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CONSULTING BUSINESS PLAN
Nova Southeastern University H. Wayne Huizenga School
of Business & Entrepreneurship
Assignment for Course: HRM 5385- Organization Consultation Submitted to: Dr. Bobby BarrettSubmitted by: Karen P. Vargas
N00576910 14828 S.W. 124th Ct Miami, FL 33186 (305)546-7462
Date of Submission: 11/27/2012
Title of Assignment: Consulting Business Plan
CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. I have also cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I have added quotes whenever I used more than three consecutive words from another writer. I also certify that this paper was prepared by me specifically for this course.
Student's Signature: /s/ Karen Vargas
*****************************************************************
Instructor's Grade on Assignment:
Instructor's Comments:
0
CONSULTING BUSINESS PLAN
Consulting Business Plan
Karen Vargas
HRM 5385- Organization Consultation
NOVA Southeastern University
November 27, 2012
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CONSULTING BUSINESS PLAN
Business Plan
VARGAS CONSULTING GROUP1750 N. Bayshore Dr.Miami, Florida 33132
(305) 546-0150 (800) 545-0330
(305) 546-0151 Faxwww.vargasconsulting.com
Karen Vargas, Owner1750 N. Bayshore Dr.Miami, Florida 33132
Juan Vargas, Owner9111 SW 208 Terrace
Miami, Fl 33189305-555-6233
Plan prepared November 27, 2012by Karen Vargas
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CONSULTING BUSINESS PLAN
Table of Contents
Executive Summary …………………………………………………….. 4-5
General Company Description ………………………………………….. 6-7
Products and/or services ………………………………………………… 7-9
Marketing Plan ………………………………………………………….. 9-13
Management Plan ……………………………………………………….. 13-15
Financial Plan …………………………………………………………… 15-23
References ………………………………………………………………. 24
Appendix ………………………………………………………………... 25-29
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Executive Summary
Vargas Consulting Group will be a local start-up consulting company specializing in the
area of leadership development and talent management. The initial office will be established in
the city of Miami, FL. and will be located in a home office to keep costs low.
We will offer the following services which are customized to serve our clients needs
including executive coaching, leadership development, customized training and coaching,
succession planning, and talent management. Our mission is to provide organizations valuable
insights and tools to meet their leadership development/talent management challenges. By our
innovative and quality approach we are committed to developing highly productive and effective
leaders and maximizing returns on the organization’s talent investment to drive business
performance and become leaders in the consulting industry.
Vargas Consulting Group will operate as a limited liability company (LLC) and will
consist of a team of two business consultants. Each consultant specializes and possesses vast
experience in the areas of recruitment, executive assessment, leadership development,
implementation of assessment centers, succession planning, and talent management.
The business consulting industry is very diverse. There are different areas of
specialization and different markets. Large consulting companies offer broad areas of service and
target larger businesses while many smaller, often more specialized firms, occupy their market
niches. Vargas Consulting Group will take advantage of this opportunity and offer specialized
services and target small and medium-sized new and existing companies, as well as professional
individuals throughout South Florida who need affordable consulting services. The company will
work with both private and public sectors, across every major industry.
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CONSULTING BUSINESS PLAN
The key competitive advantage of Vargas Consulting Group are low overhead costs
compared to competitive consulting firms as well as the experience and expertise of both
consultants/owners and their focus on providing individual and specialized services to meet each
client's specific needs. In addition, the fact the office will be located in a home office will
maintain costs low and the physical location in the area of Downtown as there is easy access to
many companies, corporations and organizations.
Vargas Consulting Group will market its services by networking with local business
leaders and business associations or contacting the potential client directly. The company will
place an ad in the business journals, newspapers, and yellow pages, listing with all local business
and industry associations, and distribute the brochure they developed to lending institutions and
clients. Members will become active members of a number of business and consulting
associations, network with the local business community, and develop workshops and seminars
for small businesses. During the latter events, brochures will be distributed. In addition, they will
use social networking tools such as Blogs, Facebook, LinkedIn, and Twitter and a company
website will highlight key services, contact details and expertise to the potential clients.
The company owners, Karen Vargas and Juan Vargas, will provide $14,700 that will
cover the start-up expenses. These funds will be sufficient to cover the company's expenses
throughout the first year of operations. The revenues of Vargas Consulting Group are projected
to increase from $74,986 in the first year to $135,598 by the third year.
