $30,800
Total Cost: $108,610
Through these advertising methods we will be able to spread awareness for our new location and increase
revenue. At an average cost per impression of $0.014 we will be making our impact on the community in a cost
effective way and reach our target markets through multiple methods.
CALL NOW FOR A FREE CONSULTATION Pn:425-495-7784
Figure K: Sample advertisement for SuperGreen
Solutions
16
A. Strengths and Weaknesses of Management Team
Our management team will consist of Sales, Operations, and Financial Managers who will run the Houston
location. The Sales Manager will manage the sales and consultations that occur outside of the store. The Operations
Manager will oversee the businesses day to day operations. They will also oversee the in-store employees to ensure that
they are helping customers and that their work is satisfactory. This includes monitoring the location to observe the
employees and asking customers if they are happy with the help they are receiving. The Financial Manager will be in
charge of the accounting and finance for the branch, but will also act as an in-store sales associate when not working on
finances. One weakness of our management team is that the centralized decision-making process involves the input of
all three managers, slowing the decision-making process. However, with this weakness comes a strength; the necessity
to reach consensus among the trio of managers increases the likelihood of coming to a well thought out and methodical
way of improving operations, finances, etc.
The green industry is moving fast, so SuperGreen Solutions focuses on staying on top of the latest technologies and
services. Having access to the findings of expert researchers and the ability to purchase the latest products from top
industry vendors at low prices gives SuperGreen Solutions franchisees a competitive advantage in the industry.
SuperGreen Solutions franchisees can also reach out to field representatives and United Franchising Group executives
depending on the nature of the support needed. Regional meetings are held regularly to allow SuperGreen Solutions
franchisees to stay up-to-date on industry trends and company news.
Statement from UFG: “We have one customer: Our Franchisee. When they are successful, we are successful.”
Every year, UFG also hosts a World Expo that is open to all UFG franchisees and employees. The World Expo is a
great chance for franchisees to meet with other franchisees find out the latest industry and franchise news, receive
awards, and celebrate being part of the United Franchise Group family.
B. Plans for Development of Management Team
When franchising a new SuperGreen Solutions store, the franchisees are required to complete an extensive
training course through the SuperGreen corporation. They must go through 60 hours of training in the classroom and 20
hours of simulated on-job training. The 60 hours of classroom training takes place at the United Franchise Group’s
VIII. Management and Organization
17
world headquarters located in West Palm Beach, Florida.10 The two weeks of classroom training educates the owners
about the benefits SuperGreen’s products yield and how these products are intended to be promoted to consumers.
During the trainings, the website for the new location will be made and launched, and other marketing efforts are to be
formulated to begin development of the new locations branding image.
The owners then experience a week of simulated on-job training before beginning operations in their new location.
The prospective owners are put through simulations of real business interactions that they are likely to experience,
including questions about products that they provide and how their services and consultations are conducted.
C. Management Succession Plan
In the event of incapacity or continued absence of key employees, their position will be filled by another member
of the franchise. If the sales manager has a continued absence, one of the associates immediately below them in the
hierarchy (Figure M) will assume the role of this position in the franchise. If the vacancy is due to a continued absence
of the operations manager, the sales manager will proceed to take his place in the hierarchy, and a sales associate will
assume the role of sales manager. The purpose of moving the sales manager into the operating managers position is due
to the level of communication between our franchise and the suppliers of our products, a role which we feel should be
under the control of a full-time manager. It should be noted that in the hierarchy there is no one immediately below the
financial manager. In an instance where this position is left vacant for an extended period of time, another financial
expert will be hired until the return of the financial manager due to the skills and experience necessary to do the
finances.
D. Acquisition of Additional Management Based on Future Sales
For the next 4-5 years, there will be no need for the acquisition of new management. Our franchise will already
have three managers focusing on different sectors of the business, so there will not be a necessity to evaluate and hire
more. However, we have dictated that one of our long-term goals is to open two other SuperGreen stores in Sacramento
and in Austin in 2024. If we take on this venture and expand our ownership of SuperGreen stores, we would need to
hire new managers to take our places at this location once we left.
We want to focus on loyalty to the business, so the new management positions would be filled by promoting
employees from within our current franchise. Prior to a promotion, our employees would have to demonstrate their
knowledge of SuperGreen’s operations and strategies through experience within the company and achieving high levels
10 https://supergreensolutionsfranchise.com/training-support/
18
of success. Our employees could be promoted to either the Sales Manager position or the Operations Manager position.
The Financial Manager position will be the exception to our method of hiring from within. This position will instead be
hired from an outside source as a full-time employee due to the experience one needs in finance to be most effective in
this role. When hiring the financial manager, we will be looking for someone who has experience in finance, whether
it’s a college degree or prior employment working in finance.
A. Operating Equipment
As a brick and mortar location, SuperGreen Solutions requires fixed asset purchases to create a professional
office setting. To accomplish this, we will be spending the majority of capital on delivery vehicles and leasehold
improvements. The car will be used by traveling sales reps to commute to consultation locations. This is to
decrease travel costs for reps and There will also be a significant sum spent on the franchising fee in order to
receive the licensing rights granted to us by SuperGreen Solutions. Below we have included a fixed asset
depreciation schedule for our new location.
Life Salvage
Number Class Description Date Cost in Years Value Value Expense
1 Automobile 2015 Ford Focus 1/1/2018 15,000 5 6,000 9,000 1,800
2 Delivery Truck 2016 Isuzu NPR HD 1/1/2018 24,900 6 10,000 14,900 2,483
3 Delivery Van 2016 Ford Transit 1/1/2018 15,495 6 7,000 8,495 1,416
55,395 32,395 5,699
4 Furniture 6 Chairs 1/1/2018 915 4 420 495 124
5 Furniture 2 Rayon Corner Desks 1/1/2018 940 7 300 640 91
6 Fixture Samsung 55'' TV 1/1/2018 550 5 200 350 70
7 Fixture Leasehold Improvements 1/1/2018 20,000 8 200 19,800 2,475
22,405 21,285 2,760
8 Office equipment HP LaserJet Printer and Copier 1/1/2018 400 5 100 300 60
9 Office equipment 3 HP computers 1/1/2018 1,500 3 600 900 300
1,900 1,200 360
10 License Franchise Fee 1/1/2018 49,500 35 N/A 49,500 1,414
129,200 10,234
SuperGreen Solutions
For the Period Beginning January 2018
AcquisitionFixed Asset
Total Automobile
Total All Fixed Assets
Total Furniture and Fixtures
Total Office Equipment
Fixed Asset and Depreciation Schedule
Depreciation
Annual Straight Line
IX. Business Resources
19
B. Major Suppliers, Location, and Payment Terms
SuperGreen Solutions sources products from suppliers who we feel best embody the mantra ‘Judge us by the
company we keep’. We base our product suppliers on quality, reputation, proven performance and have an underlying
preference to products that are American made. To maintain our wide and diverse product range we require a multitude
or suppliers that expand across multiple continents and markets. This diagram illustrates the connections between
SuperGreen solutions and its largest suppliers.
