This document provides details on a business plan for a home automation company called Smart Homes. It includes sections on the executive summary, industry analysis, marketing plan, strategic focus, risk assessment, and financial plan. The company aims to offer complete home automation services that allow customers to control aspects of their home like lighting, security, and appliances from anywhere using mobile devices or the internet. The target market is initially the elite class in Pakistan. The plan outlines objectives, competitive environment, pricing, promotion strategy, costs, and feasibility of the venture. Risks addressed include losing credibility and potential competitors.

1. SMART HOMES
HOME AUTOMATION SERVICES
Waqas Nayyer Abbasi
SP09-MBA-197
ENTREPRENEURSHIP
05/01/2011

2. TABLE OF CONTENTS
1. INTRODUCTRY PAGE ……………………………………………………..04
1.1. NATURE OF BUSINESS………………………………………………..04
1.2. MISSION STATEMENT ………………………………………………..05
1.3. SLOGAN ………………………………………………………………...05
1.4. PROJECT MILESTONES ……………………………………………….05
2. EXECUTIVE SUMMARY ……………………………………………….......07
3. INDUSTRY ANALYSIS ……………………………………………………..08
4. DESCRIPTION OF THE PROJECT …………………………………………09
5. ORGANIZATIONAL PLAN …………………………………………………10
5.1. FORM OF BUSINESS ……………………………………………….......10
5.2. CHART ……………………………………………………………….......10
6. MARKETING PLAN ………………………………………………………….11
6.1. SERVICES ………………………………………………………………..11
6.2. MARKETING OBJECTIVES …………………………………………….11
6.3. TARGET MARKET ………………………………………………………12
6.4. PRICING ………………………………………………………………….12
6.5. PROMOTION STRATEGY ………………………………………………12
7. STRATEGIC FOCUS AND PLAN …………………………………………...13
7.1. OBJECTIVES …………………………………………………………….13
7.2. COMPETITIVE ENVIRONMENT ………………………………………13
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3. 7.3. PESTEL ANALYSIS ……………………………………………………..13
7.3.1. POLITICAL ………………………………………………………..14
7.3.2. ECONOMICAL ……………………………………………………14
7.3.3. SOCIAL ……………………………………………………………14
7.3.4. TECHNOLOGICAL …………………………………………….....15
7.3.5. ENVIRONMENTAL ……………………………………………….15
7.3.6. LEGAL ……………………………………………………………..15
8. ASSESSMENT OF RISK ……………………………………………………..17
8.1. PARTICULAR COMPANY ……………………………………………...17
8.2. COMPETITIVE ENVIRONMENT ………………………………………17
8.3. ASSESSING THE RISK ……………………………………………….....18
9. FINANCIAL PLAN …………………………………………………………...19
9.1. FINANCING NEEDED ………………………………………………......19
9.2. FINANCIAL FEASIBILITY ……………………………………………..19
9.3. FORECASTED COST ……………………………………………………20
9.4. PRICE LIST ………………………………………………………………21
9.5. OPERATING EXPENSES ………………………………………………..22
11. SWOT ANALYSIS …………………………………………………………..24
12. OPERATIONAL PLAN ……………………………………………………...26
13. HR PLAN …………………………………………………………………….29
14. BIBLIOGRAPHY ……………………………………………………………35
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4. INTRODUCTORY PAGE
Nature of business:
Smart homes is a home automation company. Smart home systems would provide the means to
easily use and manage the complex electronic systems found in the modern home. A well
designed and implemented smart home system would provide the customers quick and easy
access to all electronic home systems including lighting, heating, alarm systems, security
cameras, access, music, HD television, DVD libraries, computers, irrigation and much more.
Control of the house would be accomplished in several different ways. In the home, these would
include in-wall touch screens, hand held remote controls, and wireless tablets. It would also
provide voice activation. From outside the home, the customer can control all aspects of his
house via a web browser or mobile smart phone (i.e. iphone, blackberry etc).
Smart home systems can be described as the glue that binds all of the other systems in the house
together so that they can interact with and react to one another. For example, when a motion
sensor - which is part of the alarm system - detects motion in the living room, the home
automation system could instruct the lighting system to turn on several smart light switches in
that room.
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5. Mission Statement:
We plan to provide Pakistan with the state-of-the-the-art technology and services. Provide
security, luxury and mobility, and help you take a step into the future. Our mission is to worry
about your problems and give you the best solutions customized to your liking and advantage.
Slogan:
“Carry your home with you…”
“…anywhere!”
