Concept Statement

(Sky Energy)
Product:
Sky Energy is going to provide solar panels solution to consumers of Pakistan. The main
idea of this business is to provide best quality at the cheapest rate for solar energy setup for the
residential use. There are some companies working on solar solution but they mainly work on
big scale for companies or for wholesale. We will provide services on local and residential basis
by buying cheaper and authentic solar products from wholesale market and their authentic
dealers internationally and then helping the residents to setup solar equipment by installing it on
their roofs or balconies by providing them different installments plan if they cannot buy the
whole system at once. As it is difficult for people to invest huge amount of money and that’s
why they usually avoid to shift to this eco-friendly solution, we will provide installment plans
over the period of their choice.
Target Market:
Our initial target market is going to be residents of Lahore. Our marketing team will focus on
upper-middle class to middle class residents of Lahore owning their own house as they are
mainly the main people who are worried about investing big amount of money all together.
Why Sky Energy?
There is a large opportunity for this business to grow as it will provide an opportunity to the
residents of Pakistan to generate their own electricity and save money. The main issue people
face and avoid to shift over this eco-friendly solution to produce energy is the big initial costs
people have to face. That’s why we are going to provide the consumers to purchase our products
on full price as well as several different installments plans according to their budget. Even the
Water and Power Development Authority (WAPDA) of Pakistan appreciates the residents of
Pakistan to install solar equipment and produce their own electricity as well as these residents
can sell excessive produced electricity back to their city’s respective electric supply company.
Special Feature:
 Original and authentic solar products.
 Providing several installment plans.
 Full customer support for any technical information.
 Aftersales complimentary hardware and software support over telephone.
 Free installation.
Management Team:
Initially we are going to need small teams of:
 Technicians.
 Finance and Accounts.
 Marketing.
After reading the above concept statement please provide some feedback through the questions
asked below:
1: List three things that you like about Sky Energy idea described in the above statement.
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2: If you find any flaws in the above concept statement of Sky Energy please provide below.
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3: Do you have any suggestions to make the idea better? Please mention them below:
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4: Do you find this idea to be feasible? (i.e. is it realistic or viable business idea?)
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5. Please provide any additional comments or suggestions that you think might be helpful.
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Results

Sky Energy Concept

Statement Survey.xlsx
 Buying Intention Survey
(Sky Energy)
Please read the following concept statement:
Sky Energy is going to provide solar panels solution to consumers of Pakistan. The main idea of
this business is to provide best quality at the cheapest rate for solar energy setup for the
residential use. There are some companies working on solar solution but they mainly work on
big scale for companies or for wholesale. We will provide services on local and residential basis
by buying cheaper and authentic solar products from wholesale market and their authentic
dealers internationally and then helping the residents to setup solar equipment by installing it on
their roofs or balconies by providing them different installments plan if they cannot buy the
whole system at once. As it is difficult for people to invest huge amount of money and that’s
why they usually avoid to shift to this eco-friendly solution, we will provide installment plans
over the period of their choice.
Based on the Concept Statement above, please answer the following questions.
Thank you!

Q1: How likely would you be to buy the above described services from us?

[ ] Definitively would buy. [ ] Probably would not buy.

[ ] Probably would buy. [ ] Definitely would not buy.
[ ] Might or might not buy.

Q2: How likely would you consider to buy one of the services from us as described above with
the facilitation of installments?

[ ] Definitively would buy. [ ] Probably would not buy.

[ ] Probably would buy. [ ] Definitely would not buy.
[ ] Might or might not buy.

Q3: How likely would you consider to recommend our services described above to a friend,
family member or others?

[ ] Definitively would recommend. [ ] Probably would not recommend.

[ ] Probably would recommend. [ ] Definitely would not recommend.
[ ] Might or might not recommend.
Q4: How likely would you purchase solar related services for residential use?

[ ] Definitively would buy. [ ] Probably would not buy.

[ ] Probably would buy. [ ] Definitely would not buy.
[ ] Might or might not buy.

Q5: How likely would you purchase solar related services for commercial use?

[ ] Definitively would buy. [ ] Probably would not buy.

[ ] Probably would buy. [ ] Definitely would not buy.
[ ] Might or might not buy.

Q6: How much would you be willing to pay for the solar panels system?

[ ] Less than 500,000 Pakistani Rupees.

[ ] Between 500,000 and 700,000 Pakistani Rupees.
[ ] Between 700,000 and 1,000,000 Pakistani Rupees.
[ ] More than 1,000,000 Pakistani Rupees.

Q7: Would you prefer to pay full amount upfront or will prefer to get installment plans from us?

[ ] I would prefer to pay to full amount upfront.

[ ] I would prefer to get the installment plans.

