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Business established

1

Equater Fuelwood Energy Saving: Renewable Energy Solutions(RES)

Renewable Energy Solutions For a Better Environment

Equater Fuelwood Energy Saving is an ongoing business that started in 2001 at Nanyuki,Kenya. Aim is to address issue of forest destruction by making, selling energy saving stoves for institutions and domestic use.Many people also using BIOGAS technology which alleviates use of firewood and improves sanitation within the community. By using biogas; health is improved, cooking becomes easier, agriculture improved by using the bio fertilizer.

Facts

Legal status business
Formally registered
Year of establishment

2001

Sales (US$)
Two years ago: 6,500
Last year: 10,000
This year (forecast): 13,000
Year 2 (forecast): 16,000
Year 3 (forecast): 19,000
Net profit after tax (US$)
Two years ago: 2,500
Last year: 3,000
This year (forecast): 5,000
Year 2 (forecast): 8,000
Year 3 (forecast): 10,000
Total number of Employees
Two years ago: 6
Last year: 7
This year (forecast): 9
Year 2 (forecast): 12
Year 3 (forecast): 15

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 100,000
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) 100,000
Total finance needed (US$) 200,000

How do you expect this to be financed? Please note: the total amount mentioned here should be equal to the total finance needed at the previous question.

Own Contribution in cash 40,000
Loans (debt) 130,000
Share capital that you seek from investors (equity) 20,000
Other sources 10,000
Total finance needed (US$) 200,000

The Business

What is your product/service?

The business is able to sustain itself economically through sales from stoves that range from household(domestic) to institutional ones. Through construction of biogas digesters to clients with cows,pigs,have made the business to grow and establish its wings well. With investment capital,the business will grow high with attraction to offset investors who will be interested in buying our carbon credits generated from our products.

What customer need/problem do your products/services satisfy?

Our products and services address the direct need of fuel reduction costs. Its evident there is an acute shortage of firewood as many trees have been cut. LPG gas is expensive, charcoal burning is illegal.

How will you make the product/service?

Our products are made directly through the process of fabrication as well as installation of the same to the end users. Biogas digesters are constructed directly in a clients homestead. The finished products(stoves) are then displayed in our showroom for customers to see. Those for delivery are then taken to the designed area for installation.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

Our products are marketed through our quality service whereas customer buys our product also advertises the same when satisfied with the product. Also market our products through advertisement in the media through brochures and door-to-door marketing.

My business start up funding is through commitment by the customer who pay down payment on the products. The down payment is used to buy materials then balance payable after completion of work.

To whom are you selling, what is your market?

Our business is now currently involved in developing the market for carbon credit through the products we are making for sustainable environmental solutions. Our products are directly to be sold to our heavy consumers of fuel wood both households and institutions as well as offset carbon companies who have already shown a lot of interest in the same. Any investor interested in buying carbon credit will be our customer.

Describe your competitors?

My competitors in this business are incompetent more in quality and warranty. Once they sell the product to a customer,they never do a follow-up on the same. Our after- sales strategy have gained more confidence to our clients than to our competitors. Our competitors sell their products more expensive to the reach of many end users compared to our prices which are best suited to low income clients. The demand is very high compared to supply.

What makes your business different/better than your competitors (competitive advantage)?

My business is focused nationally and internationally. Many of our competitors are only focused in local markets compared to our products which are both in demand at local level as well as for carbon offsets.

What makes your business, your product or service innovative?

The business itself is unique as it has an impact in the global market. Climate changes have made our business to be more demanding with new challenges on new technologies which i am more well experienced with. The business products are special as they contribute alot to carbon emmisions as well as helping to improve our mother nature by over 85%. This is in line with the CDM or Gold Standards.

How will you ensure the growth of your business?

Through quality delivery of goods and services, the business will continue to attract more growth. The business have put in place special measures to ensure that our products are operational and in good condition for the warranty period. For stoves,a warranty of 7years is given and for biogas, a warranty of 25years is given. This means,the confidence created through maintenance of the goods. This also creates more business for carbon credits.

The Entrepreneur & Management

Describe the entrepreneur & management

The person behind this vision is a qualified entrepreneur who is experienced and committed with a wealthy of experience of more than ten years. He holds a diploma in engineering as well as renewable energy and environmental conservation. He also holds a diploma in business administration. His experience in managing a company for the last ten years is a good impression that the business will grow well and healthy and create an impact to a nation.

What specifically makes you and (if relevant) your management team most qualified to build this business?

All our management team is qualified with experiences ranging from 3-5years in the respective fields. Since the team is fully committed, the business has been growing at rate whereby it has been able to sustain the team. Though there have been challenges of poor growth due to economical changes, we have not given up on our business. Its our hope that the same team will be more busy with more input in capital investment which we are looking for.

How much time do/will you expect to spend per week in the business?

Since this is my only job, i am fully committed to it every day from morning to evening with a rest on sundays and holidays. Most of the time may be in the production workshop, other time for marketing.

Development

How does your business improve the local living standards (social and environmental)?

The business has been able to employ six people permanent and five casuals
The standard of living has been improved since many people now cook in a clean environment. Rate of people getting sick due to smoke have reduced as many have the stoves.
Environment and energy are the main MDGs that are addressed by the business plan. The business addresses the Energy goal as one of the main concept for it affects everybody in the community.

1 comment

Ms. Nthenya Mule

I am the Country Manager for Acumen Fund in Kenya. We are a social investment fund that focuses on investing in businesses in the health, housing, water and sanitation and energy sectors. I would be keen to get some more detail on this business plan including financials, to make an assessment on whether we can invest in it.

Communication can be sent to me either on nmule@iconnect.co.ke or nmule@acumenfund.org. Thank you.

Best,
Nthenya Mule

15 May 07, 04:33 Nthenya Mule, 15 May 07, 04:33