Smart Homes Business Plan

This Smart Homes Business Plan provides information about the company details, value proposition, legal requirements, location/floor plan, risk management, employees, PEST analysis, market research, and industry analysis.

Smart Homes
Business Plan

Contents
Business Description.......................................................................................................................3
Company details..........................................................................................................................3
Value proposition.........................................................................................................................3
Values and corporate Objectives.................................................................................................3
Legal requirements......................................................................................................................4
Location/floor plan......................................................................................................................4
Risk management.........................................................................................................................4
Employees....................................................................................................................................4
PEST analysis..............................................................................................................................5
THE MARKET............................................................................................................................5
Market research and industry analysis.........................................................................................5
STRATEGY................................................................................................................................8
FINANCE....................................................................................................................................9
REFERENCES..............................................................................................................................11

Business Description
Company details
Sonic is a start-up home based company which wants to bring innovation in homes by bringing
up some innovative hardware who can save electricity and also can provide security to people.
With the help of this, customers or people will have access and full control over their homes,
lighting as they can lock their homes and watch on their home in their absences through their
smart phones. For this home automation, IOT or technology plays an important role. It offers
duplex outlets which allow people to save themselves by controlling any devices plugged into
this device from wherever. Wireless technologies like HVAC controller, security regulators are
main products. Mobile app also offers customers or people to take control over their home in
their absence.
Remote monitoring, remote controlling, easy and simple set up, energy consumption data are
some features of this company.
Value proposition
It is found that people in smart home prefer easy, affordable and simple to use systems but
automation of lighting and control on other tools is comparatively costly. But this Sonic
Company is all about satisfying customers’ needs by providing them such solution at affordable
prices. One of the main features of this company which adds value is its ability to transform
traditional lighting and other safety tools into smart and connected home devices.
Values and corporate Objectives
It values its all potential customers and for that it focuses on superior customers service,
integrity, personal growth and leadership. The main important factor for this company is to make
sure that their customers are receiving all security needs.
Mission statement
This company wants to increase expectations of its potential business security clients by meeting
their needs though installation of customized security.
3

Vision statement
Vision of this smart home business is to become the most professional commercial security
service leader in this industry by providing security equipments at affordable prices.
Goals, aim and strategy
Main objective of this company is to improve image in the market and provide. Saving
household energy consumption is one of the other main aim of this company.
Legal requirements
It can be said that internet of things increases security and privacy related risks as it provides
opportunities for cybercriminals to access personal information. So, for this Australia has
implemented an act called: Australia’s statutory privacy regime, telecommunication act 1997
which contains data protection provision so, company requires following these.
Location/floor plan
It is located at 7F, building 3, internet of things industry innovation centre, satellite road,
Australia.
Risk management
There are several type of risks associated in such businesses and one of the main risk is all
related to privacy, Financial, operational risks are also some types of risks. In privacy related
risks it can be said that there are high chances of getting hijacked to all privacy camera and other
tools used for safety. So, by applying of technologies in IOT environments and target security-
enhancing solutions to network points of entry and also instantiations of malicious software, all
risks can be mitigated.
Employees
This company believes that employees play an important role and it has effective and skilled IT
workforce which allows it in bringing innovative ideas and solving problems related to security
4

and electricity consumption of home. It has 7 IT staff members, 3 staff in marketing, 1 CEO and
3 members in distribution department.
PEST analysis
There are some external environmental factors which can also affect performance of the
company so, it is important to analyse them before implementing security tools and making
smart home business successful.
Political factors: Australian government is more focused on security of people and for that it is
facilitating electric grid modernization. Government is taking interest and supporting all smart
home businesses in order to satisfy needs to accommodate distribution of renewable energy and
increasing demand of digital society. Australian government is also focusing on data privacy and
security issues area by bringing up relevant legislation. So, it can be said that this factor is in the
favour of this company.
Economic factors: It is stated that smart home conjured up images of expensive home
improvements. So, with the emergence of wireless technology, all smart home technologies are
plug and play as well as easily installed and monitored. There is no requirement of additional
renovation and it is beneficial in terms of economy as by using low power consumption of
electricity bulbs, it can save cost. But installation of privacy related tools, camera and all can
increase cost. So, there are critical effects of it.
Social factors: There are several positive effects of social factors in this smart home business as
by installing such security and controlling tools, it increases comfort, convenience and security.
All these are social factors and needs of customers and by providing all features, this company
can take advantages of this factor. But cost, privacy to personal information are some social
barriers.
Technological factors: Internet of things is one of the main technologies used in smart home
businesses. For making it successful businessmen require using several technologies which may
increase cost, But after investing money, companies can take advantages from it.
THE MARKET
Market research and industry analysis
Industry analysis
5

