LEAF INC. Business Plan. Leaf Inc. Ann Richards School for Young Women Leaders 2206 Prather Ln. Austin, TX (512)

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1 LEAF INC. Business Plan Leaf Inc. Ann Richards School for Young Women Leaders 2206 Prather Ln. Austin, TX (512)

2 1 P a g e Table of Contents I. Executive Summary II. Company Summary III. Products and Services A. Competitive Comparison B. Business Process IV. Market Analysis Summary A. Market Segmentation B. Industry Analysis C. Business Participants D. Distributing Services V. Strategy and Implementation Summary A. Implementation Strategy B. Strategy Pyramid C. Marketing Strategy D. Sales Strategy E. Strategic Alliances F. Sales Forecast G. Pricing Strategies VI. Web Plan Summary VII. Management Summary VIII. Financial Plan A. Estimated Customers B. Cost of Production C. Monthly Payments

3 2 P a g e Executive Summary: Our (Leaf Inc. s) main objective is to ultimately create an application that will allow for monitoring and controlling of the overall energy consumption of major household appliances per energy grid which will be compatible with the iphone 5 and the Apple App Store. We plan to make the application, Leafficiency, simple to understand and exponentially popular for consumers with electric cars, or even to those that want to track the electric usage in their homes. The main keys to success of Leafficiency will be a working prototype, a popular & simple look for Leafficiency, and a functional team that communicates and works efficiently. Company Summary We, as Leafficiency Incorporated (Leaf Inc.), are a small group of senior students working towards the optimization of energy for homeowners through the development of a smartphone application. Pecan Street approached our company to create an application that would combat the growing demand of energy, due to their noticing many houses in the summer of 11 racing up the charts on air conditioner utility bills. This placed a strain on the electric grid for the amount of energy available for the entire neighborhood. Therefore, our company has paired with Pecan Street to get knowledge of what resources are needed in order to help homeowners become energy efficient. We want to give neighborhoods a way to monitor their energy usage and gain the ability to manage and control their electrical appliances. We will develop a mobile application that will accommodate homeowners preferences to monitor their energy usage. Products and Services: I. Competitive comparison: Leafficiency will be facing a direct competitor, GreenWave Reality application, in the mobile application industry, but will be the first of its kind to go above and beyond that of a simple green-awareness application. GreenWave Reality application will monitor and control the consumer s home energy usage from anywhere using GreenWave Reality's innovative energy management solution for iphone and ipad. The GreenWave Reality Monitoring and Control platform is extensible to include a number of additional lifestyle services such as home automation, electric car charging, elderly care, and appliance monitoring, all making the consumer's home smarter and improving their lifestyle. Whereas, with Leafficiency the homeowner can hook up the electrical appliances in their house and connect them with our application on their phone. In order to connect the application to the consumer's home electrical appliances, there will be a serial number on each Tree that will allow the customers to connect to the nest to the application. This is how they will get their energy usage information and conserve energy with a touch of a button. II. Business Process: Pecan Street and our other business partners will be in charge of distributing the Tree to users of the application in order for our application to function properly when communicating with the user s home. We will have a lifetime warranty on the Tree in order to insure people will keep

4 3 P a g e conserving energy throughout their lives. If the Tree were to malfunction due to the improper installation, weather damage, or gas/water leaks in the house we will have services provided by our business partners, free of cost. However, if the Tree were to malfunction due to the actions of the homeowner there will be a $99 repair fee. The package of the Tree and the other sensors are at a set price of $150. After the installation of the package and the application, we will continue to help the application customers monitor the data as well as providing energy data from Pecan Street. Market Analysis Summary: Leaf Inc., with the creation of Leafficiency, is dedicated to offer homeowners the best quality application for their mobile devices in order to effectively read the electricity usage in their home. Pecan Street is leading the way for energy analysis in Austin Texas; with their efforts they are trying to combat the energy crisis. Energy awareness has increased in the past years since people are starting to become more environmentally conscious and our partnering with Pecan Street will help incorporate technology to promote energy efficiency. I. Market Segmentation: Although our goal is for everyone to be aware of their energy usage, we realize that our target audience will be more inclined towards people that own homes, condos, or primary living space and that actually have the desire to be aware of their energy consumption. Due to Pecan Street s current energy analysis work with the Mueller homes; our priority is to sell the application to these homeowners. We will aim towards areas that contain a local Whole Foods grocery store because people that shop there are more inclined to live greener lifestyles. We plan on advertising Leafficiency in stores that sell organic food as well as stores that have electric car chargers in front of the building. As well as cities and companies that are constantly ranked the greenest in the nation. We will start where the knowledge is currently and then we plan on expanding based on the popularity of our application. II. Industry Analysis: In a generation where being green is becoming adopted, The Leafficiency application will be successful across the nation for people that have the desire to be aware of their energy consumption and want to change their behavior. The mobile application industry is a market that is growing exponentially throughout the years. Incorporating the concept of green technology within an application will allow for energy efficiency to take advantage of the growing market. Leaf Inc. s dedication to the energy efficiency awareness and the increase in popularity of energy awareness will make this a popular application throughout citizens across the nation. a. Business Participants: In order for Leaf Inc. to be successful we are depending heavily on an economy that requires third party participation. Our company is depending on the successful functioning of the application store so Leafficiency can be distributed to our users; along with the cell phone manufacture to produce the phone. We are relying on the distributing services of Pecan Street and our partnering energy providers for the successful

