Vira Vision Sample Business Plan

NEW BRUNSWICK PROVINCIAL NOMINEE PROGRAM
Far-On Backup Power

Solutions
Business Plan
Reza Ghorbi
May 2013
EXECUTIVE SUMMARY............................................................................................................................................ 1
MARKET RESEARCH ............................................................................................................................................... 3
PRODUCTS AND SERVICES ....................................................................................................................................... 5
OPERATIONS PLAN ................................................................................................................................................ 7
COMPETITION ...................................................................................................................................................... 8
MARKETING ......................................................................................................................................................... 9
SWOT ANALYSIS ................................................................................................................................................ 10
PERSONNEL PLAN ............................................................................................................................................... 12
START-UP EXPENSES ........................................................................................................................................... 13
INCOME STATEMENT ........................................................................................................................................... 14
BALANCE SHEET .................................................................................................................................................. 15
APPENDIX 1: PERMITS REQUIRED ........................................................................................................................... 16
APPENDIX 2: FINANCIAL STATEMENTS..................................................................................................................... 17
APPENDIX 3: NEGOTIATIONS ................................................................................................................................. 18
APPENDIX 4: UPS ............................................................................................................................................... 25
APPENDIX 5: FIELDS OF APPLICATION...................................................................................................................... 31
APPENDIX 6: TRAINING COURSE ............................................................................................................................ 33
APPENDIX 7: GE DIGITAL ENERGY PRICELIST ............................................................................................................ 45
Applicant initials _______
New Brunswick Provincial Nominee Program

Far-On Backup Power Solutions
Executive Summary
Mr. Ghorbi plans to start New Brunswicks first UPS service provider in Moncton named Far-On
Backup Power Solutions. Far-On will be specialized in providing backup power solutions, products
and services including UPSs and other power reliability systems. The business will be started as soon
as Mr. Ghorbi settles in New Brunswick. With no other UPS service provider in New Brunswick, a
great opportunity is prevailing Far-On.
The proposed business will be registered as a Limited Liability Company with Mr. Ghorbi and his
wife owning all shares in the corporate worth $164,000. Far-On is projected to reach profitability in
its third year of operation and will continue to have a healthy financial status afterwards.
UPS stands for Uninterruptible Power Supply, which is the main part in most backup power designs.
There is a large demand for UPSs in the educational centers, process industries, hospitals, banks,
offices, airports, hotels, cinema theatres, households and computer installations. With North American
UPS service market projected to exceed $1.2 billion in 2013, and New Brunswick generating nearly
0.18% of North Americas GDP, there is a substantial market to be reached.
According to inquiries made from local UPS installation bases, at the time this proposal is being
composed, there is no UPS service provider in New Brunswick and there are only a couple of
businesses which offer sales of small desktop UPSs which means there is no direct competitor for the
proposed business in New Brunswick. Currently most related services are outsourced to Nova Scotia.
The most direct competitors for Far-On would be Universal Power Solutions and VitalSine, both
located in Dartmouth, NS, which provide the same products and services to Nova Scotia and New
Brunswick. Far-On will aim to penetrate the New Brunswick market based on its location advantage
and lower prices.
Far-On has obtained the authorization to become sales partners with two well-known UPS brands:
GE Digital Energy and Tripp-Lite, both having substantial market presence and brand recognition in
North America. The company plans to hire at least one full-time employee from New Brunswick.
By employing local individuals, and providing required services for local entities, Far-On would be
contributing towards development of the area, funds will remain in the province and the existence of a
UPS service provider, will make New Brunswick a better place to start and run businesses in need of
backup power.
UPSs are primarily used in information and communication technologies, which is one of the largest
and fastest growing sectors in New Brunswick. Therefore this proposal is in alliance with outlined
strategies in New Brunswicks growth plan.
The mission of Far-On will be to provide power reliability needs of the province, by providing
superior and fast service, premium quality parts, and value added services, with competitive prices.
Applicant Initials _____

Background of Applicant
Mr. Ghorbi will be the manager of Far-On, and will be responsible for planning, staffing,
supervising and controlling the operation. He has great managerial experience and comprehensive
knowledge of the industry. He has the experience of working for FARAN Electronic Industries
Corporation in Iran for the last 5 years. This company is one of the most active companies in
electronic industries in Middle East with 54 active representatives in the country. He has acted as the
factory manager in FARAN Electronic Industries Corporation which qualifies him in all technical
aspects of operation. He had the responsibility of coordinating with all 54 sales representatives of
FARAN which qualifies him in marketing and sales aspects of the operation by providing in-depth
insight of the sales operation and supply and demand process.

Market Research
Far-On will serve electrical power reliability needs of New Brunswick. Analysis on demand for UPS
services in New Brunswick has been conducted through expert opinions from government officials
(Andrew Campbell of Enterprise Fredericton) and the installation base manager of University of New
Brunswick that outsources its preventative and essential maintenance contracts to the neighboring
province of Nova Scotia, which is costly and time consuming. Great demand for local service
provider have been assured. With no other local entity providing these services in New Brunswick at
the moment, and existence of various installation bases with ongoing demand for new installations
throughout the province, Far-On will be able to dominate the local market share, based on its lower
prices and its proximity to the target market. Since most existing installation bases in New Brunswick
have ratings lower than 20 kVA, and forecasted demand for new installations is in the same range,
Far-On will concentrate in this range of UPS ratings. This limitation correlates with firms investment
and capabilities.
Industry
An industry report by Frost & Sullivan entitled North American UPS Service Markets1 predicts
healthy growth for the Industry. The market generated close to $740 million in 2005 and an update on
this report declared that this industry generated $876.3 million in revenues in 2007. This market was
projected to grow at a CAGR (Compound Annual Growth Rate) of 5.7 percent between 2007 and
2014.
Revenues for services are primarily driven by installed base of UPS systems. Preventative and
breakdown maintenance represented 61.9 percent of the total UPS service revenues in 2007. This
consisted of on-site service for breaks and fixes. Furthermore, customers are recognizing the benefits
of outsourcing servicing contracts versus employing in-house resources. This research indicates that
installation base will continue to grow throughout the forecast period at a CAGR of 10.2 percent. This
trend is influenced by fairly long repurchase cycle. The market will continue to witness challenges in
terms of price competition, which will make this factor even more important.
Target Market
The proposed businesss target market would be the province of New Brunswick. At this time, there
is no UPS service provider in this province, but demand exists for UPS products and services which in
most cases is supplied from neighboring provinces. New Brunswicks population exceeded 750,000 in
20112, and its economy has stabilized after the 2009 recession3.
NB Powers quarterly report for third quarter of 2012-13 annum indicated a SAIDI (System Average
Interruption Duration Index) of 3.51 and a SAIFI (System Average Interruption Frequency Index) of
1.76 for the province. These indexes indicate that average
power outage for power consumers in New Brunswick
COUNTRY
SAIDI
SAIFI
GERMANY
0.38
0.5
occurred 1.76 times a year and average subscriber faced
DENMARK
0.4
0.5
3.51 hours of power outage that year. According to
NETHERLANDS
0.55
0.3
ITALY
0.97
2.2
Council of European Energy Regulators4 these indexes for
FRANCE
1.03
1.0
some European countries is presented in the following
AUSTRIA
1.2
0.9
table. Storms and other climate related events cause North
UK
1.5
0.8
American power network to face more interruptions.
These power outages put backup power solutions in high priority for subscribers. Demand for UPSs
and backup power solutions directly relates to these indexes.

New Brunswicks growing ICT (Information and Communications Technology) sector, educational
centers, hospitals and other healthcare centers as well as other commercial entities, form the target
customer base. Sales of products will mostly be targeted to new businesses, while services will target
existing installation bases.
For a detailed description of potential customer base, refer to Appendix 5: Fields of Application.
Industry Trends
UPS products are offered through a number of different vendor channels including brick stores and
online stores. Service and support are key differentiators in this market. Most UPS manufacturers
offer services for their installations, but they cant cover every geographical location. Independent
service providers are more preferable to customers due to their availability and lower prices. Far-On
will act as an independent service provider for UPS installation bases to be able to keep its lower price
offerings.
End-users prefer maintaining existing units for at least 7 years before swapping out with new units.
Also an influence is the modernization by adopting scalable and redundant UPS units to increase
availability and minimize downtime.
New technologies are always emerging in electrical equipment industries. Green technologies,
systems with lower power consumption and more efficient designs are on demand. Two of related
new technologies which are predicted to have greater demand in the future are fly-wheels and solar
panels.