Due to our connection through the United Franchise Group and
international buying group Allsafe Energy Efficient Products,
SuperGreen Solutions has favorable relationships with its
suppliers. These relationships and leverage of buying groups
gives associated franchises beneficial payment terms and conditions
that we will reap the benefits of.
Although our suppliers are spread throughout the country, our
relations through the United Franchise Group allow us to utilize a vast array
of suppliers at low costs.
C. Outside Resources Used or Needed to Fulfill Customer
Requirements
To fulfill customer requirements, we will need to employ outside resources from multiple sources. SuperGreen
Solutions is fortunate to be a partner with the United Franchise Group based out of West Palm Beach, FL that licenses
and trains franchisees to be successful in their ventures. The United Franchising Group offers specialized 2-week long
entrepreneurship training course at their headquarters in West Palm Beach. The two weeks of intensive training
includes 60 hours of in-class time and 20 hours of on-job training in their comprehensive overview of the information
pertinent to a prospective franchisee. This course teaches everything there is to know about the ins and outs of running
a successful franchise and has proven its worth as it has producing more than 1400 successful franchises in the last 30
years. The three managers will attend this class and use this resource to learn how to manage the franchise successfully
and meet the customer requirements.
D. Quality Control Procedures
To ensure that the quality of SuperGreen’s consultations and services remains exceptional, multiple procedures
will be followed. Directly following consultation our sales representatives will provide the client with a survey in
Figure L: The diverse array of
SuperGreen Solutions suppliers
20
which they can rate their experience with that employee. This will allow us to monitor the customer satisfaction and
effectiveness of our representatives and in turn, identify how to improve our service. In addition to the survey regarding
the sales representative, there will be an additional survey for evaluating the technician and quality of installation. This
will also give us valuable information about the work being done by our employees. To ensure that our technicians are
trained in installing our products at a consistently high level we will require them to take part in the United Franchise
Group technician training course. This course is a comprehensive training experience that produces capable and
educated technicians for SuperGreen Solutions Franchises.
E. Availability of Skilled Labor to Meet Company Needs
When selecting prospective employees, we will be considering their work experience and education. These factors
and our evaluation based on the interview process will allow us to make a decision on the prospective employee. We
are looking for employees with enthusiasm and grit that are committed to working hard toward the common goal of the
franchise. Due to the nature of our work strong skills in customer service are required. In the case of technicians, we
require an ACTE recognized trade certification. These degrees can be obtained by any one of over 27,000 ACTE
locations in the US and indicate ability to learn and experience.
F. Type and Extent of Necessary Training to upgrade Skills of Labor and Administrative
Employees and the Estimated Cost
As stated earlier, the franchisees will attend 60 hours of training in the classroom and 20 hours of on-job training at
the SuperGreen headquarters before opening their location. This is very similar to the procedures that our other
employees must follow to become part of our SuperGreen franchise. They will complete an 80-hour online training
course and then travel to West Palm Beach, Florida for similar on-job training. The training fee is $1,500, not including
the $350 living expenses while attending the training, all paid for by our franchise.
Promotions within our franchise will be handled and decided by the managers. Since our employees will have
already completed the extensive trainings and will likely have multiple years of experience, there should be minimal
difficulties when promoting these employees to higher positions. The current managers will work together to decide
who they believe the most qualified and effective employee will be in that role. Once the employee has been promoted,
they will begin to receive a higher salary that will be assessed at the time of the promotion. In addition to this, we will
be increasing our payroll by 3% each year to stay consistent with inflation rates and allow our employees to sustain
their quality of living.
21
G. Projected Number of Full-Time and Part-Time Employees
Our SuperGreen location in Houston will consist of 10 full time employees. The three owners will each act as a
manager over a different sector of the franchise, all employed full time. All of the managers will have extensive
knowledge of the SuperGreen Franchise and the products that are provided, so all managers can work alongside in-
store sales associates.
The Sales Manager will supervise three Traveling Sales Representatives. These sales reps go to the locations that
request consultations and evaluate the homes and businesses. They then give recommendations as to where the
household or business could save the most money through the use of ecofriendly products and solutions.
The Operations Manager is in charge of maintaining communication with suppliers of SuperGreen products, as
well as and managing the in-store products and sales associates. The Operations Manager will remain in-store most of
the time, traveling to supplier’s locations to discuss product sales, purchases and transportation of products. They also
oversee the two-full time in-store sales associates and give assistance to any other in-store necessities.
The Financial Manager oversees all the finance that occurs in our SuperGreen franchise. They are responsible for
all the necessary accounting and organization of a budgets for the following year. The financial manager will also work
alongside the in-store sales associates when necessary.
Position Number of
Employees Rate per Hour
Hours per
Month
Total Monthly
Payroll Expense
Total Annual
Payroll Expense
Manager 3 $ 28.00 160 $ 13,440 $ 161,280
Traveling Sales Rep 3 $ 21.00 160 $ 10,080 $ 120,960
Sales Associate 2 $ 16.00 160 $ 5,120 $ 61,440
Technician 2 $ - 160 $ 9,760 $ 117,120
Totals 10 $ 38,400 $ 460,800
The employees at our SuperGreen franchise will be paid considerably high wages compared to others in Houston.
Managers will be paid $30 per hour, traveling sales representatives will be paid $22 an hour, and sales associates will
be paid $17 per hour, all well above Houston’s minimum wage of $7.25. Our employees will also be offered benefits
based on their merit and necessity to the company. Managers and technicians will receive the greatest benefits, with the
traveling salesmen and the sales associates slightly lower.