Feel free to add any comments or suggestions you might have! Thank you for your feedback!
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Results

Sky Energy Buying

Intentions Survey.xlsx
 Industry Analysis
Introduction and Brief History of Solar Panels in Pakistan
Solar panels also known as Photo-Voltaic (PV) Panels is a system that uses Photo-voltaic cells
that uses sunlight as a source of energy to generate electricity. The generation of electricity by
the conversion of sunlight into usable electricity is produced directly without any kind of
requirement of moving parts or environmental emissions throughout its maneuver.
This unique and eco-friendly way of producing electricity is being used by humans as early as
7th century and in 1973 the first use of solar panels were introduced named “Solar One”. From
2008 installations of solar system is growing in United States of America from 1.2 gigawatts to
an estimate of almost 30 gigawatts today which is equivalent to 5.7 million average homes. The
average cost of solar panels has also dropped more than 60% and the cost of solar electric system
has dropped by about 50% since 2010.
Solar energy is a very famous mode of production of electricity all around the world. Especially
in the first world countries, which are progressively shifting towards this green source of energy.
Solar energy is considered to be the most economically competitive with conventional energy
sources in many states of United States. There are tremendous benefits of solar energy. Solar
power is without any question good for the environment and is an environment friendly solution
for the production of electricity as it provides clean and green source of energy and is a great
way to reduce carbon footprint. Solar energy is also a free source of energy and the solar panels
system starts saving money as soon as it is turned on.
Pakistan has always been deprived of sustainable energy. Due to the high increase in the
population of Pakistan the energy requirement is increasing gradually which is not getting
fulfilled by the current resources this country have. Thus it can be seen that Pakistan
predominantly necessities an alternative source of electrical energy to fulfill its current and
future requirements and meet its energy demands. Solar energy can be the best alternative that
can be used as not only it helped countries all around the world but also because of the
geographical potential that Pakistan currently have.
Currently there is a good amount of solar panels providers in Lahore but yet very few people
have sufficient amount of money to invest and to shifts towards this eco-friendly solution of
producing electricity. The main reason for that is the initial costs people have to pay to get their
systems on the rooftops of their houses. This shows that although there is availability in this
technology in Pakistan but still the usage of this technology is very limited. Most of the people
cannot simply afford to invest a good sum of money to make their solar panels system start
working efficiently.
Industry Trends
The increase in the awareness of environmental issues brought an enormous change in the shift
towards energy production that consists of low-carbon emissions. This enabled a rise in solar
energy production as it is a great alternate for energy production. Due to the scarce in electricity
in Pakistan many households spends around $2.3 billion per year on alternative energy
production such as electric generators or uninterruptible power source (UPS). These electric
generators creates massive amount of air pollution. Air pollution is an emerging environmental
issue in the major cities of Pakistan. According to a World Bank report, "Karachi's urban air
pollution is among the most severe in the world and it engenders significant damages to human
health and the economy". The inefficient use of energy, an increase in the number of vehicles
used daily, an increase in unregulated industrial emissions and the burning of garbage and plastic
have contributed the most to air pollution in urban areas. These hybrid systems will enticing to
the residents of Pakistan due to having the flexibility to connect along with the national grid
electricity connection that will enable them to utilize the solar energy as an energy saving option
in the presence grid electricity along with providing a backup power in the absence of the
electricity in the day times with the ability to charge the batteries that will provide backup in the
nights as well.

Growth Rate of Solar Energy

As mentioned earlier that a huge amount of trend towards the growth of solar panels in many
first world countries. Still this technology in comparison to those countries is very much less
popular in Pakistan. The energy crises Pakistan faces needs some support system and Solar
Panels is the best solution to replace and support these energy sources. This technology is
gaining a lot of popularity in the past couple of years as there can be seen many residential
homes with having solar panels attached to their rooftops in Lahore and using this alternate
instead of electric generators. According to a report Pakistan’s major source of electricity (44%)
is through the use of natural gas and these scarce fossils fuels are under huge pressure of
shortage due to massive use, thus, government of Pakistan is looking for clean and renewable
energy sources and is recommending the residents of Pakistan to shift towards this environment
friendly source of electricity.
Geographical Potential in Pakistan for Solar Energy
Pakistan have tremendous potential that can meet the country’s electricity demands from all the
renewable energy sources, especially solar energy. The geographical location of Pakistan gives it
a huge benefit by receiving extensive solar rays coming towards it. Pakistan have certain regions
that are extremely hot for more than 6 months and even the city of Lahore receives proper
sunlight almost 8 months a year. This gives a huge benefit to residents of Pakistan.
Pakistan is located in a Sun Belt. An enormous solar potential exists in the country. Pakistan
receives approximately 1800 to 2200 KWh/m2 every day. The country have a potential capacity
for installation of solar panels by an estimate of 1600 GW, which is 40 times greater than the
present consumption of the whole country. As the solar power is only available during daytime,
yet it can still reach 30% daily consumption. Sindh, Baluchistan, Punjab and lower Khyber
Pakhtunkhwa are the prime regions with potential to generate more than 250 Gigawatts of
electric power that can meet the energy deficit of the country for many decades.
Sindh, Baluchistan and some southern parts of Punjab have abundant solar energy potential.
These areas receive 2 MWh/m2 solar irradiation and 3000 hours of sunshine per year, which are
perfect to invest in solar energy to utilize its true potential. Solar energy can relieve this
traditional electricity network and turn out to be an alternate to traditional electricity in remote
areas, where no grid electricity is available. In a research study annual solar radiations in
Pakistan were calculated and plotted throughout the country. In Azad Kashmir and Northern
Areas, lowest incoming solar radiation intensity was 92.38 W/m 2 in December at Gupis and
highest 339.25 W/m2 at Gilgit in June. Solar radiation intensity greater than 150 W/m 2 was
observed at most humid zones of Kashmir during February to October while greater than 200
W/m2 observed in whole Northern and Kashmir regions during April to September. In these
areas, monthly average solar radiations remain from 107.1 to 297.0 W/m2 during the year.
Business of solar panels for residential use have a great demand due to the geographical potential
and energy shortage of the country.