Products and Services

Core of the proposed business will be services for existing installation bases. Most of these services
will be maintenance jobs which in most cases require parts to be replaced with new units. These parts
are batteries, inverters, chargers, rectifiers, power conditioners and surge suppressors. Eventually
installation bases will require their UPSs to be replaced with new units. Sales activities will mainly
target new installations. UPS products with low ratings are used for desktop purposes, small offices
and residential estates. In addition to UPSs, surge suppressors have great demand in these sectors.
Products
Three-phase UPSs have larger market share in North America and UPS manufacturers collect most
of their revenue from these products; however they are mostly used in data centers and large
installations. There is lower demand for high-rated backup power systems in New Brunswick,
therefore the business will focus mainly on offering single-phase models and most dominantly
standby models. Three-phase UPSs will be offered by the business as well. An initial inventory of
UPS products with ratings up to 20 kVA will be supplied to answer orders up to that level. In addition
to UPSs, related products (most importantly batteries) will be offered and will be a part of initial
inventory.
Negotiations with GE Digital Energy have been conducted, and Mr. Patrick Gannon, channel
manager for Canada for UPS products and services, has assured a future collaboration. Not only FarOn will have the authorization to represent this brand, but also GE has offered its technical
consultancy help for system design and product representation. Digital Energy, a division of GE, is a
major solution provider and leader in energy generation, transformation and consumption in North
America. Digital Energy manufactures a vast rating range of UPSs from 600 VA to 100 kVA. The
business has obtained their official VAR (Value Added Reseller) pricelist (Appendix 7). According to
MR. Gannon, Far-Ons multiplier would be .53, which will put the business in a competitive position
and will enable it to offer discounts and promotions.
Batteries would be supplied from Moncton, through Atlantic branch of Battery Direct. This
distributor of batteries, not only provides the batteries we need to have (12V Lead-Acid batteries), but
also offers green recycling of used products which the business will have frequently in its hands.
Other than these products, a line of surge suppressors and other products used in homes and homeoffices will be offered to bring daily traffic from residents of Moncton into the businesss location.
This traffic will act as an advertising tool, besides being a source for revenue.
Services
Some customers purchase a service contract or extended warranty from the UPS manufacturer, while
others prefer to contract with an independent service provider. A handful of companies employ
internal engineers. Still others choose to engage in UPS service only when something goes wrong.
The proposed business plans to deliver most UPS related services to its clients. These services are
the most regular needs of clients. As a result, no installation base in New Brunswick will require
regular maintenance from outside the province. So if a situation is not irregular (like the warranty
terms of the installation limits services to be performed only by the manufacturer, or a special part is
required, or a repair is needed which is out of the capabilities of the staff), the business will be able to
serve local customers to the full extend.

North American UPS market is dominated by three major vendors: Emerson Network Power,
EATON and Schneider Electric. Each of these vendors has several brands, Emersons strongest brand
is named Liebert, EATONs is Powerware and Schneiders is APC. Most major installation bases are
using products by these brands. So most maintenance jobs will involve working with their products.
The business will make use of training courses to master technical services for these products,
however UPSs are very similar to each other and by having the comprehensive knowledge on one
brand, a user manual would be sufficient to provide services for most other product.
Major categories for services offered by the business are listed below:
Backup System Design
If a new installation is required for which the client doesnt have a specific plan, the business will
design and provide customized backup power solutions. After which, the client can either contract
installation and purchase of required products and services from the business, or supply them from
other businesses.
Installation Services
A set of services to deliver resources, expertise, and tools needed to implement a backup power
solution. This service is delivered in setup phase of a UPS system or when it is being expanded.
Preventative Maintenance
Regular preventative maintenance, which affords the opportunity to detect and repair potential
problems before they become significant and costly issues, is crucial in order to achieve maximum
performance by a UPS system.
Emergency Services
These services are offered whenever something goes wrong. Immediate site visits to diagnose the
problem and quick response is essential in these services.

Operations Plan
Suppliers
Negotiations with several major UPS brands have been undertaken. The businesss main supplier
would be GE Digital Energy. Main UPS systems would be supplied from their distributor based in
Montreal. Supplementary products would be supplied from Tripp-Lite, their distributor is located in
Halifax. Batteries will be supplied from Direct Batterys Atlantic Canada branch in Moncton, through
local distributor of Discover Batteries. Negotiations with these brands and their contact persons are
included in Appendix 3.
Training Courses
The business will invest in education for its personnel. Besides making use of every available source
to upgrade and update staffs knowledge, the business will enroll its personnel in training courses
such as UPS Systems and Battery Power Supplies Workshop5 offered by IDC Technologies Canada
which has training centers all over the country including one in Halifax which the Far-On personnel
will be attending. However if at the time prior to start of the business, this course is not available in
Canada, the business will make use of their E-learning methods. Course outlines and details is
included in Appendix 6.
Location
This new business will be established in the city of Moncton, NB. Moncton provides an ideal
geographical access to target locations, including commercial and public entities, with access to
nearby cities Fredericton and Saint John. Greater Moncton itself has over 140,000 in population and
its central location to Atlantic Canada provides for 1.4 million people living within a three hours
drive.
The operations of the business requires an office of about 700 square feet with attached warehouse.
Initial research has been done through online listings and required budget for leasing a suitable place
has been calculated; however the exact location is to be chosen at the time of operations startup
according to listings at the time.
Distribution
The business will need a van to deliver its services; this van will be used for delivery of products as
well. This van needs to be equipped with required tools and equipment needed to perform a UPS
maintenance job. This vehicle will be purchased on a lease-to-own contract. The Far-On logo and
contact info will be advertised on this van.
Hours of Operation
The firms operating hours is presented in the table below. In addition to these operating hours, a
24/7 service is offered as a premium service plan which will be done by on-call field engineer.
MONDAY
TUESDAY
WEDNESDAY
THURSDAY
FRIDAY
SATURDAY
SUNDAY
07:30 AM - 05:00 PM
07:30 AM - 05:00 PM
07:30 AM - 05:00 PM
07:30 AM - 05:00 PM
07:30 AM - 05:00 PM
08:00 AM - 01:00 PM
Closed

Competition
General Description
UPS installation managers contract their service plan either with the manufacturing company or an
independent service provider. Since there is no service provider in New Brunswick, all contracts are
outsourced to nearby provinces. Products with immediate requirement are usually purchased based on
delivery time. However clients with new installation requirements evaluate their options in advance
and place their orders based on logical comparison of their options. Two factors dominate this
evaluation process, overall cost (both initial costs and long-run costs) and reliability measures.
UPS installation managers place a lot of emphasis on reputation of service providers and their
ongoing relations with them. This fact makes it harder for new entries to penetrate the market and
convince these managers to change their service provider. As a result, a rather longer period is
required for return on investment. As the customer base grows, the businesss reputation grows
proportionally and contracting new clients becomes easier. Large service customer base, results in
larger service revenue. When these installation bases require their current backup power systems to be
replaced or expanded, they trust their service provider to offer their designs and deals. If these offers
are accepted, they result in high volumes of revenue compared to day-to-day sales operations. So big
projects are contracted which generate substantial sales revenues. All these factors affect start-up UPS
products and service providers in a way that it will take some years for them to grow their customer
base and reputation, and after that they will be able to run a healthy, profitable business.
Competitive Advantage
The business will try to penetrate the market and increase its market share based on price
competitiveness, availability and superior customer relations. Being based in New Brunswick will
help the business offer lower prices for services compared to competitors from outside the province.
This positioning will help the business reach destined location in less time with lower cost. Customer
relations are important in every service industry. The business will put customer satisfaction in its
agenda which will be delivered by all personnel.
The business will not lack in quality from its competitors. Products which are available for sale are
of comparable quality and Mr. Ghorbis technical expertise coupled with training programs for
personnel will provide for quality service offering.
List of Competitors
Competitors Name
Description
Location
Universal Power
Solutions
Direct competitor, offers a more comprehensive line of

products and services, represents Gamatronic, GE Digital
Energy and Tripp-Lite
100 Wright Avenue, Unit 12,

