I~Panels

One hand. One bill. One environment.

 Table of Contents

Executive summary.................................................................................1

Company Overview.................................................................................2

Mission Statement....................................................................................2

History and Current Status.......................................................................2

Markets and Products...............................................................................2

Objectives................................................................................................. 2

Product or Service description...............................................................3

Description............................................................................................... 3

Market Comparison..................................................................................3

Proprietary Rights.....................................................................................3

Stage of Development..............................................................................3

Industry and Marketplace Analysis.........................................................4

Market Analysis........................................................................................ 4

Customer Analysis....................................................................................4

Competitor Analysis..................................................................................4

Marketing Strategy..................................................................................5

Product/Service Strategy..........................................................................5

Pricing Strategy........................................................................................ 5

Distribution Strategy.................................................................................5

Advertising and Promotion Strategy.........................................................5

Sales Strategy.......................................................................................... 5

Marketing and saleS Forecasts................................................................5

Operations............................................................................................... 6

Operations Strategy.................................................................................6

Scope of Operations.................................................................................6

Ongoing Operations.................................................................................6

Operating Expenses.................................................................................6

Development............................................................................................ 7
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Development Strategy..............................................................................7

Development Timeline..............................................................................7

Development Expenses............................................................................7

Management............................................................................................ 8

Company Organization.............................................................................8

Management Team...................................................................................8

Administrative Expenses..........................................................................8

Summary of Financials............................................................................9

Financial Assumptions..............................................................................9

Financial Forecasts..................................................................................9

Capital Requirements...............................................................................9

Financial Risks......................................................................................... 9

Exit Strategies.......................................................................................... 9

Offering.................................................................................................. 10

Investment Requirements.......................................................................10

Valuation of Business.............................................................................10

Offer....................................................................................................... 10

References............................................................................................. 11

Appendices............................................................................................12

Table of Appendices...............................................................................12

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Executive summary

[Introduction]

Product Description. [Text here…]

Marketing and Sales. [Text here…]

Development. [Text here…]

Operations. [Text here…]

Management. [Text here…]

Financial Summary. [Text here…]

Offering. [Text here…]

1
 Company Overview

I~Panels will initially start as a limited liability corporation (LLC) and will be established in
Indianapolis, IN. It will focus on importing low cost isolating EPS panels (Expanded
Polystyrene Styrofoam) from China. It will initially start as a 4-person team composed of
3 principals as partners and one CEO. Our goal is to make building houses affordable
for an efficient level of quality and sell x amount of panels for building x amount of
houses per month. We intend to keep this a small, “lifestyle” business.

Mission Statement

Make low cost built houses possible with eco-friendly efficient panels.

Markets and Products

I~Panels plans to fill a void that falls between affordable house manufacturing material
that cuts down the cost of the house establishment and have a “fixer-upper” homes
quality that is found at a high price material and be eco friendly at the same time. Out
target market is the young generation and senior generation that have a limited income
and will be able to control the material price, yet we cannot control the price of the land
and its inflation.

We plan to use a design build approach, where we design different housing layouts
including the number of panels that we need for that space and based on that we
recommend the number of panels required as well as the price. By the approach we will
make sure that the original budget is maintained for our customer without having it
affected by any changes in the floor plan or any other changes that might occur
intentionally or not. We will be “green suppliers” in the type of product we use and will be
selling.

Objectives

I~Panels will start as a small importer of green-efficient building panels and will begin
with minimal assets required for operations to make this a lifestyle business.

We will take pride in the principles by which we run our business, build our homes, and
live our lives. While we anticipate a growing demand for our product and services, we
will maintain our mission to “protect the fu- ture and build green.” A maximum production
of ten homes a year is forecast for ANH.

ANH Company Overview 3

Formally speaking, there is no “exit strategy” for this business. Our investors are
primarily ourselves and our customers. Typically construction companies are not sold
because it is the peo- ple, their service and their skills, that sell the vision and the
product. Should Rode or other staff separate from the business, they would either be
2
replaced or the volume of homes built would be reduced. Since the costs associated
with home construction are typically covered by buyer fi- nancing, there are few assets
to be lost (or sold) with the exception of the ANH manager or builder. Therefore, our job
satisfaction is just as crucial as the quality of our product.

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 Product or Service description

I~Panels company will be a panel trading company that provides low-cost and highly
efficient panels along with transporting services in order to meet the needs of low
cost building.

Description

EPS standing for Expanded Polystyrene Styrofoam; it has an R-Value of 3.5 to 4.0
per unit inch based on density, also it has been used for more than 5o years in the
construction field. EPS foam that fills the middle area of the panels have a density
that starts from 0.9 to 1.0 lb/cuft density sometimes goes to 1.5 lb/cuft which tends to
be manufacture inexpensive and highly efficient in thermal insulation. This product is
highly functional for consumers who are low on capital and want to have a low cost
building feature in parallel with efficiency.

