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Business plan


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Business plan

  1. 1. Business Plan product Solar Desalination Plant application ofUtilizing Solar Radiation in Water Desalination by Desert Fish
  2. 2. Business Summary Usually, in any worldwide product, the business issue is one of the mostimportant stimulators that will help the product reach its estimated goal. Our productis a very important product that will be used worldwide and it will be definitely soldto governments or huge organizations, which cares about clean energy. Regarding ourproduct, we will try our best to market it through computers and small prototypes toour targeted consumers: Governments and huge investors. After gaining financialfunding, we will open a small management company to produce our product. Thereare two possible scenarios for our contract with our sponsor. The first scenario leaves our company with the duty of constructing plant andselling the water to the consumer; that way we must pay the investor (governmental orprivate) interests on our profits. The second scenario is to sell the water to the government or the investorwhich later on sells its services to citizens. Our price our technology are the two factors that well make our productmarketable. In short, we will leave the door open to any other business aspects thatwill show us the way through success.
  3. 3. Marketing In my country, Saudi Arabia, desalinating water is a very serious issue. Aboutthree million barrels of oil are used to provide enough water every day; it is expectedthat this number is going to triple in the next five years. Therefore, the Saudigovernment is thinking of altering oil with other energy sources for desalinating seawater. Utilizing solar energy to desalinate water has many advantages for our targetedconsumers: the governments. It helps their economies by cutting fuel spending. Inaddition, such plants keep the environment clean. All government want their countryto be environmentally friendly. A very important research center was formed by the Saudi government, i.e.,"King Abdulaziz City for Science and Technology" (KACST). The duty of this centeris to help sustain a more innovative, developed country. We aim to consult them intohelping us get our project to the desks of higher officials. First of all, we plan to persuade (KACST) or similar organizations worldwideto sponsor our innovative idea. Since these projects are what they are looking for,their approval is expected. We will start working with them to improve our design andtechnology. In addition, we will ask professional solar energy engineers and expertsfor cooperation. In this way, we would try to make our project as complete andflawless as possible. Secondly, after making tests, the numbers are going to speak for themselves;the enormous saving in operation costs and high efficiency would label our product asoutstanding! Media, worldwide, will hopefully give us attention upon our requests. Atthis point, financial issues would not be very important. Thirdly, after our product has gained acclaim and good reputation, it will makegovernments and private investors interested when we contact them. We will presentour product and technology to them for thorough examinations, and they will be surethat this product suites their needs efficiently. After that, our project is going to beapplied by the government, and we hope it is going to make a huge improvement inour countrys environmental and economic status. Finally, we are very confident about our moves toward having this projecttaken under the government’s sponsorship. It is obvious that it withstands theirrequirements and it is actually what they are looking for.
  4. 4. Cost Traditional water desalination plants require millions or even billions ofdollars in order to construct, e.g., the aqua sure desalination plant that was constructedwith a price of 4.8 billion. In addition to the cost of fuel used to power waterdesalination plants. Unfortunately, burning fossil fuels is the vital source of energy forthese plants that can be a major disadvantage. Unlike these desalination plants, theproject we have come up with makes water desalination a much cheaper process. Because the instruments of our project are hard to attain, their prices are hardto find too. We made some estimations for the major parts of our project. Someestimations may be slightly off-course, but they are good approximations.  Construction and assembly $300,000  Excavation works $75,000  125 Heliostats (2m x 2m each). $500,000  Thermally insulated cylinder-like water container (diameter: 2m; height: 1m). $2,000  Big concave mirror $10,000  Thermally insulated steam chamber. $30,000  Pole for hanging the concave mirror. $5,000  1 ton Bronze/Brass plate $2,000  Electronics (e.g., computer, cables, sensors, etc.) $5,000  Pipes and Valves $3,000 According to our calculations, the grand total to build the plant is around: $932,000 !
  5. 5. Funding mechanisms Every project has a sponsor that supports them financially. In our case, aim togain our governments sponsorship. Our government always seeks evolution byencouraging innovations and new methods. Our project is a suitable example for whatour government would support completely. Our plan is to establish an executive office or a private company financiallysupported by the government or a large investor. Our tasks are to acquire financialfunding, and manage and supervise the projects construction and operation. It isobvious why the government would sponsor us; because they will get a fresh watersource for their people. However when dealing with a private investor, there are twopossible contracts. One leaves our company with the mission of selling the water tothe government; that way we must pay the investor interests on our profits. The otheris to sell the water to the company which later on sells its services to the governmentor citizens. All these possible mechanisms profit both parts of the contract. After getting the financial support, we would employ engineers in ourcompany, and we ought to make contracts with them in order to produce perfectstructural plans. In addition, technicians are very important for the differentfacilitating and sections of the company, such as maintenance, field operations, andmarketing. To build our project we would sign contracts with building, optical, solar, andelectrical companies that are familiar with similar projects. They will manufacture theneeded structures, electronic devices, and optical instruments. We would also open research labs. They are essential for examining bothsaline and fresh water in the facility to determine the appropriate intensity of theprocess. These labs are the facilities that keep our products and water supply withhigh quality. Finally, depending on the contract with our sponsor, we would either sell orgive the fresh water to them. Starting a company is the ignition to our project in order to prosper. Butstarting a company demands financial support, management skills, and professionalengineers. These are the three necessary components that make our project aflourishing one.
  6. 6. Competitive Reference After a long path of researching and looking around many different Internetsites, I glimpsed some products that uses similar technology to ours: Concentratedsolar power. In addition to other products that have the same purpose as ours:desalinating water. There are too many factors that make our product unique. I’llmention them briefly in this piece of writing. Technical advantages: One of our main methods is to concentrate solar powerdirected to a point, which is going to be heated. To accomplish this side of theproduct, a large amount of mirrors is needed, and a one huge concaved mirror, whichwill be facing a water container. Having the water container attached to the ground isone massive point that our product gains, why’s that?! During the research, I inferredthat intensity and efficiency of the used sunrays would grow widely whenever theangle of the sunrays was closer to 90 degrees. Supposedly, our product will have thesun rays set perpendicular with the water container. Water is a matter that has mass; therefore, it needs power to be moved fromone place to another or to push it up. Regarding this issue, our product gains anotherpoint to be added to the list of advantages, in our product the saline water flowsnaturally from the ocean without even wasting any efforts to move the water from oneplace to another. And I mean by efforts such as: Fuel, electrical power, or batteries. The CSP tower that has a similar method, to a certain extent, consists of atower that is filled with water in the upper part, and some mirrors which are spread allaround the tower. These mirrors are set in a way to direct the reflected sunrays right tothe tower, specifically, the upper part that has the water. Compared to our product, theCSP tower has a few drawbacks. First, the efficiency of the reflected sunrays wouldbe low because of the acute angle of the sunrays directed to the upper part of thetower. Second, the CSP tower requires masses of power in order to push the water allthe way up through the tower. Last but not least, one extra point is also added to our list because of the purenatural source. Our product is one hundred percent natural, unlike other products.After thinking and brainstorming we found an enormous natural energy source, whichis prevalent, especially, in our country, solar energy. We thought that we had to inventan innovative, new, creative, special product that utilizes this wasted amounts ofenergy that is given every day. The usage of the solar rays on daily basis gives us thenatural purity in our energy sources. Compared to other products, our product is considered to have too many stepsthat will definitely lead us to a huge success and will push through and hurdles orobstacles that will try to hinder or impede the way of reaching success. The brightidea of using the solar rays, which is a natural phenomenon, that will not negativelyaffect our environment, and will definitely give lots and lots of benefit to the world,and will hopefully solve a worldwide issue.