Dartmouth, NS B3B 1L2
VitalSine Inc.
Direct competitor, offers more comprehensive line of

products and services, as well as rentals of products and
refurbished units, represents Mitsubishi and Minutemen
900 Windmill Road, Unit 303,

Dartmouth, NS B3B 1P7
WESCO International,
Inc.
New Brunswick branch of a US company, specializes in sales

of electrical equipment, including surge and power
protection products, offers sales of small desktop UPSs with
one day delivery terms with rather high prices
400 Edinburgh Drive

Moncton, NB E1E2L1
Eaton Corporation
Sales partner for Eaton Corporation in New Brunswick, with

rather limited activity
240 Commerce Street, Unit

#4, Caledonia Industrial Park,
Moncton, NB E1H 2G2
Eaton Electrical
Service Partner for Eaton Corporation
100-32 Troop Avenue

Dartmouth, NS B3B 1Z1

Marketing
Price
Price is the most important criteria for clients in choosing a preventative service plan. Cheaper
service plans will help them minimize their overall cost for backup electrical power and long-term
accumulated cost of power reliability. The business will have the ability to lead the price offerings
based on cost reduction, lower profit margins and efficient internal operations management.
Advertising
The business will implement a target based marketing plan. Advertisement as an essential part of
marketing will be compliant with this strategy. Advertising materials will be prepared prior to
businesss start-up, these materials include flyers and service brochures. Afterwards, a comprehensive
direct-mail-based advertising campaign will be conducted through which the potential customers will
be targeted. A broader email based campaign will be conducted parallel to the direct-mail campaign
which will target more entities. Hard copies of GE Digital Energy advertising materials will be
provided for the business. These include brochures, data sheets, and white papers.
A comprehensive and appropriate website will be designed to introduce the business, its services and
its brands. The latest web-design methods, such as search engine optimization and responsive design
will be used to enhance the businesss online visibility, so that every entity in New Brunswick with
UPS needs will be able to find the business with a simple search. The business will be enlisted in local
and national business directories, as well as online directories. Social networking will be implemented
as well to help in growing of businesss network.
A grand opening is planned for this business. In this event the start of New Brunswicks first UPS
service provider will be celebrated. Individuals related to the target market and marketing channels, as
well as Moncton residents will be invited.
In all marketing activities, businesss value proposition which is price competitiveness will be
presented. All these advertising activities are designed to give the business the most needed start-up
bump, after the business has made its name known, these marketing expenses will be reduced.
Promotion
The businesss promotional propositions are listed below:
Discount on service contracts for Far-On installations up to 25%

Discount on large orders for sales of products up to 12%
Discount on service plans for longer periods of contract (5% for a two-year contract, 7% for
a three-year contract, 9% for a four-year contract and 10% for longer contracts)
Free backup system design for service clients with new installation requirements
Discount for referring new clients up to 3% for each new client

SWOT Analysis
Strengths:
1.
2.
3.
4.
5.
6.
7.
Managerial and technical expertise of Mr. Ghorbi

Being the only UPS business in New Brunswick
Lower prices compared to competitors
High-quality products by well-known vendors
Personnel training and up-to-date knowledge
Setting the business in a suitable location with access to target market and suppliers
High advertising and promotion budget
Weaknesses:
1.
2.
3.
4.
New entry
No experience of working in Canada
Limited inventory of spare parts at start-up
No initial inventory for high rating UPSs
Opportunities:
1. Increase investment based on growing market demand derived from growing economy and
specially ICT industry in New Brunswick
2. Getting approved as certified service partner for industry champions
3. Make use of local consultants on business and legal issues
4. Make use of order based sales
5. Getting partnership deals with more vendors
6. Buying old UPS units when replacing an installation base
7. Initiate promotional programs for new clients
Threats:
1. Threat of new comers
2. Threat of new replacing technologies
3. Existing competition in Nova Scotia
10

Action Plan
Based on identified Strengths, Weaknesses, Opportunities and Threats, a set of action plans has been
developed to reduce risk and make better use of opportunities:
W3-O6: Collect spare parts to increase spare parts bank which is required in repair jobs
W4-O4: UPS installation bases usually dont require immediate delivery, making it possible
for the business to give quotation for items not included in inventory
S1-T2: The business will move to offering new technologies such as flywheels as soon as
theres a market demand for these technologies
S6&3&4-T3: The business will gradually increase its market share by contracting
maintenance jobs formerly outsourced to Nova Scotia
W1-O2: By developing contacts network and gradual increase in businesss reputation,
actions to fulfill service partnership requirements will be undertaken
S2-T1: Being the first in the market will clearly put the business in a better position
compared to any business trying to penetrate the market, but if any new business enters the
market, promotional programs will be conducted
W2-O3: Legal consultants, accounting consultants and marketing advisors will be used
W1-O7: These promotional programs will aim to attract clients who have service contracts
with competitors and gain their trust
11

Personnel Plan
The businesss personnel plan with description of their position and duties is presented below:
Directing Manager
Mr. Ghorbi will act as the directing manager for this firm. His duties will include:
Recruiting staff member(s)

Contacting business leads
Preparing contracts
Supervising operations
Designing backup system plans
Pre-job conferencing
Contacting supply channels
Replacing the field engineer in durations outside hourly basis of the business by acting as an
on-call field engineer
Managing staff training by enrolling in training programs and feeding latest technical info
Administrating marketing campaigns
Other managerial duties
Field Engineer
At startup, the business will require one field engineer, however if the business grows and there are
more sites scheduled to visit than one can handle, a second field engineer will be hired. This
employees duties include:
Visiting installation sites

Performing service operations such as problem diagnosis, battery replacement, battery
discharging and other UPS service jobs
Managing inventory items
Maintenance of products which have been returned from the site
Refurbishing used parts
Proposing spare parts to be added to the inventory
Personnel Plan
Description
Directing Manager
Mr. Ghorbi
$50,004
$50,750
$51,510
Field Engineer
Certified engineer with office work experience

and IT knowledge, hourly basis
$48,780
$49,510
$50,250
$98,784
$100,260
$101,760
Total People
Total Annual Cost
Year 1
Year 2
Year 3
12

13
Start-Up Expenses
List of Expenses
Estimated
Cost
Source Used to Estimate Cost
Start-up Expenses to Fund

Legal fees and consultants
$2,000
Benchmarking related businesses active in New Brunswick

through Industry Canadas SME Benchmarking Tool6
Leasehold negotiations and down payment
$2,500
Based on current listings for commercial properties in Moncton

using online real estate tools such as Kijiji.ca and LoopNet.com
Leasehold improvements
$3,000
Homedepot.ca7
Website expenses
$2,000
Inquiring offers for website designs and hosting from local

entities such as informativecomputersolutions.com,
markpridham.com and evolvingsolutions.ca
Advertising material
$2,500
Assessing required amount of catalogues, brochures and flyers

and inquiring costs from printing and publishing firms active in
New Brunswick
Total Start-up Expenses to Fund
$12,000
Start-Up Assets to Fund

