The Smart Home is a pioneering business with the main goal of creating one network (wired and/or wireless) for all the gadgets in the house to work together and get information from one another. The reason behind a house that is smart is to make it safer, entertaining, and environmentally friendly. In this business plan, you will find the all elements required to run a smart home business successfully.
Smart Home Business Plan
The Smart Home business is a very attractive one for tech-savvies, and there are different projections of business models that can be applied to it. Even though the business is starting strongly in the U.S., the goal is to have it expanded to the rest of the world as soon as possible. The business model section will explain how the company works and promote this lifestyle. The SmartHome business is the industry around the creation of living spaces inter-connected for communication, either between various automated devices in the house or to an off-site location
This business is expected to reach 90 million people by the year 2020. This section of the business plan presents a market research of the Smart Home industry to identify the business main competitors. It also includes the strategies to leverage on the company’s main competitive advantages in order to position the business within the marketplace.
The operations plan consists in understanding how the company will effectively deliver the products and services it offers. Installation plans need to be organized as well, since, all or most of the elements in the house will be embedded to this system. This operational aspect includes staff recruitment and training, core business processes and other technical details.
State-of-the-art and convenient are two of the best adjectives to describe the technological advance of a Smart Home. The focus of the marketing plan in this chapter is to convince customers that this is the way to live the life of the future and that they will not be able to live it without embracing this technology. The benefits go far beyond comfort; it is believed that health will also be enhanced by this, in improving lightning systems among other things.
Regardless of the fact that the first projected users are mainly young adults, that does not mean that they will be the only target. Market research in the business plan will show who the most avid users will be not just now but also in the future. By identifying the proper market segment to serve the company will focus its promotional efforts more effectively towards the people who are more inclined to upgrade their home to a Smart Home.
TV and Radio ads, promotional websites, e-newsletters, and events that portrait the benefits of this technology and how much it brings comfort to the lives of those that adopt it, are among the main promotional tools mentioned in the business plan to make your smart home business grow.
This business is a multi-million dollar one already and it is expected to grow substantially in the near future. Many multinational technological companies are investing on products that are aiming toward a smart home environment. This chapter of the business plan presents the financial plan for the company including revenues, expenses and capital requirements for the next three to five years.
For this business model, the most important source for revenue lays on manufacturing and selling all appliances and systems to make a home smart. Subscription fees will be charged as well. In the long term that will mean a steady source of income. This section will further explain the business major sources of revenue and important financial assumptions undertaken to arrive to such estimations.
Expenses for this business are related to getting, buying and manufacturing gadgets and applications. In addition, money needs to be invested in human resources (team of I.T. professionals and other capable staff) for developing new models of revolutionary applications. In technology, the most important thing is not to come up with the newest idea, but to perfect the idea each day that passes. This part of the plan describes the primary ongoing costs for the business and its regular expenses such as staff training and licensing fee.