PROJECT Milestones:
• Setting up a team
• Arranging a workplace
• Doing initial study
• Research on implementation idea
• Ensuring that team is achieving the goals of project
• Research on efficiency and cost effectiveness of the system
• Implementing the best design
• Testing
• Further improvements
• Marketing the idea
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6. • Production
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7. Executive Summary
Smart Homes is a home automation company that aims to offer complete home automation to
home owners by giving them complete control of their homes while at or away from them.
Imagine being able to listen to your music collection wherever you are in your home without
having to hunt for the CD.
Imagine having lighting systems with pre-set scenes to suit different moods and occasions, and
imagine linking this into your own home cinema setup.
Imagine being able to monitor and control your heating, lighting and security even when you’re
away. Just SMS or email your house a simple command to set your home environment to exactly
how you’d like it.
Imagine a system where any alarm event (smoke, water, motion sensor, humidity) will trigger a
text message to your cell phone or send you an email.
And imagine being able to do this through familiar tools like your cell phone, PDA or web
browser or beautiful LCD touch panels installed in key areas of the home.
This is all possible through home automation provided by Smart Homes.
Since this concept is new in Pakistan we intend to patent this technology, so as to not only
standardize the level of services provided to home owners but to also monopolize the target
market for some time.
We intend to own the largest shares in the market by the end of a one year period.
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8. INDUSTRY ANALYSIS
At the current time there is just one possible competitor to our business and that is Synergy
operating in Gulberg Lahore yet even they do not classify as our perfect competition since they
provide audio and video automation systems and not the full range of home automation in the
true sense of the word as we plan to do.
Hence the industry would welcome us with open arms and our venture has great potential in the
Pakistani market and especially the twin cities . Growing security concerns due to thefts and
break-ins has made the people even more inclined to look towards technology for help and this is
just what our company aims to do.
And yet the real benefit doesn’t only lie in the security side of our venture but also the comfort
and the luxury of the whole thing. Controlling heating and having pre-set lightening scenes
according to the moods of the customer is the luxury side of our whole venture.
Another possible competition for the Smart Homes might be the security system providers in the
houses and yet still that would not be a threat for we are having value addition. While the
security systems only offer security that can be monitored in the home and while someone is in
the home, the solution we are providing would enable the customers to monitor their homes
while away and receive a text message warning if the security system detects any threat.
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9. DESCRIPTION OF THE VENTURE
Our business would lie in the services sector and concerns home automation which is a relatively
new concept in Pakistan.
Home automation enables you to control all the different systems of your home. You can control
the lighting, climate, security and surveillance, doors, window shades and much, much more in
your home or office with a single remote, touchpad, cell phone, or even via the internet! Set the
lights to the desired setting before your arrive home or set the thermostat to the desired
temperature or even check on the security settings while you’re out of town.
Our business would be small scale in the beginning undertaking one project at a time and having
our office in one location only that is Blue Area Islamabad.
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10. ORGANIZATIONAL PLAN
Form of Ownership:
The form of ownership is going to be Partnership amongst the two entrepreneurs but to fulfill the
need of business functionality we hire some more staff and design organizational structure would
be as follows:
CHART:
CEO
CEO
MANAGER MANAGER MANAGER MANAGER MANAGER
FINANCE MARKETING HR STRATEGY OPERATIONS
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11. MARKETING PLAN
The company, Smart Homes, is a completely novel venture for providing home automation
services both on site and remote, to the people living in Pakistan the Company will be focused on
providing the home owners the sense of control and luxury that they want and the system will be
tailored to meet the needs of every individual. The satisfaction and happiness of the client will be
our top most priority and we guarantee our high standards of quality.
Services:
Smart Homes intends to offer home automation services to eager home owners. The term home
automation is a generalized expression. The services that we offer are listed as below:
1. Voice activation on all home appliances and equipment
2. Web access for mobile homeowners so that they can lock and/or control their home
appliances from a remote location.
Marketing Objectives:
The objective of our company is to dominate the market and provide the people with a service
that will help them easily control their house and to remain at ease and closely monitor their
homes when they are away.
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12. Target Market:
The target market for home automation services will be the elites and the upper class society at
first. However when our venture makes headway we will be sure to provide cheaper systems for
middle class societies as well.
Pricing:
Since home automation is a luxury product and targeting the elite class our price would be high
in the start also we are the first movers in the market in Islamabad so we can get the customers
for the relatively high prices we would charge.
Promotion Strategy:
We will be promoting our business through online and on-paper advertisements. Radio and
television will also be used to make people aware of our service. Clear and to the point
advertisements will be our priority so that our customers can clearly see what we are offering.
