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Auditing and Consulting Business Plan

Use this sample business plan to understand what should be included when starting a business that offers auditing and consulting.

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Auditing and Consulting Business Plan

Executive Summary

Artemide Auditing & Consulting AG (Artemide AC) is in the process of being formed as an ongoing sole proprietorship owned and operated by Sandor Artemide AC. The company is a spinoff of Daten Riffwald-Ennetmoos AG. Between the owners of Daten Riffwald-Ennetmoos and Artemide AC there will be 25% cross-participation. This plan is written as a guide for continuing and managing the business under the new company, and will also serve as the basis for marketing proposals. The two objectives of Artemide AC are to generate a profit and to grow at a challenging and manageable rate.

The mission of Artemide AC is to provide fast and reliable services in auditing and consulting to small and medium businesses (SMB), individuals, and other organizations.

The keys to success for Artemide AC are: visibility to generate new business leads, networking with other professionals, responsiveness, and quality.

The initial primary service offered will be auditing, although specialized fields will be considered in future growth.

The overall objective is to focus the activities towards the specialized services (analyses, investigations, startups, etc.) and to become a leader in this niche in the Luzern area. The company projects growth to be ~10% of sales in the next three years.

The most important keys to success for Artemide AC are developing visibility to generate new business leads, strong concentration on relationships with clients, and a high level of quality in our services.

The cooperation between Daten Riffwald-Ennetmoos and Artemide AC is flexible–with the objective to change rapidly if the market demands.

The sole proprietorship company “Sandor Artemide dipl. Wirtschaftsprüfer” was founded on 8 March 1996. In the first 10-month period, the company generated sales of $50,000.

Artemide AC is established in a separate office from Daten Riffwald-Ennetmoos AG, in Luzern. Secretary and telephone response is assumed by Daten Riffwald-Ennetmoos.

There are four major classes of competition in the actual fiduciary business in Switzerland. These include individual proprietors and small fiduciary and accounting offices and medium fiduciary offices with between 6 and 25 employees, these offices are available for general financial and tax consulting. There are also large auditing and consulting companies. These companies have several hundred employees. They tend to operate more in the lucrative consulting business. Banks, Assurances and other financial consultants are also new competitors in this field. Banks are now active in start-up consulting, corporate finance, mergers and acquisitions, and others.

Technology is, of course, very important to the success of Artemide AC. It is imperative that the company stay up-to-date on technological developments and it will be important to devote a reasonable portion of each year’s revenues toward upgrading the equipment and software used in normal operations.

Artemide AC will adopt a focused market strategy. Logical segmentation breaks the market down into the following: Individuals, Investors, Small Businesses, Medium Businesses, Large Businesses, and Authorities and Public Organizations. For our further development, we consider Individual persons and Investors plus Small and Medium Businesses to be crucial.

For our business, we do not have main competitors. We have a lot of widely-sized competitors in a vast market of services.This market environment gives ample opportunity for Artemide AC to create and expand a niche in the chosen market fields. Finally, worth noting is the growth trend for the general market, estimated between 5% and 10%, annually.

There are three different major opportunities (needs) in the fiduciary business over the next years:

  • Bookkeeping and other services related to the operative financial management (payroll, cost-accounting, accounting for pension funds, etc.).
  • Consulting and special mandates such as financial planning, business evaluation, merger and acquisition valuation, special audits, etc.
  • Legal Auditing (incl. IAS and other standards) as an independent and responsible institution.

In addition, the company sees three primary market trends which seem to be most important in our business.

  • Rapid growth in the complexity of business that requires rapid adaptation in the strategy and structures of companies.
  • More litigation due to higher percentages of unsuccessful ventures.
  • The growth of outsourced financial consulting.

All of this provides continuing opportunities for a dynamic company such as Artemide AC.

We believe our business is in a grand change. The competitors must be generalists and specialists at the same time. For small and medium fiduciary businesses, a focus of one primary segment of business is necessary. For example, if the “core” business is accounting, the other fiduciary businesses like tax, auditing, consulting must be reduced to a general level. In the core business, the company must be current with the services, while having the capacity to innovate (like new accounting services related to the Internet).

Artemide AC’s competitive edge is in the well-established reputation of Sandor Artemide who has been in the consulting business for over a decade, and the company’s ability to focus in this niche market.

The company’s sales strategy will be based on building long-term customer relationships, which will result in repeat sales. The company estimates that revenues will be approximately $232,000 by Year 3, yielding profits. The company will manage its assets and create profits with no debt financing. It does not anticipate any cash flow problems. Sandor Artemide, the majority owner of Artemide AC, will assume strategic management functions. Brigitte Artemide will be in charge of market research and customer support. Since no major increases in personnel are expected in the next three years, Mr. Artemide will retain his managerial functions throughout these years.

