trugreen llc smal biz
TRANSCRIPT
TruGreen Wind Generation System LLCTable of Contents
Executive summery Pg. 2 I. TruGreen – The Company Pg. 3
A. Company description Pg. 3 Vision Pg. 3 Mission Statement Pg. 3 Company Background Pg. 3
B. Product and Industry Pg. 4 II. The Market Pg. 5
A. Target customer Pg. 5 B. Competitive advantage Pg. 5 C. Growth Plan Pg. 6
III. The Organization Pg. 7 A. Legal and organizational Structure Pg. 7 B. Management Team Pg. 8 C. Location Pg. 9
IV. The Financials Pg. 9 A. Critical Risks Pg. 9B. Financial Goals Pg. 10 C. Past Sales Revenue Pg. 10D. Five-year Financial Projections Pg. 11E. Financial Plan Assumptions Pg. 11
a. Revenue assumptions Pg. 11b. Expense assumptions Pg. 11
F. Financial Standings Pg.12 V. Appendix Pg. 14
A. Samantha Ochoa’s Resume Pg. 14B. Website Pg.16 C. Promotional Flyer Pg.17D. Price List Pg.18
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Executive Summary
The production and selling of wind generation power systems is a 7 billion dollar a year
industry. Soon that number will double or even triple in the next few years. The purpose of
TruGreen is to provide a source of energy that is environmentally friendly. In the Denver
Colorado area there are no local companies in this market. However, there are several dozen
wind generation companies in the United States at the present time. TruGreen is competing in a
market that has limited competition. Because of this our competitors are out of the price range
for most customers and they must turn to lower quality power generation systems. At TruGreen
we strive to fill this void and bring many of these customers an affordable power generation
system that will meet their needs in both quality and price.
There are approximately 1.5 million people that live in the Denver metro area. Out of these
people, 250,000 have middle or above income levels that can afford a power generation system.
There are approximately 5,000 farms and ranches in the outlying Denver area plus another
possible customer living in the foothills and mountains in remote cabins, ski lodges, and other
businesses. This is approximately 50,000 more potential customers that are within a short drive
to Denver.
It is projected through research that TruGreen should be able to achieve $2 million in net
sales within the first year followed by $6 million in net sales by the end of the second year. Third
year sales are projected at 10 million and fourth year sales are projected to reach $25 million
followed by an estimated $50 million in sales by year five. These sales will be accomplished by
extending our reach from the Denver area to other areas of the country over a five-year period.
As we see it the country’s energy needs will continue to grow, therefore, the sales at TruGreen
will continue to grow.
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I. The Company
A. Company Description
Vision
TruGreen energy will put more green in your pocket.
Mission Statement
TruGreen is dedicated to providing high-quality low-cost power generation to the
United States wherever possible. TruGreen strives to be environmentally friendly
and eliminate fossil fuels as the major source of power in our country. TruGreen
also strives to be a good employer that works with its employees and community
to bring a better environment to us all.
Company Background
TruGreen was developed to help end the United States dependence on foreign oil
sources. The founders, Samantha and Sherri met in College and remained in
contact over the years. In 2006 the two women got together and through their
passion for green living developed TruGreen and subsequently moved to Denver
Colorado.
In 2007 TruGreen started production on their first prototype of their wind
generation systems. Over the last three years they have done extensive research
and product development on their streamlined wind generation systems. They
have had several of their units in operation for the last two years and are now
ready to go into full production. Along the way TruGreen has made some
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important business contacts and friends in the Denver area which has help the
movement into green power expand tremendously.
Through personal financing and investors within the Denver community,
TruGreen has approximately $3 million in venture-capital and guarantees on
credit on their first-run of machining parts and supplies. TruGreen has also signed
a 10 year agreement for the use of a factory owned by the city of Denver that has
not been used in several years and will bring jobs and development to Denver.
TruGreen has retooled the factory and is ready to throw the switch and start the
production of green wind driven generator systems for Denver and beyond.