We shall be using the following mediums for promoting our services:
• Internet
• Personal selling (B2B, homes)
• Advertisements on cable networks of targeted market
• SMS
• Billboards
• Business magazines, magazines
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13. • Seminars/presentation
STRATEGIC FOCUS & PLAN
Objectives:
Smart Home wants to become the best home automation service provider in Pakistan. The very
first objective after starting the operation is to obtain excellence within the elites and the posh.
This will be our initial target market since they want to make their home even more luxurious
and home automation offers that luxury to them.
Competitive Environment
The competitive environment is very advantageous to our business as there are no direct
competitors for this target market.
PESTAL ANALYSIS:
Before making investment, PESTAL analysis has been performed to check out the feasibility of
making investment and doing the successful business. Following situations were checked:
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14. POLITICAL:
We are making investment in Pakistan and now-a-days there is a democratic government in the
country which is encouraging investment and the political instability is getting away slowly.
Second Tax policy of the government is not so good but this create a least impact to our
business.
ECONOMICAL:
The economical conditions of Pakistan are still better as compare to international economy
which is facing recession now-a-days. Our target market is Islamabad where mostly elites live
their financial position is better than the people living in other parts of the country. The growth
rate of Pakistan economy is also favorable for doing business. Inflation rate is a bit on the higher
side.
SOCIAL:
The society of Pakistan is also very good. Our target market is the elite of Islamabad which are
very social and they want to adopt more and more luxuries to look richer and want to create a
cooler image of them in the society.
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15. TECHNOLOGICAL:
People of Pakistan are technology lover. The people who have money are always going to buy it.
In Pakistan this type of technology is going to be launched for the first time with all the features
before this some features containing technology is present in the Lahore but in Islamabad it is the
first time. So the chances of success are great.
ENVIRONMENTAL:
The nature of our work is not related to any imposing any bad impact on the environment. Our
work is to provide products which are imported from another country and there is not going to be
any bad impacts on the environment by the usage of our product. Its use is environment friendly.
LEGAL:
There are no as such legal restrictions on starting the business. Our business is small and there
are few legal requirements to start the business and continue its operations.
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16. ILLUSTRATION OF HOME AUTOMATION DESIGN:
An illustration of the home automation services provided by Smart homes.
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17. ASSESSMENT OF RISK
This venture of Smart Homes is faced with some hazards or risks. We are prepared to deal with
these risks as they come.
These risks can be defined in two areas:
PARTICULAR INDUSTRY:
The most important hazard in this industry would be losing credibility. If our customers do not
trust us in any one of services we are providing, we might not get to our target customers.
COMPETITIVE ENVIRONMENT:
Since the technology we are offering is comparatively new there aren’t many companies in
Pakistan offering these services. We have the advantage of being the first comers in the market
giving us a competitive edge. Home automation is new concept that would be a welcome change
in Pakistan.
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18. ASSESSING THE RISK:
These risks can affect our business in negative way. These risks if not avoided, can be minimized
if they are managed or “assessed” properly. An entrepreneur can assess risks by taking following
steps:
First, we must indicate the "potential risks” associated with the new venture, they might be
competitors strategy, the target market of our competitors, the non effectiveness of our marketing
or promotional campaign or negligence of employees is using appropriate technology
Second, if any of these risks do become reality, they are going to extremely affect our business.
The market share will be lost and new customers will become reluctant to use our services.
Finally we must have a strategy to minimize, prevent or respond to the risks. For example an
entrepreneur may prepare a contingency plan if any medium of marketing fails or he might
rethink the way marketing medium is used.
We must identify the risks and hazards make alternative strategies to counter them or to use them
in his own favor and thus meet the business plan goals and objectives.
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19. FINANCIAL PLAN
Financing needed:
We would finance our venture through debt and equity financing. We plan to take loan from
bank plus ask an investor to invest in our venture. Also personal funds of the entrepreneurs in
this venture would also serve for our initial investment. Each entrepreneur aims to invest Rs.
600,000 in the venture. Hence our financing would be as follows:
Personal loans: Rs. 300,000 x 2 = 600,000
Debt (from bank); straight commercial loans: Rs. 300,000
:
Total Financing Amount: Rs. 900,000
Financial Feasibility:
The venture will require a heavy initial investment since development of the hardware and the
network is a pre requisite to the business. The wages of the people employed in the company will
be paid by us, the owners however as the business picks up the money will start rotating from the
customers to the company and the employee. Although initially the company will not be
expected to make profit and would barely be breaking even. However within a year we expect to
be making substantial profits.