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General Company Description
Vargas Consulting Group will be a new, local consulting company specialized in the
service area of leadership development and talent management. The initial office will be
established in the city of Miami, FL. in the area of Downtown which is besides an urban
residential neighborhood, the central financial and business district, home to many companies,
corporations and organizations including public organizations and private companies, several
country consulates, and chambers of commerce (MiamiDDA, 2010). To keep the operating costs
low, Vargas Consulting Group will be located in a home office setting. A phone line and internet
service dedicated to the business will be added.
The company will work with organizations and individuals who lack professional
development opportunities to help them align their talent strategy with their business strategy,
which will position them for future success. The company will help successful leaders, their
management teams, and their organizations implement leading thinking through innovative
leadership practices and business practices necessary to thrive in this rapidly changing
environment. We will help you evolve your leadership practices and your organization by
providing practical tools and coaching based on the latest research. Our mission is to provide
organizations valuable insights and tools to meet their leadership development/talent
management challenges. By our innovative and quality approach we are committed to
developing highly productive and effective leaders and maximizing returns on the organization’s
talent investment to drive business performance.
All training and workshops will be held at the client's location. If not possible, the
facilities will be contracted with community facilities, colleges or universities.
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CONSULTING BUSINESS PLAN
Vargas Consulting Group is a start-up consulting business that is scheduled to begin
operations in about two months.
Vargas Consulting Group will operate as a privately owned, limited liability company
(LLC) in order to protect its members’ personal property from liability for business decisions or
actions, have fewer restrictions on profit sharing, and save on taxes. It will be owned by two HR
professional consultants who own a 50% share in the company. The advantages of an LLC
include no limit to the number of owners, owners can report profit and loss on their individual
tax returns, and they are not required to hold annual meetings or record minutes (SBA.gov,
2012).
Products and/or Services
Effective leadership is a must for organizational success. Vargas Consulting Group
provides services to understand each company’s strategy and identify, develop, and retain future
leaders and teams. Also, the company helps to manage succession planning and create a plan
according to an organization’s strategy, goals and culture. Therefore, one of Vargas Consulting
Group’s challenges will be establishing itself as a real professional leadership development and
talent management company.
We offer the following services which are customized to serve our clients’ needs and
objectives:
Leadership Development
Individual Development- we help leaders identify gaps in perceived strengths,
weaknesses and capabilities and determine areas of focus to create a plan with strategies
to close those gaps and increase their effectiveness.
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Team Development- we assist newly formed teams to identify critical success factors,
gaps in current skills and actionable plans to achieve success. We provide training and
motivation through team sessions, incorporating tools such as 360 feedback scores,
interviews and self assessments. We offer retreats for leaders and senior managers to
clarify organizational vision, mission, and strategy, develop common goals, and work
with conflict.
Organization Development- we help our clients determine what competencies they need
in order to accomplish their strategic plan and move towards their business goals. We
develop competency models for individuals, teams, jobs or departments to ensure that
performance expectations remain consistent across the whole organization. A successful
organization will plan leadership and organizational development together.
We help clients anticipate leadership challenges and build talent by providing leadership
assessment, feedback, and coaching to increase skills and improve behavior and developing
leadership competency models.
Executive Coaching: Vargas Consulting Group provides one-on-one confidential guidance
tailored to your leaders’ learning style and goals including high potentials, middle leaders, and
top executives. We partner with you in the development of your organization’s coaching practice
and provide the tools to measure coaching success.
Talent Management
Succession Planning: We begin by identifying the client organization’s business strategy and
design a succession framework based on the critical roles within the organization. Then, we
identify, assess and evaluate the readiness of your talent pool against these specific roles and
your future needs. We utilize practices as lateral moves, assignment to special projects, team
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leadership roles, and both internal and external training and development opportunities for an
effective succession planning. Effective, proactive succession planning leaves your organization
well prepared for expansion, the loss of a key employee, filling a new, needed job, employee
promotions, and organizational redesign for opportunities. It builds an organization’s bench
strength (About.com, 2012).
Marketing Plan
To understand the market Vargas Consulting Group conducted a market research by
talking to local business leaders and entrepreneurs. It was concluded that as organizations
experience changes in strategy, technology and culture, mergers, and restructuring, they need to
make sure people who has been leading them, possess the competencies to ensure success in the
future. Their top people and emerging talent need their competencies to be aligned with the
business strategy and operating model. Also, as start-up businesses grow, they will need training
and assistance in leadership and talent management in order to increase their leaders’ knowledge
and skills, build bench strength and consequently, reduce the risk of poor management
performance and business failure. Client companies are in search of improving overall business
and operations efficiency.