Key success factors

The key success factors for solar energy industry is that the quality of all the components that are
used to build the whole electricity generation should not be compromised in any way. High
quality products should be purchased from the wholesaler, whether it is the hybrid inverter that is
used to receive electricity from the solar panels and the grid station as well, or all the solar panels
that will be purchased from the wholesaler. To have an effective plan for marketing purpose that
can help to reach all the potential customers. Another key success factor is that after sales
services. It is very crucial and important to create a good customer relationship even if it may be
just to provide some technical knowledge related to the product. One of the important key
success factor is that all the employees as well as the owner should have technical knowledge
and expertise related to solar energy and have some experience related to the products as well.
Barriers to entry in the industry
There are a number of barriers that may prevent fresh startups or new companies to enter in this
industry. As there is no local manufacturer in Pakistan all the components related to create a
solar energy system must be imported from other countries. This will eventually increase the cost
for the startup for the new entrants into the industry. The new entrants into the solar panel
industry also need good knowledge and expertise of the whole system as the nature of these
products involve high technological knowledge. The new companies entering the market will be
relatively less known as compared to some solar panels providers that already exist in the market
which can be a hurdle for new entrants but with the services that we are providing and with good
marketing strategy will give us a good edge over the competitors that already exist in the
industry. There will be no compromise over the quality of the products we will be providing
along with the after sales services and support related to any kind of issue that our customers will
face will provide high potential for us in the market over the competitors. The relationship that
we will build with the customers will be something that no other competitors in the existing
market provide. Our company will exist more opportunities for growth in the long term
prospective.

Potential Target Market

The solar panels system is getting tremendous recognition recently and consumers are increasing
in Pakistan as many people are choosing to shift towards solar power instead of fuel generators
for power needs. Our potential consumers are segmented into following groups:
Households: Household consumers with adequate buying power prefer solar energy systems
over power generators. Residents of Punjab and Sindh are especial target with huge potential as
these areas get maximum amount of sunlight. The affordability of such consumers even after the
installment plans that we will provide is also high as the solar energy systems cost quite high.
However, initially our target market will start from residents of Punjab and later spreading across
Sindh.
Small businesses and organizations: Small businesses that located in the areas that have
disrupted electricity supply, these businesses have more chance to opt for solar power. Small
organizations such as health facilities, government offices and NGOs currently operating in rural
areas that have no grid power supply, solar electric systems will also meet their electrical needs
as these organizations mostly works in the daytime only but save backup power in batteries if
needed at night. All these customers can be found in both rural and urban areas of Pakistan.
Educational Institutions: Schools and colleges operating in rural areas with no grid power
supply can use the advantage of solar energy systems to meet their requirements.
Industry Attractiveness Assessment Tool
Sr. # Description Low Potential Moderate Potential High Potential
1 Number of competitors Many Few None
2 Age of industry Old Middle aged Young
Growth rate of industry Little or no Moderate growth Strong growth
3
growth
Average net income for firms in Low Medium High
4
the industry
Degree of industry concentration Concentrated Neither concentrated Fragmented
5
nor fragmented
Stage of industry life cycle Maturity phase Growth Phase Emergence
6
or decline phase phase
Importance of industry’s products “Ambivalent” “Would like to “Must have”
7
and/or services to customers have”
Extent to which business and Low Medium High
8 environmental trends are moving
in favor of the industry
Number of exciting new product Low Medium High
9 and services emerging from the
industry
10 Long-term prospects Weak Neutral Strong

Target Market Attractiveness Assessment Tool

Sr. # Description Low Potential Moderate Potential High Potential
1 Number of competitors in target Many Few None
market
2 Growth rate of firms in the target Little to no Slow growth Rapid growth
market growth
Average net income for firms in Low Medium High
3
the target market
Methods for generating revenue Unclear Somewhat clear Clear
4
in the industry
Ability to create “barriers to Unable to create May or may not be Can create
5
entry” for potential competitors able to create
Degree to which customers feel Satisfied Neither satisfied or Unsatisfied
6 satisfied by the current offerings dissatisfied
in the target market
Potential to employ low cost Low Moderate High
7 guerrilla and/or buzz marketing
techniques to promote the firm’s
product or service
Excitement surrounding new Low Moderate High
8. product/service offerings in the
market
Market Timeliness Analysis
Sr. # Description Low Potential Moderate Potential High Potential
1 Buying mood of customers Customers are Customers are in a Customers are
not in a buying moderate buying in an
mood mood aggressive
buying mood
2 Momentum of market Stable to losing Slowly gaining Rapidly
momentum momentum gaining
momentum
Need for a new firm in the market Low Moderate High
3
with your offerings or geographic
location
Extent to which business and Low Medium High
4
environmental trends are moving
in favor of the target market
Recent or planned entrance of Large firms Rumors that large No larger firms
5
large firms into the market entering the firms may be entered the
market entering the market market or are
rumored to be
entering the
market
 PEST Analysis
Political
National Electric Power Regulatory Authority (NEPRA) emphasizes residents of Pakistan to get
solar panels and install net metering so that they can sell extra produced electricity from their
solar panels back to the power grid station. The solar net-metering allows any of domestic,
commercial or industrial consumers having a three-phase meter connection to be part of the
power generation system by installing it on his/her premises (house, shop, factory, open spaces
etc.). Under the arrangement, such a consumer may sell the additional energy to the respective
power distribution company and make stocktaking (calculations) with it at the end of month.
Since the system allows the consumers to generate electricity from 1KW to 1MW, the NEPRA
issues licenses to the applicants. Before issuance of the license, the respective power distribution
company receives, scrutinizes and processes such applications.