The smart homes market is being valued at the USD 64.60 billion in year 2019 and have he
expectations to reach USD 246.42 billion by 2025, at a CAGR of 25% over the forecast period
2020 - 2025. the smart home system has clear requirement of the smart phone applications an
web portals by using of interfaces with automated systems. Global there is increase in the
importance of encountering the security issues to anticipated the fuel up demand or the growth
for smart and connected homes over the forecast period. on the other hand the indurations with
wireless technologies which have the inclusion of HVAC Controller, security and access
regulators and entertainment controls have the clear expectation to foster market growth.
Markets research and trends
The smart HVACR (heating, ventilation, air conditioning and refrigeration) have the critical
respect in conserving the environments controls around the houses. Across the globe, there is
increase in governate regulations in both developing and developed countries as most of the
building have the need to be smart in heating and cooling systems.
In addition to that customer have want and desire for products with have various integrations
and implementation of functions to get easy conducts of ecosystem platform.
the energy saving have clear motives to compensate the demand of there automates heater
coolers b which make the efficient contribution in HVAC equipment markets .
 Key Customers
The home automation market is actually segmented in the basis of applications into the major
six categories
1) energy management and climate control systems i.e HVAC (heating, ventilations and air
conditioning)
2) security and access control systems
3) lightening, window and appliance control systems
4) home appliances
5) audio- visuals and entertainment systems
6) health cares and assisting living system.
there are major categories will have the look around there home owners who wil, be the
end users which will represent in the increasing safety , peace of mind ad increase level of
consciences and economist wise investments . In addition the residentials property
6

management offering inner ROI , occupants satisfactions and Lowe operation and mainstem
cost .
 Swot
Strength Weakness
Strong technical backgrounds
Demo house for the presentation purposes
Sole contribution of the rights for the
hardware purpose
Usage of many tools and software for
customer automation
Have the heavy dependence of the supplier
of hardware and software
Initially have the low human resources
Initial level of start-up resources
Opportunities Threat
The industry has the been the dynamic
growing ones with high level of profit
expectation in upcoming year s
The young buyer being the savvy proper
want to have latest technologies.
Increase level of concern about environment
Increase level internet connectivity
Growth in real estate business
High level of competition as increase in
level of competitors
Lack of trust in automation home
automation
 Sales and Marketing Plan
Marketing plan
product
the solution will for home automations which consisted both Hardware and software
the software will be the promotes in the first and second year of exitances. On the other and
there hardware solutions have severely compulsory component such as Logic controller ( This
is the CPU of the home automation)
 IP Link (This is the control platform for connecting the mobile phone/computer)
 Router
 System Power Supply
7

Place
The distribution of the companies has been seen through the aspect of the distribution for
suppliers and vice versa. The company will be helping only with the electrician who will be
delivering the solution to customer install everting in perfect manner.
Promotion
The company will have the use of the socials media inversion to develop the better idea in mind
of customer. this will have the greater ideas so that’s potential user has wanted to products well
without requiring the allow to have maintain control. this will be marketing efforts to make the
clear informatises to maximize he product sale realize the benefits
Price
The firm will have the cost based pricing strategy by looking out in cost structure of the product
is offering the adding the contribution margin an set up price .
STRATEGY
 Short Term
initially the firm will major level of attention in the promotion and price strategy realising
the special benefit of the building the smart home
 Long Term Goals
the firm will have the proper expansion Ida to stage the segmented customer and have
expansion in the infant areas to attain the better level of growth
the fir will also look after proper attestation for reducing operational and management
cost.
8

FINANCE
 Financial Objectivise
To attain 15% profit in in next 6 month.
To increase in ROI by 20%.
Sonic home makers
Cash Flow Statement
For the Year Ending 22/9/ 2020
Cash at Beginning of Year 15,700
Operations
Cash receipts from
Customers 693,200
Other Operations
Cash paid for
Inventory purchases (264,000)
General operating and administrative
expenses
(112,000)
Wage expenses (123,000)
Interest (13,500)
Income taxes (32,000)
Net Cash Flow from Operations 148,700
Investing Activities
Cash receipts from
Sale of property and equipment 33,600
Collection of principals on loans
Sale of investment securities
Cash paid for
Purchase of property and equipment (65,000)
9

Making loans to other entities
Purchase of investment securities
Net Cash Flow from Investing
Activities
(31,400)
Financing Activities
Cash receipts from
Issuance of stock
Borrowing
Cash paid for
Repurchase of stock (treasury stock)
Repayment of loans (34,000)
Dividends (55,000)
Net Cash Flow from Financing
Activities
(89,000)
Net Increase in Cash 28,300
Cash at End of Year 44
,000
10

REFERENCES
Books and Journals
Online
McKeever, M., 2016. How to write a business plan. Nolo.
McKenzie, D. and Sansone, D., 2019. Predicting entrepreneurial success is hard: Evidence from
a business plan competition in Nigeria. Journal of Development Economics, 141, p.102369.
Türko, E.S., 2016. Business plan vs business model canvas in entrepreneurship trainings, a
comparison of students' perceptions. Asian Social Science, 12(10). pp.55-62.
Fichter, K. and Tiemann, I., 2020. Impacts of promoting sustainable entrepreneurship in generic
business plan competitions. Journal of Cleaner Production, p.122076.
Tipu, S.A.A., 2019. Business plan competitions in developed and emerging economies. Journal
of Entrepreneurship in Emerging Economies.
Barrow, C., Barrow, P. and Brown, R., 2018. The Business Plan Workbook: A Step-By-Step
Guide to Creating and Developing a Successful Business. Kogan Page Publishers.
11

12

13