Position Number of Employees Payroll Tax Cumulative Benefit Rate Total Salary Burden
Manager 3 9% 22% $ 49,997
Traveling Sales Rep 3 9% 20% $ 35,078
Sales Associate 2 9% 20% $ 17,818
Technician 2 9% 22% $ 36,307
Totals 10 $ 139,200
22
Benefits are received by all employees as an incentive to join our franchise and to encourage loyalty to the
company. While not everyone gets the same benefits, we want to stress that all employees have the opportunity to
increase benefits through promotions and performance.
H. Organizational Chart
Below is the organizational chart for the chain of command we will be hiring come January 1, 2018.
A. Sales and Profit Trend
The forecasted sales of our franchise will begin low, following the typical path of a new franchise in a new
location. However, because of the seasonality of the products, many being useful during spring and summer, and the
strong relevance in Houston of these products, we expect that our sales will quickly increase in the early months.
SuperGreen Solutions franchises record an average first-year gross profit of about $828,097. However, we are
forecasting that our gross profit figures will be much higher than these due to our opportune location in Houston.
Houston will enable us to take advantage of weather factors towards which our products and services directly tailor,
including high numbers of days with sun and very high levels of humidity and heat.
The extensive products that our franchise will provide have been labeled below and will be our revenue streams:
Energy Management
EnerG2
Indow Windows
Insulation
Home Automatino
Light
LED Bulbs
Skylights
Power
Lightening Pak
Solar Panels
Distributed Power
EV Charging Stations
Generators
Wind Power
Water
Water Purification
Air to Water
Water Heaters
Air
Air Purification
Ventalation
X. Financial Plan and Data
Owners
Managers
Sales Manager
Oversee Sales
Traveling Sales Rep
Consultations
Traveling Sales Rep
Consultations
Traveling Sales Rep
Consultations
Sales Associate
In Store
Sales Associate
In Store
Finanical ManagerAccounting
Operations Manager
Relations
Installator
Installation
Installator
Installation
Figure M: Command hierarchy for our SuperGreen Location
23
Three Year Sales Forecast SuperGreen Solutions Fiscal Year Begins Jan-18
Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18
Annual
Totals 2019 2020
EnerG² 5 7 8 12 14 15 16 15 14 12 10 10 138 159 190
Sale price @ unit 220.00 220.00 220.00 220.00 220.00 220.00 220.00 220.00 220.00 220.00 220.00 220.00 220.00 220.00
TOTAL 1,100 1,540 1,760 2,640 3,080 3,300 3,520 3,300 3,080 2,640 2,200 2,200 30,360 34,914 41,897
Indow Windows 10 10 12 12 14 15 15 14 12 12 12 14 152 175 210
Sale price @ unit 625.00 625.00 625.00 625.00 625.00 625.00 625.00 625.00 625.00 625.00 625.00 625.00 615.00 615.00
TOTAL 6,250 6,250 7,500 7,500 8,750 9,375 9,375 8,750 7,500 7,500 7,500 8,750 95,000 107,502 129,002
Insulation 9 8 6 8 12 14 16 16 14 14 18 20 155 178 214
Sale price @ unit 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00
TOTAL 4,500 4,000 3,000 4,000 6,000 7,000 8,000 8,000 7,000 7,000 9,000 10,000 77,500 89,125 106,950
Home Automation 8 10 10 14 18 20 20 20 18 18 20 20 196 225 270
Sale price @ unit 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00
TOTAL 1,600 2,000 2,000 2,800 3,600 4,000 4,000 4,000 3,600 3,600 4,000 4,000 39,200 45,080 54,096
LED Bulbs 25 40 60 60 70 75 90 105 120 140 170 210 1165 1340 1608
Sale price @ unit 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00
TOTAL 375 600 900 900 1,050 1,125 1,350 1,575 1,800 2,100 2,550 3,150 17,475 20,096 24,116
Skylights 4 3 2 4 6 7 6 6 7 8 8 9 70 81 97
Sale price @ unit 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00
TOTAL 2,400 1,800 1,200 2,400 3,600 4,200 3,600 3,600 4,200 4,800 4,800 5,400 42,000 48,300 57,960
Lightening Pak 6 5 6 8 8 10 11 10 8 6 6 5 89 102 123
Sale price @ unit 80.00 80.00 80.00 80.00 80.00 80.00 80.00 80.00 80.00 80.00 80.00 80.00 80.00 80.00
TOTAL 480 400 480 640 640 800 880 800 640 480 480 400 7,120 8,188 9,826
Solar Panel 1 1 3 5 7 8 8 6 3 3 2 2 49 56 68
Sale price @ unit 12,500.00 12,500.00 12,500.00 12,500.00 12,500.00 12,500.00 12,500.00 12,500.00 12,500.00 12,500.00 12,500.00 12,500.00 12,500.00 12,500.00
