PBP/JAO/609/001

Presafe Business
Plan
2009
 PBP/JAO/609/001

Issue and Revision Record

Rev Date Originator Checker Approver Description

(Print) (Print) (Print)

(Signature) (Signature) (Signature)
James A Owen Carole Borella Nicola A Owen

A June 09 1st Issue

This document has been prepared for the sole use of Presafe and thereof should not be relied upon or used for any other
company without an independent check being carried out as to its suitability and prior written authority of Presafe being
obtained. Presafe accepts no responsibility or liability for the consequence of this document being used for a purpose other
than the purposes for which it was commissioned. Any person using or relying on the document for such other purpose
agrees, and will by such use or reliance be taken to confirm his agreement to indemnify Presafe for all loss or damage
resulting there from. Presafe accepts no responsibility or liability for this document to any party other than the persons by
whom it was intended and named in this document.
 PBP/JAO/609/001

List of Contents

1 Executive Summary

2 The Company

3 The Products

3.1 Monitors
3.2 Information Packs
4 Methodology

5 Key Personnel

6 Marketing Plan

7 Objectives
7.1 Business Objectives
7.2 Financial Objectives

7.3 Marketing Objectives

8 Market Analysis
9 Franchising
10 Overheads

11 Pricing Strategy

12 Financial Projections

13 Business Incubation Development Framework

14 Product Development
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1 Executive Summary

Presafe is a new company that will rely on the proven skills of its employees and related body (Presafe
Limited) to the growing need for energy conservation and government legislation in the requirements for
property in the United Kingdom to have standards both in construction and use that limit the effect they have
on global warming. The company has developed a number of documents related to the authenticity of
ownership & compliance with regulatory requirements, also the condition of a property (Some of these
documents are reflected by the Governments mandatory requirements for Home Information Packs). The
company along with the Directors have developed products, two of which have gained a patent license, that
determine the energy used by a property (They can give readings within + or – 5% of the correct. Whereas the
Government’s information collection process can have a variance of + or – 35%), the ambiance and condition
of the property. The legislation covered by Presafe Ltd but not limited to are:-
Building Regulation Approved Documents L1, L2, J, H, B.
Regulatory Impact Assessment: Energy Performance of Buildings Directive - Articles 7-10: Amendment of
the Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007
The Home Information Pack (No. 2) Regulations 2007
Housing, England and Wales Statutory Instrument 1266, the Home Information Pack (Amendment) (No. 2)
Regulations 2008.

From 6 April 2009 a property cannot be put on the market until a Home Information Pack is available. Presafe
packs cover all the requirements of the Home Information Pack and notes any required outstanding
information required to comply with the regulations (for example, a local property search).
Inside the Presafe packs, is the information that the owner or buyer should know about the property including
the risk of flooding, electrical safety and car parking is included.
An energy performance pack certificate or predicted energy assessment, which tells you how energy-efficient
the property is on a scale of A to G (where ‘A’ is the most efficient and ‘G’ is the least efficient). For new
homes, sustainability information on the effect a property has on the environment in nine categories including
energy and water efficiency. It must have sale statement, which includes basic details about the sale including
the name and address of the seller. There must be evidence of the title which for most properties will be
official copies of the register and title plan held by the Land Registry. The following documents, if
unavailable when marketing begins, must be included in the Home Information Pack as soon as possible, and
within 28 days. Two local property searches, which contain important information about the property on
issues such as traffic schemes, planning and building decisions that currently affect the property and what
might be about to affect it. These searches can be produced by either the relevant local authority or a private
search company. A drainage and water search must also be included which is usually provided by the relevant
water company. There must be a copy of the lease (for leasehold properties only). Also included must be
documents showing proof of title (for unregistered properties only).
It is intended for Presafe to manufacture the products in the South East of England. The process of training
personnel in the process of installation will be undertaken by a London College.
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2 The Company
The company has been trading for 20 years within the construction property business sectors. The Director has
extensive knowledge and experience in property and construction both the practical aspect and legal
obligations the legwith no to capture a substantial

3 The Products
3.1 Monitors

What is the monitor?