In addition, Vargas Consulting read and collected research information from sources such
as Kennedy Consulting Research and Advisory and the United States Census Bureau to examine
the statistics for the Human Resources Consulting industry. Kennedy’s broadest, most in-depth
examination of global HR consulting (HRC) markets shows that, despite the lingering effects of
the weak global economy, HRC has rebounded and grown at a respectable rate and the outlook
for the forecast period is even more positive. The full study looks at how the role of the HR
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function is evolving as talent management and workforce planning rise in priority with
leadership (Kennedy Consulting Research & Advisory, 2012).
Thus, companies will require consultants for advice and guidance and Vargas Consulting
Group plans to offer strategic coaching, professional development, and counseling for small and
medium business owners, entrepreneurs and self-employed professionals.
The consulting industry is a multifaceted, global business sector that is facing many
challenges and evolving quickly. At the highest level of the business is management consulting,
the segment that advises top executives and boards of directors at Fortune 1000 firms on strategy
and organization. Global consulting industry revenues including HR, IT, strategy, operations
management and business advisory services will be about $391 billion in 2012, a reasonable
growth compared from $366 billion in 2011. Some of the most recognized companies are
McKinsey & Company, Inc., Bain & Company, Inc., and Boston Consulting Group, Inc.
(Plunkett Research, Ltd., 2012).
Such firms may charge their clients anywhere from $300,000 to $1 million in monthly
fees (Plunkett Research, Ltd., 2012). These large, multifaceted companies are facing competition
from smaller, niche companies including Vargas Consulting Group since they cannot cost
effectively service the small and medium-sized market. Small and medium-sized companies as
well as entrepreneurs and self-employed professionals usually cannot afford the high fees
charged by these large firms. Vargas Consulting Group services will be priced competitively
with other small consulting firms due to lower overhead costs. Our fees will remain the same for
all projects, but may vary depending on the time needed to complete the project as well as other
expenses involved as part of the project.
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CONSULTING BUSINESS PLAN
The consulting company will target small and medium-sized new and existing companies
as well as entrepreneurs and self-employed professionals throughout South Florida in search of a
way to improve their performance, achieve change, drive execution, and sharpen leadership
skills using their talent. The company will work with both private and public sectors, across
every major industry.
One of the objectives during the first 12 months of operation is to become a recognized
consulting firm. To do this, a strong client base will be developed through a comprehensive
marketing program. The company plans to use its existing contacts to generate both short and
long-term consulting contracts. At first, the company will utilize marketing strategies to reach
the market such as personal networks including former employers, co-workers and supervisors,
colleagues, former faculty, service providers (doctors, dentists, lawyers, CPA). Also, will
network with local business leaders and business associations through the use of cold contacts or
contacting the potential client directly (decision-maker within the company: CEO, CFO,
manager) and offer its services via phone calls or direct mail which will involve mailing
postcards and company brochure (See Appendix E) to highlight information about the service
areas. The brochures will be distributed at our workshops and seminars to associations, key
business leaders, and all potential clients. Vargas Consulting Group will also take advantage of
today’s technological advances and use social networking tools such as Blogs, Facebook,
LinkedIn, and Twitter to share a great amount of information in a fast and cost-effective way. A
company website will highlight key services, contact details and expertise to the potential clients.
Also, we will maintain an active presence in the Chamber of Commerce and other traditional
business, civic organizations, and associations such as the Society for Human Resource
Management (SHRM) to enable potential clients to recognize us as a group of integrity and
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stability. In addition, we will attend business events the prospective clients from the target
industry are likely to attend including trade shows, seminars, conventions, and workshops and
volunteer to share our knowledge in leadership development top establish a reputation in the
field. Finally, we will become members of a consultancy association such as the Institute of
Management Consultants USA (IMC USA) and advertise in the most important business
journals, newspapers, and yellow pages in order to become well-known.
The competitive advantages of Vargas Consulting are the business's relatively low
overhead costs compared to competitive consulting firms as well as the experience and expertise
of both consultants/owners and their focus on providing individual and specialized services to
meet each client's specific needs. We will manage and monitor the specific progress of each
client to ensure appropriate development. The approach to counseling both employers and
employees is very unique and we expect a continuing growth from our commitment to individual
service.