TOTAL 12,500 12,500 37,500 62,500 87,500 100,000 100,000 75,000 37,500 37,500 25,000 25,000 612,500 704,375 845,250
Distributed Power 1 1 1 2 3 3 4 3 3 3 2 2 28 32 39
Sale price @ unit 2,200.00 2,200.00 2,200.00 2,200.00 2,200.00 2,200.00 2,200.00 2,200.00 2,200.00 2,200.00 2,200.00 2,200.00 2,200.00 2,200.00
TOTAL 2,200 2,200 2,200 4,400 6,600 6,600 8,800 6,600 6,600 6,600 4,400 4,400 61,600 70,840 85,008
EV Charging Station 1 1 1 1 2 2 2 2 2 2 3 3 22 25 30
Sale price @ unit 1,100.00 1,100.00 1,100.00 1,100.00 1,100.00 1,100.00 1,100.00 1,100.00 1,100.00 1,100.00 1,100.00 1,100.00 1,000.00 1,000.00
TOTAL 1,100 1,100 1,100 1,100 2,200 2,200 2,200 2,200 2,200 2,200 3,300 3,300 24,200 25,300 30,360
Generators 0 1 1 1 2 2 2 2 2 2 3 3 21 24 29
Sale price @ unit 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00
TOTAL 0 2,500 2,500 2,500 5,000 5,000 5,000 5,000 5,000 5,000 7,500 7,500 52,500 60,375 72,450
Wind Power 2 2 3 4 4 4 6 8 8 7 5 5 58 67 80
Sale price @ unit 2,300.00 2,300.00 2,300.00 2,300.00 2,300.00 2,300.00 2,300.00 2,300.00 2,300.00 2,300.00 2,300.00 2,300.00 2,300.00 2,300.00
TOTAL 4,600 4,600 6,900 9,200 9,200 9,200 13,800 18,400 18,400 16,100 11,500 11,500 133,400 153,410 184,092
Water Purification 1 2 2 3 5 5 4 4 5 5 4 4 44 51 61
Sale price @ unit 1,650.00 1,650.00 1,650.00 1,650.00 1,650.00 1,650.00 1,650.00 1,650.00 1,650.00 1,650.00 1,650.00 1,650.00 1,650.00 1,650.00
TOTAL 1,650 3,300 3,300 4,950 8,250 8,250 6,600 6,600 8,250 8,250 6,600 6,600 72,600 83,490 100,188
Air to Water 2 3 3 6 8 10 10 8 6 6 4 3 69 79 95
Sale price @ unit 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
TOTAL 4,000 6,000 6,000 12,000 16,000 20,000 20,000 16,000 12,000 12,000 8,000 6,000 138,000 158,700 190,440
Water Heaters 4 3 3 2 2 1 1 2 3 4 5 5 35 40 48
Sale price @ unit 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
TOTAL 8,000 6,000 6,000 4,000 4,000 2,000 2,000 4,000 6,000 8,000 10,000 10,000 70,000 80,500 96,600
Air Purification 3 4 5 6 5 3 1 2 2 3 3 3 40 46 55
Sale price @ unit 2,300.00 2,300.00 2,300.00 2,300.00 2,300.00 2,300.00 2,300.00 2,300.00 2,300.00 2,300.00 2,300.00 2,300.00 2,300.00 2,300.00
TOTAL 6,900 9,200 11,500 13,800 11,500 6,900 2,300 4,600 4,600 6,900 6,900 6,900 92,000 105,800 126,960
Ventalation 5 5 5 6 8 12 10 8 6 6 8 8 87 100 120
Sale price @ unit 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00
TOTAL 3,000 3,000 3,000 3,600 4,800 7,200 6,000 4,800 3,600 3,600 4,800 4,800 52,200 60,030 72,036
Monthly totals: All
Categories 60,655 66,990 96,840 138,930 181,770 197,150 197,425 173,225 131,970 134,270 118,530 119,900 1,617,655 1,856,025 2,227,230
12-month Sales Forecast for 2018 Annual Sales Forecast
24
B. Strategy and Timing for Obtaining Capital
To properly finance our franchise, we are asking for a $200,000 loan with 8% interest rate on a term of 5
years. The amortization schedule has been provided below:
Payment Schedule for SuperGreen Solutions
Month Principal Paid Interest Paid Loan Balance
Begin $0 $0 $200,000
2018 $33,888 $14,775 $166,112
2019 $36,701 $11,963 $129,411
2020 $39,747 $8,916 $89,664
2021 $43,046 $5,618 $46,619
2022 $46,619 $2,045 $0
Totals $200,000 $43,317 $0
Loan Amount Interest Rate Term Start Date
$200,000 8% 5 Jan-18
Summary of Payments & Interest
Monthly Payment will be $4,055
Total Interest Paid over Life of Loan $43,317
Interest Paid in 2018 $14,775
Interest Paid in 2019 $11,963
Interest Paid in 2020 $8,916
Interest Paid in 2021 $5,618
Interest Paid in 2022 $2,045
25
Average
Sales
Revenue Stream Conservative Likely Aggressive Price Conservative Likely Aggressive
EnerG² 110 138 166 220.00$ 24,288.00$ 30,360.00$ 36,432.00$
Indow Windows 122 152 182 625.00$ 76,000.00$ 95,000.00$ 114,000.00$
Insulation 124 155 186 500.00$ 62,000.00$ 77,500.00$ 93,000.00$
Home Automation 157 196 235 200.00$ 31,360.00$ 39,200.00$ 47,040.00$
LED Bulbs 932 1165 1398 15.00$ 13,980.00$ 17,475.00$ 20,970.00$
Skylights 56 70 84 600.00$ 33,600.00$ 42,000.00$ 50,400.00$
Lightening Pak 71 89 107 80.00$ 5,696.00$ 7,120.00$ 8,544.00$
Solar Power 39 49 59 12,500.00$ 490,000.00$ 612,500.00$ 735,000.00$
Distributed Power 22 28 34 2,200.00$ 49,280.00$ 61,600.00$ 73,920.00$
EV Charging Stations 18 22 26 1,100.00$ 19,360.00$ 24,200.00$ 29,040.00$
