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Home Automation Services Business Plan

Executive summary

The “Coordinating and Development Corporation”, (CADC) is a company that provides both facilities of product and service in the field of electrical APPLIANCES automation. The basic purpose of this company is to put engineering skill in use to overcome the problems facing by human for the ease of daily life.

A) The Need

Increasing technological aspects leads to the requirement of betterment and advancement in life; this can be possible only by using technology/engineering skills to reduce human effort to a negligible extent. Moreover the increasing high security threats demands a full proof security system in our society.

B) The Solution

CADC Company provides complete home automation service using technological aspects. Different devices for example; light switch, clap switch, PIR sensor base automation, finger print/keypad lock system will be installed in house or any place (where required) which will allow the switches to work automatically. This provides an ease to a person (specially aged persons who face difficulty in moving frequently), it can also be used for monitoring of small kids and it also provide easy, secure and cheap security systems.

Home Automation Services Business Plan

Business Description

CADC Company located at ABC is operated by a group of 5 persons. The company designs all the products within the university and is on its initial stage. Innovation and easiness in engineering field develop the idea of complete automation service. Company provides technology like voice activation switches, light sensors, motion sensors which are used in different devices for specific operation. These products can also be used effectively for disable persons by making them mostly independent. The vision of this firm is to automate every appliance present.

Form Of Business

The idea of forming a business came about when our entrepreneur lecturer for semester class asked us to form a group of five students for coming up with new idea to become an entrepreneur. A group of five formed CADC company. Many ideas come to mind but after the series of analysis we decided to form a company which will provide the services as well as products. CADC is a joint partnership between five persons at its initial startup stage. The person A and B is the founder and XYZ is the co-founder of CADC services.

Team And Managerial/Organizational Structure

Our team is made up of two C.E.Os, A and B who are also the decision making authority, currently studying in the final year of electrical engineering ABC.With his excellent electrical and electronics skills is hope full in booming this business in this modernized era and the 2nd person B with good entrepreneurial and energetically skilled person is a boost for the company at this startup stage, he also got the Photoshop skill which helps in flourishing the designs. He is focused with services part while A is responsible for production. We also have the most creative person of this team who is focused and determined for coming up with new designs in products and play a major role in making new effective products and are a main person after person A in production side. The other with her good communication, public speaking and marketing skills provides a big Support to B person in building up good relations with the customers. Her literature work contributes a lot in letting this team knows about the upcoming threats. Last but not the least our mathematician who is responsible to look after all the finance of this company.

Vision Of Company

“We intend to facilitate our customer to the best source of products and services”

Mission statement

“Mission statement provides a clear and concise statement of the long-term mission of CADC business”

Industry Analysis

Industry Size And Structure

CADC engineering technology is a small separated company which works completely at university. It works within the electrical engineering department of university and produces less amount of product as it is in its initial stages. New innovation in circuitry is also done within the department. Company includes tools and goods which are worth 50,000 rupees and have budgets of 1 million for the production of products. These products are also tested and simulated within the department.

Porter’s Five Forces Model

The summarized form of industry analysis is done by porter’s five forces model that is given below:


The competition with home automation companies is quit less because automation is still emerging in Pakistan and with flourish in coming years .but still in market local companies are developing and selling automation technologies which are Rivalry for our company. Our companies can have an edge on other companies as we are providing complete services with our products.

Threats Of New Entrants

New entrants can be a thread for our company because as technology is increasing and improving day by day people are being more advance and are buying technology products which automate their lives. So automation is an attractive market and more and more companies are coming toward these technologies which can be a direct thread for our company.

Threats Of Substitute Product

Advance and latest technology contained companies which are working worldwide can provide more advance ,smart and cheap products which can be a direct thread for our company as our company is not equipped with latest manufacturing technologies and artificial intelligence.

Bargaining Power Of Supplier

Our company have done half backward integration as product are being produced within our company but still company buys basic components from supplies which is imported for china. Bargaining is not a huge problem for our company as major prices of products are fixed.