The Alternative Energy Development Board (AEDB) was established as an autonomous body
with the aim of promoting and facilitating the utilization of renewable energy projects in
Pakistan. It has been designated as a ‘one-window’ facilitator at the federal level for processing
solar projects of all sizes. The AEDB can issue a Letter of Intent (LOI), which is the first
contract that a solar developer enters into the AEDB. The AEDB also has developed the standard
power purchase agreement known as the Energy Purchase Agreement (EPA) and the government
support agreement the Implementation Agreement (IA). Both of these are available on its
website.

Economical
Recently the economic situation of Pakistan is in decline. Inflation rate in the year 2020 have
increase up to 11% and the foreign exchange rate is weakening. As the solar panels will be
imported from foreign countries this will bring some unfavorable circumstances to the solar
energy business. Due to the increase in the prices of solar panels we are providing the facility of
payment in installment so that low income residents can also afford to purchase this eco-friendly
facility. Once these solar panels are installed and running the residents of Pakistan will recover
the amount they invested in couple of years and will produce free and clean energy
uninterruptedly. This will not only help economic situation of the residents but also help to
improve the country’s economy as energy shortage problems hinders the economic development
of Pakistan.
Social
The deficiency of the availability of electricity is a sensitive issue for the residents of Pakistan as
it creates negative impact on the living standards and livelihoods of these residents, especially in
the months of summer. Even the residents with comparatively low level of electricity
consumptions can face substantial social benefits including lights in the evening, cooling and the
ability to charge their mobile phones or use other electric equipment for entertainment purpose.
Solar energy systems.

Our business will generate significant employment like construction jobs as well as some long-
term jobs for operations and management activities. Some new jobs will be created for
distribution and installation purpose and a substantial opportunity will be created to promote
female employment for customer services and after sales services through training.

Technological
In today’s world, advancement in technology is occurring day by day. Solar panels is a source of
energy that is eco-friendly and have less harm on the environment. This technology of generating
energy was used as early as 7th century but still is not extinct, instead solar panels gained more
popularity in the 21st century as the awareness of environmental damage and climate change
increased. All the first world countries are trying to shift as much as possible to renewable
energy and reduce their carbon footprint. This technology will not be replaced in the near future
only new discoveries can be made in the solar panels or new sources of renewable energy can be
invented.
 Porter Five Forces Market Analysis
The porter five forces will help to analyze the market for solar power systems sales from the
firm’s viewpoint. "Sky Energy" is not a solar power manufacturing firm but it is involved in
sales, installation and maintenance. “Sky Energy” is focusing on solar power supply to
individual homes and small businesses. The porter five force analyses will provide overview of
the market status and help to decide whether to enter into the market based on the analysis.

Entry Barriers.
The entry barrier in the past to the solar power sector was very hard and difficult due to difficult
licensing, development costs, high research and lack of good quality solar power system
equipment.

However, now the situation is changing very fast and the barrier to new entrants is very low in
Pakistan for investing in solar power systems due to:

 Government of Pakistan has made it very easy to setup as SME (Small and medium-sized
enterprises) unit with help of SMEDA.
 Pakistan has now very low taxation and duty policies for renewable power systems.
 In the past decade, the solar power production technologies have progressed very fast and
have achieved a good level of efficiency with optimized per KWh cost.
 Government of Pakistan is encouraging use of renewable resources to bridge the power
supply and demand gap.

In short, the barrier to new entrants in solar power system sales is low to medium and it is very
favorable to start a solar power system sales business.

Threat of Rivals
The competitive landscape in the solar energy industry varies drastically by country and region.
The growth rate of industries can be a significant factor in competition, and the solar energy
industry is growing at very fast pace in Pakistan and in turn driving price competition. However,
in Pakistan the market is flooded from high to low quality products in the solar power market
and starting a brand with quality product and reliable services will enable our company to
standout from competition. Competition is growing fierce among residential solar as new
companies immerge due to the increase in rooftop solar from consumers.

Threat of Bargaining Power of Buyers

The bargaining power of buyers is fairly low in the solar power since the switching cost for
customer is heavily subsidized by government. In Pakistani community there are two type of
buyers of solar power product i.e. First type (majority) of customer will be small scale that will
buy the system and will not opt for long term maintenance agreement and second type that wants
to go off-grid and will opt long term contract. The first group will buy a fixed price product form
the market, for such item various options are available but in such case they will not have
warranty of the components and prices can be low. The first type of buyer is one off buyer and
has an option to select from various companies to buy reliable product the variation is very
small. Long term leasing and loan (20 years) contract agreement with solar energy companies are
essentially tied to their rates and their provider company. The long-term contracts that are
typically available with home solar systems can be for 20-30 years long contract. However, solar
power market has now established players in this industry, as the industry is maturing the buyers
have plenty of options to choose a solar solution provider.