Generators 17 21 25 2,500.00$ 42,000.00$ 52,500.00$ 63,000.00$
Wind Power 46 58 70 2,300.00$ 106,720.00$ 133,400.00$ 160,080.00$
Water Purification 35 44 53 1,650.00$ 58,080.00$ 72,600.00$ 87,120.00$
Air to Water 55 69 83 2,000.00$ 110,400.00$ 138,000.00$ 165,600.00$
Water Heaters 28 35 42 2,000.00$ 56,000.00$ 70,000.00$ 84,000.00$
Air Purification 32 40 48 2,300.00$ 73,600.00$ 92,000.00$ 110,400.00$
Ventalation 70 87 104 600.00$ 41,760.00$ 52,200.00$ 62,640.00$
Totals 1,294,124.00$ 1,617,655.00$ 1,941,186.00$
Average
Cost
Revenue Stream Conservative Likely Aggressive Per Unit Conservative Likely Aggressive
EnerG² 110 138 166 60.00$ 6,624.00$ 8,280.00$ 9,936.00$
Indow Windows 122 152 182 90.00$ 10,944.00$ 13,680.00$ 16,416.00$
Insulation 124 155 186 110.00$ 13,640.00$ 17,050.00$ 20,460.00$
Home Automation 157 196 235 65.00$ 10,192.00$ 12,740.00$ 15,288.00$
LED Bulbs 932 1165 1398 3.00$ 2,796.00$ 3,495.00$ 4,194.00$
Skylights 56 70 84 330.00$ 18,480.00$ 23,100.00$ 27,720.00$
Lightening Pak 71 89 107 20.00$ 1,424.00$ 1,780.00$ 2,136.00$
Solar Power 39 49 59 3,500.00$ 137,200.00$ 171,500.00$ 205,800.00$
Distributed Power 22 28 34 800.00$ 17,920.00$ 22,400.00$ 26,880.00$
EV Charging Stations 18 22 26 325.00$ 5,720.00$ 7,150.00$ 8,580.00$
Generators 17 21 25 900.00$ 15,120.00$ 18,900.00$ 22,680.00$
Wind Power 46 58 70 1,000.00$ 46,400.00$ 58,000.00$ 69,600.00$
Water Purification 35 44 53 750.00$ 26,400.00$ 33,000.00$ 39,600.00$
Air to Water 55 69 83 1,000.00$ 55,200.00$ 69,000.00$ 82,800.00$
Water Heaters 28 35 42 900.00$ 25,200.00$ 31,500.00$ 37,800.00$
Air Purification 32 40 48 1,100.00$ 35,200.00$ 44,000.00$ 52,800.00$
Ventalation 70 87 104 300.00$ 20,880.00$ 26,100.00$ 31,320.00$
Totals 449,340.00$ 561,675.00$ 674,010.00$
Average
Gross Profit
Revenue Stream Conservative Likely Aggressive Per Unit Conservative Likely Aggressive
EnerG² 110 138 166 160.00$ 17,664.00$ 22,080.00$ 26,496.00$
Indow Windows 122 152 182 535.00$ 65,056.00$ 81,320.00$ 97,584.00$
Insulation 124 155 186 390.00$ 48,360.00$ 60,450.00$ 72,540.00$
Home Automation 157 196 235 135.00$ 21,168.00$ 26,460.00$ 31,752.00$
LED Bulbs 932 1165 1398 12.00$ 11,184.00$ 13,980.00$ 16,776.00$
Skylights 56 70 84 270.00$ 15,120.00$ 18,900.00$ 22,680.00$
Lightening Pak 71 89 107 60.00$ 4,272.00$ 5,340.00$ 6,408.00$
Solar Power 39 49 59 9,000.00$ 352,800.00$ 441,000.00$ 529,200.00$
Distributed Power 22 28 34 1,400.00$ 31,360.00$ 39,200.00$ 47,040.00$
EV Charging Stations 18 22 26 775.00$ 13,640.00$ 17,050.00$ 20,460.00$
Generators 17 21 25 1,600.00$ 26,880.00$ 33,600.00$ 40,320.00$
Wind Power 46 58 70 1,300.00$ 60,320.00$ 75,400.00$ 90,480.00$
Water Purification 35 44 53 900.00$ 31,680.00$ 39,600.00$ 47,520.00$
Air to Water 55 69 83 1,000.00$ 55,200.00$ 69,000.00$ 82,800.00$
Water Heaters 28 35 42 1,100.00$ 30,800.00$ 38,500.00$ 46,200.00$
Air Purification 32 40 48 1,200.00$ 38,400.00$ 48,000.00$ 57,600.00$
Ventalation 70 87 104 300.00$ 20,880.00$ 26,100.00$ 31,320.00$
Totals 844,784.00$ 1,055,980.00$ 1,267,176.00$
Units Sold Budgeted Gross Profit
SuperGreen Solutions
Gross Profit Model
Units Sold
SuperGreen Solutions
Cost Model
For the Year 2018
Units Sold Budgeted Cost
SuperGreen Solutions
Revenue Model
For the Year 2018
Budgeted Revenue
For the Year 2018
26
C. Three-Year Projected Operating Statement
Jan
Feb
Mar
Ap
rM
ay
Ju
nJu
lA
ug
Sep
Oct
Nov
Dec
2018
2019
2020
Op
erati
ng R
even
ue
Ener
gy M
anag
emen
t $
1
3,4
50
$ 1
3,7
90
$ 1
4,2
60
$ 1
6,9
40
$ 2
1,4
30
$ 2
3,6
75
$ 2
4,8
95
$ 2
4,0
50
$ 2
1,1
80
$ 2
0,7
40
$ 2
2,7
00
$ 2
4,9
50
242,0
60
$
27
8,3
69
$
334
,043
$
Lig
ht
$ 2
,775
$ 2
,400
$ 2
,100
$ 3
,300
$ 4
,650
$ 5
,325
$ 4
,950
$ 5
,175
$ 6
,000
$ 6
,900
$ 7
,350
$ 8
,550
59,4
75
$
67,2
07
$
80
,648
$
Pow
er $
2
0,8
80
$ 2
3,3
00
$ 5
0,6
80
$ 8
0,3
40
$ 1
11,1
40
$ 1
23,8
00
$ 1
30,6
80
$ 1
08,0
00
$ 7
0,3
40
$ 6
7,8
80
$ 5
2,1
80
$ 5
2,1
00
891,3
20
$
1,0
25,0
18
$
1,2
30
,022
$
Air
$ 1
3,6
50
$ 1
5,3
00
$ 1
5,3
00
$ 2
0,9
50
$ 2
8,2
50
$ 3
0,2
50
$ 2
8,6
00
$ 2
6,6
00
$ 2
6,2
50
$ 2
8,2
50
$ 2
4,6
00
$ 2
2,6
00
280,6
00
$
32
2,6
90
$
387
,228
$
Wat
er $
9
,900
$ 1
2,2
00
$ 1
4,5
00
$ 1
7,4
00
$ 1
6,3
00
$ 1
4,1
00
$ 8
,300
$ 9
,400
$ 8
,200
$ 1
0,5
00
$ 1
1,7
00
$ 1
1,7
00
144,2
00
$
16
5,8
30
$
198
,996
$
Tota
l O
per
ati
ng R
even
ue