B. Product and Industry
TruGreen’s objective is to create clean affordable electrical power. They have
gone to great lengths to purchase only the highest quality parts and hire the most
experienced work force to produce a high-end high-quality product at a
reasonable price. TruGreen also ensures that all parts and materials are made and
assembled in the United States of America.
The wind generation systems are designed to be easily taken apart and moved to
any location where power generation is needed. In addition, this system is simple
to install and operate. TruGreen has designed the wind generation systems to have
more than one use in your home, business or on your farm. A DC to AC converter
can be used to plug directly into your fixed structures which will help lower your
monthly power bill. TruGreen wind generation systems can also be used as a
stand-alone system with a backup battery attached. No other company offers this
versatility.
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TruGreen has developed three basic wind generation systems. They are the 250
kW, 500 kW, and the 1,000 kW Wind Generation Systems. These systems can be
supported by a battery system or you can purchase a DC to AC converter for a
direct plug-in at your home, business or farm.
II. The Market
A. Target Customer
TruGreen will target customers with an average income over $50,000. They will also
target customers with an education level of high school or above and people 25 years or
older. Through TruGreen research these are the people that would generally be interested
in investing in new technology and power distribution systems. TruGreen is looking to
market consumers that would understand the concept of invest now to save in the future.
The main clientele that will be targeted are farmers, and ranchers in small rural towns.
TruGreen feels these are the customers that represent the primary market that will need
inexpensive power generation systems.
The secondary target for this product would be small businesses in the suburbs of Denver
and the surrounding areas. TruGreen is looking for demographics of small businesses in
mining, utility, forestry, and industrial companies that have an employee range of less
than 500 and sales below $20 million. The rationales behind these target choices are
based on the following research. First, Denver has a large suburb area where individual
homeowners have the ability to purchase wind devices. Therefore, TruGreen will develop
this market for potential buyers. However, our main focus is on small businesses in the
Denver area that are trying to cut their cost on energy consumption as well as other
business costs.
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B. Competitive Advantage
TruGreen has placed itself directly in the middle of the wind generation
competition. They are now looking to compete with turbine companies that
supply factories, power utility companies and other users of electricity. TruGreen
is striving to have the only wind generation system that is multi functional, high-
quality, American made, and is easily moved to wherever power is needed.
TruGreen’s main competitive strategy is price. Our price strategy is to stay
affordable for small businesses, farms, and ranches as well as individuals. Many
of TruGreen’s competitors sell large scale wind generation systems that run
$100,000 or more which are primarily the gauge for factories or power company
electrical needs. TruGreen’s low-end competition range is $2,000 to $10,000 but
this does not represent a high quality product like TruGreen’s. These cheaper
systems are expensive to install and relocate once they have been set up for
operation.
TruGreen has established a price for its inexpensive model at $5,000, its mid-
range model at $12,000 and its premium model at $20,000. Also, the TruGreen
product line is backed by a high-quality warranty. When you purchase a TruGreen
wind generation system you become part of the TruGreen family.
C. Growth Plan
TruGreen has been researching and developing our growth plan for the past few
years. Our goal in the first two years is to work on developing operations in Metro
Denver and the surrounding areas. By the third year TruGreen will expand its
operation to California, Oregon and Washington State. By the fifth year of
operation TruGreen would like to drive into the markets of Kansas City and San
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Antonio Texas as well as Atlanta Georgia and Baltimore Maryland. The driving
force behind our expansion is our reputation as an inexpensive, high-quality
product with good customer service.
III. The Organization
A. Legal and Organizational Structure
TruGreen was formed as a limited liability company (LLC) in the state of Colorado. The
owners, as well as other members of the management team, currently work full time for
TruGreen.
The TruGreen organizational chart below shows the five major components of the
organization. This chart includes management functions, our sales platform, and our
production staff. We feel as our company grows the organization will be compact and
efficient until future demands.
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Border directors CEO and CFO
Marketing and Sales manager
Sales staff
Dealers
Research and development
manager
Manager of maintenance
and engineering
Production manager and Factory team
Purchasing and logistical manager
Warehouse Manager
Shipping and receiving manager
At this time TruGreen has 30 full time employees. All the current employees are
permanent and non family. Our staff consists of experienced personnel with a wide array
of skills and knowledge.