Threat of Bargaining Power of Suppliers

The leading solar energy companies invest huge sums of money on expensive specific equipment
used in providing their products and services. These investments make the switching costs to
new suppliers extremely high. In addition, also the specialized technologies and components
have large lead time and it quite hard to change suppliers. At the same time these
suppliers/manufactures invest heavily in research and development in-order to provide and
optimized product and standout in the competitive manufacturing market. Due, these factors the
bargain power of the suppliers is very high in solar power sector but with increase in demand and
production capacity is driving the supplier bargaining power down.

Threat of Substitutes
The obvious substitutes for solar would be electricity generated from fossil-fuel or nuclear power
stations. In Pakistan the national grid is still not capable and advance enough to provide
sufficient electricity to the residents of Pakistan. Solar energy is becoming more and more
affordable for consumers and is finally at the point where it can actually achieve grid parity and
save consumers money. It can only be used as substitute or make shift source when grid power is
off.

Hydrogen fuel cells capable of producing high level of electricity are becoming an economically
attractive option due to low upfront cost. Solar energy has been far more expensive than
alternative substitutes that are why majority of people still uses natural gas generators to generate
power. The cost of electricity generated using fossil fuel is still far lower than that of solar
energy. The economic benefits of solar energy substitutes make this the most severe threat level
in the industry.

Conclusion
The conclusion the overall indicators to enter the Pakistan solar power business market are
favorable and it is good time to venture in the market. However, the diversification of business
will be critical as technologies will evolve with time.
ORGANIZATIONAL FEASIBILITY
Organizational feasibility analysis helps the management team that want to startup a new
business to understand their ability to handle the proposed business by determining their
management expertise i.e. how skilled the management team really is or how much skill-set they
need to make the business successful and also by resource sufficiency i.e. the availability of
resources in terms of non-financial resources.

MANAGEMENT PROWESS
Management prowess requires the initial management team that is going to start up the new
business idea to evaluate their abilities and expertise required for the proposed business by being
honest and candid while performing their self-assessments.
Our management prowess assessment tool results are mostly towards high potential to some
being medium potential. Our entire management team is highly passionate about the business
idea. Some of our management team have strong relevant industry experience, yet some have
comparatively low. Our team is having moderate prior entrepreneurial experience on the other
hand our team’s professional and social networks are very strong. Our time is highly creative
however our team’s experience related to cash flow management is relatively low. All of our
initial management team is college graduated and currently enrolled in Masters of Business
Administration (MBA) in the Superior University.
Management Team of Sky Energy
The top management team required for Sky Energy is:
Chief Operating Officer Adeel Javaid
Finance and Accounts Manager Faizan Ansar
Sales & Marketing Manager Fahad Amir
Supervisor Ahsan Tahir

Other staff required for Sky Energy will be:

Technicians
Three technicians will be required for the purpose of installing solar panels or to visit potential
customer’s location to analyze the space and requirement for the installation purpose.
Security Guard
One security guard will be required for the head office.
Office Boy
One office boy will be required for cleaning and maintaining the head office.
Driver
One driver will be required for the transportation of solar panels.
Roles of Top Management Team
Chief Executive Officer (CEO)
The chief executive officer is responsible for the overall performance of the business and is
responsible to evaluate and analyze the overall structure of the organization. The CEO controls
work and resources of the company and confirm the recruitment and retaining of the required
numbers and types of the well-motivated, trained and developed staff to ensure that the
organization reaches its mission’s objectives and goals. In our company, Mr. Adeel Javaid will
work as Chief Executive Officer (CEO) and will be responsible for overall strategy & plaining.
Finance and Accounts Manager
Finance executives are responsible for financial health of an organization. He is also responsible
for controlling a business’s various financial departments. Finance executive work to ensure that
the organization achieve long-term financial goals successfully. Common responsibilities for a
finance executive include preparing financial documents, like financial statements, business
activity reports, and forecasts, manage organization’s finances, supervising financial employees,
finding, opportunities for business expansion. In addition, finance executives can specialize in a
number of areas, such as insurance, risk or credit. In our company, Mr. Faizan Ansar will work
as Finance and Accounts Executive and will be responsible for both finance and accounting of
the organization.
Marketing and Sales Executive
Marketing Executive is a marketing professional who manages marketing strategies. Marketing
Executive helps the marketing team on projects and activities aimed at developing marketing
strategies and operations with overall goal of maximizing business profit. Marketing executives
make strategy and oversee marketing promoting activities of products.
Sales executive responsibility to sell a company's products & services to businesses, individuals
and government. Sales national international or a combination of both. As well as approaching
potential customers with the aim of winning new business and maintain good relationships with
existing customers and repeat business customers wherever possible. In our company, Mr. Fahad
Amir will work as Marketing / Sales Executive and will be responsible for both marketing and
sales of the organization.
Supervisor
Supervisor job is to set goals for performance and deadlines in ways that comply with the
company’s plans and vision. Supervisor will also be responsible for organizing workflow and
ensuring that employees understand their duties or delegated tasks. He will also monitor
employee’s productivity and will also provide constructive feedback and coaching. In our
company, Mr. Ahsan Tahir will work as a supervisor and will manage and ensure the
performance of the technicians as well as have complete technical knowledge of the product.
Sky Energy Hierarchy:

Cheif Operating
Officer
Adeel Javaid

Marketing and Finance & Accounts

Supervisor
Sales Executive Manager
Fahad Amir Ahsan Tahir Faizan Ansar

Technicians Security Guard Office Boy Driver

Sky Energy Hierarchy after 5 years:

Cheif Operating
Officer

General Cheif Financial

Manager Officer

Sales & Marketing Finance &

Manager Supervisor Accounts Manager

Marketing Sales Security Accounts

Technicians Guards
Office Boy Drivers Executive
Executive Executive
Sky Energy Management after 5 years

Sr. # Description Number of Employees

1 Chief Operating Officer 1
2 Chief Financial Officer 1
3 General Manager 1
4 Finance and Accounts Manager 1
5 Account Executive 2
6 Sales & Marketing Manager 1
7 Marketing Executive 2
8 Sales Executive 2
9 Supervisor 3
10 Technicians 15
11 Security Guard 2
12 Office Boy 3
13 Driver 2

Total Employees: 36
RESOURCE SUFFICIENCY
Resource Sufficiency helps the initial management team to recognize how capable that team is in
obtaining resources that are required for the business to succeed by particularly focusing on the
organization’s non-financial resources. This helps the individual or the team starting a new
business to evaluate the other half of organizational feasibility by identifying the most important
non-financial resources and then measuring the availability of such resources.
NON-FINANCIAL RESOURCES
Description Quantity
Work Stations 4
Chairs 12
Electrical wiring and lighting 30
Tables for store and workshops 4
Desktop computers 4
Printer 1
Landline set 4
Tablet 1
Air Condition 3
Ceiling Fans 8

The results of the resource sufficiency related to our business idea is fairly high. The office space
needed for our startup business is easily available. The need for the manufacturing space and
warehouse for our business is available and is under our budget. Contract manufacturers and
outsource providers are also available. Key management employees are existing and our
management team will also flourish in the future as the business will expand. People for key
support are fairly available. Key equipment that would be needed to operate our business such as
solar panels, hybrid inverter systems, computers for offices and delivery vehicle is also easily
available. We will have high support from the government as the government is supporting
SMEs and there is no tax charged to import renewable resources. Our ability to form a business
partnership is fairly high as well. The proximity to similar firms is strong whereas the proximity
to the suppliers is neutral for our business. The proximity to the customers is strong as our initial
target market will be the residents of Lahore.

Office Space Required

We will need an office space of approximately 2700 Sqr. Ft. and we will require a building of 2
floors having main head office on the first floor and warehouse on the ground floor. The location
we will look for is in Johar Town, Lahore.
Management Prowess Assessment Tool
Sr. Description Low Potential Moderate High Potential
# Potential
1 Passion for the business idea. Low Moderate High
2 Relevant industry experience. None Moderate Extensive

Prior entrepreneurial experience. None Moderate Extensive

3
Depth of professional and social networks. Weak Moderate Strong
4
Creativity among the management team Low Moderate High
5
members.
Experience and expertise in cash flow None Moderate High
6
management.
Some college
No college education but Graduated or are
7 College graduate. currently in
education not currently in
college college

Resource Sufficiency Assessment Tool

Resource Sufficiency Ratings

Office Space 1 2 3 4 5

Lab space, manufacturing space, or space to launch a service business. 1 2 3 4 5

Contract manufacturers or outsource providers. 1 2 3 4 5

Key management employees (now and in the future). 1 2 3 4 5

Key support personnel (now and in the future). 1 2 3 4 5

Key equipment needed to operate the business (computers, machinery, 1 2 3 4 5

and delivery vehicles).

Support of local and state government if applicable for business 1 2 3 4 5

launch.

Ability to form favorable business partnerships 1 2 3 4 5

An explanation of the rating system used in the first portion of the table is as follows:

1 = Available

2 = Likely to be available: will probably be available and will be within my budget

3 = Unlikely to be available: will probably be hard to find or gain access to, and may exceed my
budget

4 = Unavailable

5 = N/A: Not applicable for my business

Resource Sufficiency Ratings

Proximity to similar firms (for the purpose of knowledge sharing). Strong Neutral Weak

Proximity to suppliers. Strong Neutral Weak

Proximity to customers. Strong Neutral Weak

FINANCIAL PROJECTIONS:
Assumptions Sheet

SKY ENERGY-ASSUMPTIONS

STARTUP ASSESTS
Furniture & Fixture
Description Quantity Rate Useful Life Total Cost
Work Stations 4 25000 5 YEARS 100,000
Chairs 12 5000 5 YEARS 60,000
Electrical wiring and lighting 30 400 5 YEARS 12,000
Tables for store and workshops 4 20000 5 YEARS 80,000
Total Furniture & Fixture 252,000
Office Equipment
Useful
Description Quantity Rate Life Total Cost