5 4 P a g e functioning of our application paired with the nest needed to communicate the consumer's house with their phone. We will have third party validators like LCRA, Sierra Club, the Nature Conservatory, and AT&T who will help us advertise the application to their supporters, who are more inclined to be more environmentally friendly than most. b. Distributing Services: We are looking into to partnering with local energy providers (i.e. Austin Energy and Reliant Energy etc.) in order to create an effective plan to those that are installing the nest. If the consumer gets the Tree installed by the Energy Company or Pecan Street services you get the application free. However, if the consumer gets it installed by another company they will have to buy the application for 99 cents on the application store. Web Plan Summary: We plan to create a functional website that will become a substantial revenue stream for our company, Leafficiency Incorporated (Leaf Inc.). Although it is difficult to predict online sales activity, we've projected a modest profit due to the fact that we believe in the potential for Internet sales to become a substantial percentage of our revenue. After we conducted a survey of our potential clients, it was recorded that 90% of potential clients thought that having a website as an addition would be beneficial to the application s revenue. We also think that having an online component for our company s product will provide our homeowners with the opportunity to have a broader understanding of the quality of product that they are adding to their daily life. The website would serve as a broader explanation of the information that our customer is receiving from the application. The website would also provide a connection to the company for aid and any questions the customer might have when receiving information from Leafficiency. Providing this website will prove to our customers that we are here to stay and to make their experience easier. Management Personnel: Maria Cruz: President Maria Cruz has a strong background in engineering having taken the Project Lead the Way engineering courses, AP Computer Science, and participation in Lemelson M.I.T. InvenTeam. She has been accepted to the University of Texas at Austin and will be attending there this coming fall. Maria has experience with programming, and designing and is qualified to be AppSoup s president. Laura Herrera: Vice President Laura Herrera has been studying engineering at the Ann Richards School throughout her entire high school career. Laura has been accepted as a electrical engineer major to the Crockell School

6 5 P a g e of Engineering at the University of Texas and will be attending this coming fall. She is ready to take on the challenge of AppSoup, and help create an app that anyone can use. Personnel Plans: Leafficiency consists of 18 personnel who have background experience in each sub team of the company. The growth of the company will come from the evaluations of Skill Point and Pecan Street Inc. Our company consists of five sub teams which focuses vary on the following: marketing, financing, design, programming, and prototype. Each team is required to present a deliverable every two weeks. This is to show progress made to completing the final deliverable (the application). Financial Plan: I. Estimated customers Although our main audience is the Austin area, we expect our product to be relevant to people conserving energy worldwide. Pecan Street s Mueller neighborhood contains over 5,700 homes. We had a survey sent out to the Mueller neighborhood, our potential customers. This survey was sent out to 89 people and we received 29 responses. Since we are a new company we estimate to have around 2,000 customers based on our 33% of survey responses. In five years we do plan to expand our product sales but as of right now we are aiming towards having our application reach the Mueller neighborhood. If the Mueller neighborhood and Pecan Street is satisfied with our product, we do hope to spread our sales worldwide and increase the 33% to full potential of sales. II. Cost of Production The cost to produce Leafficiency consisted of multiple finance plans, from various teams. Our programing team used the program Appery to help design the actual application and layout specific features, functions, and paths of the app. For this program we paid 15 dollars a month. The second program used was Dynamic DNS, we used this for programing the app. All other parts of production were learned and self-taught by members of the programing team. III. Monthly payments The App itself would cost $0.99 for the download, the package of the nest and the other sensors are at a set price of $150. If you get the nest installed into your house from our business partners you will receive the application for free. Strategy and Implementation Summary I. Implementation Summary:

7 6 P a g e Leaf Inc. has developed a program that is aimed toward the typical US household, we have developed our product around the growing use of smartphone technology by creating an application, Leafficiency, addressing the goal of minimizing energy usage in the household. Along with the typical household appliances we have implemented electric cars into our application. Our application will have an area devoted to catering to the owners needs based on charging and usage. We hope to create a program that can be used by everyone and achieves our goal of helping homeowners realize the issue of energy usage. II. Strategy Pyramid: Our main tactics for this are: surveying to gather information to make our product completely catered to what people want. We have sent out a survey to an energy conscience community through Pecan Street, and received results that helped developed our application that catered to their needs. We will support for all users and members of our application, and accessibility for everyone on multiple programs. III. Marketing Strategy: We will be creating a website outlining our product and showing images of the application in use and sharing the benefits of the application, as well as data supporting Leafficiency. We will also be creating a brochure to distribute to companies displaying each screen and a map of the navigation of the application. IV. Sales Strategy: We plan to white label our product in order to maximize our sales, and reach more users through companies. We plan to connect with outside companies such as Chevy and Tesla to reach their customers as well as ours. These partnerships will help support and buy into what we re selling. Along with these partnerships, we plan to reach out to energy related companies like Austin Energy, Nature Conservancy, LCRA, and the Sierra Club for endorsements. These relationships will help us reach our full sales potential; as well as form relationships for future products we produce. V. Strategic Alliances Leafficiency will partner with Austin Energy and local energy sources to ensure that users are offered the maximum efficiency and benefit from all possible aspects of our application. In addition to our relationship with Austin Energy, our white label will help create alliances with outside sources and generate knowledge throughout the company. VI. Sales Forecast Based on our starting price to purchase the application, we have set the number of consumers at 700 for the first year. We plan for this to double each year. This starting profit will help determine factors in our company like advertising costs and development costs. Year 1 Year 2 Year 3

8 7 P a g e App Income $693 $1386 $2772 Advertising $138.6 $554.4 $ Development $554.4 $831.6 $ This is an outline of our prospective profits and expenses in the next 3 years. VII. Pricing Strategy Leafficiencys strategy in the pricing of our application was geared toward the wishes expressed by our survey. We put it at a price that has shown success for other products on the market. At.99 cents we hope to attract the audience we surveyed and give them a reasonable buy with many services and benefits, while still making a profit for our company. We also gave our price some leeway with the various company purchase options. If Austin Energy is on board with our product we plan to strategize with them to potentially create a free application and still benefit our company as a whole. 1 year revenue plan Smart Car: In a years time the app would be able to set charge amount. Instead of just setting the time you want to be able to charge you would be able to set the amount you want your battery to be charged at. The charging of the electric vehicle will also focus within the five year time frame to eventually control the amount of energy that flows from the charging station to the battery. For instance, instead of 10V flowing to the battery, a consumer of the app can set the volt flow to 5V. The connection to the electric vehicle will be innovated to send push notifications to the consumer when the battery is running low on energy. This will also relieve any constant worries to the driver of the electric vehicle, and will help keep the innovation of the app very open. A/C unit: The programming and type of A/C unit that would be used would change within the five years. Instead of using a window A/C unit, the thermostat would be programmed with a home air conditioner unit which will control the cooling and heating of the home. The program with also work on how the long the air conditioner unit would be on instead of solely the desired temperature of the air conditioner Lights: After a year we expect to add a timer aspect to the lighting portion of the app. This means the user would be able to set a timer for the lights in addition to the original function of turning the lights on and off. With this new aspect of the app we would be able to increase the price of our app. For our one year revenue plan the program team would like to include some updates to our existing application program. As the technology advances over the next five years, we would like

9 8 P a g e to update and advance our application communication and software accordingly. We would love to add more advanced option to the application that allows the user more customizable options. We look forwards to the future and the advancement of our application.

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