Market Comparision

I~Panels company targets at low end market in order to meet the consumer’s needs
and the major competitor will be all other EPS panels producing companies as well
as SIP from the high end market. Comparing this product to other competitors,
I~Panels will be importing the panels from China where the manufacturing has a low
cost. Having in state transportation and shipping is a great advantage of I~Panels as
a distributing company.

Comparing our product to the SIPs we have two key differences: one is the price and
second is the firm interlock system decreasing the complexity of the panels and the
construction process. Also, it will be thin enough to reduce the amount of space
wasted in square footage due to its customized thickness while not causing any
problem when ordering and placing doors, windows casings as the SIP panels need
more work in that specific part.

Propriety Rights

I~Panels proprietary rights will be obligated to keep the rights of the producing
company in China for not producing the same product for the same type of material
and cost.

Stage of Development

EPS panels of I~Panels is still in development, leading to a chain of projected work.

As the panels are imported from china, it will take 20 days for shipping from Nigbo;
China to Los Angeles; US. Then domestic shipping will take 5 days from port to
Indianapolis to our wharehouse. Later on, panels will be customized according to the
contractors order before final delivery. The main obstacle to work on for now, is how
to reduce the shipping time and increase the sales.

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 Industry and Marketplace Analysis

Market Analysis
The housing market nation wide and in Indianapolis is is excellent, although the “green
building” segment is quite small in the overall industry yet the national statistics indicate that
it is growing rapidly.

The Market
Increase in population has a direct relationship with the real estate demand. According to
the Indiana Stats1, between 2010 and 2020 the center of India State – Indianapolis – will
be facing a population increase that’s between 5.1 to 10 percent. Indianapolis’s economy
is influenced greatly by the housing and construction businesses. It grew about 13.9
percent in 2013 and by an extra 7.7 in 2014. The parallel increase in population and
housing demand can influence the demand of our product. On the other hand, housing
rental units have increased from 2012 to 2014 by 8,000 new demanded units in the
downtown area, which shows the increase of the construction economy2.

Market Trends

Quality of life and good employment opportunities are the attraction qualities of
Indianapolis and the close cities around it. The U.S. Bureau of Labor Statistics has
showed a significant decrease in overall unemployment between the years 2013 and
2014, a decrease of almost 1.5% in Indianapolis and around 1% to 1.5% overall
unemployment in the counties around it. The availability of work chances will lead to an
overall increase in household income. According to the National Association of Home
Builder (NAHB) studies, about three-quarters of Americans describe themselves as
environmentally active or sympathetic while 69% think environmental protection and
economic development go hand in hand. Americans increasingly understand the links
between the natural environment, social environment and overall quality of life.

Customer Analysis

Environmentally focused buyers of our panels are highly educated, since around 77.3%
of Indianapolis population3 have a higher education than average high school, this make
them more aware of the advantages of using our EPS panels. Furthermore, 60.6% of
Indianapolis’s population occupy a household with children with a median income for the
age range of 25-44 years $44,510 which means that 50% of that population have a
lower annual net income. This makes the EPS panels an affordable approach to start
building a life-long home.

1
Indiana Business Research Center at Kelley School of Business, Indiana University, March 2012.
Check map at Appendix
2
Buiness Review at Kelley School of Business at Indiana University
3
Demographic information is powered by Onboard Informatics
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To make a difference in the existing home market, we must understand what motivates
people to choose the houses they choose, and then we must provide something more
desirable than the existing stock. The choice of housing within any given price bracket is
influenced by:

 Family accommodations
 Investment gain potential
 Lifestyle desires
 Community
 Potential work and household income
 Weather
 Environmental consideration of building material and cost

After conducting a survey at University of Indianapolis targeting the American population

that are residents of the city and who we will be targeting as our customers after having
a career and star their lives alongside an online survey that targeted more than the
American residents, looking at any interested customers who can be in our future target.

I~Panels will target the under-served niche market homebuilders who are very motivated by
cutting the price of buying a readymade house as the home building permits cost have risen by
23.5% 4 which increases the overall price that the constructor keeps on selling a house as well as
building one, yet if building material cost is cut, it makes a huge difference in making a long term
investment that would increase in value with inflation. As the building permits have greatly
fluctuated between the years 2002 and 2012 decade with the peak drop of almost by 4.04%
during the recession and increase in real estate and rental lease by 4.39% 5 which shows a
correlation between the prices of real estate and construction permits prices. Therefore by cutting
down the price of the building material there will be an expected demand in construction.

We will be mainly targeting the age group ranging 25 to 39 which is often referred to as the
“Generation X”. Since building a 1000 ft2 with EPS panels costs around $40,000, it will be fairly
affordable to young people with limited disposable income. This is a market segment with the
greatest stake in preserving the environment since they will be concerned for their own children’s
future. The potential market for these buyers is huge since young single are the fastest growing
household forming segment of the population.