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20. FORECASTED COST:
Start-Up Expenses: All the costs of getting business up and running go into the start up
expenses category. These expenses include:
Start-Up Expenses: Rs.(000)
Business Licensing and permits 1,00
Rent Deposits 1,80
Web-Site development Cost 20
Furniture Cost 100
Utility set-up fees 100
Hardware Expenses 100
Storage Expense 100
Total Start-up Expense 500
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21. Price list:
As our target customers are upper class that’s why our prices will be high for first few years we
are assuming that every home already has a computer so prices will be:-
One time charges: - installation and first time charges = Rs 45000/=
Monthly Charges = Rs. 8000/= per home
From table we can see that total required to start up the business is round about Rs. 7 million.
Our target is to capture almost 200+ customers and we expecting almost 40-50 customers
per year that will help us in attaining break even which is our target for first year and we
hope to make profit after first year.
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22. Operating Expenses:
Operating expenses are the costs of keeping business running. Think of these as the things you're
going to have to pay each month. List of our operating expenses include:
First Year Expenses: Rs.(000)
Salaries (Management) 7,0
Rent on mortgage payment 50
Utilities Expense 70
Marketing Expense 15,0
Office supplies 50
Total First Year Expense 390000
This table shows our business operating expenses and we are expecting that once our sales start
building we will conduct these expenses through our generated revenue.
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23. Our company expects the following pictured profit growth in the coming years.
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24. SWOT ANALYSIS
Strength:
• New technology: This is the most important strength that we have on our side. People are
always looking for novel technology and gadgetry. This will be our primary target
market.
• No competition: Another advantage we have to our side is that we would have
practically no competition for our target market. Since the idea is practically novel not
many entrepreneurs have ventured into this field giving us a comparative edge.
• User friendly and easy to access irrespective of the geographic limitations: This is
our primary selling point. We provide home security and control on the go. Mobility
along with the complete sense of control is what sets us apart.
Weakness:
• Budget Constraints: One major shortcoming on our part in this venture would be the
budget constraint. The limited funding would surely dampen some of the decisions and
might affect our venture
• Change not welcomed: Pakistan is a country where people enjoy the monotony of their
lives. Introducing a new technology might not be taken to as expected.
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25. • No prior expertise/ experience: Since we are the first comers in the business we lack the
experience needed for our field and the necessary knowledge of our target market. Also
since this a completely new venture people with the necessary expertise are not available.
These will make us prone to some mistakes which might affect the venture.
• Limited target market: In a country like Pakistan the service of home automation may
only be taken to by the elite and the upper class society. A small percentage of the middle
class might turn to avail these services also. This greatly limits our target market.
Opportunities:
• Monopoly: Since we are the first comers for this target market we have a huge
opportunity to monopolize the market. If we offer quality services and the sense of
control that our target market hopes to receive we will have no problem in being the
largest share holders of this target market.
Threats:
• Unstable economy
• Government regulations and policies
• Government instability
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26. OPERATION PLAN
The operational plan is an essential component to your business plan and it tells the reviewer
how you are going to get your product/service out to market. That is, how are you going to get
your product out of the production stage to the doorstep of you target customer.
MAIN PARTS OF OPERATIONAL PLAN:
It will outline some very important answers to such fundamental questions such as:
• Who is doing what?
• What are the day to day activities?
• How will the suppliers and vendors be used?
• Who are the suppliers?
• What are the labor requirements?
1. Who is doing what ?
Sardar shahid Abbasi act as CEO has an overall look on all business affairs.
Our GM operation (Waqas Nayyer Abbasi) is responsible for operational activities.
Our GM Strategy and Planning(Sardar shahid Abbasi) will also take responsibility of
making the strategies.
Awais Nayyer Abbasi performs duties of manager design and installation and Human
Resource.
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27. Umair Ahmed work as a manager sales and responsible for affair related to sales.
2. Day to Day Activities
It will be compulsory for all the management of business to present at their office to
perform their duties.
CEO will take a look on all business affairs and ask for report from all departments to
check and verify their work.
Our all head of department are responsible for management of their respective activities
of business and he will take a look on all these activities daily and report to CEO.
3. How will the suppliers and vendors be used?
We will a strong relationship with vendors which are located in California (USA). We
show our sincerity for the by establishing a comfortable relationship with them which
leads us to be successful partners and help our business to grow by providing us with
training of these technology.
4. Who are the suppliers?
Our suppliers are SMART HOMES Corporation located in California USA. They are
working in this industry since 1992 and consider pioneer of their industry and has biggest
share in USA market.
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28. 5. What are the labor requirements?
