WE EDUCATE COMMUNITIES

WE PROVIDE HEALTHCARE

WE EMPLOY LOCALS BUT WE NEED YOUR HELP.

IMAGINE BREATHING TOXIC FUMES JUST FOR A LITTLE LIGHT.

IMAGINE TRAVELING FOR HOURS JUST TO CHARGE YOUR PHONE.

IMAGINE TRYING TO PROVIDE FOR YOUR FAMILY ON JUST $46 PER MONTH.

100 WATTS OF POWER

INCLUDES BATTERY AND INVERTER

LASTS UP TO 12 HOURS WHEN CHARGED

POWERS ANY EFFICIENT AC/DC APPLIANCE WHAT DOES THIS MEAN FOR THEM?

AVOID USE OF TOXIC FUELS LIKE KEROSENE

NO NEED TO PURCHASE FUEL FOR LIGHTS OR PHONE

STAY HEALTHY

SAVE MONEY

CHARGE PHONES OR OTHER APPLIANCES EXTRA INCOME

NO NEED TO TRAVEL TO BUY FUEL OR USE ELECTRICITY SAVE TIME

SUNBOX SAVES MONEY, TIME AND ENERGY SO WHAT ARE THE NEXT STEPS?

EDUCATE THE MARKET Action Plan

EDUCATE THE MARKET

SOURCE DIRECTLY FROM CHINA

Action Plan

EDUCATE THE MARKET

SOURCE DIRECTLY FROM CHINA

COMMUNITY DEMONSTRATIONS

Action Plan

EDUCATE THE MARKET

SOURCE DIRECTLY FROM CHINA

COMMUNITY DEMONSTRATIONS

DOOR TO DOOR SALES AND TRIALS

Action Plan

EDUCATE THE MARKET

SOURCE DIRECTLY FROM CHINA

COMMUNITY DEMONSTRATIONS

DOOR TO DOOR SALES AND TRIALS

SERVICE EMBEDDED IN THE COMMUNITY

Action Plan

WE CAN TRANSFORM THE LIVES OF THE POOR BUT HOW CAN THEY AFFORD IT?

WITHOUT SUNBOX

LOWEST MONTHLY

HOUSEHOLD INCOME

OF INCOME SPENT ON

ENERGY AND FUEL

DISTANCE TO NEAREST

TOWN WITH ELECTRICITY

WITHOUT SUNBOX

LOWEST MONTHLY

HOUSEHOLD INCOME

OF INCOME SPENT ON

ENERGY AND FUEL

DISTANCE TO NEAREST

TOWN WITH ELECTRICITY

WITH SUNBOX

WEEKLY PAYMENT ON

INSTALLMENT PLAN

ANNUAL SAVINGS AFTER

SUNBOX IS PAID OFF

MONTHS UNTIL THE

SUNBOX IS PAID OFF

2,033 UNITS TO BREAKEVEN ESTIMATED BY THIRD YEAR.

SUSTAINABLE BUSINESS MODEL 15% MARGIN RESULTS IN VIABLE BUSINESS

TEACH THE POOR TO HELP THEMSELVES FUTURE GENERATIONS NEED NOT RELY ON AID

Long term stretch goals

MEDICS

BUSINESSES COMMUNITIES

FARMERS

HELP US BEGIN THE JOURNEY DONATE TODAY.

www.livinggoods.org/donate1

What makes us different?

• We do not treat the poor as charity cases.

• We give them the tools to build a sustainable future.

• We do not have high margins, we avoid exploitation.

• Our payment plan is based on the lowest Ugandan

household income, it is accessible to anyone.

• Our business offers local employment.

• Our ventures are self sustaining.

PRO FORMa Year 1 Year 2 Year 3

UNIT SALE 900 1,350 2,700

SHIPMENTS 2.00 3.00 6.00

Revenue($) 126,000 189,000 378,000

COGS 115,740 169,290 329,940

Fixed Cost 8,640 8,640 8,640

Variable Cost 107,100 160,650 321,300

Gross Profit Margin 10,260 19,710 48,060

Gross Profit Margin Rate 8.14% 10.43% 12.71%

Operating Expenses-Shipment 2,400 3,600 7,200

Marketing Expense 27,948 27,948 27,948

SMS Campaign 2,000 2,000 2,000

Salary for Sales Reps 20,475 20,475 20,475

Advertising-Painting House 39 39 39

Demonstrations 5,434 5,434 5,434

Total Expenses 30,348 31,548 35,148

Operating Profit ($) (20,088) (11,838) 12,912

Taxes 0.00 0.00 3,873.60

Net Profit ($) -20,088.00 -11,838.00 9,038.40

Net Marketing Margin -17,688.00 -8,238.00 20,112.00

MROS -14.04% -4.36% 5.32%

MROI -63.29% -29.48% 71.96%

FINANCIALS -20% Y1 20% -20% Y2 20% -20% Y3 20%

UNIT SALE 720 900 1,080 864 1,350 1,944 1,382 2,700 4,666

SHIPMENTS 2 2 3 2 3 5 4 6 11

Revenue($) 100,800 126,000 151,200 120,960 189,000 272,160 193,536 378,000 653,184