1.1 Mission

Artemide AC’s mission is simple and straightforward:

  • Purpose – Artemide AC exists to provide complete, reliable and high quality services to SMBs, individuals, lawyers, and authorities. Services must give solutions and results!
  • Vision – By providing innovative services, Artemide AC generates a name in Luzern and the surrounding area.

1.2 Keys to Success

The keys to success for Artemide AC are:

  • Developing visibility to generate new business leads.
  • Relationships with clients (developing loyal, respectful, and intensive contact with both clients and potential clients).
  • Marketing/strategy and networking with other professionals.
  • Collaboration with Daten Riffwald-Ennetmoos AG for generally fiduciary services and IT services.
  • Responsiveness to clients (fast response time for special problems).
  • Quality (especially in reporting information).
  • Excellence in fulfilling the promise.
  • Openness: languages and willpower for creating interregional and international contacts.

1.3 Objectives

The objectives of this business plan are:

  • To provide a written guide for managing this business; a strategic framework for developing a comprehensive tactical marketing philosophy.
  • This plan is not intended to obtain financing, it is purely for internal improvements.
  • The scope of this plan is to provide detailed monthly projections for the current plan year, as well as yearly summaries for the following two years.

The objectives of Artemide Auditing & Consulting are:

  • The overall objective is to focus the activities towards the specialized services (analyses, investigations, startups, etc.) and to become a leader in this niche in the Luzern area.
  • Cash flow – To generate sufficient cash flow to finance future growth and development, and to provide the resources needed to achieve the other objectives of the company and its owners.
  • Growth – To expand the business at a rate that is both challenging and manageable, serving the market with innovation and adaptability. (Growth projected at 10% of sales in the next three years.)

Company Summary

Artemide AC will be an ongoing company from the sole proprietorship company Sandor Artemide dipl. Wirtschaftsprüfer with the following characteristics:

  • The goal will be to continue the activities on a larger personal and organizational basis, still with no debt financing.
  • Artemide AC will assume operations of one of the Daten Riffwald-Ennetmoos AG’s divisions.
  • Between the owners of Daten Riffwald-Ennetmoos and Artemide AC there will be a 25% cross-participation.
  • The cooperation between Daten Riffwald-Ennetmoos and Artemide AC is flexible–with the objective to change rapidly if the market demands.

2.1 Company History

The sole proprietorship company “Sandor Artemide dipl. Wirtschaftsprüfer” was founded 8 March 1996. In the first 10-month period, the company generated sales of $50,000.

In the time of general recession, between 1996 and 2000, with a concentrated basis work, the owner created and assured his independent existence. The name Artemide was made known, and he has established a good professional reputation in Luzern.

Before starting his own business, Sandor Artemide acquired extensive professional experience as listed below:

  • 5 years ATAG Graff & Altern in Geneva, Switzerland.
  • 3 years Ziegfeld in Bern, Switzerland.
  • 4 years KUGN in Bienne, Switzerland.

2.2 Company Ownership

Artemide Auditing & Consulting AG will be incorporated in the city of Luzern by Sandor Artemide, who will be the majority owner. Twenty-five percent of the company will be owned by Daten Riffwald-Ennetmoos AG, the parent company.

2.3 Company Locations and Facilities

Artemide AC is established in a separate office from Daten Riffwald-Ennetmoos AG, in Luzern. Secretary and telephone response is assumed by Daten Riffwald-Ennetmoos. In the same building, on the first level, is established ATO Geistesblitz (sale and consulting of SMB software sage-KHK).

The structure is well established and satisfies the needs of both Daten Riffwald-Ennetmoos and Artemide AC. Both companies intend to optimize the office location in the future.

Services

Artemide AC will be the number one company in the Luzern area for specialized and investigative services in the modern business environment. Artemide AC also offers both classic, auditing, and general consulting services.

Artemide AC will offer three main services – Auditing, Consulting, and Investigation.
There appear to be four main classes of competition, as indicated under section 3.2.
Fulfillment of services will be provided in the future by Sandor Artemide and other equally qualified professionals.
It’s important to be current with the classic and special business software.

Detailed descriptions of these points are found in the sections below.

3.1 Service Description

Artemide Auditing & Consulting AG offers three main services:

  • Auditing – Financial data must be checked and confirmed, we consider this normal, as a service related to auditing. Most of these services are legal audits in the sense of Swiss company law. A Legal Audit is the most comprehensive assessment of the presentation of financial data. By contrast, a Review is generally prepared for the assurance of the management and as a minimum requirement of financial institutions for the propose of extending credit. Finally an analysis is limited on the plausibility and the ratios. An Analysis is normally based on audited or reviewed financial statements. An essential part of all audit activities is understanding the business environment in which a company operates and to evaluate the risks of financial losses. In fact it’s necessary to check past financial statements, but the key for a modern audit is to have time to move from an accounting approach to a planning approach–from present to future.
  • Consulting – Includes business planning, business evaluation, merger and acquisition, start-up planning, restructuring, and business-succession planning, etc.
  • Investigation – Our auditing and business expertise provides us with the ability to perform analysis, specialized audits, and valuation of businesses in business disputes, fraud, or other cases of incertitude and disputes.