It will give a picture of the health of your home. The energy required to maintain your environment for
comfort and the wasteful energy being used. It will give a full report on the condition of your structure for
dampness deterioration and any hazardous to health.
The remote sensors will monitor five sets of information on a timed program and relay the information back to
the base station. They are one, humidity taken at the tip of the probe, two, temperature surrounding the probe,
three, humidity in the air at the location of the probe, four, temperature of the air at the location of the probe,
five, air pressure at the location of the probe.
The base station will monitor six sets of information on a timed program, One, humidity at the tip of probe
one, two, temperature at the tip of probe two, three, air pressure at the tip of probe three, four humidity in the
air at the location of the probe, five, temperature of the air at the location of the probe, six, air pressure at the
location of the probe.
The base station will collect all the information from the remote sensors and its own readings segregate and
download the information onto a flash card which can be downloaded to a PC with the appropriate software
for interpretation. The base station will downloaded the readings into a program. The program will compare
humidity temperature and pressure at all collection points and given a summary of the condition in
comparison with the expected for a compliant location.
Temperature reading can give an indication of the value of insulation the walls floor or ceiling are giving and
the waste heat required keeping a comfortable ambient temperature.
Damp (humidity) readings can give an indication of the presence of damp and what is causing it i.e. inside
masonry or wall structure broken DPM’s, incorrect chimney pots, undetected water leaks. This will cause
deteriorating masonry and timber. Incorrect ventilation, unvented heating appliances, incorrect use of the
location outcome poor or dangerous health conditions.
Broken vapour barriers inside timber frames incorrect construction methods no protection for timber from
ground moisture.

Pressure readings can give an indication of the movements of the air when compared to outside pressures and
whether there is unwanted air movement or inadequate seals to floors, ceilings, chimneys, windows and doors
moving into the property or moving out. A positive pressure inside a dwelling is required and desirable.

3.2 Home Information Packs

There are at present seven documents with a further two in production. The present seven documents are:-

1 The Property information pack.

2 My Property Energy pack.

3 The fire safety pack.

4 The Structural pack.

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5 The Photographs pack.

6 The Hazards pack.

7 The Condition pack.

The following packs will be produced within the next three months:-

8 The application of the monitor.

9 Presenting your property in a structurally sound, save and energy-efficient manner

4 Methodology
The Government intend to make it compulsory for all dwellings and occupy able buildings to have installed
smart meters to record the energy used and the recording of this information remotely monitored by the utility
companies. This leaves the property owner in a position of no redress as these companies and or the statutory
instruments introduced by successive Governments will impose costing and restrictions that are non
reproachable without excessive cost and time.

The Presafe monitor family of products will give the owner full control of the energy cycle requirements of
their property or properties. Supported with written evidence of their energy use and used from minute by
minute hour by hour day by day.

5 Key Personnel
James A Owen MRICS; MCIOB, Director. James has been with the company from the start. He has extensive
knowledge of the construction and property industry.

Nicola A Owen Director. Nicola has been with the company for 5 years and has a background of business
development and banking. Nicola will be the CPO as the company develops at present Nicola carries the
responsibility for financial and product development.

Carole A Borella is the Company Secretary and PA to the Directors.

Paul H Owen has been with the company for 2 years and oversees the products imaging strategy and designs.

6 Marketing Plans
The products will be marketed through to designated franchised outlets and by a team of trained personnel
with the knowledge and training to implement the use and the production of the report’s that the devices will
produce.

It is envisaged to develop a marketing strategy that will have a sustained growth over the first five years.
Partnering will then be negotiated with a international company, developing presafe into an international
company, at the front of low-cost highly efficient energy monitoring.

To maintain these key factors, presafe will require start-up funding, low key partnering, quality sales
professionals, being competitive using the latest technology and management skills.
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7 Objectives
Presafe has identified three types of objectives that will serve as challenging but attainable goals for your
organisation which are:-
7.1 Business objectives
The development of Presafe and its products, in the evolving energy conservation industry.
To reach profitability within three years of the initial funding year.
To develop additional patented devices, train and produce skilled employees and contractors.

7.2 Financial objectives

Increase product sales to several million pounds by the end of the third year.
Bring gross margins and maintain that high level by the fourth year.
Improve inventory turnover on an ongoing basis, until ‘just in time inventory’ is standard by the fourth year.