Vargas Consulting Group will operate within a geographic area that is convenient to our
potential clients and besides, will offer its services through the internet 24/7. Therefore, another
competitive advantage is the physical location of our office. The fact the office will be located in
a home office will maintain costs low and the physical location in the area of Downtown will
give easy access to various companies. The area of Downtown is besides an urban residential
neighborhood, the central financial and business district, home to many companies, corporations
and organizations including public organizations and private companies, several country
consulates, and chambers of commerce (MiamiDDA, 2010). Downtown Miami is the fastest city
in the nation with a massive commercial Real Estate growth. According to Live Development
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LLC, there will be a 10 billion dollars investment plan for the next 8 years in Downtown Miami
Real Estate Development (YouTube, 2012).
With time, reputation and referrals, Vargas Consulting Group will gain an opportunity for
more business and new clients as well as regular price increases. In addition, we will participate
in training, seminars, and conferences in order to increase our knowledge and maintain current
on HR issues and laws and regulations. We will also broaden the areas of specialization to
remain competitive in the market.
Management Plan
Vargas Consulting Group initial management team depends on its two founders and
owners Karen Vargas and Juan Vargas. The two consultants own a 50% share in the company
and their income will be equal for both (See Table1).
Karen Vargas holds a Bachelor’s degree in Psychology from Universidad del Norte in
Colombia and a MS in Human Resource Management from Nova Southeastern University.
Karen’s areas of expertise include recruitment, executive assessment, leadership development,
and implementation of assessment centers. She has 10 years of experience in organizational
strategy, OD and leadership development, and human resources. She has designed competency
systems including leadership development programs, 360 feedback, executive coaching,
executive assessment, and succession planning. She is considered an excellent speaker in
leadership conferences and workshops and has experience in coaching individuals and teams on
practical organizational issues and challenges. Prior to Vargas Consulting Group, Karen was a
Manager of Human Resources at Adonel Concrete and an executive coach for different
companies.
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Juan Vargas obtained his bachelor's degree in Finance from The School of Management
at Boston College and a Ph.D. in Industrial/Organizational Psychology from the George
Washington University. Juan’s areas of expertise include the selection, development, and
retention of key leaders in order to help organizations build effective succession plans, leadership
skill building, and talent management. He has worked for 15 years designing assessment centers,
managerial development programs, and succession planning strategies. He also has experience in
Finance. Juan’s passion is presenting conferences and teaching graduate courses in Leadership
Development and Executive Coaching.
Both consulting professionals are members of SHRM (Society of Human Resources
Management) and offer experience developing and implementing talent solutions. The key
aspects of the company including sales, marketing, finances (bookkeeping, accounting),
customer service, legal, consulting services, etc. will be managed by both owners. If in the
future, they lack the experience to handle some of these areas, an expert will be subcontracted.
Table 1. Personnel Plan. The following table is the personnel plan for Vargas Consulting Group.
Personnel Plan Year 1 Year 2 Year 3
Owner 1 $22,250 $35,000 $35,000
Owner 2 $22,250 $35,000 $35,000
Total People 2 2 2
Total Payroll $44,500 $70,000 $70,000
Once the business is established and as the business grows, we will consider hiring a
consultant to offer other consulting services and probably, a financial officer to handle the
recordkeeping while we focus more on our sales and consulting practice. In addition, we will
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focus on our marketing plan and implement different and more advertising. As the firm grows in
service demands, additional staff support and consultants will be hired.
Financial Plan
The company’s objective during the first 12 months of operation is to develop a
profitable consulting business. The company owners, Karen Vargas and Juan Vargas, will
provide $14,700 that will cover the start-up expenses. These funds will be sufficient to cover the
company's expenses throughout the first year of operations. The revenues of Vargas Consulting
Group are projected to increase from $74,986 in the first year to $135,598 by the third year.
Figure 1. Start-up Expenses and Assets
Figure 1. Total start-up expenses will be $4,500. Start-up assets required include $2,000 in short-term assets and $7,500 in initial cash to handle the first three months of operations.
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Table 2. Start-up Requirements.
