GEM&M'S

 

Green Energy Management and Manufacturing Services (GEM&M’S) is a US Based company located in Dayton, Ohio that provides energy-efficient housing products and services for sustainable development in poverty-stricken areas.

EXECUTIVE SUMMARY

 

Green Energy Management and Manufacturing Services (GEM&M’S) is a manufacturer and builder of green smart homes in the midwestern United States of America (USA), addressing the need for economic empowerment to historically impoverished people all over the world. GEM&M’S will accomplish this by offering a tested business opportunity that gives resellers/dealerships a way to partner with our company to supply affordable green homes to all demographics along with reducing the overall environmental impact by supplying green energy. GEM&M’S’ business opportunity will contribute to solving inequalities in the world’s most poverty-stricken areas by offering our services to all people no matter their race, background, or social class.

 

GEM&M’S started as a real estate investment company; then it turned into a green builder/manufacturer due to supply/demand-side issues created by Mr. Houston’s, proven marketing system he created. Mr. Houston, Founder, and CEO started small by investing in old, condemned homes to revitalize run-down neighborhoods in which he grew up. Mr. Houston, Founder, and CEO had great success early in his real estate investing career back in the early 2000s; so much so, he wanted to help others do the same. Mr. Houston, Founder, and CEO developed a strategic growth plan that would accelerate his company’s growth by 200% YoY for 5 years running until the entire financial markets collapsed back in 2007. Mr. Houston’s growth plan created an opportunity for socially and economically disadvantaged people and showed them how to create wealth for their families with a ‘No Money Down’ (NMD) investment opportunity. 

 

Mr. Houston, Founder, and CEO could never supply the newly created demand for homes by his NMD system; consequently, the business never succeeded as planned. The demand created was over 50 investors per month needing three to five homes each, equating to 200 homes per month! As you can imagine, there was always a backlog of buyers; consequently, the business eventually failed.

Consumers all over the world are aware of environmental issues with the increased coverage of global warming. Also, government regulations have increased for companies to improve their carbon footprint; this coupled with consumer awareness to be more environmentally responsible, has increased demand for homeowners wanting to purchase green smart homes which will help decrease wasteful utility expenses. Most people of a certain middle to upper-middle class and stature can afford the growing trend of owning an expensive green smart home which is most popular on the west coast and east coast of the USA. With GEM&M’S’ business opportunity empowering countless people to become financially independent along with building our homes using the latest technologies in modular construction, we will be able to produce enough green smart homes without a high price tag and supply the newly created demand for our homes. 

 

Traditional high-end green homes can cost anywhere from $139-$153/sq ft based on the national square foot (sq ft) average of 2400. GEM&M’S’ homes will only cost around $104/sq ft to our primary target market of resellers/dealerships; in turn, they will be able to make a substantial profit by retailing the property at $124-$130/sq ft. The cost to our secondary target market LOHAS (lifestyles of health and sustainability) will cost around $130/sq ft which is about the cost of a traditional site-built home. This type of home will be more luxurious in its amenities and will also offer a higher level of sustainability, speed, and continual savings on utility bills. GEM&M’S redefines the modular industry, offering a home that is affordable and offers a healthier indoor environment and a lower environmental impact compared to traditional modular homes. Specifically, GEM&M’S’ homes will reduce natural resource use and construction waste, increase energy, and water efficiency, and improve indoor air quality. As compared to a site-built home, our homes exhibit a lower environmental impact in both the production phase (through factory efficiencies), as well as the use phase (through operating efficiencies). 

 

Unlike the competition, GEM&M’S will offer a fully equipped green home with solar panels already installed to include solar water heating options as a standard on all its homes. Other companies offer a similar product with much success to the middle-class communities, but there are very few based in the Midwest who will target the untapped market of the poverty-stricken heritage. Location to the customer base is an important detail as transportation costs and the carbon footprint of the projected increase when shipping farther from the factory. Both factors can prohibit firms from capturing more than a regional market. The Midwest is currently underserved, the cost of labor is low, modular factories are present, and our targeted customers (poverty-stricken buyers and communities) are in high concentration.

 

The business model is highly scalable because more factories can be added (Bought, Built, or Acquired through Mergers & Acquisitions – M&A) to produce more fully equipped green homes as the business grows. The model is replicable, but the fully equipped green building industry, especially in the Midwestern United States, is traditionally slow to change. This will give GEM&M’S a distinctive advantage in this region. In Phase One of our business, we will contract homes through other builders, keeping startup costs low and allowing GEM&M’S to fund the business through an angel investment we are seeking $1,750,000. Once we start earning revenue and the process is fully streamlined, we will seek to purchase a factory using bank funding in Phase Two (estimated at $9,750,000), thus negating the need to seek venture capital.

 

GEM&M’S is uniquely positioned to take advantage of a highly profitable market segment while also adhering to a company philosophy of sustainability. We have researched and identified our target customer segment (poverty-stricken buyers and communities) which will allow us to educate and convert them into responsible Lifestyle of Health and Sustainability (LOHAS) consumers (secondary target market). LOHAS (overall target market) includes approximately 35 million adult Americans and a $209 billion marketplace, $100 billion of which is accounted for by green building. According to the Natural Marketing Institute, the LOHAS segment has seen its greatest growth in the green building market. We estimate the annual size of our mid-western regional market to be 21,760 green home buyers (16% of 136K – Census in Midwest). The LOHAS market segment includes all income levels; we are targeting consumers who want green homes but do not know where or how to purchase them.

 

As we grow our business by selling homes to our primary target market of resellers/dealerships, we will eventually hire an internal design team to create custom designs for our secondary target market. This will attract the growing LOHAS marketplace which is our secondary target market. The designers will have experience with residential green design and will be paired with strong management and advisory team to grow this venture. Our company is committed to the idea of sustainability realized through the implementation of a triple bottom line: achieving financial, social, and environmental goals.