7.3 Marketing objectives

Focus on target marketing to increase market penetration and name recognition.
Expand target markets with controlled growth.
Establish brand awareness for presafe products and documents.
To position presafe as a leading company in supplying equipment and knowledge for energy conservation.

8 Market Analysis
The present market place is dominated by the energy suppliers with no competitiveness for the consumer to
take advantage of except for changing the supplier or suppliers.
There is no competition patented for the presafe monitors. They are independent of the energy suppliers and
give the consumer an advantage of having their own monitoring equipment, which they can use to control
their energy use and two contest if necessary energy suppliers statements on energy used.
Some of the monitors will have additional capacity to understanding the condition of a property.
The market is ready for people to understand their energy use. With 99% of motor vehicles having a
registered energy profile, also fridges, cookers, boilers, small electrical equipment, and other everyday items.
Property is one of the big unknowns as far as efficient energy conservation is concerned. It is assumed that
has longer as the loft is insulated, there is double glazing and an energy efficient boiler installed them all is
well. There is no way of recording what energy is used for what use and what energy is wasted due to poor
housekeeping. This wasted energy could add up to 50% of the energy a family is wasting.

9 Franchising
The products to be franchised are the monitors and the Presafe Packs manufactured by Presafe,
although Presafe could also be, in part or entirely, a distributor of goods manufactured by others and
sold under the trademark of Presafe or the manufacturer. The fundamental distinctions between a
product franchise and an ordinary supplier dealer relationship are greater identification of the
franchised dealer with Presafe’s trademark, more extensive and comprehensive Presafe services to
franchisees and exclusive or semi-exclusive defined areas for marketing and service of Presafe
product lines.
Instead of selling to a broad range of distributors and/or dealers, Presafe will sell its products
exclusively or primarily to select franchised distributors and/or dealers who concentrate their
marketing and service in such products (and frequently do not sell a competitive product). The
franchised dealer may adopt the Presafe’s trademark as its exclusive or principal trade identity. There
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will be considerable interdependence between Presafe and its franchised dealers during the setup of a
franchise.
The Presafe products will require extensive presale and post sale service and as they possess strong
brand identity lend themselves to product franchise relationships. By franchising a limited number of
dealers, and limiting competition (e.g., by granting each dealer an exclusive territory and prohibiting
dealers from selling outside their territories), Presafe will ensure each franchisee a sufficient market
to induce him to furnish marketing and product service and thereby obtain market penetration.
Presafe would look at single and multiple outlet franchises. A single franchisee may acquire rights
to establish additional franchised businesses and or areas, initially or over time, in the form of
options or rights of first refusal, or merely as a reward for cooperation and successful operation of its
initial franchise, and thereby become a multiple outlet franchisee. Usually, the franchises for the
several outlets operated by the multiple outlet franchisee will be obtained over a period of time.
Most franchise networks rely primarily on the single outlet franchise relationship. Presafe intends to
encourage and assist with development costs for single outlets to develop into multiple outlets. The
acquisition by franchisees of additional franchises from Presafe over time is a compelling (though
sometimes overlooked) endorsement of Presafe products. Expansion of a franchise network by the
grant of single outlet franchises will result in slower growth for Presafe products and slow the
development, design and manufacture of new products.
The multiple outlet franchise may evolve from an individual franchise, as discussed above, or may
be contemplated and documented at the inception of the relationship between Presafe and the
franchisee. In the latter case, known as area development franchising, Presafe and franchisee will
enter into a development agreement that grants the franchisee the right (exclusive) to open two or
more franchised businesses in an identified geographic area and prescribes the development
responsibilities of the franchisee and a development schedule. The franchisee must generally own a
controlling interest in each franchise, but is frequently permitted to have minority investors (e.g.,
equity owning managers or passive investors) in individual franchised outlets. If the area developer
fails to comply with its development schedule, it risks losing its development rights.
The area developer will pay a fee for the exclusive development rights in a geographic area.
Individual franchise agreements will be entered into as each outlet is developed and a portion of the
development fee is sometimes credited to the initial franchise fee due under each such franchise
agreement. In lieu of an area development agreement for the agreed territory, and a separate
franchise agreement for each outlet, the area franchisee may sign a franchise agreement for the first
outlet that grants to the franchisee rights to establish additional franchised outlets, prescribes a
development schedule (or specifies when such rights expire) and documents each additional outlet by
attaching a signed addendum to the original franchise agreement.
When the area developer has met its development quota, the area development agreement may be
extended with a supplemental development schedule or simply terminate, in which case the operating
outlets in the area developers territory will continue to be governed by their individual franchise
agreements (possibly subject to the Presafe’s option to buy them at fair market value or a pre-agreed
formula price). For area development to be effective, the area developer must have financial and
managerial capabilities to develop and operate multiple outlets. If area developers are carefully
selected to have the right attitudes, motivation, financial resources and management abilities, the
pace of growth can be quite rapid. The advantage to Presafe of area development franchising include
the opportunity for rapid development and early attainment of critical mass and better market
knowledge and impact in developing markets; enhanced cash flow from the fees generated by the
sale of development rights; fewer franchisees to monitor and support; and declining service and
support requirements as multiple outlet franchisees gain experience in developing and operating the
franchised business. Area developers will be carefully selected and prudently structured territories,
with development schedules agreed. Presafe would hold the rights to purchase multiple area
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developments at a pre negotiated price established at the time of granting the franchise. Successful
franchisees will always retain the right to repurchase the franchise at the agreed cost.