Start-up RequirementsStart-up Expenses Legal $1,000 Stationery, etc. $400 Insurance $900 Rent $0 Computer $1,500 Phone $100 Travel $500 Other $100 Total Start-up Expenses $4,500 Start-up Assets Cash Required $7,500 Other Current Assets $2,000 Long-term Assets $0 Total Assets 9500Total Requirements $14,000
Table 3. Start-up Funding. The start-up costs are to be financed by the two owners' personal
funds.
Start-up FundingStart-up Expenses to Fund $4,500
Start-up Assets to Fund $9,500
Total Funding Required $14,000
Assets
Non-cash Assets from Start-up $2,000
Cash Requirements from Start-up $7,450
Additional Cash Raised $750
Cash Balance on Starting Date $8,200
Total Assets $10,200
Liabilities and Capital
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Liabilities
Current Borrowing $0
Long-term Liabilities $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Capital
Planned Investment
Owner $14,700
Investor $0
Additional Investment Requirement $0
Total Planned Investment $14,700
Loss at Start-up (Start-up Expenses) ($4,500)
Total Capital $10,200
Total Capital and Liabilities $10,200
Total Funding $14,700
Projected Income Statement (Profit and Loss)
The following tables and figures show the projected Income statement for Vargas Consulting Group. As the charts illustrate, the Company expects to continue its growth in profitability over the next three years of operations. The ratios are based in the market industry by the North American Industry Classification System, NAICS 541612 or Standard Industrial Classification, SIC 8742, Management Consulting 2011 (Naicscode.com, 2012).
Figure 2. Profit Monthly
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Figure 3. Profit Yearly.
Figure 4. Gross Margin Monthly.
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Figure 5. Gross Margin Yearly.
Table 4. Income Statement
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Income Statement Year 1 Year 2 Year 3
Sales $74,986 $111,009 $135,598
Direct Cost of Sales $7,920 $8,712 $9,583
Other Costs of Sales $0 $0 $0
Total Cost of Sales $7,920 $8,712 $9,583
Gross Margin $67,066 $102,297 $126,015
Gross Margin % 89.44% 92.15% 92.93%
Expenses
Payroll $44,500 $70,000 $70,000
Marketing/Promotion $3,250 $3,591 $4,184
Depreciation $0 $0 $0
Rent $0 $0 $0
Utilities $579 $637 $669
Insurance $885 $974 $1,071
Payroll Taxes $6,675 $7,676 $8,828
Other $0 $0 $0
Total Operating Expenses $55,889 $82,878 $84,751
Profit Before Interest and Taxes $11,177 $19,419 $41,264
EBITDA $11,177 $19,419 $41,264
Interest Expense $0 $0 $0
Taxes Incurred (30%) $3,353 $5,826 $12,379
Net Profit $7,824 $13,593 $28,885
Net Profit/Sales 10.43% 12.25% 21.30%
Figure 6. Projected Cash Flow
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Figure 6. The Cash Flow Statement shows how the company is paying for its operations and future growth, by detailing the "flow" of cash between the company and the outside world. Positive numbers represent cash flowing in; negative numbers represent cash flowing out.
Table 5. Cash Flow
Cash Flow Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $74,986 $111,009 $135,598
Subtotal Cash from Operations $74,986 $111,009 $135,598
Additional Cash Received
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $ 74,986 $ 111,009 $ 135,598
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $63,718 $89,205 $107,046
Subtotal Spent on Operations $63,718 $89,205 $107,046
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Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $63,718 $89,205 $107,046
Net Cash Flow $11,268 $3,380 $2,366
Cash Balance $16,024 $19,229 $21,440
Table 6. Projected Balance SheetThe following table represents the Balance Sheet for Vargas Consulting Group. It shows a projected increase in Net Worth or Assets for the next three years.
