Hayel Msherbash

Executive Summary

Solar Thermal System for Buildings:
Warm Floors in Winter, Cool Floors in Summer, and on-demand Hot Water Supply, year-round, with the option of Warming Pool's Water.

1. Business Summary:
I have developed a patentable system, a solar thermal floor heating in Winter, cooling in Summer and on-demand hot water supply for bathing and cleaning, year-round, with the option of warming pool's water, that is slightly more than the cost of the conventional systems, but with reduced recurring monthly energy expenses by about 50%, throughout the 15-year service life of the system.
Harness sun energy, reduce your bills...

I presented the system in the first day of R'09 Twin World Congress http://www.r2009.org in Davos, Switzerland, in a video-conference with Nagoya, Japan during Sept. 14-16, 2009.

2. The Problem:
The problem is that the existing buildings' space heating and cooling and hot water supply systems are polluting the environment, distributing heating/cooling unevenly, combined with high monthly energy costs. The same problems will be prevailed in new building constructions when using the conventional systems. Our challenge/opportunity is to turn these buildings into using the solar system that can solve these problems effectively.

3. The Solution:
The solution is our opportunity to provide similar facilities of heating, cooling and hot water supply to buildings, with the option of warming pool's water, with even-distribution of heating/cooling throughout the building, by employing our solar system that can also reduce monthly energy bills by around 50%, throughout the 15-years service life of the system, for the owners of both existing and new building construction. It is the first and the only system that does not need a back-up, where we will import the sub-systems, according to our design and process that follows client priorities, and install, commission and maintain the system on and in customer premises, with proper guarantee.

4. The Opportunity:
This is an integrated, green and safe, with lower life-cycle cost system, that can be used for upgrading existing buildings and for new building construction, for small and medium size buildings, the opportunity is to target the market which includes all kinds of buildings to improve the living and working conditions, in housing, commercial, industrial, government and army buildings, mostly in mild weather conditions.

This system is expected to provide middle-class people the opportunity to experience more convenient home and work environment that are previously only the rich could afford.
It is a sustainable, expanding market...

5. Marketing/Sales Strategy:
As a new design and process, we have to educate our customers, by visiting them and inviting them to our working prototypes, and supplying simplified brochures, starting an easy to navigate, informative web site that can provide solutions to different client requirements for both existing and new construction, presenting lectures, displaying our
products in exhibitions, issue press releases and building friendly relationship with customers. The next major step is the possibility of licensing and franchising in other countries.

6. Market Penetration:
Before being able to sell our integrated system, in the initial marketing phase, we will start marketing/sales process with the easiest, fastest and cheapest system is to replace existing conventional radiators/floor heating systems with our green system.

Besides, we can provide daily hot water supply for large buildings and in cold weather conditions, and perform existing buildings' weatherization to generate quick revenues.

7. Competitors:
Although there are many companies who supply conventional products, many more who market solar water heating, or providing solar heating or cooling systems with back-up systems, but none of them provides complete green system as we do. We are the first and the only company that will provide an integrated green heating, cooling and daily hot water supply, year-round, without back-up systems.

Other renewable energy systems, such as PV and Wind energy, provide only electricity, but "exclude" heating, cooling and hot water supply system costs.

In-house product improvement program will keep us a step or two ahead of competition.

8. Sustainable, Competitive Advantage:
i) Our system is inexpensive and considered to be the most cost-effective solar system, has a simple, durable technology that ensure a long service life.
ii) Outsourcing of the sub-systems will decrease the needed first investment, while we design the system in our office, assemble it in our workshop, and install and maintain it on and in client premises.
iii) This is the first and the only solar thermal system that provides integrated system without back-up system, suitable for a luxury lifestyle at a reasonable value price.

9. Management:
I will hold the position of Chief Technology Officer (CTO), but complementary, winning team of experienced professionals required for an execution intelligence, such as CEO, CFO, COO, marketing director, sales director, chief engineer, engineers, technicians, administrative staff...etc are essential to build a durable enterprise, and to steer it toward profitability and expanding market share, by providing value products and services, and be a leader in the heating/cooling field, but that will come gradually and according to company's development and needs, which will be discussed with the Investors.

10. Financial Projection:
Financial projection depends on where the company will be established, whether in Jordan, USA/Canada or an Arab Gulf country. Then, the financial forecasting can be prepared accordingly.

The gross profit is expected to be around 40%, while net profit would be more than 15%, but due to establishment costs of the company and slow sales in the first year, we will have a loss. However, the second year will show much higher sales that would result in a sizable revenue and net profit, which would not only cover the first year loss, but may have extra profit, while revenues and the profits are predicted to increase annually.

11. Funding:
Seed money in the first year:
If in Jordan, it is US$500,000. In the USA/Canada or an Arab Gulf country: US$1.5-mln in 3-installment within the first 6-months of the first year.

Additional Capital:
For Jordan, it is US$3-mln for the USA/Canada or an Arab Gulf country is: US$9-mln in 4-installment within the next 24-months.

12. Exit Strategy:
Within 3 to 7-years, through IPO, but, most probably by an Arab Gulf Investor. Or, we can arrange a draw schedule for "after the third year"...