Long Term Assets to Fund
Used Van
$14,500
Online machinery leasing websites through evaluating their

deals
Office furniture
$2,500
Staples.ca8
Computers and software
$3,000
Staples.ca9
Total Long Term Assets to Fund
$20,000
Initial Inventory
$78,000
Based on evaluation of required products in opening inventory

which is extracted from businesss sales forecast. Cost was
estimated through inquiries from suppliers of different
products.
Cash on hand
$54,000
Reserved for operational expenses and outgoings, rent and

payrolls, based on this business plan
Total Estimated Expenses
$164,000

Income Statement
Pro Forma Profit and Loss
Year 1
Year 2
Year 3
$172,000
$252,000
$333,250
Total Cost of Sales
$74,705
$110,050
$148,000
Gross Margin
$97,295
$141,950
$185,250
Gross Margin %
56.57%
56.33%
55.59%
$98,784
$100,260
$101,760
Marketing/Promotion
$5,400
$2,400
$2,400
Depreciation
$5,625
$5,625
$5,625
Repairs and Maintenance
$1,560
$2,300
$3,000
$15,500
$18,000
$18,000
$4,800
$5,000
$5,200
$2,500
$2,500
$2,500
Professional and Business Fees
$5,650
$1,800
$1,800
CPP and EI Contribution
$4,643
$4,712
$4,783
$144,462
$142,597
$145,068
Sales
Operating Expenses
Payroll
Rent
Utilities, Telepone and
Telecommunications
Insurance
Total Operating Expenses

Start-Up Expenses
$12,000
$0
$0
Total Expense
$156,462
$142,597
$145,068
Profit Before Interest and Taxes
-$59,167
-$647
$40,182
EBITDA
-$53,542
$4,978
$45,807
Profit Before Interest and

Taxes/Sales
-34.40%
-0.26%
12.06%
Item
Source/Reason this amount was used
Revenue
Based on capacity of inventory, estimated service contracts throughout the year

and sales forecast of products and their selling prices
Cost of Goods Sold
Inquiries of product prices from suppliers
Gross Margin
The gross margin is comprised of service and sales, since services generate revenue
despite having cost of goods sold; actually gross margin for sales is lower than
amount presented in table and that offered by competitors.
Amortization
Professional and
Business Fees
Including initial training course for personnel
14

Balance Sheet
Assets
Cash
Accounts Receivable
Inventory
Total Current Assets
Long-term Assets
Accumulated
Depreciation
Total Long-term Assets
At Startup
Year 1
Year 2
Year 3
$54,000
$35,675
$36,897
$80,529
$0
$7,477
$10,955
$14,487
$78,000
$59,580
$59,653
$61,653
$132,000
$102,732
$107,505
$156,669
$20,000
$20,000
$20,000
$20,000
$0
$5,625
$11,250
$16,875
$20,000
$14,375
$8,750
$3,125
$152,000
$117,107
$116,255
$159,794
At Startup
Year 1
Year 2
Year 3
Accounts Payable
$0
$12,274
$12,069
$15,426
Subtotal Current
Liabilities
$0
$12,274
$12,069
$15,426
Total Liabilities
$0
$12,274
$12,069
$15,426
Total Assets
Liabilities
Owner's Equity
At Startup
Year 1
Year 2
Year 3
Paid-in Capital
$164,000
$164,000
$164,000
$164,000
Retained Earnings
-$12,000
$0
-$59,167
-$59,814
Earnings
$0
-$59,167
-$647
$40,182
Subtotal
$152,000
$104,833
$104,186
$144,368
Liabilities +
Owners Equity
At Startup
Year 1
Year 2
Year 3
$152,000
$117,107
$116,255
$159,794
Subtotal
15

Appendix 1: Permits Required

Register / Renewal of a Business Name
The Partnerships and Business Names Registration Act provides for the registration of a business
name.
Federal Business Registration
The business will need to register with Canada Revenue Agency to get a Business Number.
Registration is mandatory if the business requires a GST/HST (depending on total revenue), Payroll,
Corporate income tax or Import/Export account.
Electrical Licenses
All electrical construction and maintenance work must be conducted by New Brunswick licensed
electricians or supervised apprentices.
Electrical Wiring Permits
Electrical Wiring Permits authorize contractors to carry out electrical installations.
Motor Vehicle Registration
Motor vehicle registrations are required under the Motor Vehicle Act and serve as a unique identifier
for a motor vehicle.
Driver's Licenses
A driver's license is required to operate a Motor Vehicle.
Portable Sign Permit
Portable sign means any sign which is specifically designed or intended to be readily moved from
one location to another and which does not rely on a building or fixed concrete foundation for its
structural support, and includes signs commonly known as a ABoard or Mobile sign, and an
Inflatable device tethered to any building, structure, vehicle or other device.
16

Appendix 2: Financial Statements

Sales Forecast
Sales Forecast
Year 1
Year 2
Year 3
UPS Services
$61,500
$90,000
$116,250
UPSs
$44,400
$74,000
$111,000
Batteries
$20,400
$33,000
$44,000
$9,200
$15,000
$20,000
$36,500
$40,000
$42,000
$172,000
$252,000
$333,250
$0
$0
$0
UPSs
$31,080
$51,800
$77,700
Batteries
$15,300
$24,750
$33,000
$4,600
$7,500
$10,000
Surge Protectors and other Home Use Products
$23,725
$26,000
$27,300
Subtotal Direct Cost of Sales
$74,705
$110,050
$148,000
Sales
Spare Parts and other Accessories

Surge Protectors and other Home Use Products
Total Sales
Direct Cost of Sales
UPS Services
Spare Parts and other Accessories
Cash Flow
Pro Forma Cash Flow
Year 1
Year 2
Year 3
Cash Sales
$111,800
$163,800
$216,613
Cash from Receivables
$52,723
$84,722
$113,105
Subtotal Cash from Operations
$164,523
$248,522
$329,718
Sales Tax, VAT, HST/GST Received
$22,360
$32,760
$43,323
Subtotal Cash Received
$186,883
$281,282
$373,040
Cash Spending
$98,784
$100,260
$101,760
Bill Payments
$84,064
$147,040
$184,325
Subtotal Spent on Operations
$182,848
$247,300
$286,085
Sales Tax, VAT, HST/GST Paid Out
$22,360
$32,760
$43,323
Subtotal Cash Spent
$205,208
$280,060
$329,408
Net Cash Flow
-$18,325
$1,222
$43,633
Cash Balance
$35,675
$36,897
$80,529
Cash Received
Cash from Operations
Additional Cash Received
Expenditures
Expenditures from Operations
Additional Cash Spent
17

Appendix 3: Negotiations
GE Digital Energy
1.
From: Amin.Delshad@viravision.ca [mailto:Amin.Delshad@viravision.ca]

Sent: Wednesday, March 27, 2013 7:47 AM
To: ~CONS/IND Power Quality Service
Subject: General Inquiry: Power Quality
The following inquiry was received over the Internet:
Business Name: Power Quality
First name: Amin
Last name: Delshad
E-mail: Amin.Delshad@viravision.ca
Phone:
Question or Comments:
My name is Amin Delshad and Im helping Mr. Reza Ghorbi set up his business in Canada.
Mr. Ghorbi is planning to start a new business based in Moncton, NB Canada. This business will be
specialized in sales and services of UPS and other related backup power systems. This business will
serve state of New Brunswick.
After analyzing the market environment and studying competition, we've decided to start
negotiations with Digital Energy (which we preferred over APC, EATON and Emerson Power Liebert). It
has come to our attention that Digital Energy has no representation in state of New Brunswick; the
nearest distributor of Digital Energy products is Universal Power Solutions in Nova Scotia. We would
like to grant the authorization to sell Digital Energy's Power Quality products, especially UPS systems.
According to our plan, this business will start its operations later this year. In the meantime, we are
assessing potential opportunities. The support range for this business will include all backup energy
projects under 20kVA. Residential households, offices, educational centers, laboratories and
hospitals, as well as various ICT projects will form our target market. We will start by offering sales of
UPS and related products and will expand to service offering for backup energy solutions.
We would like to know more about your conditions for partnership (investment requirements and
qualification criteria). If you require more information regarding this business or have any further
questions, feel free to contact me by this email address.
Best regards
Amin Delshad
Vira Vision Business Development Ltd.
Amin.Delshad@viravision.ca
2.
From: Gannon, Patrick (GE Energy Management) [mailto: Patrick.Gannon@ge.com]

Sent: Wed, Mar 27, 2013 at 6:23 PM
To: To: "Amin.Delshad@viravision.ca" <Amin.Delshad@viravision.ca>
Subject: GE - Power Quality
18

Hello Amin,
I am the Channel Manager for Canada for the UPS products and services. Let's talk about the
program and your business needs, goals at your convenience. My contact information is below.
Thanks for your interest:
Patrick Gannon
Channel Manager
GE Critical Power
T + 440 808 1809
M + 440 476 3293
patrick.gannon@ge.com
www.gedigitalenergy.com
General Electric Company
GE imagination at work
3.