Bargaining Power Of Buyer

Intec provides a different package which includes our products in different combinations .this manages a range of cost of different packages. In this way company can bargain with customers easy and can provide good packages for weak and strong both customers.

Industry Participants

The level of competition is moderate with only one competitor pedigree which checks for the certification of drugs by manufacturing companies. Currently this service works in Nigeria, however this service would allow for the verification of Drugs, food and water.

Market Analysis

Swot Analysis


     CADC has some significant strength.

  • It provides products as well as completes home service including installation.
  • Different packages according to the customers budget and requirement
  • Modified intelligent circuits can also be produce according to the customer’s requirement and ordering these products.

Financial resources are very less which is a weakness for company as it is in its initial stages and investors are not yet assigned but company is working on advertisement and hoping to increase the product sales which will generate revenue for further improvement in company.

  • Increasing interest of people in technologies now a days is an opportunity for our company as it provides innovation technology ,
  • Automation circuitry provides easiness in daily life especially for older persons who can operate this without touching resulting in improvement of life style.
  • Initial profits can be less because of the advertisement strategy providing starting discounts to increase the sales of our product
  • Trust of customers of circuitry operation is still less and company have to work hard for attaining that.

Know Your Customers

In Pakistan educational institutes, industries and offices are being developed and improved day by day and youngsters are being attracted toward latest, advance and innovative technologies. Everyone need automation and easiness in their life and find new products in market for this purpose .people who are physically disable and who are educated are our major customers who can purchase such products which reduces their efforts to a good extend . Innovation of our product like turning on and off the electrical equipment’s just by clapping or using a remote or just moving the hand in the air attracts the customers and build an interest in them.

Unique Value Proposition


Their different combination packages and complete installation services at your home is a unique value proposition of our company which makes it different from other companies as they only provides the products .

Marketing Strategies

Basic target are youngster and older people because now a day’s youngsters are being attracted towards innovative technology and older people have an ease on it .our devices can be installed in residential societies, offices, shopping malls and universities. These all associated department are our target market .initially trust building is our main problem which will be overcome by intense advertisement with the passage of time. This problem can reduce our initial profits from our customers.


Initially CADC is concerned with the residential area. This area includes high profile residential societies where houses are being constructed and have high probability for having this modification done in those houses. The next phase is after this company gets stable is targeting commercial areas like Universities, offices, shopping malls and industries. This will require more man power plus it will generate job opportunities for the graduates.

Targeting Strategy

The main strategy is guerrilla marketing. Pamphlets will be distributed in the main exhibitions; events related to technology and in residential areas (will provide these pamphlets on door steps).

Product And Service Strategy

It will be divided into two parts, product and service. Products will be introducing initially in a city and all markets related to electronics and appliances. Services will also be provided where required within the limits of the city. On a successful start in a city this company will extend its product and services to other main cities.

Our product consists of 6 major parts, clap switch, motion senor switch, IR sensor switch, remote switch, LDR switch and keypad/finger print door lock system and circuitry according to customer demand. Also services will be provided like installation of these switches and all others.

Pricing Strategy

There are different packages in which the company will provide different combination of devices which will create a  range of prices and company will also provide initial discounts in product and as well as services like for first month we will provide free services. Payment methods will be easiest there will be 50% advance and 50% will be taken after the work gets completed.

Placing/Distribution Strategy 

CADC Company will have its office, and all the dealing and buying will be from that office. It will also provide its services over the social media Facebook from where it will take online orders if the customer needs door step services.

Advertising/Promotional Strategy

Free services for the first 20 customers and company will provide 1 year warranty in case of any fault related to products. Guerilla marketing will be the initial startup advertising method of the company.

Financial Projections

Profit Margin

Investment = 10 lacs Rs

Cost per package = 25,000 Rs

Total units produced = 1,000,000/25,000 = 40

Profit = 40*8000 = 320,000 Rs

Net profit = 320,000 – 60000 = 260,000 Rs

Income Statement

Coordinating and Development Corporation

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