Balance Sheet Year 1 Year 2 Year 3
Assets Current Assets
Cash $16,024 $19,229 $21,440
Other Current Assets $2,000 $2,000 $2,000
Total Current Assets $18,024 $21,229 $23,440
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0 Total Assets $18,024 $21,229 $23,440
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Current Borrowing $0 $0 $0
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Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $0 $0 $0
Long-term Liabilities $0 $0 $0
Total Liabilities $0 $0 $0
Paid-in Capital $14,700 $14,700 $14,700
Retained Earnings ($4,500) ($225) $1,125 Earnings $7,824 $2,504 $1,828
Total Capital $18,024 $21,229 $23,440 Total Liabilities and Capital $18,024 $21,229 $23,440 Net Worth $18,024 $21,229 $23,440
References
About.com. (2012). Human Resources. Succession Planning. Retrieved from
http://humanresources.about.com/od/glossarys/g/successionplan.htm
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Kennedy Consulting Research & Advisory. (2012). HR Consulting Marketplace: Key Trends,
Profiles and Forecasts 2011 – 2014. Retrieved from http://www.kennedyinfo.com
/consulting/research/hr-consulting-marketplace-2011-2014?C=Pia5646g9W1ORqSv&G
=pTUcSZEhKreo9O3T
MiamiDDA. (2010). About The Miami Downtown Development Authority. Retrieved from
http://miamidda.com/main_about.asp
Naicscode.com. (2012). Industry search. Retrieved form http://www.naicscode.com/default.asp
?Q=consulting
Plunkett Research, Ltd. (2012). Introduction to the Consulting Industry. Retrieved from
http://www.plunkettresearch.com/consulting-market-research/industry-trends
SBA.gov. (2012). Starting a Business. Limited Liability Company. Retrieved from
http://www.sba.gov/content/limited-liability-company-llc
YouTube. (2012). Live Miami 2020. Ten billion dollar boom coming to Downtown Miami.
Retrieved from http://www.youtube.com/watch?v=GbUZ8fZkE2Q.
Appendix A
Sales Forecast
Month
1Month
2Month
3Month
4Month
5Month
6Month
7Month
8Month
9Month
10Month
11Month
12Sales
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Workshops and Training 0% $700 $2,000 $3,000 $4,000 $4,500 $4,500 $5,600 $6,000 $6,500 $7,000 $6,800 $7,300
One On One/ Executive Coaching 0% $300 $350 $420 $420 $420 $500 $562 $562 $562 $600 $550 $500 Individual/Team Development Coaching 0% $250 $300 $630 $650 $650 $600 $700 $800 $750 $870 $850 $900
Succession Planning 0% $200 $350 $400 $350 $380 $300 $250 $220 $220 $250 $220 $250
Total Sales $1,450 $3,000 $4,450 $5,420 $5,950 $5,900 $7,112 $7,582 $8,032 $8,720 $8,420 $8,950
Direct Cost of Sales Month
1Month
2Month
3Month
4Month
5Month
6Month
7Month
8Month
9Month
10Month
11Month
12Royalties $330 $330 $330 $330 $330 $330 $330 $330 $330 $330 $330 $330
Marketing $330 $330 $330 $330 $330 $330 $330 $330 $330 $330 $330 $330
Subtotal Direct Cost of Sales $660 $660 $660 $660 $660 $660 $660 $660 $660 $660 $660 $660
Appendix B
Income Statement
Month
1Month
2Month
3Month
4Month
5Month
6Month
7Month
8Month
9Month
10Month
11Month
12 Total
Sales $1,450 $3,000 $4,450 $5,420 $5,950 $5,900 $7,112 $7,582 $8,032 $8,720 $8,420 $8,950 $74,986
Direct Cost of Sales $660 $660 $660 $660 $660 $660 $660 $660 $660 $660 $660 $660 $7,920
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $660 $660 $660 $660 $660 $660 $660 $660 $660 $660 $660 $660 $7,920
Gross Margin $790 $2,340 $3,790 $4,760 $5,290 $5,240 $6,452 $6,922 $7,372 $8,060 $7,760 $8,290 $67,066
Gross Margin % 54.48% 78.00% 85.17% 87.82% 88.91% 88.81% 90.72% 91.30% 91.78% 92.43% 92.16% 92.63% 89.44%
Expenses
Payroll $0 $3,500 $3,500 $3,500 $3,500 $3,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $44,500
Marketing/Promotion $800 $150 $150 $150 $150 $150 $200 $300 $300 $300 $300 $300 $3,250
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $0 $50 $50 $50 $50 $50 $50 $70 $66 $45 $48 $50 $579