Sent: Thu, Mar 28, 2013 at 10:36 AM
To: "Gannon, Patrick (GE Energy Management)" <Patrick.Gannon@ge.com>
Dear Patrick
Thank you for replying to our request. I will try to clarify our business furthermore.
Mr. Ghorbi is an Iranian citizen which has applied for immigration to Canada under New Brunswick's
Provincial Nominee Program. He has proposed this business in his application to province officials
which has been approved by them.
Mr. Ghorbi has the experience of working as factory manager for FARAN Electric Industries
Corporation in Iran for the last 5 years. FARAN has a UPS production line, a power supply production
line as well as other production and assembly lines. This company is one of the most active companies
in electric industries in Middle East with 54 active representatives over the country.
The business which Mr. Ghorbi is going to start in New Brunswick is yet to be named. Research for
conducting this business is ongoing, but as for the size of this firm the investment would be nearly
$300,000 and start-up staff would be Mr. Ghorbi himself accompanied by one or two personnel.
However if the New Brunswick market proves to be interesting, future expansion through increasing
investment is planned. The proposed business will offer both sales and services.
If you have any further questions, feel free to contact me; I would be more than glad to collaborate.
Best Regards
Amin Delshad
4.

Sent: Thu, Mar 28, 2013 at 5:48 PM
Thanks for the explanation Amin. Will your business just sell in Canada ( what provinces ) or outside
of Canada for export or both? Let me know when you guys are ready to go and well set up a
preliminary agreement. We do need representation in that areas so, the timing may be good.
19

5.

Thank you for your consideration. We don't have any plans for exportation to other territories at this
time. Our target market is New Brunswick, however initially we had plans for serving Nova Scotia as
well, but after analyzing competition we decided to limit our geographical market to NB.
We are very happy to hear your willingness for representation. We would very much appreciate it if
you could clarify some of our concerns:
We would like to become a service partner for GE as well, what criteria should our business meet to
qualify for this matter? Is there a training program in GE for field engineers?
Does your agreement limit us to represent only GE or can we offer other UPS brands as well?
Best regards
Amin Delshad
6.

Sent: Sat, Mar 30, 2013 at 10:32 AM
From March 29th - April 10th, I will be out of the office with very limited access to email or vmail. If
your need is immediate, please contact Deni Miller at 312-401-6736. Thank you.
7.

Sent: Wed, Apr 10, 2013 at 7:24 PM
Amin,
Great to hear. I have been out on Holiday the past two week, so sorry for the late reply. Lets discuss
next steps at your convenience. For new partners, we usually start with the following:
1.
Set pricing and discounts I have included a price list ( your multiplier is set at a (.53 ) You
should be very competitive at this rate
2.
All the documents you need to show your customers in on this site see below. If you need
hard copies I have attached a literature request form.
http://www.gedigitalenergy.com/PowerQuality/
3.
In the beginning, I will quote all your projects until you get used to the price list. At the least, I
can review what you quoted and make sure you did not miss anything
4.
If you know of anyone who is building a datacenter or needs financing, let me know as we have
options here.
5.
I am available for joint conference calls, so let me know when you need me.
6.
Service certification starts with products sales. You need to maintain at least $65K per quarter
to be eligible. You can represent other UPS lines, but keep in mind the requirements on GE product.
Let get started!
20

8.

Sent: Sat, April 27, 2013 4:17 AM
Dear Patrick,
Sorry for answering this late, after you left for your vacation I got caught up with another case.
Anyway, thank you for sending me the pricelist. I've been studying it and I think we have a good deal
here, however I will need to know the distributor's location to calculate my freight costs.
Right now we don't know anyone who wants to build a datacenter, however we will make sure to
make use of your consultancy in that case. We have decided to obtain an initial inventory of Digital
Energy products, I've attached the list of products we plan to purchase prior to business's startup, and
we would appreciate it if you gave your opinion about this product selection. Besides we would like to
know our payment schedule for our orders.
We are looking forward to working with you. If you have any questions feel free to contact me.
Best regards
Amin Delshad
9.

Sent: Sat, Mon, Apr 29, 2013 at 9:55 PM
Hello Amin,
Glad to see your back at work, although vacation sounds better. The list of products that you have
looks well balanced, although your distributor will be able to offer you a better discount which will
make your margins and cost to the customer better. They are located in Montreal. I will have him
reach out to you today. They will require some basic financials to set you up. Since this is a new
business, financials may not be available so they may ask for a payment plan that is either cash in
advance, on delivery or terms.
I will let you two have those discussions. The owners name is Jean Michel Picard and his company has
been a long time distributor in Canada and a very good technical and service resource for GE and
partners like yourself. Also, I will set up a webinar for you and your team at your request to go over
these products in more detail if you wish. Just pick a day and time in the coming weeks.
Welcome on board!
Patrick
21

10. From: Jean-Michel Picard [mailto: JMPicard@watts-intl.com]

Sent: Mon, Apr 29, 2013 at 9:55 PM
Bonjour Mr Delshad,
I have been petitioned by Mr Patrick Gannon to assist you.
Please let me know when would be the best time to contact you or you can reach me at 1-866-2954200 ext 251.
Regards.
Jean-Michel Picard
Watts illimits inc. / Watts Unlimited inc.
Tlphone/Phone: (514) 744-4200 ext: 251
Cellulaire/Cell: (514) 475-4200
Tlcopieur/Fax: 1-888-401-3884
Courriel/Email: jmpicard@watts-intl.com
Site/Web: www.watts-intl.com
Trpp-Lite
1.

To: Don Monahan <don_monahan@tripplite.com>
Subject: Request to become a Tripp Lite partner in New Brunswick
Dear Mr. Monahan
My name is Amin Delshad and Im helping Mr. Reza Ghorbi set up his business in Canada.
Mr. Ghorbi is planning to start a new business based in Moncton, NB. This business will be
specialized in sales and services of UPS and other related backup power systems. This business will
serve state of New Brunswick.
After analyzing the market environment and studying competition, we've decided to start
negotiations with Tripp Lite (which we preferred over APC, EATON and Emerson Power Liebert). It
has come to our attention that Tripp Lite has no parter representing the brand in New Brunswick.
The nearest Tripp Lite partner is Universal Power Solutions in Nova Scotia.
According to our plan, this business will start its operations later this year. In the meantime, we are
assessing potential opportunities. The support range for this business will include all backup energy
projects under 20kVA. Residential households, offices, educational centers, laboratories and
hospitals, as well as various ICT projects will form our target market. We will start by offering sales
of UPS and related products and will expand to service offering for backup energy solutions.
We would like to know more about your conditions for partnership (investment requirements and
qualification criteria). If you require more information regarding this business or have any further
questions, feel free to contact me by this email address.
Best regards
Amin Delshad
22

2.
From: Don Monahan [mailto: Don_Monahan@tripplite.com]

To: "Amin.Delshad@viravision.ca" <Amin.Delshad@viravision.ca>
Hi,
Always interested in new partners.
Do you have any UPS sales experience and knowledge on service?
Before I would open a new account, I would want to do a trial run for 6-9 months by offering
distributor pricing but thru a pre-existing partner to ensure that Im not hurting my market.
Thanks,
Don Monahan
Executive Director
Tripp Lite
1111 W. 35th Street | Chicago IL 60609 USA
450.474.6435 | Fax 450.474.6491
3.

