If you are intent on creating a residential solar company and need investment, it is likely that you will need a business plan. Pro Business Plans has worked with many residential solar companies to create professional plans for investment and strategy. The following article outlines what is typically included in the plan and how it is structured.
There are several things to consider when preparing a business plan for a residential solar company. Investors will seek to understand what sets your residential solar business apart from the myriad of others on the market. For instance, some residential solar companies will serve a specific segment of the market by leveraging local relationships with realtors and construction contractors.
It may also manufacturer and install its own PV panels, or provide competitive financing options that enable residents to get started with no up-front cost. These unique elements combine to form your business model, direct your marketing strategy, and are reflected in your financial projections.
The business model for a residential solar business plan is relatively straightforward at its most basic level. However, residential solar companies have been able to find positioning in the market by including proprietary technology and financing options. Others have focused on certain geographic areas such as California or Hawaii, where residential solar can save them the most. The administrative team will also place a major role into the development on the business plan and its of particular interest to investors.
Among the most important sections of a residential solar business plan is the marketing strategy. This generally includes a combination of personal selling, branding strategy, and promotions. For instance, the company must have an outstanding salesforce to convert leads generated through digital advertisements and referral networks. Therefore, both a sales plan and digital marketing plan will be included to create the entire sales funnel to acquire and optimize conversions.
The financial forecasting for a residential solar company typically includes three to five-years of forward looking projections including the income statement, cash flow projections, and balance sheet. The financials should be based on those of similar residential solar companies, but adjusted for your company’s unique strategy and market concentration. For instance, if you plan on manufacturing your own PV panels, this would cause a substantial deviation in the financials from a similar company that purchased panels from a third party.
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