D.C. VeritasWeek 7: Revenue Model

Business Plan Canvas

• Retrofit wind turbine for street and highway lamps.

• Use competitive, local, renewable energy, strong green symbol

• Diversify energy portfolio,

• Fast payback than alternatives.

• Cities• Lighting

Companies• Utilities

• Direct sales to the city or utility, and forming long term relationship for maintenance and replacements.

• 5 year maintenance and warranty

• After 5 years, service charge• Utility to manage after

warranty expiration• Extended warranty option

• Asset sales and service calls• Leasing

• Cheap manufacturing process - Intellectual property

• $1.5 MM of capital to start manufacturing and distribution for year 1 and 2

• Endorsements by environmental groups, city consortiums for renewable energy, public utilities, city council planning department

• Build relationship with city engineers and council members

• Understand customer, influencers, motivations, problems, competitors

• Form partnerships for maximum reach

• Submit bids for city RFPs

• Environmental, bird, wildlife groups (regulations, publicity)

• City councils (new regulations, permits).

• Light manufacturers, installers to package product/services

• Electricians, contractors, light maintenance for additional workforce

• Cost-driven model to provide inexpensive, quality product

• Manufacturing costs and customer acquisition costs. • May consider in-house leasing option, if upfront costs is

large obstacle for customer and sufficient funding obtained.

Updated Business Plan Canvas

• Retrofit wind turbine for street and highway lamps.

• Use competitive, local, renewable energy, strong green symbol

• Diversify energy portfolio,

• Fast payback than alternatives.

• Cities• Lighting

Companies• Utilities• County –

State Level

• Direct sales to the city or utility, and forming long term relationship for maintenance and replacements.

• 5 year maintenance and warranty

• After 5 years, service charge• Utility to manage after

warranty expiration• Extended warranty option

• Asset sales and service calls• Leasing and PPA? (under review)

• Cheap manufacturing process - Intellectual property

• $1.5 MM of capital to start manufacturing and distribution for year 1 and 2

• Endorsements by environmental groups, city consortiums for renewable energy, public utilities, city council planning department

• Build relationship with city engineers and council members

• Understand customer, influencers, motivations, problems, competitors

• Form partnerships for maximum reach

• Submit bids for city RFPs

• Environmental, bird, wildlife groups (regulations, publicity)

• City councils (new regulations, permits).

• Light manufacturers, installers to package product/services

• Electricians, contractors, light maintenance for additional workforce

• Cost-driven model to provide inexpensive, quality product

• Manufacturing costs and customer acquisition costs. • May consider in-house leasing option, if upfront costs is

large obstacle for customer and sufficient funding obtained.

Overview of the week

Understanding the “City” Marketing Utilities Purchasing Project Manager Former City Council Member and Mayor

Archetypes

Product Overview

Competitor Analysis

Risk Assessments and Key Financial Metrics

Project Process

City Values

•Policies•Community Culture•State Mandates•City Budget Plan

Back to the envelop metrics

Request for Quote

Technical Evaluation

and Recommendati

on

City Council Approval

IDEA

City Council “Pet-

Project”

Finance Approval

Planning Commission

Archetypes – Decision Maker

City Councilman Doug

Archetypes - Influencer

Eric the Engineer

Archetypes – Influencer & Saboteur

Christine, Director of Public Works

Competitors

DIRECT COMPETITORS Urban Green Energy Hybridyne SouthWest Windpower

Some pilot projects

INDIRECT COMPETITORS Grid Other renewable options

Value Proposition

Retrofit

LOCAL – Renewable energy

Cheaper compared to other alternatives

Green symbol

Key Financial Metrics Pricing

US $5,000

RISK

Risk

Profit

PPA≈19% profit

Asset Sale≈12% profit

Leasing≈15% profit

1-3 yrs 3-5 yrs

QUESTIONS ?