B. Management Team
CEO “Samantha Ochoa”
Samantha Ochoa graduated with a Bachelors of Science in Business Administration from the
University of Georgia. While in school Samantha worked for General Electric in the
renewable energy department which focused on wind power generation. While working in
the renewable energy department she often wondered how to bring this technology of wind
generation to the public at a more affordable price. Samantha spent hours researching the
cost and development of affordable good quality wind generation systems hoping to one day
open her own business.
CFO “Sherri Mason”
Sherri Mason graduated with a Bachelors of Science in Accounting from the University of
Georgia. Her experience with small business financials has influenced our expected growth
and future outcome. Her ability to see our inventory and cash flow will impact our ability to
return capital to investors and this is why she is an integral part of our team. Sherri’s
experience from the finance and accounting department at General Electric will make her a
valuable asset to the company.
Key Personnel
In addition to Samantha and Sherri, TruGreen has a dedicated and experienced team of
managers that assist in the day to day operations. Each manager brings at least five years of
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experience in each of their respective areas. This team will be an asset to TruGreen’s future
success.
C. Location
TruGreen has signed a 10 year contract for the use of a factory owned by the city of Denver.
This site was chosen because it is centrally located with convenient access to potential
customers. The business will continue to develop and franchise dealerships throughout the
metro Denver area to help meet future strategic and sales goals of the business.
IV. The Financials
A. Critical Risks
TruGreen’s prospects must be considered in light of the risks, expenses, and difficulties
recently encountered by companies in their early stage of development in the rapidly
evolving markets such as renewable energy.
Factors and risks that may adversely affect TruGreen’s quarterly operating results
include:
TruGreen’s ability to obtain existing customers, attract new customers
at a steady rate and maintained customer satisfaction.
TruGreen’s ability to acquire products and to maintain appropriate
inventory levels.
Price competition or higher whole sale prices in the industry.
TruGreen’s ability to upgrade and develop its systems and
infrastructure in a timely and effective manner.
Governmental regulations and taxation policies
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General economic conditions and economic conditions specific to
renewable energy.
Based on these factors and risks, TruGreen’s operating results may fall below
the expectations of investors.
B. Financial Goals
For the next five years TruGreen has set up 4 financial goals. These goals are
listed below.
1. To maintain a return of equity of 15% for the first two years and 20%
from then on.
2. To keep labor costs and production costs under 50%
4. To develop and market new battery systems with longer power storage
capabilities.
5. To show profitability in the company by the second year of production
C. Past Sales Revenue
TruGreen has sold and monitored 50 wind generation power systems in the
Denver area over the last three years. With the help of our customers in the
research and development of the product, we were able to break even on the
cost of the manufacturing of each of these units. Through the monitoring of
these units, we feel we have reached a profitable sales price for the production
models that will soon be on the market. Therefore, TruGreen perceives these
50 wind generation systems as proven sales tools for future sales.
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D. Five-year Financial Projections
_________________________ Projections__________________Actual Year 1 Year 2 Year 3 Year 4 Year 5
Financial element Units 2009 2010 2011 2012 2013 2014
Wind generators sold 1 50 2000 6000 10,000 25,000 50,000
Net sales $10,000 500,000 2 million 6 million 10 million 25 million 50 million
Gross profit $10,000 100,000 400,000 600,000 2 million 5 million 10 million
Operating profit( loss) $10,000 50,000 200,000 300,000 1 million 2.5 million 5 million
E. Financial Plan Assumptions
a. Revenue assumptions
For all units sold there will be a $199.99 delivery and installation
fee incurred by the customer.
For all units sold the customer will have the option to purchase an
extended warranty
Revenue will be driven by local and national media advertisements
30% of net revenue will be generated by replacement parts sold to
the customer.
b. Expense assumption
Cost of shipping replacement parts will be passed on to the
customer.
The computer equipment is expected to have a weighted average
life of four years and will be depreciated on a straight line basis.
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Inventory is paid for and delivered in the month prior to sale.