60,6
55
66,9
90
96,8
40
138,9
30
181,7
70
197,1
50
197,4
25
173,2
25
131,9
70
134,2
70
118,5
30
119,9
00
1,6
17,6
55
1,8
59,1
14
2,2
30
,937
Cost
of
Good
s S
old
:
Ener
gy M
anag
emen
t2,7
10
2,8
50
2,8
70
3,5
90
4,5
90
5,0
90
5,3
70
5,2
20
4,6
30
4,5
10
4,9
60
5,3
60
51,7
50
59,5
13
71
,415
Lig
ht
1,3
95
1,1
10
840
1,5
00
2,1
90
2,5
35
2,2
50
2,2
95
2,6
70
3,0
60
3,1
50
3,6
00
26,5
95
30,5
84
36
,701
Pow
er6,7
45
7,6
25
15,6
45
24,4
85
33,5
10
37,0
50
39,8
70
34,0
50
23,5
10
22,4
70
17,3
95
17,3
75
279,7
30
32
1,6
90
386
,027
Air
6,3
50
7,2
00
7,2
00
10,0
50
13,5
50
14,6
50
13,9
00
12,8
00
12,4
50
13,3
50
11,5
00
10,5
00
133,5
00
15
3,5
25
184
,230
Wat
er4,8
00
5,9
00
7,0
00
8,4
00
7,9
00
6,9
00
4,1
00
4,6
00
4,0
00
5,1
00
5,7
00
5,7
00
70,1
00
80,6
15
96
,738
Tota
l C
ost
of
Good
s S
old
22,0
00
24,6
85
33,5
55
48,0
25
61,7
40
66,2
25
65,4
90
58,9
65
47,2
60
48,4
90
42,7
05
42,5
35
561,6
75
64
5,9
26
775
,112
Gro
ss P
rofi
t
Ener
gy M
anag
emen
t10,7
40
10,9
40
11,3
90
13,3
50
16,8
40
18,5
85
19,5
25
18,8
30
16,5
50
16,2
30
17,7
40
19,5
90
190,3
10
21
8,8
57
262
,628
Lig
ht
1,3
80
1,2
90
1,2
60
1,8
00
2,4
60
2,7
90
2,7
00
2,8
80
3,3
30
3,8
40
4,2
00
4,9
50
32,8
80
36,6
23
43
,947
Pow
er14,1
35
15,6
75
35,0
35
55,8
55
77,6
30
86,7
50
90,8
10
73,9
50
46,8
30
45,4
10
34,7
85
34,7
25
611,5
90
70
3,3
29
843
,994
Air
7,3
00
8,1
00
8,1
00
10,9
00
14,7
00
15,6
00
14,7
00
13,8
00
13,8
00
14,9
00
13,1
00
12,1
00
147,1
00
16
9,1
65
202
,998
Wat
er5,1
00
6,3
00
7,5
00
9,0
00
8,4
00
7,2
00
4,2
00
4,8
00
4,2
00
5,4
00
6,0
00
6,0
00
74,1
00
85,2
15
102
,258
Tota
l G
ross
Pro
fit
38,6
55
42,3
05
63,2
85
90,9
05
120,0
30
130,9
25
131,9
35
114,2
60
84,7
10
85,7
80
75,8
25
77,3
65
1,0
55,9
80
1,2
13,1
88
1,4
55
,825
64%
63%
65%
65%
66%
66%
67%
66%
64%
64%
64
%6
5%
65%
65%
65%
Op
erati
ng E
xp
ense
s
Pay
roll
38,4
00
38,4
00
38,4
00
38,4
00
38,4
00
38,4
00
38,4
00
38,4
00
38,4
00
38,4
00
38,4
00
38,4
00
460,8
00
47
4,6
24
488
,863
Pay
roll
tax
es a
nd b
enef
its
11,6
00
11,6
00
11,6
00
11,6
00
11,6
00
11,6
00
11,6
00
11,6
00
11,6
00
11,6
00
11,6
00
11,6
00
139,2
00
14
3,3
76
147
,677
Royal
ty F
ee1,9
33
2,1
15
3,1
64
4,5
45
6,0
02
6,5
46
6,5
97
5,7
13
4,2
36
4,2
89
3,7
91
3,8
68
52,7
99
54,3
83
56
,014
Gen
eral
Mar
ket
ing F
ee1,5
46
1,6
92
2,5
31
3,6
36
4,8
01
5,2
37
5,2
77
4,5
70
3,3
88
3,4
31
3,0
33
3,0
95
42,2
39
48,5
28
58
,233
Lea
se/
Tri
ple
net
fee
s7,4
67
7,4
67
7,4
67
7,4
67
7,4
67
7,4
67
7,4
67
7,4
67
7,4
67
7,4
67
7,4
67
7,4
67
89,6
04
92,2
92
95
,061
Inte
rest
Expen
se1,3
33
1,3
15
1,2
97
1,2
79
1,2
60
1,2
41
1,2
23
1,2
04
1,1
85
1,1
66
1,1
46
1,1
27
14,7
76
11,9
62
8
,916
Tax
es a
nd L
isen
ces
1,2
13
1,3
40
1,9
37
2,7
79
3,6
35
3,9
43
3,9
49
3,4
65
2,6
39
2,6
85
2,3
71
2,3
98
32,3
53
37,1
82
44
,619
Dep
reci
atio
n853
853
853
853
853
853
853
853
853
853
85
3
853
10,2
36
6,3
82
6,3
82
Insu
rance
850
850
850
850
850
850
850
850
850
850
85
0
850
10,2
00
10,5
06
10
,821
Off
ice
Suppli
es300
300
300
300
300
300
300
300
300
300
30
0
300
3,6
00
3,7
08
3,8
19
Uti
liti
es800
800
800
800
800
800
800
800
800
800
800
800
9,6
00
9,8
88
10
,185
Adver
tisi
ng
9,0
51
9,0
51
9,0
51
9,0
51
9,0
51
9,0
51
9,0
51
9,0
51
9,0
51
9,0
51
9,0
51
9,0
51
108,6
12
11
1,8
70
115
,226
Web
des
ign a
nd m
ainte
nan
ce262
100
100
100
100
100
100
100
100
100
100
100
1,3
62
1,4
03
1,4
45
Rep
airs
250
250
250
250
250
250
250
250
250
250
250
250
3,0
00
3,0
90
3,1
83
Pro
fess
ional
Fee
s900
900
900
900
900
900
900
900
900
900
900
900
10,8
00
11,1
24
11
,458
Mis
cell
aneo
us
1,2
00
1,2
00
1,2
00
1,2
00
1,2
00
1,2
00
1,2
00
1,2
00
1,2
00
1,2
00
1,2
00
1,2
00
14,4
00
14,8
32
15
,277
Tota
l O
per
ati
ng E
xp
ense
s77,9
58
78,2
33
80,7
00
84,0
10
87,4
69
88,7
38
88,8
17
86,7
23
83,2
19
83,3
43
82,1
12
82,2
59
1,0
03,5
81
1,0
35,1
50
1,0
77
,179
Inco
me/
Loss
bef
ore
tax
(39,3
03)
(35,9
28)
(17,4
15)
6,8
95
32,5
61
42,1
87
43,1
18
27,5
37
1,4
91
2,4
37
(6,2
87)
(4,8
94)
52,3
99
17
8,0
37
378
,646
Tax E
xp
ense
(7,8
61)
(7,1
86)
(3,4
83)
1,3
79
6,5
12
8,4
37
8,6
24
5,5
07
298
487
(1,2
57)
(979)
10,4
80
35,6
07
75
,729
Net
In
com
e [L
oss
](3
1,4
42)
$
(28,7
43)
$
(13,9
32)
$
5,5
16
$
26,0
49
$
33,7
49
$
34,4
95
$
22,0
30
$
1,1
93
$
1,9
50
$
(5,0
29)
$
(3,9
15)
$
41,9
19
$
14
2,4
30
$
302
,917
$
-52%
-43%
-14%
4%
14%
17%
17%
