Business Plan: Specialized Home Solutions - Smart Home Automation

This business plan outlines the strategy for Specialized Home Solutions, a company aiming to provide comprehensive smart home automation solutions in Australia. The plan includes an executive summary, company overview, business description, and details on the company's purpose, vision, and mission. It encompasses a thorough PEST and SWOT analysis, along with Porter's Five Forces model to assess the market environment. A detailed marketing plan, including market overview, competitor analysis, and differentiation strategy, is presented. The operational plan, organization chart, and business structure are also described. The plan further includes a financial plan and a risk management plan to ensure the viability of the business. The company focuses on sustainability by incorporating solar energy, offering a complete home automation solution, and establishing itself as a private company. The plan aims to capitalize on the growing market for smart homes and provides a detailed roadmap for business operations, from inception to long-term goals.

Running head: BUSINESS PLAN
Business Plan
Name of the Student:
Name of the University:
Author’s Note:

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BUSINESS PLAN
Executive Summary
The main purpose of the assessment is to formulate a business plan for a solar panel home
automation solution company which would be operating in Australia. The name of the company
would be specialized Homes Solutions and the business would be formulating plan which drives
the domestic activities towards sustainable approach. The analysis would be conducting an in-
depth analysis of the market and also identify the possible trends of the market. The business
plan would be including an operational plan along with a plan for the organizational structure for
the business. In addition to this, the analysis would also be including detail analysis of the
financial requirements for the business in terms of inventory, labour forces and different costs.
The viability of the business plan would be analyzed in a through manner.

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Table of Contents
Company Overview.........................................................................................................................4
Business Description...................................................................................................................4
Business Purpose, Vision and Mission........................................................................................5
Goals and Objectives of the business..........................................................................................6
PEST Analysis.............................................................................................................................7
SWOT Analysis...........................................................................................................................8
Porter’s Five Forces Model.......................................................................................................10
Marketing Plan...............................................................................................................................11
Market Overview.......................................................................................................................11
Marketing Environment.............................................................................................................11
Competitor’s Analysis...............................................................................................................11
Market Positioning and Competitive Strategy...........................................................................13
Differentiation Strategy.............................................................................................................14
Key Marketing Assumptions.....................................................................................................15
Marketing Goals........................................................................................................................15
Operational Plan............................................................................................................................16
Organization chart.........................................................................................................................18
Business Structure.........................................................................................................................20
Organization and Management..................................................................................................20

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Financial Plan................................................................................................................................22
Risk Management Plan..................................................................................................................22
Reference.......................................................................................................................................24

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Company Overview
The business plan is formulated for an undertaking which would be providing complete
home automation solution for clients who want to control every aspect of their homes. The
company would be specifically designing the internal structure of homes and incorporating
devices which would be supporting every minor detail of home. In addition to this, the business
would also be focusing on sustainability aspect for which the appliances and lightening of the
home would be done through the use of solar energy (Energy Matters. 2020). The business
would be specifically designing houses for the comfort of the users and everything in the home
would be one with help of remote control.
Business Description
As per the plan of the management, the name of the business would be Specialized
Homes Solution which would be providing expert services to the clients considering an ideal
setting for a Smart home (Smarthome.com. 2020). Smart Homes are homes where residents can
control key aspects of the house with a remote and internet settings. The device which controls
all the aspects of the business can be mobile phones of the clients. The home would be energized
with the help of solar energy and therefore this would be sustainable option for living with the
most advanced settings. In order to explain the features which would be provided by an
automated housing feature is properly demonstrated in the figure presented below:

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Figure 1: (Features of Automated Homes)
Source; (Solarpowereurope.org. 2020)
The above figure shows different aspects of a home which can be controlled with the help
of a controlling device. The energy would be provided with the help of solar panel which would
be placed above the house. The business would be providing proper solution to clients who want
to control all aspects of their homes and experience a lavish lifestyle. The business would be
established as a private company and most of the capital for the business would be contributed
by the owners of the company (McKeever 2016). The expectation of the management is that the
residents would like to move to such an automated option for controlling every aspect of their
homes and also the business would be sustainable as the business is offering a sustainable option
to a high standard lifestyle.
Business Purpose, Vision and Mission
The business would be providing the best possible solutions to a lavish lifestyle while at
the same time considering the aspects of sustainability. The purpose of Specialized Homes

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Solution is to ensure that people are able to get the best comforts in a housing situation and
thereby also have proper command over the activities of their homes (Burns and Dewhurst
2016).
The vision of the business is offer the best automated homes solutions in the market and
ensure that sustainability practices are closely followed in energy generation for a house. The
missions of the business are listed below in point form considering the long-term goals and
objectives of the business:
 To develop a home automated solution which would provide all kinds of support with the
use of sustainable practices.
 To execute and operate our projects efficiently and maintain the highest standards of
quality, safety and environmental sustainability
 To adhere to all the provisions of corporate governance and demonstrate to the society
that the business is a responsible corporate citizen.
Goals and Objectives of the business
The goals and objectives of the business are set by the senior officials of the company
and the same is set considering the market trends (Blackburn, Hart and Wainwright 2013). The
goals and objectives which are set by the business are listed below in point form:
 To develop a brand name of the company in the market and thereby enhance the sales of
the business.
 To satisfy the needs of the customers by providing quality services which would also help
the business to enhance the sales of the business significantly.
 To generate a growth rate of 10% in the operations of the business thereby generating
enhancing the level of profits which is generated by the business.

