I plan to start a solar energy business, because I firmly believe this business has huge potential in the years to come. Please let me know something about my decision. However, I am confused about investment cost, and how to go about. Please guide me.
If you are planning to venture into the solar energy business, this is the right time to do it.
Public perception on solar energy has changed considerably. People now understand the importance of alternative generation practices. Most people now consider it worthwhile to have solar energy generating features integrated into their house plans. If your business can tap into this growing perception, your business stands a good chance of flourishing.
To start a solar energy business you need heavily integrated business plan documents. The following steps will give you an idea of how to go about:
Like any other green tech business, your solar energy company needs a good business plan.
Having drawn up a plan, you need to take the next concrete step forward. Your next step is to obtain licenses and permits required in your state to start your business. Visit the energy department website to get detailed information for registering a partnership, sole proprietorship, or limited liability company in your region.
Alternative energy business plans are entitled to significant grant money from the government. Your next step should be to tap into such grant funding from government and other sources.
Since this business involves huge capital investments, you can, if the need be, raise additional financing through traditional means. Approach banks as they understand solar business prospects better. More over banks are controlled by the government and once your business model gets grants from the government it becomes easy to procure bank loans. You can also approach venture capitalists as they too have good idea about solar business profitability.
Setting up your electrical infrastructure is important as you need to have your operations up and running before selling the first watt. So after the loans are sanctioned you need to concentrate on this. It is at this stage that you end up expending the bulk of your investment. So, make sure you have adequate capital in hand to complete this stage or else your business might get stalled.
Before generating the first watt, you need to market your services to consumers. For this a well thought out marketing strategy has to be devised and implemented. It’s good if your strategy takes into account all types of consumers like household, electric utility companies, institutions, businesses etc. This will ensure that your business appeal is not limited to one particular section. Make sure your marketing strategy is flexible so as to accommodate sudden changes as per market volatility. As it is your marketing strategies that will determine the success of your business make sure you have something innovative and attractive in place. Make sure you offer new solar energy related services like free consultation and estimation to establish a lead over competitors.
Setting up a solar energy business is a detailed and exhaustive task. All you need to succeed is the right business model and the right marketing strategy.