3.2 Competitive Comparison

There seems to be four major classes of competition in the actual fiduciary business in Switzerland:

  • Individual proprietors and small fiduciary and accounting offices. The primary business of these competitors is accounting and tax compliance (for individuals and companies). This offices normally employ between 1 and 5 people. These offices deal in a large spectrum on a general level, but without specialization. These offices are often members of the STV.
  • Medium fiduciary offices with between 6 and 25 or more employees. These offices are also dealing in a large and general spectrum. If there are several partners–with different formation and specialties–these offices are available for general financial and tax consulting. This offices are member of the STV or/and the TK.
  • Large auditing and consulting companies. These companies have several hundred employees. They tend to operate more in the lucrative consulting business. Public companies are normally audited by these companies. Large companies are normally not interested in dealing with small and medium business. All large companies have an international network.
  • Banks, Assurances and other Financial Consultants are new competitors. Financial services are “in.” Banks are active in start-up consulting, corporate finance, mergers and acquisitions, and others.

3.3 Fulfillment

The fulfillment of services was provided in the past by the owner himself. The ultimate delivery was the owner’s expertise and problem solving capability, coupled with an open mind and ease of communication. The end result is an established trust with complete customer confidence and satisfaction.

In the future, the clients must also accept the work of other qualified personnel–it is necessary to transfer and expand the established personal goodwill into company goodwill. This will only be possible with qualified and motivated employees.

3.4 Technology

Technology is, of course, very important to the success of Artemide Auditing & Cconsulting. It is imperative that the company stay up-to-date on the technological developments in the classic business software like MS-Office, etc. as well as in the special software and tools for auditing, financial planning, business planning, etc.

In addition, it will be important to devote a reasonable portion of each year’s revenues toward upgrading the equipment and software used by Artemide AC in its normal operations.

Market Analysis Summary

Artemide Auditing & Consulting AG will adopt a focused market strategy.

  • Logical segmentation breaks the market down into the following: Individuals, Investors, Small Businesses, Medium Businesses, Large Businesses, and Authorities and Public Organizations. Descriptions are provided below.
  • The largest and most logical target markets for Artemide AC at the present are small and medium businesses. In a new “Financial Industry” Individuals and Investors become an important market segment.
  • For our business, we do not have main competitors. We have a lot of widely-sized competitors in a vast market of services. This market environment gives ample opportunity for Artemide AC to create and expand a niche in the chosen market fields.
  • Finally, worth noting is the growth trend for the general market, estimated between 5% and 10%, annually.

4.1 Target Market Segment Strategy

For our further development, we consider the following market segments to be very important:

  • Individual persons and Investors.
  • Small and Medium Businesses.

Artemide AC will focus its marketing strategy primarily on these market segments.

4.1.1 Market Needs

There are three different major opportunities (needs) in the fiduciary business over the next years

  1. Bookkeeping and other services related to the operative financial management (payroll, cost-accounting, accounting for pension funds, etc.).
  2. Consulting and special mandates.
  • Financial-Planning
  • Business-Planning
  • Business-Evaluation
  • Merger & Acquisition
  • Startup-Planning
  • Restructuring
  • Business Succession-Planning
  • Coaching in Financial-Managing
  • Recovery
  • Special Audits, Reviews
  • Analyses
  • Investigation, Forensic Services
  • Other
  • Legal Auditing (incl. IAS and other standards) as an independent and responsible institution.

We think that the need for consulting and other specialized fields has a strong growth potential.

4.1.2 Market Trends

Three primary market trends seem to be most important in our business:

  • Trend 1- (most important) Rapid growth in complexity of business in an ever-changing market and competitive environment needs continuous and rapid adaptation in both strategy and structures of companies.
  • Trend 2- (moderately important) In the future there will be a percentage of unsuccessful ventures resulting in more litigation, which, in turn, will emphasize the need for specialized audits, investigation, restructuring, etc.
  • Trend 3- (least important) Predicted continued growth in consulting because companies will be unwilling to pay fixed costs of salaries, choosing instead to treat specialized financial knowledge and needs as variable costs from external sources.

Economically it is more expedient to acquire specialized services from a consulting firm that has its own specialized employees.

4.1.3 Market Growth

As noted in the previous section, several factors are predicted to continue well into the next decade, not the least of which we estimate the annual market growth rate between 5% and 10%.