COGS 94,320 115,740 137,160 111,456 169,290 239,976 173,098 329,940 563,894

fixed cost 8,640 8,640 8,640 8,640 8,640 8,640 8,640 8,640 8,640

variable cost 85,680 107,100 128,520 102,816 160,650 231,336 164,458 321,300 555,254

Gross Profit Margin 6,480 10,260 14,040 9,504 19,710 32,184 20,438 48,060 89,290 Gross Profit Margin

Rate 6.43% 8.14% 9.29% 7.86% 10.43% 11.83% 10.56% 12.71% 13.67%

Operating Expenses-

shipment 2,400 2,400 3,600 2,400 3,600 6,000 4,800 7,200 13,200

Marketing Expense 27,948 27,948 27,948 27,948 27,948 27,948 27,948 27,948 27,948

SM Campaign 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000

Salary for sales reps 20,475 20,475 20,475 20,475 20,475 20,475 20,475 20,475 20,475 Advertising-Painting

house 39 39 39 39 39 39 39 39 39

Demonstrations 5,434 5,434 5,434 5,434 5,434 5,434 5,434 5,434 5,434

total expenses 30,348 30,348 31,548 30,348 31,548 33,948 32,748 35,148 41,148

Operating Profit (23,868) (20,088) (17,508) (20,844) (11,838) (1,764) (12,310) 12,912 48,142

Taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3,873.60 14,442.60

Net Profit -23,868.00 -20,088.00 -17,508.00 -20,844.00 -11,838.00 -1,764.00 -12,310.00 9,038.40 33,699.40

NMC -21,468.00 -17,688.00 -13,908.00 -18,444.00 -8,238.00 4,236.00 -7,510.00 20,112.00 61,342.00

MROS -21.30% -14.04% -9.20% -15.25% -4.36% 1.56% -3.88% 5.32% 9.39%

MROI -76.81% -63.29% -49.76% -65.99% -29.48% 15.16% -26.87% 71.96% 219.49%

BUDGETS

Year 1 Year 2 Year 3

Cost of Units 107,100 160,650 321,300

Shipping Costs 2,400.00 3,600.00 7,200.00

Total Variable Costs ($) 109,500 164,250 328,500

SMS Campaign 2,000 2,000 2,000

Sales Rep Salaries 20,475 20,475 20,475

Advertising on Houses 39 39 39

Public Demonstrations 5,434 5,434 5,434

Operational Costs 8,640 8,640 8,640

Total Fixed Costs ($) 36,588 36,588 36,588

Total Expenses ($) 146,088 200,838 365,088

BUDGETS explained

• Cost of Goods: 900 units imported at a rate from the manufacturer of $119 per unit.

• Shipping Costs: Rate of $1200 per container, with a capacity of 450 units per container (Protron, 2014).

• SMS Campaign: SMS will be sent at a frequency of once per month, the cost of which is estimated at $0.01 per SMS. With $2,000 budget, just under 10% of Living Goods entire customer base can be reached.

• Sales Rep Salaries: Using 117 reps at a rate of $175 per year • House Painting: Three houses painted at a cost of $13 per house. • Demonstrations: Price for transport and fuel is $29 per demonstration.

100 community members will attend the demonstration. • Operations: Rental of storage at $600 per month and utilities of $120 per

month (Numbeo, 2014).

Sales forecast

Year 1 Year 2 Year 3

UNITS SHIPMENTS UNITS SHIPMENTS UNITS SHIPMENTS

-50% 450 1 338 1 338 1

-20% 720 2 864 2 1,382 4

Goal 900 2 1,350 3 2,700 6

20% 1,080 3 1,944 5 4,666 11

50% 1,350 3 3,038 7 9,113 21

PRICe

Cost of Unit from Manufacturer $119

Shipping cost per unit $2.67

15% Margin $18.25

Total Unit Cost $139.92

Lowest Ugandan Wage $10.70 per week

Amount of income spent on energy $3.21 per week

Time to pay off item 10 months

Donation requirements

Year 1 Year 2 Year 3

Total Expenses ($) 146,088 200,838 365,088

Loss from Ugandan Campaign ($) 20,088 11,838 0

Total Donations Required 166,176 212,676 365,088

Cost Per Dollar Raised 0.06 0.06 0.06

Fundraising Expenses Required 9,971 12,761 21,905

SHEDULE

Phase 1:

5 Months

Phase 2:

3 Months

Phase 3:

6 Months

Phase 4:

10 Months

Phase 5:

1 Year.

Product

Strategy

Training of sales reps,

education of

consumers and

gauging the market.

Beta test the

market with initial

shipment through

3 key branches.

Analyze results.

If successful,

import more

shipments and

expand to more

Ugandan

branches.

