Rainwater Collection System Company
To: Jared Grogan
From: Nader, Mohammed, and Bhushan
Date: October 25, 2009
Re: Proposal to start a rainwater collection system company
Introduction
This document proposes a business project to setup an organization which will specialize in handling and managing the assembly and distribution of a roof-top rainwater collection system. The audience for this document will include potential sponsors or financial institutions willing to fund this project, and Jared Grogen along with his entire 3060 class. The rainwater collection system being proposed in this document will only be specialized for residential buildings.
The need for such a system comes from today's growing energy crisis and possibly a water crisis around the corner, where it is necessary for every individual to do anything within their abilities to try to preserve the environment. The rainwater collection system is a simple device which allows any home owner to take the initiative towards helping conserve the environment.
The basic concept behind the roof-top rainwater collection system is the usability of rainwater, in homes, which would otherwise be drained into the sewer. Collected rain water can be used for gardening, for flushing toilets and for washing in the kitchen. The usage of the rainwater would reduce the water bill and also help conserve the environment.
The project will focus on the structural classification of the organization, the methods employed by the organization, the resources required for the project, employees, the qualification required for the project, marketing strategy and lastly but most importantly, the cost of the entire project.
Problems
It has become increasingly necessary for us humans, with the predicaments of the energy crisis, water crisis and global warming, to start conserving our resources without causing harm to the environment.
i. With an increasing demand for fresh water and only a limited supply available, many believe we are heading towards a water crisis with the proportion of water to humans increasing everyday. Factors such as, groundwater over-drafting for irrigation is a major concern since, 66% of the total water withdrawal is used for irrigation, according to the World Water Council (2009). The rest 34% percentage is used in industries and domestic household. And with less than 1% of the world’s free water readily available for direct human use, it is important to conserve water (n.d). The scarcity of water also affects other species and their ecosystems around the world.
ii. One of the problems we face today is the increasing demand for energy. We are at a point where we need to start developing other means of reusing our energy or at least try to conserve it and reduce the stress on the present system.As far as the energy crisis is considered, according to Watergy (n.d.), 2-3% of the world’s energy consumption is used to pump water to homes and industries, this does not include the energy required to treat the water for drinkability.
iii. Erosion is a major problem which is caused mainly due to deforestation and urbanization. Erosion causes a lot of problems which includes rendering the soil infertile, it is also responsible for damaging infrastructure, and is a major cause of hazardous floods.
iv. With the increasing demand of usable water, the cost of it has also increased, placing a financial burden on home owners.
Solutions
i. According to Bob Drew (September 2009), if all homes saved 60,000 gallons of water per year using rainwater harvesting, this would amount to saving 8.4 billion gallons of water annually. This will help converse world water resources.
ii. Using environmentally friendly methods like rainwater conservation, it would be possible to reduce the energy consumption and costs. Proper rainwater harvesting can reduce the consumption from the mains water line by 50% for each home or industrial complex, according to the Green House Norwich’s Environmental Center (March 2009). One of the benefits of using a rainwater collection system would be the reduction in global energy consumption.
iii. Harvesting rainwater can indirectly decrease the effects of erosion.It won’t solve the entire problem, but at least it will minimize the effects. When rainwater is used later used for gardening, the soil can better absorb the water and fill the groundwater supply.
iv. The rainwater collection system is an environmentally friendly way to save money for those who want to be more financially responsible. It is estimated to save one-third or more annually, on water bills. Harvested rainwater can be used for outdoor watering, and indoor watering such as laundry, showers and toilet use.
Objectives
The goal of this project is to start a company that is specialized in installing a residential rainwater collection system. With proper financial support the company will manage, install and distribute roof-top rainwater collection systems to it customers. In doing so the company plans to produce an affordable rainwater collection system, which will reduce the energy and water bills for its costumers, and also help individual homeowners to start conserving water. With a well organized management, appropriate location and quality service, the company will try to recover all its expenses within the first year of business.
Figure 1: Roof-top rainwater collection system (Ward, 2009)
Initially, before the beginning of the final project, a comprehensive research will be conducted for all the following categories listed below: Management, Resources, Qualifications, Methods and the Costs. The analysis of the research will yield the necessary information required to complete the project, as outlined below.
Management
The organizational classification of the proposed company will be addressed in the project after analysis and research of a basic business structure, and if needed, after consultation with a consultancy firm. Below are some proposed ideas gathered during initial research and are subject to change.
A. Employees: Employees will be recruited from their respective fields to fill the technical and non-technical departments of the company. The amount of employees required to run the proposed company effectively will be researched and emphasized in the final project. Below are some employee positions proposed for the company, but are subject to change.
1. Licensed Attorney
2. Technical staff
a. Engineers: responsible for designing company product
b. Technical workers: responsible for installation and maintenance of company products.