Insurance $0 $70 $70 $70 $70 $70 $80 $89 $90 $91 $92 $93 $885
Payroll Taxes 15% $0 $525 $525 $525 $525 $525 $675 $675 $675 $675 $675 $675 $6,675
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $800 $4,295 $4,295 $4,295 $4,295 $4,295 $5,505 $5,634 $5,631 $5,611 $5,615 $5,618 $55,889
Profit Before Interest and Taxes ($10) ($1,955) ($505) $465 $995 $945 $947 $1,288 $1,741 $2,449 $2,145 $2,672 $11,177
EBITDA ($10) ($1,955) ($505) $465 $995 $945 $947 $1,288 $1,741 $2,449 $2,145 $2,672 $11,177
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred (30%) ($3) ($587) ($152) $140 $299 $284 $284 $386 $522 $735 $644 $802 $3,353
Net Profit ($7) ($1,369) ($354) $326 $697 $662 $663 $902 $1,219 $1,714 $1,502 $1,870 $7,824
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CONSULTING BUSINESS PLAN
Net Profit/Sales -0.48% -45.62% -7.94% 6.01% 11.71% 11.21% 9.32% 11.89% 15.17% 19.66% 17.83% 20.90% 10.43%
Appendix C
Cash Flow Monthly
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Cash Received Cash from Operations
Cash Sales $1,450 $3,000 $4,450 $5,420 $5,950 $5,900 $7,112 $7,582 $8,032 $8,720 $8,420 $8,950
Subtotal Cash from Operations $1,450 $3,000 $4,450 $5,420 $5,950 $5,900 $7,112 $7,582 $8,032 $8,720 $8,420 $8,950
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $1,450 $3,000 $4,450 $5,420 $5,950 $5,900 $7,112 $7,582 $8,032 $8,720 $8,420 $8,950
Expenditures Month
1Month
2Month
3Month
4Month
5Month
6Month
7Month
8Month
9Month
10Month
11Month
12
Expenditures from Operations
Cash Spending $1,457 $1,632 $4,096 $5,094 $5,253 $5,238 $6,450 $6,680 $6,814 $7,005 $6,919 $7,080
Subtotal Spent on Operations $1,457 $1,632 $4,096 $5,094 $5,253 $5,238 $6,450 $6,680 $6,814 $7,005 $6,919 $7,080 Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
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CONSULTING BUSINESS PLAN
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Cash Spent $1,457 $1,632 $4,096 $5,094 $5,253 $5,238 $6,450 $6,680 $6,814 $7,005 $6,919 $7,080
Net Cash Flow ($7) $1,368 $354 $326 $697 $662 $662 $902 $1,218 $1,715 $1,501 $1,870
Cash Balance $8,193 $6,825 $6,471 $6,797 $7,494 $8,156 $8,818 $9,720 $10,938 $12,653 $14,154 $16,024
Appendix D
Balance Sheet Monthly
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Assets
Starting Balances
Current Assets
Cash $8,200 $8,193 $6,825 $6,471 $6,797 $7,494 $8,156 $8,818 $9,720 $10,938 $12,653 $14,154 $16,024 Other Current Assets $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 Total Current Assets $10,200 $10,193 $8,825 $8,471 $8,797 $9,494 $10,156 $10,818 $11,720 $12,938 $14,653 $16,154 $18,024
Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Assets $10,200 $10,193 $8,825 $8,471 $8,797 $9,494 $10,156 $10,818 $11,720 $12,938 $14,653 $16,154 $18,024
Liabilities and Capital
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Current Liabilities
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Paid-in Capital $14,700 $14,700 $14,700 $14,700 $14,700 $14,700 $14,700 $14,700 $14,700 $14,700 $14,700 $14,700 $14,700
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CONSULTING BUSINESS PLAN
Retained Earnings ($4,500)
($4,500) ($4,500)
($4,500)
($4,500)
($4,500)
($4,500)
($4,500)
($4,500)
($4,500)
($4,500)
($4,500) ($4,500)
Earnings $0 ($7) ($1,376)($1,729
)($1,403
) ($706) ($45) $618 $1,520 $2,738 $4,453 $5,954 $7,824 Total Capital $10,200 $10,193 $8,825 $8,471 $8,797 $9,494 $10,156 $10,818 $11,720 $12,938 $14,653 $16,154 $18,024 Total Liabilities and Capital $10,200 $10,193 $8,825 $8,471 $8,797 $9,494 $10,156 $10,818 $11,720 $12,938 $14,653 $16,154 $18,024
Net Worth $10,200 $10,193 $8,825 $8,471 $8,797 $9,494 $10,156 $10,818 $11,720 $12,938 $14,653 $16,154 $18,024
Appendix E
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CONSULTING BUSINESS PLAN 29