13%
1%
1%
-4%
-3%
3%
8%
14%
Su
per
Gre
en S
olu
tion
s
Fore
cast
ed S
tate
men
t of
Inco
me
For
the
yea
rs e
nd
ed D
ecem
ber
31
, 2
01
8, 2
01
9 &
20
20
Tota
ls
27
D. One-Year Projected Cash Flow Statement
Jan
Feb
Mar
Ap
rM
ay
Ju
nJu
lA
ug
Sep
Oct
Nov
Dec
2019
2020
Beg
inn
ing C
ash
Bala
nce
-$
136,6
36
$
105,1
53
$
88,4
63
$
91,2
02
$
114,4
55
$
145,3
91
$
177,0
52
$
196,2
30
$
194,5
52
$
193,6
12
$
185,6
73
$
178,8
30
$
288,5
77
$
Cash
In
flow
s:
Ow
ner
Funds
100,0
00
Loan
Pro
ceed
s200,0
00
Sal
es60,6
55
66,9
90
96,8
40
138,9
30
181,7
70
197,1
50
197,4
25
173,2
25
131,9
70
134,2
70
118,5
30
119,9
00
1,8
59,1
14
2,2
30,9
37
Tota
l C
ash
In
flow
s360,6
55
66,9
90
96,8
40
138,9
30
181,7
70
197,1
50
197,4
25
173,2
25
131,9
70
134,2
70
118,5
30
119,9
00
1,8
59,1
14
2,2
30,9
37
Avail
ab
le C
ash
Bala
nce
360,6
55
203,6
26
201,9
93
227,3
93
272,9
72
311,6
05
342,8
16
350,2
77
328,2
00
328,8
22
312,1
42
305,5
73
2,0
37,9
44
2,5
19,5
14
Cash
Ou
tflo
ws:
Fix
ed A
sset
s129,2
00
Inven
tory
Purc
has
es22,0
00
24,6
85
33,5
55
48,0
25
61,7
40
66,2
25
65,4
90
58,9
65
47,2
60
48,4
90
42,7
05
42,5
35
645,9
26
775,1
12
Pay
roll
38,4
00
38,4
00
38,4
00
38,4
00
38,4
00
38,4
00
38,4
00
38,4
00
38,4
00
38,4
00
38,4
00
38,4
00
474,6
24
488,8
63
Pay
roll
tax
es a
nd b
enef
its
11,6
00
11,6
00
11,6
00
11,6
00
11,6
00
11,6
00
11,6
00
11,6
00
11,6
00
11,6
00
11,6
00
11,6
00
143,3
76
147,6
77
Royal
ty F
ee1,9
33
2,1
15
3,1
64
4,5
45
6,0
02
6,5
46
6,5
97
5,7
13
4,2
36
4,2
89
3,7
91
3,8
68
52,7
99
54,3
83
Gen
eral
Mar
ket
ing F
ee1,5
46
1,6
92
2,5
31
3,6
36
4,8
01
5,2
37
5,2
77
4,5
70
3,3
88
3,4
31
3,0
33
3,0
95
42,2
39
48,5
28
Lea
se/T
riple
net
fee
s7,4
67
7,4
67
7,4
67
7,4
67
7,4
67
7,4
67
7,4
67
7,4
67
7,4
67
7,4
67
7,4
67
7,4
67
92,2
92
95,0
61
Tax
es a
nd L
icen
ses
1,2
13
1,3
40
1,9
37
2,7
79
3,6
35
3,9
43
3,9
49
3,4
65
2,6
39
2,6
85
2,3
71
2,3
98
37,1
82
44,6
19
Off
ice
Suppli
es300
300
300
300
300
300
300
300
300
300
300
300
3,7
08
3,8
19
Insu
rance
850
850
850
850
850
850
850
850
850
850
850
850
10,5
06
10,8
21
Dep
reci
atio
n853
853
853
853
853
853
853
853
853
853
853
853
10,2
36
6,3
82
Uti
liti
es800
800
800
800
800
800
800
800
800
800
800
800
9,8
88
10,1
85
Adver
tisi
ng
9,0
51
9,0
51
9,0
51
9,0
51
9,0
51
9,0
51
9,0
51
9,0
51
9,0
51
9,0
51
9,0
51
9,0
51
111,8
70
115,2
26
Web
des
ign a
nd m
ainte
nan
ce262
100
100
100
100
100
100
100
100
100
100
100
1,4
03
1,4
45
Rep
airs
250
250
250
250
250
250
250
250
250
250
250
250
3,0
90
3,1
83
Pro
fess
ional
Fee
s900
900
900
900
900
900
900
900
900
900
900
900
11,1
24
11,4
58
Mis
cell
aneo
us
1,2
00
1,2
00
1,2
00
1,2
00
1,2
00
1,2
00
1,2
00
1,2
00
1,2
00
1,2
00
1,2
00
1,2
00
14,8
32
15,2
77
Tax
Expen
se(7
,861)
(7,1
86)
(3,4
83)
1,3
79
6,5
12
8,4
37
8,6
24
5,5
07
298
487
(1,2
57)
(979)
35,6
07
75,7
29
Su
bto
tal
219,9
64
94,4
18
109,4
75
132,1
35
154,4
61
162,1
60
161,7
07
149,9
91
129,5
92
131,1
54
122,4
13
122,6
88
1,7
00,7
04
1,9
07,7
67
Oth
er C
ash
Ou
tflo
ws:
Loan
Pri
nci
pal
2,7
22
2,7
40
2,7
58
2,7
77
2,7
95
2,8
14
2,8
33
2,8
52
2,8
71
2,8
90
2,9
09
2,9
28
36,7
01
39,7
47
Loan
Inte
rest
1,3
33
1,3
15
1,2
97
1,2
79
1,2
60
1,2
41
1,2
23
1,2
04
1,1
85
1,1
66
1,1
46
1,1
27
11,9
62
8,9
16
Su
bto
tal
4,0
55
4,0
55
4,0
55
4,0
56
4,0
55
4,0
55
4,0
56
4,0
56
4,0
56
4,0
56
4,0
55
4,0
55
48,6
63
48,6
63
Tota
l C
ash
Ou
tflo
ws
224,0
19
98,4
73
113,5
30
136,1
91
158,5
16
166,2
15
165,7
63
154,0
47
133,6
48
135,2
10
126,4
68
126,7
43
1,7
49,3
67
1,9
56,4
30
En
din
g C
ash
Bala
nce
136,6
36
$
105,1
53
$
88,4
63
$
91,2
02
$
114,4
55
$
145,3
91
$
177,0
52
$
196,2
30
$
194,5
52
$
193,6
12
$
185,6
73
$
178,8
30
$
288,5
77
$
563,0
84
$
An
nu
al
2018
Su
per
gre
en S
olu
tion
s
Fore
cast
ed S
tate
men
t of
Ca
sh F
low
s
For
the
yea
rs e
nd
ed D
ecem
ber
31
, 2
01
8, 2
01
9 &
20
20
28
We are requesting a business loan to cover the preliminary costs and fees of opening a new
SuperGreen Solutions franchise in Houston, Texas starting in January 2018. We believe in the success and
strength of SuperGreen Solutions, and we believe that we will be successful opening a franchise for the
following reasons:
• SuperGreen Solutions is a part of the United Franchise Group, committing themselves to the
success of their franchisees and providing invaluable connections and training.
