Solar Products Distributor Business Plan and SWOT Analysis

Solar Products Distributor Business Plan, Marketing Plan, How To Guide, and Funding Directory


The Solar Products Distributor Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Solar Products Distributor business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.


Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

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Solar products distributors are rapidly becoming one of the fastest-growing types of wholesale and retail businesses within the United States. As the efficiency of solar panels has increased significantly over the past five years, the demand for solar powered products has concurrently increased as well. This trend is expected to continue in perpetuity given that many people are concerned about the environment and want to use ecologically friendly devices. It should be noted that the cost associated with solar powered products has declined substantially as well. Twenty years ago these were considered to be unique devices that were often extremely expensive, but with the rapid increase in demand for worldwide energy the technology that is now available even on a small scale allows for these products the price relatively low. As it relates to the products that are distributed most of the companies within this industry focus significantly on water heaters, boilers, pool heaters, and related charging devices. The gross margins generated from sales typically are about 40% to 60% depending on the type of product being sold. The startup costs associated with a solar products distributor typically range anywhere from $50,000 to $250,000 depending on whether or not inventory is going to be directly acquired by these businesses. Most distributors often have a 90 day to 100 day net invoice on any inventory they carry within their stores or through their wholesale distribution centers. This industry has experienced significant growth over the past five years with average annual growth rates of revenues increasing by 22% per year. This very strong growth rate is expected to continue for a significant period of time.

Given the strong demand and, moderate gross margins, moderate barriers to entry, and moderate operating costs – most banks and financial institutions are willing to put up a significant amount of capital in order to launch a new solar products distributor business. As part of the package a business plan is going to be required by any financial institution that features a three-year profit and loss statement, cash flow analysis, balance sheet, even analysis, and business ratios page is going to need to be developed. As part of the solar products distributor business plan a full demographic analysis describing both the population size, population density, median household income, median family income, median household value, number of businesses within the market, number of industrial complexes within the market, and related pertinent information should be included in the business plan as well. Of special importance to the business plan, should be a discussion regarding how the solar products distributor is going to develop ongoing purchase order relationships with retailers and contractors within the market. One of the ways that these businesses begin to immediately generate revenues from the onset of operations is to develop ongoing relationships with solar panel installation contractors, plumbing contractors, roofing contractors, and related trades people that will directly purchase products from the company in order to install them into customers homes. This can be one of the ways of the business is able to ensure that revenues are generated from the very first day of operation. In some cases, a solar products distributor will also maintain a retail store members of the general public can come in and view products that are available. However, the launch of a retail store does require significant amount of capital and most solar product distributors focus specifically in a wholesale and distribution capacity prior to the launch of any type of retail operation.

A solar products distributor marketing plan needs to be developed as well and is usually included as part of any type of business planning package. For most, and again – these businesses benefit greatly when they have ongoing relationships with trades people that can sell the products directly to their customers. Given the strong demand for energy friendly devices, many third-party contractors are able to seamlessly sell these types of products to their customers. The proprietary website should be developed as well that showcases the products carried, hours of operation, pricing information, and how an individual can order your high retail basis or wholesale basis any product from the business. In lieu of opening up a retail store, many solar products distributors will maintain e-commerce functionality on their website so that customers can directly place orders for their specific product without having to directly interact with anyone at the company. This e-commerce platform can also be used by third-party contractors, retailers, wholesalers that do business with the company. A presence on social media is valued but not important for this type of business. However, social media platforms are becoming more and more important as it relates to people looking for local and regional businesses. As such, a modest presence on these platforms such as FaceBook, Twitter, Google+, and Instagram can provide some level of a boost as it relates to the visibility of these businesses. A presence on social media is going to be important if the solar products distributor decides to operate in a retail capacity or commences some form of contracting operations where solar products are being installed directly into customers homes.

Finally, a solar products distributor SWOT analysis should be developed as well. As it relates to strengths, the demand for solar products is skyrocketing and will continue to do so for at least the next 10 to 20 years. The gross margins are considered to be moderate and the barriers to entry are considered to be moderate for this type of business. For weaknesses, although this is somewhat of a nascent industry is expected a number of manufacturers, distributors, and wholesalers will flood this market starting within the next five years. As the efficiency and cost of solar -related devices has declined, the demand among the general public is spiking. As such, it is important that an entrepreneur that is entering this market maintain a strong foothold as it relates to their marketing as more competitors are going to enter the industry within the next 5 to 10 years. For opportunities, a solar products distributor can rapidly expand their operations by increasing the inventories that are held by the business. Additionally, many of these businesses will seek to develop retail operations once their wholesale and distribution operations have reached a certain terminal capacity. For threats, given that this is a rapidly growing industry and that the energy grid within the United States and abroad is changing – there’s really nothing that is going to impact the way that these businesses do their operations outside of any major changes in the competitive landscape.