7 Overheads

UKAS
A specific and unique overhead for Presafe is incurred by the assessment process carried out by UKAS. This
is an ongoing continuous assessment process and has been estimated to cost £5k per year. This cost is made
up of direct UKAS fees and Presafe employee time charges. These costs have been taken into account in
preparing the cost report.

8 Pricing Strategy
It is to price monitors at a level that is inviting to individuals to buy. This will be the first issues of the
monitors. The Home Information Packs are supportive products and are not intended to generate more than
cover costs,
It is intended to develop and train a team that will be responsible for installation of the more advanced
monitors and to service and download the information for customers where the customer finds it difficult or
inconvenient.
It is intended to aim at three markets has follows:-

A The private house owner.

B The private landlord.

C The commercial landlord.

9 Financial Projections
The following predictions of sales, net-revenue and gross profit over the first 4 years of full production and
installation

Year Sales Net Revenue Gross profit

One £500k £50k £10k
Two £1.2m £500k £100k
Three £2.4m £1.2m £750k
Four £3.8m £2.2m £1.6m

10 Business Incubation Development Framework

Presafe understands and recognises the true principles of incubation, in the requirements to develop
itself into a successful company.
It will assess and develop current and future services offered to customers and franchisees develop a
strategy for the continual development of the incubation environment to better serve its future and its
investors and partners.
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Presafe will develop the core principles of business incubation and add further services and staff to
strengthen the incubation period and the impact it will have on stakeholders, franchisees and
customers.
Presafe will liaison and communicate with government legislators, profession bodies, energy
suppliers, prospective franchisees, business development companies and other possible stakeholders.
Presafe and its team will have regular reviews to establish that good practice is being utilised and
provide a ‘roadmap’ for future development.
They will review progress on a local and regional basis, identifying gaps in provision, developmental
needs, as well as the strengths and weakness of stakeholders thereby effectively having plans, using
the in depth information, for the future production of strategic planning as well as developing
performance criteria, amongst many others.
Presafe will identify and develop best practice in its business sector. Maximise investment, seek
government approved funding, identify strengths and weaknesses in procedures, procurement,
staffing and provide detailed action plans and strategic inputs to ensure that the business support
infrastructure is providing the right environment for sustainable growth.

11 Product Development
Presafe will develop a Proof of principle which will consist of a prototype that simply proves that the
patents and copyrights belonging to the company work. Often it is just part of the overall idea and it
does not need to look like the final product.
Presafe will produce aesthetic models of the monitors, these will looks like the final product but will
not be fully functional.
Presafe will then produce prior to going into manufacture pre-production prototypes. These will
look, feel and works like the final product. These pre-production prototypes will be produced to
mimic how it will actually be manufactured to check that everything will function together correctly.