• As shown in the financial documents provided above, we project our new SuperGreen Solutions
location to increase its sales by 15% after the first fiscal year and another 20% in the following
fiscal year.
• The greater Houston area is ideal for the opening of a new brick and mortar SuperGreen:
o 2017 Forbes listed Houston as #2 on their list of fastest growing cities at a rate of 2% per
year
o Stability of the local economy, even in times of global recession.
o Extreme local climate creates demand for products and services provided by SuperGreen
Solutions
• Diverse and expansive product range creates a multitude of revenue streams and maximizes
profits.
• Exceptional training provided by the United Franchise Group and the owners personal expertise
will result in highly trained employees who are committed to meeting the needs of our customers
in a professional manner.
• The trio of owners are driven, problem solvers, that are committed to the success of the franchise
and will do everything they can to ensure the success of the branch.
This request is for a $200,00 loan payable on terms of 5 years at an 8% interest rate, beginning on
January 1, 2018.
XI. Conclusion
29
Clint Carter 16 min, et al. “SuperGreen Solutions Franchise Information.” Entrepreneur,
www.entrepreneur.com/franchises/supergreensolutions/334344#.
CurrentResults.com, Liz Osborn. “Most Humid Cities in the United States.” Most Humid Cities in USA - Current
Results, www.currentresults.com/Weather-Extremes/US/most-humid-cities.php.
“Energy Efficient Lighting.” SuperGreen Solutions, www.supergreensolutions.com/energy-efficient-home-and-
commercial-lighting/led-lighting/.
Group, Houston Chronicle Media. “Print, Digital, Web & Mobile Advertising Solutions in Houston, TX - Houston
Chronicle Media Group.” Print, Digital, Web & Mobile Advertising Solutions in Houston, TX - Houston
Chronicle Media Group, marketing.chron.com/.
“Houston Population 2017.” Houston Population 2017 (Demographics, Maps, Graphs),
worldpopulationreview.com/us-cities/houston-population/.
“Houston, TX.” Forbes, Forbes Magazine, www.forbes.com/places/tx/houston/.
“Houston Weather | Current & Average Temperatures.” Visit Houston, www.visithoustontexas.com/travel-
planning/weather/.
Jessica L. Semega, Kayla R. Fontenot, and Melissa A. Kollar. “Data.” Income and Poverty in the United States:
2016, 1 Sept. 2017, www.census.gov/data/tables/2017/demo/income-poverty/p60-259.html.
“Renewable Energy Franchise - Energy Saving Solutions | SuperGreen Solutions.” SuperGreen Solutions Franchise,
supergreensolutionsfranchise.com/.
“SuperGreen Solutions Leads the Market as the Premier Advisor, Supplier and Installers of Domestic and
Commercial Energy-Efficient Solutions.” SuperGreen Solutions of Boise, ID,
www.supergreensolutions.com/boise-id/.
“Training & Support.” SuperGreen Solutions Franchise, supergreensolutionsfranchise.com/training-support/.
XII. Bibliography
30
SWOT Analysis for SuperGreen Solutions with PRIMOF and PRESTLE Elements
Inte
rnal
Fact
ors
Strengths Weaknesses
People
• Upper management is highly involved in
franchise activity
People
• Requires professional and skilled employees
which are difficult to obtain
Resources
• Access to a wide variety of renowned
suppliers
Resources
• A reliance on third party suppliers increases
consistently
Innovation and Idea
• Unique selling point of creating a full
solution to the customer
Innovation and Ideas
• Our system can be easily copied by competitors
Marketing
• Demographic of location matches marketing
techniques
Marketing
• Lack of funding to run an expansive marketing
campaign
Operation
• Highly personal and specially tailored
service to customers
Operation
• Difficult to oversee the installation of products
Finance
• Connections with UFG gives priority
financing options from suppliers
Finance
• Since we do not produce our own products, we
are on our supplier’s payment terms
Exte
rnal
Fact
ors
Opportunities Threats
Political
• Local economic initiatives make Houston
one of the easiest places in the US to do
business
• Tax rebates for “green” products increase
demand in our industry
Political
• Legislation such as the Iran Nuclear Deal
damages the local economy in Houston
Economic
• National economy is strengthening which
creates a good climate for business
Economic
• When oil prices decline the Houston economy
suffers
Social
• Climate change is a widely discussed issue
and is prevalent in public discourse
Social
• Climate change deniers are not interested in our
philosophy and intentions
Technological
• Advancements in green technology allows us
to expand our product line and diversify
further
Technological
• Budget restrictions keep us from the national
media stage
Legal
• Governmental taxes and rebates allowing
businesses to file returns
Legal
• Faulty installation creating damage to a
household or business
Environmental/Ethical
• Our mission to reduce emissions and
increase the prevalence of “green” solutions
is seen as ethical and beneficial to society
Environmental/Ethical
• Sales techniques can be used on vulnerable
people and violate ethical principles
XIII. Appendix
