Green Tech: A Hard Road to Hoe
Fred Engel is a technology entrepreneur that has sold a business and taken another public. He’s currently starting a new green technology venture that centers itself around reclaiming lost energy efficiencies in commercial building’s HVAC systems. His systems analyze feedback from the building automation systems using software to help building owners achieve cost savings through reduced energy consumption.
In order to analyze this opportunity without the financials one tool to use is a SWOT analysis:
Strengths
- Venture has the appeal of “green” technology which is in season these days
- Venture backs the green fad with actual cost savings
- Venture has an elite team with a concept that has a large market and good potential
- Management team listens to feedback and is still agile enough to make changes to core product/service
Weaknesses
- Sounds like venture capitalists are reluctant about the idea in it’s current state
- Green is a fad which may harm the company’s image in the future
- The company may run into a cash flow problem if they cannot find funding
Opportunities
- Large market for their services
- Potential to be published and gain market awareness through white papers/presentations to be known as the industry leaders
- Venture can lobby to get energy reduction laws passed to force a market for their services
Threats
- Companies may not realize the savings that can be had and only see the cost of Engel’s solution
- Running out of cash may mean the end of a potentially profitable organization
- Companies may force their current HVAC maintenance crews to achieve the efficiencies that Engel’s software can provide
All things considered, with Engel’s background and his experience in not only developing successful organizations, but his ability to take feedback and turn it into actionable steps, his venture will be a success. The movement towards clean energy will only help so much, but his focus on cost-savings as energy costs rise will help him gain traction in an otherwise controversial market.