I~Panels will be targeting other segments in the coming future and along future growth. Our
primary focus will be construction companies that will want to cut down budgets on building
material and increase the efficacy of their construction. We will be adding the convenience that
some buyers will want to buy in bulk rather than simply a stack of 200 to 500 panels for a single
home.
Competitor Analysis

The low cost construction industry in the front range and has

4
Demographic information is powered by Onboard Informatics
5
Ball State CBER using data from the U.S. Bureau of Labor Statistics
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 Marketing Strategy

The purpose of I~Panels is to sell low cost, efficient and ecofriendly construction panels
to young generations in order to cut down the cost of building a house when its cheaper
than buying a commercial one. This will be accomplished by positional I~Panels as a
unique small company that will sell affordable, efficient and fast permanent green living.
Out target market is different segments of consumer market whose criteria for housing
includes affordability and “greenness.” The marketing tool to be utilized will be low
tech/high touch methods including speakers’ bureaus, word-of-mouth referrals, supplier
referrals and a website that will both promote I~Panels and provide a portal to
sustainable building practices. Five percent of sales will be allocated to marketing.

Target Market Strategy

Product/Service Strategy

Pricing Strategy

Distribution Strategy

Advertising and Promotion Strategy

Sales Strategy

Marketing and saleS Forecasts

7
 Operations

[Introduction]

Operations Strategy

Scope of Operations

Ongoing Operations

Operating Expenses

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 Development

Development Strategy

The first priority of the principal is building a home that will both serve as a model
home and residence. If it costs more than anticipated, or if building materials do not hold
up as planned, these will both be valuable experiences to roll into company’s operation
plan.
Plans for building houses have been decided, and the factors need to come together
to make company’s concept work include finding a warehouse to rent, hiring people to
operate the daily business and deliver our EPS product, also getting bids for
subcontractors or contact with individual customers, and then getting to work. In order to
achieve them, company will look for both reliable subcontractors and individuals.
Additionally, there are some risks exist—company should reduce the period of
importing EPS panels from China as soon as possible, also, using EPS panels to
construct buildings may bring about some environmental problems, according to that,
the key point will become how to develop our business environmental friendly.

Development Timeline

The development of timeline will be about 1 months. The development of EPS panels
will begin with the importing, which manufactured in China, and it will take about 25
business days. According to the scale of our business, company only provide EPS
panels and services in Indianapolis, and the city-delivery will cost 1-2 business days. So
the total timeline will be about 1 month.

Development Expenses

The main cost of development expense will be the shipping cost. Because our company
only provide the service of delivery EPS panels. Also, the expense of renting warehouse,
and purchasing office supplies will be considering into company’s financial statement.

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 Management

Company Organization

I~Panel Company is organized as a LLC and is designed to be a panel trading/retailing

company, which in order to provide cheap and cost-effective panels to customers. The
Company consists of board of shareholders, the management team, a receptionist, and
two deliverymen. The general meeting of shareholders will be held every two months.
Our management team is composed of a manager and a part-time accountant, which
will take charge of daily operations. Shareholders own the company and the
management team will be responsible for the shareholders. Sarah, Abdulrahman will be
on the board of shareholders.

Management Team

There is only one manager in the company, who should be working in

panels/retail/management/construction field for more than 5 years, and he will take
charge of daily operations, which includes implementing the strategies from
shareholders, getting bids for subcontractors, also paying wages to our employees.
There is a part-time accountant in management team, he only works 2 days in a week.

Administrative Expenses

The primary administrative expense will be the salaries of manager and part-time
accountant, and they will be paid semi-monthly on a fixed fee basis. Also, salaries of
receptionist and two deliverymen will be the part of administrative expense.
I-Panel Company anticipates renting a warehouse by year as marketing and operation
expand. The primary month-to-month expense will be phone charges for warehouse,
cellular, and fax lines. The only insurance that we can provide is only Workers
Compensations. The salaries of all employees have been adjusted so that each one can
cover the expense of insurance. Benefit of such as sick leave, time of vacation also will
be involved.

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 Summary of Financials

[Introduction]

Financial Assumptions

Financial Forecasts

Capital Requirements

Financial Risks

Exit Strategies

11
 Offering

[Introduction]

Investment Requirements

Valuation of Business

Offer

12
 References

http://www.point2homes.com/US/Neighborhood/IN/Indianapolis-
Demographics.html

http://projects.cberdata.org/reports/Outlook2014-Central.pdf

http://www.nhck

http://www.city-data.com/city/Indianapolis-
Indiana.htmlenya.co.ke/index.php?
option=com_content&view=article&id=109&Itemid=68

http://leeds-
faculty.colorado.edu/moyes/bplan/Samples/Artemis/Artemis.pdf

http://www.permatherm.net/images/stories/EPS_DataSheet_0508.pdf

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 Appendices

Table of Appendices

Support for Product/Service Description (e.g., diagrams, pictures, etc.)

Support for Marketing and Sales Plan

Support for Development Plan

Support for Operations Plan

Resumes of Management Team

Financial Statements
 Income Statement [5 years]
 Balance Sheets [5 years]
 Cash Flow Statements [5 years]
 Ratio Analysis [5 years]
 Other supporting financial statements

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