Initial installment

plans now fully paid

off. Penetrate all

branches with

SunBox. Keep on top

of shipments.

Reassess and

consider product

line expansion.

Donation

Strategy

Establish event

connections and

begin donation drive

to sponsor initial

investment.

Drive donations

with emphasis on

initial reactions to

SunBox in Uganda.

Publicize initial

success to garner

further donations.

Seek press

release.

Use stories of

success to boost

Living Goods’

consulting branch

for other NGOs.

Refresh donation

drive with new

product lines

COMPETITORS Competitor Company Details Living Goods’ New Product Differentiation

Barefoot Power

http://barefootpowerugand

a.com

Wide range of solar lighting products.

Micro-entrepreneurship program.

Living Goods’ solar system can supply energy to

a range of appliances, not just lighting.

Customers can earn revenue from Living Goods’

solar system.

IndiGo

http://www.azuri-

technologies.com/indigo

Modular solar system.

Installment plans.

Scratch card activated power.

Customers ultimately pay $135 for a 3W

system worth $70.

Living Goods system offers 100W at better value.

IndiGo profit margin is 48% per unit. Living

Goods will not exploit the impoverished in this

way.

Solar Now

http://solarnow.eu/index.ph

p

Solar solutions for entrepreneurs and

small businesses.

Initial down payment is over$100, too

high for individuals in rural areas.

100W system costs over $700.

Products only sold in retailers.

Living Goods offer a much lower down payment

on a system which will not only cost less, but will

also produce more power than Solar Now’s

solutions.

Living Goods’ rural distribution networks brings

solar to communities.

Angaza Designs

http://www.angazadesign.

com

Cellular PAYG system for rural areas.

Only supply solar lighting and phone

chargers.

Living Goods’ solar system can supply energy to

a range of appliances, not just lighting.

TARGET MARKETS

Product Strategy Donation Strategy

• Families within rural communities. • Small businesses run by individuals. • Schools and clinics in rural areas. • Local landlords in off the grid

townships.

• Philanthropic individuals or foundations.

• Businesses based in San Francisco who can benefit from affiliation with a social enterprise.

SUPPLIERS LOGISTICS AND DISTRIBUTION

Supplier Logistics Distribution

Shenzhen Lonfours • In China • $119 per unit

Protron Shipping • Sea freight • Ground transport • Customs and fees • $1200 per 20ft container • 450 units per container

Door to Door Reps • Embedded in rural

communities • 24hr customer service

TECH SPECS PRODUCT

Company Name: Shenzhen Lonfours

Product Category: Solar Home Kits

Product Name: Mini Home Solar Power System

Model: LSF-MSP80

Solar Panel: 100 Watts

Battery: 12V 100AH

Controller/Inverter Output: AC 110V/220V * 4, DC 12V *1

Load Power: 100 Watts

CORRECTIVE ACTIONS Problem Solutions Effectiveness

Products are stolen before

payment is fulfilled.

Assess the cost and frequency of theft and

consider installing tracker chips in units.

Measure if the solution is viable based on

ongoing costs. Monitor recoverability of

stolen units with tracker chips installed.

Products are broken beyond

repair before payment is

fulfilled.

Replace the customer’s broken unit with a

new unit. Send the broken units back to

China under manufacturer warranty.

Assess whether the shipping costs of

returning units to the manufacturer is more

or less costly than recycling the broken

units.

Customers fail to pay back

installment plan on time.

Train sales reps to better assess customers’

financial stability before selling. Recover

product from customer or consider

extending repayment window by decreasing

monthly repayments.

Monitor customer response and ability to

pay.

Products broken, lost or

stolen during shipping.

Report the problem and recover costs via

insurance covered by shipping agency.

Track frequency of problem and willingness

of shipping agency to cover costs.

Customers do not see a need

for the product.

Educate customers on the long term

benefits of the product or extend free trials.

Monitor costs of free trail and uptake of

product following trials.

Competition releases a

similar product.

Compare value propositions, assess threat

and consider alternate marketing.

Track loss of customers to competitors and

ensure high rates of customer satisfaction.

Not enough donations are

received to cover the initial

investment.

Consider extending donation drive period

and evaluating where costs can be cut.

Evaluate ongoing financial situation until

test launch becomes viable.

CONTINGENCY plan and EXIT strategy

Contingency Plan Exit Strategy

Tipping Point Over 900 Year 1 Less than 450 in Year 1

Stage 1 Accelerate penetration of SunBox

into the rest of Uganda and Kenya.

Cease importation of further units.

Stage 2 When market saturation peaks,

consider importation of low power

appliances which can be run off

SunBox power.

Sell off remaining SunBoxes at

discount price.

branches

Marketing objectives

• Sell 900 solar systems by the end of the first year.

• Educate 10% of current consumers to the benefits of the

solar product within the first year.

• Aim to break even by the end of the third year.

• Increase donations by 6% within first year.