Desktop computers 4 15,000 5 YEARS 60,000

Printer 1 20,000 5 YEARS 20,000

Landline set 4 2,000 5 YEARS 8,000

Tablet 1 30,000 5 YEARS 30,000

Air Condition 3 90,000 5 YEARS 270,000

Ceiling Fans 8 4,000 5 YEARS 32,000

Total Office Equipment 420,000

Civil and Electrification work
Description Area Rate Amount
1300 Sqr.
Civil Work & Elect. on 1st Floor Ft. 300 390,000
800 Sqr.
Civil Work & Elect. On 2nd Floor Ft. 300 240,000

Total Civil and Electrification work 630,000

Securities of Rental properties
Description Amount
Securities of Rental properties 100000
Total Securities of Rental properties 100,000

FIXED COST
Description Amount
STAFF SALARIES 350,000 /month
OFFICE RENT 100,000 /month

WATER BILL 2,000 /month

INTERNET BILL 3,500 /month
TELEPHONE BILL 2,500 /month
PETTY CASH 50,000 /month

Inflation effect for these expenses at year end   10%

TOTAL FIXED COST 508,000

VARIABLE COST
Description Amount
REPAIR AND MAINTAINCE EXPENSES 20,000 /month

MISCELLEONUSE EXPENSES 10,000 /month

VEHICLE & FUEL EXPENSES 15,000 /month

ELECTRICITY BILL 25,000 /month

INFLATION EFFECT FOR THESE EXPENSES AT YEAR
END   10%

TOTAL VARIABLE COST 70,000

INITIAL INVESTMENT REQUIRED IN WORKING CAPITAL Amount
Cash for daily operations 100,000
Receivables 204,612
Advance Rent Office 100,000
Office Supplies 15,000
Legal Expenses of registration 20,000
Promotion 10,000
Pre-paid Insurance 300,000
Less Payables (408,000)
Total Working Capital 341,612

Staff Requirement at Launch

No.
Sr of Salary Per Net Salary Total Annual
Positions
.# Staf Month Per Month Salary
f

1 CEO 1 80,000 80,000 960,000

FINANCE AND ACCOUNTS
2 MANAGER 1 45,000 45,000 540,000

3 SALES & MARKETING MANAGER 1 45,000 45,000 540,000

4 SUPERVISER 1 35,000 35,000 420,000

5 TECHNICIAN 3 30,000 90,000 1,080,000

6 SECURITY GUARD 1 18,500 18,500 222,000

7 OFFICE BOY 1 16,500 16,500 198,000

8 DRIVER 1 20,000 20,000 240,000

10 350,000 4,200,000
Projected Sales

PROJECTED SALES FOR NEXT 5 YEAR

SKY ENERGY
Units available for Sale Price / kW Sales
Year Description
Sale (kW) (Rs.) Revenue (Rs.)
Solar (PV)
1 70 120,000 8,400,000
Systems
Solar (PV)
2 80 121,200 9,696,000
Systems
Solar (PV)
3 90 122,412 11,017,080
Systems
Solar (PV)
4 110 123,636 13,599,973
Systems
Solar (PV)
5 130 124,872 16,233,423
Systems
  Total     27,921,010

EXPENSES CHART
Variable Fixed Yearly Yearly Fixed Total Yearly
Year
Monthly Cost Monthly Cost Variable Cost Cost Cost
1 70,000 508,000 840,000 6,096,000 6,936,000
2 77,000 558,800 924,000 6,705,600 7,629,600
3 84,700 614,680 1,016,400 7,376,160 8,392,560
4 93,170 676,148 1,118,040 8,113,776 9,231,816
5 102,487 743,763 1,229,844 8,925,154 10,154,998
TOTAL     5,128,284 37,216,690 42,344,974
Fixed Assets Depreciation and Amortization
Depreciation
FURNITURE & Depreciation Residual
Year Opening Value Amount for the
FIXTURE Rate Value
year

  1 252,000 20% 50,400 201,600

  2 201,600 20% 40,320 161,280

  3 161,280 20% 32,256 129,024

  4 129,024 20% 25,805 103,219

  5 103,219 20% 20,644 82,575

Total Depreciation on
Furniture & Fixture     169,425  

Depreciation
Opening Depreciation Residual
Office Equipment Year Amount for the
Value Rate Value
year

  1 420,000 20% 84,000 336,000

  2 336,000 20% 67,200 268,800

  3 268,800 20% 53,760 215,040

  4 215,040 20% 43,008 172,032

  5 172,032 20% 34,406 137,626

Total Depreciation on Office
Equipment     282,374  
AMORTIZATION OF WORK ON
RENTAL BUILDING          

Amortization Period 5
 
Amortization for Residual
Year Opening Value  
  the year Value

  1 630,000 126,000 504,000

  2 504,000 126,000 378,000

  3 378,000 126,000 252,000

  4 252,000 126,000 126,000

  5 126,000   126,000 -

Total Depreciation on Office Equipment     630,000  

TOTAL YEAR WISE DEPRECIATION & AMORTIZATION    

  Year Depr. for the year Amor. For the year Total Non-Cash Expense

  1 134,400 126,000 260,400

  2 107,520 126,000 233,520

  3 86,016 126,000 212,016

  4 68,813 126,000 194,813

  5 55,050 126,000 181,050

TOTAL
AMORTIZATION PER
YEAR Total 451,799 630,000  
Projected Cashflow Statement

CASH FLOW STATEMENT

SKY ENERGY
Description   AT ZERO 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR
    RUPEES RUPEES RUPEES RUPEES RUPEES RUPEES
CASH FLOW FROM OPERATING ACTIVITIES              