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PEST Analysis
The PEST Analysis is basically a strategic tool which is used by the organization in order
to identify the possible factors which could impact the business operations on their current and
future basis. The Pest analysis is comprised of four factors that is political, economic, social and
technological factors.
In the current business, the business is engaged with developing home automation with
multi-functioning features. The smart home features the overall internal system of home which
enables the control of all the appliances automatically and it also enables remotely control
through internet such as phone.
Political Factors:
In Australia, the government is generally transparent and considered to be as the most
business-friendly economies. The business environment of Australia as the world’s most robust
regulatory environment. The country has transparent market with innovation and skills therefore,
the new business will have good opportunity to start (Chen and Zhang 2019). The government
policy of Australia is not strict and does not become a barrier for a new business. The tax policy
of Australia might put an impact on the new business. The political stability justifies the success
of the business therefore, it is highly important for the new business to take the political factors
into consideration.
Economic Factors:
The economic factors include the inflation rate, labor supply, the cash rate and economic
growth. In the current scenario the inflation rate of Australia according to Reserve Bank of
Australia, is 2.1 per cent. This reflects that the inflation rate is high and high inflation arte could
affect the currency exchange rate. The higher inflation rate could increase the cost of all the

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goods and might spar uncertainty in business. Therefore, the business needs to consider all the
economic factors in order to effectively establish the specialized home solution business in
Australia.
Social Factors
The social factors include comfort with technology, customer service experience, buying
habits and many other factors. Since, the business is engaged in developing smart homes and
make life easier. People are more oriented towards having easy life and technology-based life
style (Gupta 2013). Today the buying power of the customers are high and therefore people have
high potential to buy. Therefore, according to the social factors the business has good
opportunity to underpin their business in Australia.
Technological Factors
The technological advances have fostered easy operations and productivity in business.
The technological factors have lowered the cost of labor and made the working more
sophisticated and smarter. Australia has good touch with the technological advances and
therefore, the business has good opportunity in operating its operations (Ho 2014). The
technological factor also fosters innovation and invention which would help the company in their
research and development department to come up with new ideas and ideas.
SWOT Analysis
The SWOT analysis is a strategic tool which determine the current position and future
prospect of a business. The SWOT analysis is comprised of strength, weakness, threats and
opportunities.
Strength
There is a good demand of smart home and home automation in Australia. The people of

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Australia possess good purchasing power and hence, the business has high chance of
underpinning their operation in Australia (Gürel and Tat 2017). Many Australian are already
familiar with the concept of solar power and with the automation appliances and therefore, the
business does not have to spend much on advertisement and trails.
Weakness:
The overall cost of the operations that is raw materials can be a weakness for the business
and the economic factors of Australia as well. As previously mentioned due high inflation arte
the business may face possible obstacles. There can be possible failure in the business operations
due to lack of competency or skills within the employees (Phadermrod, Crowder and Wills
2019). The business is new in Australia therefore might not get potential attention from the
customers and therefore will have to develop strategic planning for promoting the product.
Opportunities
The potential opportunity for the business is that the people of Australia are well
acquainted with the concept of solar panels and smart home. This is a good opportunity for the
business to start in Australia. The cost of the raw material is affordable for the business. There is
political stability in Australia and therefore the business will not have to do much work on the
government issues.
Threats
The potential threat for the business could be their competitors. There are many
companies which has emerged with the same of smart home for example: Amazon Echo Dot (3rd
generation), Philips Hue Smart Light Bulbs, Ring WiFi Enabled Video Doorbell and many other.
This are some of the competitor which has major recognition in the global market. Therefore, the
business might face potential threats from its competitors.

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Porter’s Five Forces Model
Threat of New Entrant:
The threat of the new entrant is high since, Australia is a good place for business and the
country encourages new innovation and technology in the market. Therefore, the business could
face a potential threat of new entrant.
Threat of Substitution:
The threat of substation is less, since the substitution for home is quiet less. However,
customer may not opt for smart home due to its heavy prize.
Purchasing Power of the Buyer:
The purchasing power of the buyer is high since, Australia reflect good economic growth
and the lifestyle of people in Australia is being advanced day by day. Therefore, there is good
demand of smart home by the customers in the country.
Negotiating power of the supplier:
The negotiating power of the supplier is less. Since the product is not common and
therefore, the supplier requirement is low in the business. Moreover, on the other hand it is very
rare to get cheaper alternatives for the product the business is offering.
Competitive Rivalry:
The force from the competitive rivalry is high. This is due to the competition in the
market, it is observed that well-known companies are coming with the idea of smart home
(Süveges 2019). Therefore, the specialized home solution could face potential competition in the
market. In order to gain competitive advantage, the business has to come up with new inventions
and innovation in their existing ideas.

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Marketing Plan
Market Overview
Marketing Environment
In recent times, the market has become highly competitive in different sectors and there
is a high emphasis on innovation and technological development. This is the reason that different
businesses are trying to make improvements in their operational structure so that a level of
efficiency is maintained in the operations of the business (Thomas et al. 2014). The business of
Home Automation has gained importance in the market of Australia as it provides solution for all
domestic issues which makes the product highly desirable. The technology which is utilized in
such a system is known as Internet of Things (IoT). This technology allows the customers the
activities of the home with the help of internet and the energy which is used in such an aspect is
solar energy. The business has lot of potential in the market as the society is realizing the
importance of energy consumption and therefore most appropriate measure is to switch to
sustainable practices. As per a recent survey conducted worldwide, the application of IoT has
already reached 15 billion in terms of connected devices worldwide. It’s estimated this number
will grow to anywhere between 50 billion and 200 billion by 2020 (Efendi et al. 2013). This
shows that the market is growing significantly which shows that there is lot of potential in such a
market for the purpose of generating profits considering the long term operations of the business.
Competitor’s Analysis
In order to effectively plan regarding the operations of the business, the management of
the company needs to consider the competitors who are present in the market who can affect the
survival of Specialized Home Solutions. The market has been developing significantly as the