Dear Don,
Thank you for replying to our request. I will try to clarify our business furthermore.
Mr. Ghorbi is an Iranian citizen which has applied for immigration to Canada under New Brunswick's
Provincial Nominee Program. He has proposed this business in his application to province officials
which has been approved by them.
Mr. Ghorbi has the experience of working for FARAN Electric Industries Corporation in Iran for the
last 5 years. FARAN has a UPS production line, a power supply production line as well as other
production and assembly lines. This company is one of the most active companies in electric
industries in Middle East. Mr. Ghorbi had the responsibility of coordinating 54 sales representatives
through regular meeting and reports, monitoring ordering quantity and trend, monitoring sales
figures and prices, designing, planning controlling product and services promotional strategies.
I suppose this pre-existing partner would be Universal Power Solutions. We would like to know
what discount rate you offer for distributor pricing and what are the approval criteria in this trial
period?
If you have any further questions, feel free to contact me; I would be more than glad to collaborate.
Best Regards
Amin Delshad
23

4.
From: Don Monahan [mailto: Don_Monahan@tripplite.com]

Sent: Thu, Mar 28, 2013 at 2:45 PM
To: "Amin.Delshad@viravision.ca" <Amin.Delshad@viravision.ca>
Hi,
Yes, that is correct. He would receive pricing via Universal. Discounts depend on the product and
the scopebut rest assured if he is interested in making this a success, then this is a futile point.
Thanks
Don
5.

Sent: Sat, Mar 30, 2013 at 10:38 AM
Dear Don,
Thank you for your collaboration. We are looking forward to working with you, Tripp Lite and
Universal. We hope to prove our business in this trial run. We would get in touch with you when we
are ready to get in business.
Best regards
Amin Delshad
24

Appendix 4: UPS
What is UPS?
Put simply, a UPS is a device that:
1. Provides backup power when utility power fails, either long enough for critical equipment to
shut down gracefully so that no data is lost, or long enough to keep required loads
operational until a generator comes online.
2. Conditions incoming power so that all-too-common sags and surges dont damage sensitive
electronic gear.
Single-Conversion UPS Systems
In normal operation, single-conversion systems feed incoming utility AC power to equipment. If the
AC input supply falls out of predefined limits, the UPS utilizes its inverter to draw current from the
battery, and also disconnects the AC input supply to prevent back-feed from the inverter to the utility.
The UPS stays on battery power until the AC input returns to normal tolerances or the battery runs out
of power, whichever happens first. Two of the most popular single-conversion designs are standby
and line-interactive:
Standby UPSs allow equipment to run off utility power until the UPS detects a problem, at
which point it switches to battery power. Some standby UPS designs incorporate
transformers or other devices to provide limited power conditioning as well.
Line-interactive UPSs regulate input utility voltage up or down as necessary before allowing
it to pass through to protected equipment. However, like standby UPSs, they use their
battery to guard against frequency abnormalities.
Figure 1 Internal design of a line-interactive UPS
Double-Conversion UPS Systems

As the name suggests, double-conversion UPS systems convert power twice. First, an input rectifier
converts AC power into DC and feeds it to an output inverter. The output inverter then processes the
power back to AC before sending it on to equipment. This double-conversion process isolates critical
loads from raw utility power completely, ensuring that equipment receive only clean, reliable
electricity.
In normal operation, a double-conversion UPS continually processes power twice. If the AC input
supply falls out of predefined limits, however, the input rectifier shuts off and the output inverter
25

begins drawing power from the battery instead. The UPS continues to utilize battery power until the
AC input returns to normal tolerances or the battery runs out of power, whichever occurs sooner. In
case of a severe overload of the inverter, or a failure of the rectifier or inverter, the static switch
bypass path is turned on quickly, to support the output loads.
Figure 2 Internal design of a double-conversion UPS
Multi-Mode UPS Systems

Multi-mode UPS systems combine features of both single-conversion and double-conversion
technologies while providing substantial improvements in both efficiency and reliability:
Under normal conditions, the system operates in line-interactive mode, saving energy and
money while also keeping voltage within safe tolerances and resolving common anomalies
found in utility power.
If AC input power falls outside of preset tolerances for line-interactive mode, the system
automatically switches to double-conversion mode, completely isolating equipment from the
incoming AC source.
If AC input power falls outside the tolerances of the double-conversion rectifier, or goes out
altogether, the UPS uses the battery to keep supported loads up and running. When the
generator comes online, the UPS switches to double-conversion mode until input power
stabilizes. Then it transitions back to high-efficiency line-interactive mode.
Multi-mode UPSs are designed to dynamically strike an ideal balance between efficiency and
protection. Under normal conditions, they provide maximum efficiency. When problems occur,
however, they automatically sacrifice some efficiency to deliver maximum levels of protection. The
end result is that data centers can save tens of thousands a year on energy without compromising data
center performance or reliability.
26

Figure 3 Internal design of a multi-mode UPS
UPS Specifications
A UPSs rating is the amount of load, in volt-amperes (VA), that its designed to support. UPSs are
available with ratings as low as 300 VA and as high as 5,000,000 VA or more.
UPSs are either single-phase or three-phase. UPSs with low rating usually are single-phase; while
higher rated UPS are usually three-phase.
UPSs come in a range of form factors that fit into two master categories: rack-mounted and
freestanding. The largest UPSs arent available in rack-mounted form factors, so companies with
substantial power requirements almost always use freestanding devices. From is a technical and
financial standpoint, neither approach is inherently superior to the other.
One of the most important parts of the UPS system is the energy storage system, which is typically a
battery. A typical UPS battery provides five to 15 minutes of backup power. Organizations that need
more than that can use supplemental external battery modules or cabinets to add as much as several
hours of emergency runtime at full load.
UPS Parts and Accessories
Battery
All modern UPSs have a low-battery alarm and run a periodic self-test; they will alert the user when
replacement is needed. Usually they both flash an indicator and make an alarm sound. If the user has a
monitoring daemon set up, they will alert it and the user will probably get warning mail. If ignored, it
will time out, but be repeated at intervals.
In fact there is nothing unique or magic about UPS batteries. They are standard types also used for
other applications such as powering marine electronics, with standard connectors. They can be bought
from sources other than the UPS manufacturer, and get replaced with equivalents that are better and
less expensive.
27

Many UPS models use gel-cel batteries in standard formats like 12.0 V, 7.2Ah (151x64x94 mm).
Many manufactures sell two or three different types: standard use, cyclic use and high-current use.
UPSs require high-current and some UPS don't work well with batteries for standard use, because the
voltage goes low too early under high load (the UPS turns off too fast or the output voltage drops so
that the computer turns off). Standard batteries are for alarm devices, emergency lights or things like
that. For instance Panasonic sells the "LCR127R2PG1" (standard), and "UPRW1245P1" (high
current), Fiamm the "FG20271" (standard) and "FGH20902" (high current), CSB the "GP1272"
(standard) and "HR 1234W" (high current).
It may take several discharges and recharges of new batteries before they reach full capacity and the
dwell-time calibration is accurate. If a UPS contains two or more battery units and the monitoring
software reports separate voltage levels for them, one way to tell is to watch the divergence in voltage
levels. As the cells reach nominal full capacity, their voltages should converge.
Rectifier
A rectifier is an electrical device that converts alternating current (AC), which periodically reverses
direction, to direct current (DC), which flows in only one direction. The process is known as
rectification.
Rectifiers have many uses, but are often found serving as components of DC power supplies and
high-voltage direct current power transmission systems.
Inverter
A power inverter, or inverter, is an electrical power converter that changes direct current (DC) to
alternating current (AC); the converted AC can be at any required voltage and frequency with the use
of appropriate transformers, switching, and control circuits.
Solid-state inverters have no moving parts and are used in a wide range of applications, from small
switching power supplies in computers, to large electric utility high-voltage direct current applications
that transport bulk power. Inverters are commonly used to supply AC power from DC sources such as
solar panels or batteries.
The inverter performs the opposite function of a rectifier. The electrical inverter is a high-power
electronic oscillator. It is so named because early mechanical AC to DC converters were made to
work in reverse, and thus were "inverted", to convert DC to AC.
Power Conditioner
A power conditioner (also known as a line conditioner or power line conditioner) is a device
intended to improve the quality of the power that is delivered to electrical load equipment. While
there is no official definition of a power conditioner, the term most often refers to a device that acts in
one or more ways to deliver a voltage of the proper level and characteristics to enable load equipment
to function properly. In some usages, power conditioner refers to a voltage regulator with at least one
other function to improve power quality (e.g. power factor correction, noise suppression, transient
impulse protection, etc.).
Surge Suppressor
A surge suppressor (or surge protector) is an appliance designed to protect electrical devices from
voltage spikes. A surge protector attempts to limit the voltage supplied to an electric device by either
28