Profit before taxation 1,203,600 1,832,880 2,412,504 4,173,344 5,897,375

Adjustment:  

Depreciation & Amortization 260,400 233,520 212,016 194,813 181,050

  260,400 233,520 212,016 194,813 181,050

Profit before change in Working Capital     1,464,000 2,066,400 2,624,520 4,368,157 6,078,425
Effect on Cash flows due to working Capital
Change  
(Increase) /Decrease in Current Assets &
Liabilities:  

Stock & other current Assets (exc. Cash and Rec.) 515,000  

Receivables (204,612)  

Payables (increase)/ decrease   408,000        

         
 515,000 203,388

Cash Generated from /(used in) operations   515,000 1,667,388 2,066,400 2,624,520 4,368,157 6,078,425
Finance Cost paid  

Tax Paid (204,612) (311,590) (410,126) (709,469) (1,002,554)

Net Cash Generated from operating activities   515,000 1,462,776 1,754,810 2,214,394 3,658,689 5,075,871
   
CASH FROM INVESTING ACTIVITIES              

Capital Expenditures Incurred (1,917,000)          

CASH FROM FINANCING ACTIVITIES              

Increase/ (Decrease) in Capital from equity 1,917,000 234,612  

Increase /(Decrease) in Long term borrowings  

Net Cash from Financing activities   1,917,000 234,612 - - - -

Net Cash & Cash Equivalent 515,000 1,697,388 1,754,810 2,214,394 3,658,689 5,075,871

Cash at the beginning of the year 100,000 1,797,388 3,552,198 5,766,593 9,425,281

Cash at the end of year   515,000 1,797,388 3,552,198 5,766,593 9,425,281 14,501,153
Projected Profit & Loss Statement

PROFIT & LOSS STATEMENT

SKY ENERGY
SKY ENERGY PROFIT & LOSS 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR
STATEMENT
Description RUPEES RUPEES RUPEES RUPEES RUPEES

Revenues 8,400,000 9,696,000 11,017,080 13,599,973 16,233,423

Direct Expenses 840,000 924,000 1,016,400 1,118,040 1,229,844

Gross Profit 7,560,000 8,772,000 10,000,680 12,481,933 15,003,579

   

Operating Expenses 6,096,000 6,705,600 7,376,160 8,113,776 8,925,154

Operating Profit 1,464,000 2,066,400 2,624,520 4,368,157 6,078,425

   

Depreciation & Amortization 260,400 233,520 212,016 194,813 181,050

Profit before taxation 1,203,600 1,832,880 2,412,504 4,173,344 5,897,375

Taxation 17% 204,612 311,590 410,126 709,469 1,002,554

Net Profit after Taxation 998,988 1,521,290 2,002,378 3,463,876 4,894,821

   
Net Profit Ratio 11.89% 15.69% 18.18% 25.47% 30.15%

Projected Balance Sheet

SKY ENERGY PROJECTED BALANCE

AT ZERO 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR
SHEET
ASSETS   RUPEES RUPEES RUPEES RUPEES RUPEES
CURRENT ASSETS            

Cash and Bank Balances 100,000 1,797,388 3,552,198 5,766,593 9,425,281 14,501,153

Trade Debts 204,612 204,612 204,612 204,612 204,612

Short Term Securities 100,000 100,000 100,000 100,000 100,000 100,000

Pre-paid Rent 100,000 100,000 100,000 100,000 100,000 100,000

Pre-Insurance 300,000 300,000 300,000 300,000 300,000 300,000

Office Supplies 15,000 15,000 15,000 15,000 15,000 15,000

TOTAL CURRENT ASSETS 615,000 2,517,000 4,271,810 6,486,205 10,144,893 15,220,765

   
NON CURRENT ASSETS            
Construction & Electric work on Rental
property 630,000 630,000 630,000 630,000 630,000 630,000

Furniture & Fixtures 252,000 252,000 252,000 252,000 252,000 252,000

Office Equipment & Tools 420,000 420,000 420,000 420,000 420,000 420,000

Depreciation (134,400) (241,920) (327,936) (396,749) (451,799)

Amortization of construction work (126,000) (252,000) (378,000) (504,000) (630,000)

TOTAL FIXED ASSETS 1,302,000 1,041,600 808,080 596,064 401,251 220,201

   

TOTAL ASSETS
1,917,000 3,558,600 5,079,890 7,082,269 10,546,145 15,440,966
   
EQUITY AND LIABILITIES            
EQUITY            

Capital 1,917,000 2,151,612 2,151,612 2,151,612 2,151,612 2,151,612

Unappropriated (Profit & Loss) 998,988 2,520,278 4,522,657 7,986,533 12,881,354

TOTAL EQUITY 1,917,000 3,150,600 4,671,890 6,674,269 10,138,145 15,032,966

LIABILITIES  
Current Liabilities  

Trade Payables 408,000 408,000 408,000 408,000 408,000

TOTAL LIABILITIES - 408,000 408,000 408,000 408,000 408,000

   

TOTAL EQUITY AND LIABILITIES

1,917,000 3,558,600 5,079,890 7,082,269 10,546,145 15,440,966
For detailed financial projections:

Sky Energy
Financial Feasibility.xlsx