The anticipated and useful life of the furniture and fixtures will be
seven years and will be depreciated on a straight line basis.
F. Financial Standings
Detailed financial standings and start up funding
Total funds required $1,800,000AssetsNon-cash assets from start up $1,100.000Cash requirements from start up $58,000Additional cash Raised $0Cash balance of starting date $58,000Total assets $1,158,000
Liabilities and capital LiabilitiesCurrent borrowing $0Long-term liabilities $1,300,000Accounts payable (outstanding bills) $0Other Current Liabilities (interest free) $0Total liabilities $1,300,000
CapitalPlanned investment $500,000Additional investment requirement $0
Total planned investment $500,000Loss at start up (startup expenses) ($642,000)
Total capital ($142,000)Total capital of Liabilities $1,158,000Total funding $1,800,000
Start up Requirements Startup expensesLegal $10,000Miscellaneous $2,000Insurance $10,000
Rent $20,000
Expensed equipment $600,000
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Total startup expenses $642,000 Start up assetsCash required for Start up $58,000
Startup inventory $500,000Other current assets $0Long-term assets $600,000Total assets $1,158,000For requirements $1,800,000
Start up fundingStartup expenses to funding $642,000Startup assets to fund $1,158,000
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Students Name705 Privet Drive
Atlanta, GA 30301 Home: (404) 424-4444 Mobile: (404) 228-5232
E-mail: [email protected]
Experience: 2007-Present Owner TruGreen Wind Generation Systems LLC: Denver, Colorado
Own and handle business Managed all features of business, including client service, sales, buying,
employing and training. Superb administrative, interpersonal & communication skills: skilled at
coordinating and motivating innovative artists to reach at top efficiency.
Active ability to decide useful priorities and meet unattainable deadlines. Creative in a fast-paced, high-stress atmosphere.
Wide knowledge of mechanical research types, budgeting & preparation.
Experience: 2002-2007 Administrative Assistant General Electrics: Atlanta, Georgia
Provided executive-level administrative support to renewable energy department manager.
Preformed day to day administration tasks such as maintaining information files and processing paper work.
Open sort and distribute incoming correspondence, including fax and e-mail. Perform general office duties such as ordering supplies, and maintain records
management system. Prepare agendas and make arrangements for committee, board, and other
meetings Observing, receiving, and otherwise obtaining information from all relevant
sources. Manage capital purchases, direct vendor relations, generate and maintain
equipment tracking records. Coordinate and maintain weekly attendance and annual vacation records on 65
departmental employees.
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Experience: 2000-2002 Administrative Assistant Turner’s Pianos and Keyboards: Albany, Georgia
Provide executive-level administrative support to Owner and Co- Owner Liaison between all impacted departments to ensure proper communication and
reporting practices. Plan and coordinate on and off site meetings Organized the details of special events, travel arrangements, and itineraries. Distribute company literature to stimulate client interest and sales leads. Perform day to day administration tasks such as maintaining information files and
processing paper work. Open sort and distribute incoming correspondence, including fax and e-mail. Perform general office duties such as ordering supplies, maintain records
management system, and performing basic book keeping work. Prepare invoices, reports, appraisals, memos, letters, financial statements, and
other documents using word processing, spreadsheets, database, and/or presentation software.
Education: University of Georgia Bachelors of Science in Business Administration – 2006
Computer Skills: Windows 2010; Microsoft Word, Excel, Power point, QuickBooks 2010, Adobe Illustrator, Photo Shop, Outlook Express, Website development, Wide Work Flow, ACT 2009.
Special Skills: Fluent in Spanish and English
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Wind power generation is the fastest growing energy source in America. At TruGreen we are dedicated to bring Farmers, Ranchers, small businesses and rural communities the most affordable power source in the world of wind power generation.
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As power bills go up, and profits go down, let TruGreen help control your rising power cost with inventive portable power generation systems designed for working farms and ranches.
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1010 Windmill Way Denver, Colorado 80201
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TruGreen Price List
250 kW Wind Generation System
$5,000.00
500 kW Wind Generation System
$12,000.00
1,000 kW Wind Generation System
$20,000.00