3. Management staff
a. Company Manager: responsible for equipments, managing time and efficiency of the company.
b. Customer Services Manager: will be directly involved in customer satisfaction and needs.
c. Financial Manager: responsible for company’s budget and all other matters pertaining to financial issues
B. Employee Training & Education: Employees will be trained not only in their specific operational duties but also in the company’s philosophy of environmental conservation. They will be kept informed of the latest environmental and technical issues related to water conservation.
The company will offer college students the opportunity to gain valuable experience by hiring them as interns. The company will recruit college students, from the engineering, sciences and business fields.
Resources
A. Facilities & Offices: The proposed company will initially require two rental facilities, one for the office and the other as a storage facility. The proposed office site will require an approximate area of 400 square meters. A storage facility of approximately 500 square meters will be required to store and maintain all the equipment and tools. Further analysis is required, which will be conducted during the project, to finalize the location of the mentioned facilities within the United States.
B. Material Resources: Equipment for the roof-top rainwater collection system will be procured through a contractual vendor to obtain quality materials. Other equipment and tools required for the assembly and maintenance of the rainwater system will be acquired through other vendors after further research. An appropriate amount of research will be utilized to short-list and specify potential supplies, for the proposed company.
Initial research during the proposal has already yielded a list of suppliers, obtained from Texas A&M Systems (n.d).
Qualification
Licenses & Standards: The licenses required to setup and manage the said company will be researched in detail in the project. A quality standard will be set for the company’s products through affiliations and membership to national and international organizations such as the International Standards Organization and the American Water Works Association.
Methods
A. Services: The proposed company’s main service will be the installation of a rainwater collection system, along with the system repair, maintenance and replacement. But other adjacent services may be provided which relate to the water system. Below are a few proposed services, which will be analyzed in the project:
· Water Conservation Consulting
· Wastewater treatment
· Cost estimation and rate of annual water savings
B. Systems & Controls: Extensive research will be conducted to assure the quality control, development and affordability of the roof-top rainwater collection system. The systems will be constantly tested for high standards of operation and efficiency. How the quality control, development and affordability is maintained and researched, will be addressed in the project through research and analysis of current systems, and by consulting technical experts.
C. Competitive Strategy: There are proposed ways to create an advantage over our competitors. This is another area which will require extensive research and brainstorming to formulate the best strategy.
i. Product identity and quality.
ii. Employee education and
iii. Affordable systems.
D. Marketing Strategy: Advertising is a very powerful tool to present the product to potential buyers. Emphasizing the company’s theme of water conservation and reduced energy cost, will help the sales of the product. The Marketing Strategy along with the Competitive Strategy will be formulated in the final project after analyzing the market condition for the company product. Following are possible marketing strategies:
i. Media - local newspapers, magazines.
ii. Direct mail, yellow pages, City Info.
Costs
From initial research, an estimate of $1 million is projected for the implementation of the project. A one-year funding estimate will be researched and included in the project which will include:
i. Material resources cost
ii. Employees’ salaries
iii. Development research cost
iv. Office and storage facility rent.
Outline
Below is sample outline for the final project. The following outline is subject to amendment, according to the information gained during the initial project research.
I. Executive Summary
II. Need for Water Conservation
III. General Company Description
IV. Description of Product (Rainwater Collection System)
V. Marketing Strategy
VI. Operational Strategy
i. Potential Location & Facilities
ii. Services
iii. Standards & Licenses
iv. Material Suppliers/Vendors
VII. Management and Organization
i. Company Structure
ii. Employment
iii. Employment Training
VIII. Financial Plan
i. Startup Expenses
ii. Capitalization
IX. Appendix
Schedule
Task / Three days / Two days / One week / Two weeks / One weekInitial research, all categories
Analyze Facilities & Offices’ Research
Analyze Employees’ Recruitment Research
Analyze Employee Training & Education Research
Analyze Marketing & Competitive strategy Research
Conclusion
The world is in need of a rainwater collection system. Therefore, this project proposes the idea of building a rainwater collection system company that will provide people with a unique system that will help them save money and will also help save the environment.
Reference:
Drew, B. (2009, September 1). The Case for rainwater collection. Retrieved from http://bobdrew.wordpress.com/
Texas A&M System. (n.d.). Rainwater harvesting. Retrieved from http://rainwaterharvesting.tamu.edu/suppliers.html
The Green House Norwich’s Environmental Centre. (2009, March 3). Rainwater Harvesting. Retrieved from http://85.92.86.226/~greenhou/index.php?option=com_content&view=article&id=95&Itemid=98
Ward, David. (2009, February 10). Water, water everywhere!. Retrieved from http://islandbreath.blogspot.com/2009/02/water-water-everywhere.html
Water.org . (n.d.). Water facts. Retrieved from http://water.org/learn-about-the-water-crisis/facts/
Watergy.org (n.d.). Watergy: water and energy efficiency. Retrieved from http://www.watergy.org/
World Water Council. (2009, May 27). Water Crisis. Retrieved from http://www.worldwatercouncil.org/index.php?id=25