blocking or by shorting to ground any unwanted voltages above a safe threshold. This article
primarily discusses specifications and components relevant to the type of protector that diverts
(shorts) a voltage spike to ground; however, there is some coverage of other methods.
The terms surge protection device (SPD), or the obsolescent term transient voltage surge suppressor
(TVSS), are used to describe electrical devices typically installed in power distribution panels, process
control systems, communications systems, and other heavy-duty industrial systems, for the purpose of
protecting against electrical surges and spikes, including those caused by lightning. Scaled-down
versions of these devices are sometimes installed in residential service entrance electrical panels, to
protect equipment in a household from similar hazards.
Application of Different Systems
Single-conversion UPSs are more efficient than double-conversion devices, but offer less protection.
That makes them a good fit for loads with a higher tolerance for failure. More specifically, standby
UPSs (the most basic type of single conversion UPS) are generally the best option for smaller
applications, like desktop and point-of-sale solutions, while line-interactive UPSs are typically
preferable for smaller server, storage and network applications located in facilities with access to
relatively trouble-free AC utility power.
Double-conversion UPSs, which provide the highest levels of protection, are less efficient but are
usually the standard choice for protecting mission-critical systems.
Multi-mode UPSs, although they may be more expensive than either single or double conversion
systems, are the best choice for companies looking to achieve an optimal blend of both efficiency and
protection.
When the utility generates power, it is at the three-phase level. This type of power is available to
almost all commercial and industrial customers, as they are typically large consumers of power. Most
homeowners only have single-phase power available to them, as homes are typically small power
users.
Single-phase UPSs tend to be a sensible and economical option for simpler, smaller applications
with low kVA requirements, which are typically seen in the home, small businesses and in remote or
satellite offices where computing power is less than 20 kVA. Three-phase UPSs are generally the
preferred choice for high kVA applications, which are typically more sophisticated and have high
compute densities. Large multistory buildings, data centers and industrial facilities protecting highpower processes are typical three-phase UPS customers, as they need to distribute large amounts of
power over relatively long distances.
The most common causes of UPS failures
There are numerous reasons why a UPS fails. The most common causes are:
Batteries: As the heart of any UPS, batteries require inspection and maintenance, regardless
of age or warranty status. Studies show that up to 20% of UPS failures can be attributed to
bad batteries, with temperature and cumulative discharges cited as the primary culprits.
During a preventive maintenance visit, data is obtained from thorough testing procedures,
during which impedance or conductance measurements trace the battery performance and
identify any batteries with internal potential failures.
Fans: Some fans fail because of their own electrical or mechanical limitations, or when
their ball bearings become dried out. Fans may perform well for more than 10 years of
29

continuous use, while others run for only short periods before locking up for mechanical
reasons.
DC Caps: See the explanation below to understand more about capacitors.
Transient Spikes: Damage may be caused to the input side of the UPS (filter/rectifier)
when a transient spike occurs. During a preventive maintenance call, these parts are checked
for any impairment.
Lightning: A common misconception is that a UPS constantly protects the equipment load
from lightning, but it primarily depends on the amount of energy in the transient. Preventive
maintenance inspections can readily identify lightning damage and any appropriate repairs.
UPS internal Connections: These may be affected by vibrations from the building or
machinery close to the UPS. It is recommended that the UPS be scanned every three months
to check for hot spots, as well as checked annually with a complete mechanical revision on
the full UPS and battery cabinets.
Capacitors: A typical UPS contains a dozen or more electrolytic capacitors of different
types and size, which smooth out and filter fluctuations in voltage. Like batteries,
electrolytic capacitors degrade over time. While a typical capacitor might be rated by the
manufacturer for five years of round-the-clock use, it could potentially deliver up to eight to
ten years of useful life under favorable operating conditions. When a capacitor fails, there
might not be any immediate visible effects, but other capacitors must compensate for the
additional workload, which shortens their useful lives. In many cases, a capacitor failure will
trigger the UPS to switch to bypass mode, at which time it is unable to protect downstream
loads. Inspection of capacitors during preventive maintenance helps optimize their operation
while also enhancing their lifespan.
Air Filters: Because dust may block air filters and cause a UPS to shut down due to
overheating, they must be inspected every month. Replacing filters is an inexpensive
component of an effective UPS maintenance plan.
Power Supplies: Although a UPS may have redundant power supplies, it is possible for the
power supply to suffer from input voltage surges, which can cause unexpected stress and
overheating. Regular inspection is recommended to detect potential issues.
Input Filters: Currents, parameters and physical conditions of input filters need to be
reviewed and inspected. The input filter helps to reduce total harmonic distortion (THD)
from the UPS to the input line. However, depending on the amount of input line electrical
noise, the filter may attempt to correct harmonic distortion for the entire installation, causing
overheated cables and chokes.
Contactors: Because they may collect fine dust and other resistive coatings, inspections and
cleaning can prevent premature failures.
Sticking or Welded Relays: These may go unnoticed until emergency change-of-state
events occur. Periodic inspections can detect potential problems before they occur.
Motor Operators: These should be checked for proper operation while disengaged from the
breaker a measure completed during a routine preventive maintenance visit.
Firmware Upgrades: Because upgrades incorporate the latest operational enhancements,
they should be completed to ensure compatibility with new load devices, and to guarantee
that the UPS is performing at optimum levels. A technician can complete these upgrades
during routine service.
Transient Voltage Surge Suppression (TVSS) Integrity: It is important to verify that
metal oxide varistor (MOV) devices are functional and have not been compromised by
excessive transients.
30

Appendix 5: Fields of Application

Data Centers
UPS solutions are recognized for being at the forefront of power protection innovation and
technology and are class-leading in terms of system reliability efficiency, availability, scalability and
flexibility. Using less energy, generating less CO2, saving valuable floor space (leaving room for
revenue-earning equipment) and achieving significant total cost of ownership savings are the
competitive advantages of UPS products in this sector.
Standby diesel generators and other complimentary ancillary products such as batteries, switchgear
and power conditioning equipment are primary parts needed to build a complete, fully matched power
protection solution for data centers to ensure a true, no-break supply in the event of a power failure.
IT
IT systems are fundamental to the successful operation of any business. Power outages can cause
major disruption to business operations and the loss of revenue generating services.
Education
From primary level through to university level, IT education is a key part of the curriculum. The
proliferation of PCs, printers, IT networks and servers within schools and other academic institutions
has increased substantially. Power protection is therefore becoming a critical requirement to minimize
disruption in the event of a power failure. Additionally, many universities carry out research programs
which can and do attract funding. Power protection of computers and electronic equipment is
therefore needed to minimize disruption and protect a valuable revenue stream. A further application
is the need to protect and administer student records and admissions.
Healthcare
Secure power availability is an essential requirement within hospitals and other healthcare
operations. Lifesaving critical care equipment such as incubators, kidney dialysis, respiratory and
operating theatre equipment needs to be functioning 24/7. Patient records need to be accessed and
administered. Appointments need to be setup. Security, lighting and information systems need to be
maintained. Protecting the integrity of PCs, IT networks, server rooms, communication rooms, call &
control centers and data centers that are used to facilitate these services is therefore essential.
Government
Local and Central Government have become increasingly reliant on IT and communication systems
for the control, administration and operation of key public services. Protecting the integrity of PCs,
IT networks, server rooms, communication rooms, call & control centers and data centers that are
used to facilitate these public services is therefore essential.
Financial
The 24/7 availability of PCs, IT networks, server rooms, communication rooms, call Centers, data
centers and trading floors underpins the ability of banks and other financial institutions to trade
successfully and efficiently. Any downtime ultimately means the loss of money. The financial
industry therefore insists on power protection systems with the highest reliability and availability to
protect their critical business operations.
Emergency Services
The police, ambulance services and fire brigade are all expected to provide a rapid response in the
event of an emergency. Information and communication is fundamental to the speed and level of
31