Initially we will hire 20 employees who are posted in following way.
5 Salesmen
5 Installation engineer
5 Designers
3 Watchmen
2 Office boys
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29. HR PLAN
The organization setup of the firm is consist of 1 CEO, 5 Managers, and 25 Management teams
members
CEO:
CEO will be the final and supreme authority will over look all the operations and planning and
will approve it.
Manager Marketing:
Authority
• Manager marketing will be directly under the CEO, and will report to CEO.
• Manager Marketing will be in charge and responsible of the management teams’s task
regarding marketing.
• He can assign tasks approved by CEO to different marketing employees and will be able
to change their tasks and duties.
Job Description
• Manager Marketing will be responsible for the promotion of the brand,
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30. • creating the brand image of the firm’s product.
• The Manager Marketing will also be supposed to increase and maintain the sales by
Applying proper strategies and co-ordination of all other managers.
Manager Finance:
Authority
• Manager Finance will report to CEO,
• and will have the 2nd supreme authority related to finance activity.
• The finance Manager can Approve projects up 100,000 Rs without the first making it
approve from CEO.
• For projects involving money higher than 600,000 Rs, the Manager will be requires to get
approval from CEO.
Job Description
• Manager Finance will be responsible for managing the finance activities of the firm,
• And to predict the future and present financial needs of the firm,
• The Finance Manager will also required to make the firm cost efficient by Applying
proper strategies and co-ordination of all other managers
Manager HR:
Authority
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31. • Manager HR will also report directly to the CEO,
• Manager HR can hire work force up to managerial level.
• For hiring a staff lower then managerial level the HR manager can make decision on its
own,
• For hiring a staff for managerial post the HR manager will be required to get approval
from CEO
Job Description
• The HR manager will be required to assess the human requirements of the firm.
• The HR Manager will also require addressing the human requirements of the firm by
hiring suitable and productive employees.
• The HR Manager will also be responsible for making rules and and regulation for the
staff
• HR manager will also make the job description and authority plan for the staff under
managerial position
• For managerial position HR manager will prepare the job description and Authority paln
but CEO will approve it.
• Manager HR will also responsible for making compensation plans
• Manager HR will also make the Hiring criteria
• HR Manager will suggest the wages plan to CEO
Manager Operation:
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32. Authority
• Manager Operation will report to CEO
• Manager Operation will lead the operation teams
• Manager Operation can request directly to CEO for changing any current Plan,
Job description
• Manager operation will be responsible for daily operations
• The plans for daily operations
• Creation of co-operation between all managers
• To make sure that the operations are going in proper way
Manager Strategy & Planning:
Authority & J.D
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33. • Manager S&P will Report directly to CEO
• Will set the goals and long term targets
• Will provide plans and strategy to achieve these plans
• Will make mission statement of the firm
Management teams:
Data storage team:
Total member = 5
1 Head engineers
2 in charge engineer
2 assistant engineers
This team will look after the data base of the firms client. And will stay at head quarter. In this
team there will be 3 engineers and 2 assistants. 1 will be the HEAD ENGINEER who will lead
and look after this team and will report to manager operation and Manager HR.
2 in charge engineers will look after the systems, maintain them, and secure them with help of 2
assistants.
Installation team
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34. Total member = 5
2 design engineers
3 assistants
This team will install the system at clients place, this teams will consist of 2 engineers who will
design and plan the installation after visiting the place accordingly. And will make maps, and
plans. And then guide the 3 assistants to install the setup and will check that whether they are
doing it right or not. This team will report to HEAD ENGINEER.
Marketing Team
Total member = 5
1 Marketing Supervisor
4 Assistants
This team will consist of 1 Marketing Supervisor and 4 assistants. Marketing Supervisor will
directly take orders from MARKEING MANAGER and will report him back. This team will be
responsible for advertising and marketing of type, personal and media.
Office Team
Total members = 5
1 Receptionist
1 phone operator
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35. 2 office boy
1 security guard
This team will serve daily office work.
BIBLIOGRAPHY
1. Source: http://www.synergyav.com/profile.html
Accessed on: 26th March 2010
2. Source: http://hiddenwires.co.uk/resourcescasestudies/casestudies20090902-01.html
Accessed on: 23rd March 2010
3. Source: http://www.home-automation-montreal.ca/
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36. Accessed on: 25th March 2020
4. Source: http://www.haywoodelectric.net/home-automation.html
Accessed on: 25th March 2010
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37. Accessed on: 25th March 2020
4. Source: http://www.haywoodelectric.net/home-automation.html
Accessed on: 25th March 2010
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