response provided. The Emergency Services therefore rely heavily on IT and Communication
systems to facilitate a quick and accurate response. Any power outage, even for a few seconds, can
seriously compromise response times.
Power/Oil/Gas
Reliable power protection systems are critical within the Power, Oil & Gas industry to ensure safety,
production processing and delivery.
Safety is paramount. CCTV, fire & gas detection, emergency lighting, communications and alarm
systems are among the safety systems that need to be power protected 24/7 to ensure the highest level
of safety. Production, processing and delivery systems and equipment such as pumps, compressors,
instrumentation, control systems, data & information systems - need power to be maintained to ensure
revenue generation is maximized.
Industrial and Manufacturing
A shared and common issue for many different industrial & manufacturing companies is the impact
a power outage can have on production & process time, revenue and profit. Disruption needs to be
minimized. Uninterruptible Power UPSs protect a wide range of industrial and manufacturing
applications, including chemical, electronic, engineering, pharmaceutical, food and automobile
production.
Broadcasting and Communication
The Broadcast & Communication industries are converging fast. TV, Broadband, Fixed & Mobile
Communications and Business services have become standard offerings from network operators,
internet service providers, mobile companies and broadcasters alike. The 24/7 availability of PCs, IT
networks, server rooms, communication rooms, call centers, data centers and transmission equipment
is therefore essential to the revenue generating capability, availability and quality of service these
network operators, internet service providers, mobile companies and broadcasters provide.
Leisure and Sport
Reliable power protection systems are essential within the leisure and sports industry to ensure
customer experience, revenue generation and safety is not compromised. For customer safety, all
sports stadiums, hotels, museums, theatres, cinemas and theme parks need power protection for
security, emergency lighting and information systems. Flood-lighting needs to be backed-up with
secure power to minimize customer disappointment. Online services and call centers need to be
protected to ensure efficient booking and ticketing for events.
Retail
Running a successful commercial retail operation is not just simply about cash or credit card
transaction. That is just the tip of the iceberg. Electronic Point of Sale (EPOS), forecasting, supply
chain planning, stock control, customer relationship & loyalty management, business intelligence,
mail order, e-commerce and distribution are of equal importance.
32

Appendix 6: Training Course

Maintenance & Troubleshooting of UPS Systems and Battery Power Supplies THIS BOOK
WAS DEVELOPED BY IDC TECHNOLOGIES

WHO ARE WE?
IDC Technologies is internationally acknowledged as the premier provider of practical, technical training for
engineers and technicians.
We specialize in the fields of electrical systems, industrial data communications, telecommunications,
automation and control, mechanical engineering, chemical and civil engineering, and are continually adding to
our portfolio of over 60 different workshops. Our instructors are highly respected in their fields of expertise and
in the last ten years have trained over 200,000 engineers, scientists and technicians.
With offices conveniently located worldwide, IDC Technologies has an enthusiastic team of professional
engineers, technicians and support staff who are committed to providing the highest level of training and
consultancy.
TECHNICAL WORKSHOPS TRAINING THAT WORKS

We deliver engineering and technology training that will maximize your business goals. In todays competitive
environment, you require training that will help you and your organization to achieve its goals and produce a
large return on investment. With our training that works objective you and your organization will:
Get job-related skills that you need to achieve your business goals
Improve the operation and design of your equipment and plant
Improve your troubleshooting abilities
Sharpen your competitive edge
Boost morale and retain valuable staff
Save time and money

EXPERT INSTRUCTORS
We search the world for good quality instructors who have three outstanding attributes:
1
Expert knowledge and experience of the course topic
2
Superb training abilities to ensure the know-how is transferred effectively and quickly to you in a
practical, hands-on way
3
Listening skills they listen carefully to the needs of the participants and want to ensure that you
benefit from the experience. Each and every instructor is evaluated by the delegates and we assess the
presentation after every class to ensure that the instructor stays on track in presenting outstanding courses.
HANDS-ON APPROACH TO TRAINING

All IDC Technologies workshops include practical, hands-on sessions where the delegates are given the
opportunity to apply in practice the theory they have learnt.
REFERENCE MATERIALS
A fully illustrated workshop book with hundreds of pages of tables, charts, figures and handy hints, plus
considerable reference material is provided FREE of charge to each delegate.
ACCREDITATION AND CONTINUING EDUCATION

Satisfactory completion of all IDC workshops satisfies the requirements of the International Association for
Continuing Education and Training for the award of 1.4 Continuing Education Units.
IDC workshops also satisfy criteria for Continuing Professional Development according to the requirements of
the Institution of Electrical Engineers and Institution of Measurement and Control in the UK, Institution of
Engineers in Australia, Institution of Engineers New Zealand, and others.
33

CERTIFICATE OF ATTENDANCE
Each delegate receives a Certificate of Attendance documenting their experience.
100% MONEY BACK GUARANTEE

IDC Technologies engineers have put considerable time and experience into ensuring that you gain maximum
value from each workshop. If by lunchtime on the first day you decide that the workshop is not appropriate for
your requirements, please let us know so that we can arrange a 100% refund of your fee.
ONSITE WORKSHOPS
All IDC Technologies Training Workshops are available on an on-site basis, presented at the venue of your
choice, saving delegates travel time and expenses, thus providing your company with even greater savings.
OFFICE LOCATIONS
AUSTRALIA CANADA INDIA IRELAND MALAYSIA NEW ZEALAND POLAND
SINGAPORE SOUTH AFRICA UNITED KINGDOM UNITED STATES
idc@idc-online.com
www.idc-online.com
OnSite
Training
All IDC Technologies Training Workshops are available on an on-site basis, presented at the venue of your
choice, saving delegates travel time and expenses, thus providing your company with even greater savings. For
more information or a FREE detailed proposal contact Kevin Baker by e-mailing:
training@idc-online.com
34

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NEW BRUNSWICK PROVINCIAL NOMINEE PROGRAM

Far-On Backup Power

Applicant initials _______

New Brunswick Provincial Nominee Program

Applicant Initials _____

New Brunswick Provincial Nominee Program

Applicant Initials _____

New Brunswick Provincial Nominee Program

Applicant Initials _____

New Brunswick Provincial Nominee Program

Applicant Initials _____

New Brunswick Provincial Nominee Program

Products and Services

Applicant Initials _____

New Brunswick Provincial Nominee Program

Applicant Initials _____

New Brunswick Provincial Nominee Program

Applicant Initials _____

New Brunswick Provincial Nominee Program

Direct competitor, offers a more comprehensive line of

100 Wright Avenue, Unit 12,

Direct competitor, offers more comprehensive line of

900 Windmill Road, Unit 303,

New Brunswick branch of a US company, specializes in sales

400 Edinburgh Drive

Sales partner for Eaton Corporation in New Brunswick, with

240 Commerce Street, Unit

Service Partner for Eaton Corporation

100-32 Troop Avenue

Applicant Initials _____

New Brunswick Provincial Nominee Program

Discount on service contracts for Far-On installations up to 25%

Applicant Initials _____

New Brunswick Provincial Nominee Program

Managerial and technical expertise of Mr. Ghorbi

Applicant Initials _____

New Brunswick Provincial Nominee Program

Applicant Initials _____

New Brunswick Provincial Nominee Program

Recruiting staff member(s)

Visiting installation sites

Certified engineer with office work experience

Applicant Initials _____

New Brunswick Provincial Nominee Program

Source Used to Estimate Cost

Start-up Expenses to Fund

Benchmarking related businesses active in New Brunswick

Leasehold negotiations and down payment

Based on current listings for commercial properties in Moncton

Inquiring offers for website designs and hosting from local

Assessing required amount of catalogues, brochures and flyers

Total Start-up Expenses to Fund

Start-Up Assets to Fund

Online machinery leasing websites through evaluating their

Computers and software

Total Long Term Assets to Fund

Based on evaluation of required products in opening inventory

Reserved for operational expenses and outgoings, rent and

Total Estimated Expenses

Applicant Initials _____

New Brunswick Provincial Nominee Program

Total Cost of Sales

Repairs and Maintenance

Professional and Business Fees