4.2 Service Business Analysis

The fiduciary and consulting business for the local area is already well established, yet still allows ample opportunity for us. This is supported by the following points:

  • Already in existence are a large number of firms – we think that most of the small and medium firms are operating in a limited spectrum of traditional fiduciary services (accounting and tax) and they do not have enough knowledge and/or time for entering the field of specialized services  – so we have new participants like banks, assurances, lawyers, and others entering the market.
  • Customers in the fiduciary business tend to be loyal, relying on the same consultant for future needs once a relationship has been established – this fact requires establishing a good and intensive personal relationship with client. This, in the large, “big 6,” firms, is often not realizable because of staff turn over and inaccessibility of personnel.
  • The globalization of markets will increase the demands for expansion of new services related to our business.

We believe our business is in a in a period of grand change. The competitors must be generalists and specialists at the same time. For small and medium fiduciary businesses, a focus of one primary segment of business is necessary. For example, if the “core” business is accounting, the other fiduciary businesses like tax, auditing, consulting must be reduced to a general level. In the core business, the company must be current with the services, while having the capacity to innovate (like new accounting services related to the Internet).

For our business, we do not have main competitors: We have many competitors in diversified services. More important than the competitors, is the need to get established in the right market and to develop this market with a strong and flexible strategy.

4.2.1 Competition and Buying Patterns

Competition in the general field of business consulting in the Luzern area is quite intense. Although numerous established companies offer a variety of services to different customer segments, Artemide Auditing & Consulting AG considers competition in our focus market niche of small and medium businesses to be modest. Customers in this segment strongly rely on the consultant’s professional qualifications and the ability to come up with viable solutions in a time- and cost-effective manner.

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Telemarketing Consultants Sample Business Plan

Starting up a telemarketing consultants company will require you to have a business plan similar to this.

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Telemarketing Consultants Business Plan

Executive Summary

Introduction
It is the mission of Roth & Calder Telemarketing Professionals, Inc. (R&C) to provide comprehensive telemarketing consultation and creation of telemarketing advertising campaigns for our clients in the Cawleweton region. It is our long-term goal to become THE preferred business-to-business telemarketing agency for the East Coast area. Our firm is not interested in simply producing a service for our clients. We believe in creating a long-term relationship with them so that the delivery of their message can reach the right people, at the right moment to insure effective communication with their market.

The Company

Roth & Calder will be a limited liability partnership registered in the state of Delaware for tax purposes. Its founder is Mr. Thomas Roth, a former marketing executive with General Foods. Mr. Roth has brought together a highly respected group of marketing, development, and telemarketing specialists who, combined, have a total of 25 years of experience in this industry.

The company has a limited number of private investors and does not plan to go public. The company has its main offices in Cawleweton. The facilities include conference rooms and office spaces. The company expects to begin offering its services in January of Year 1. The company’s potential clients will initially be all the companies in the Cawleweton area. We can service both small and large companies and provide virtually any consultation services in regards to telephone communications with clients.

The Services
In order to create the maximum effect for our clients, we provide a comprehensive program for them that may include some of the following services:

  • Identification of Program Objectives and Expectations
  • Creation of customized lists of leads
  • Market research
  • Consultation and training of telemarketing personnel
  • Script writing for programs
  • Creation of follow-up programs for successful calls.

This is only a partial list of our services as each project is customized to our client and its scope, length, depth, reach, and cost are unique.

The Market
The telemarketing industry is, at the moment, a growing industry with most companies having an annual growth between 6.5% and 8%. This is due to businesses that are becoming increasingly aware of the need for market information and the desire to reduce customer turnover rates in a hard hit economy. However, long-term analysis of growth rates in this industry shows a cyclical pattern and R&C does not expect this high growth rate to continue.

The telemarketing industry is quite fragmented with companies that vary greatly in size, scope, services offered, and market share. Many companies are general advertising agencies that offer telemarketing services along with a wide range of other consulting services. In addition, many companies, not realizing the potential advantages of outsourcing, choose to develop their own telemarketing services.

R&C believes that the greatest threat at the moment is in new entrants to the market who perceive an opportunity in a “high” growth industry. The most likely entrants will be existing advertising agencies wishing to horizontally integrate and enter new sub-markets. However, the one major disadvantage to new entrants is that all firms engaged in contracting to telemarketing agencies face significant switching costs when bringing on a new partner. Furthermore, R&C understands that in this industry there is a significant learning curve that creates declining “unit” costs as a firm gains more cumulative experience in the field itself and with long-term clients specifically.

Rivalry among different telemarketing agencies as stated before is quite intense. The telemarketing industry as a whole is mature with long-term moderate growth. Most of the largest agencies are mutually dependent when it comes to jockeying for position and market share. The fact that there are so many diverse and seemingly “generic” or general telemarketing agencies makes this a cutthroat industry. The threat of clients backwardly integrating so as to have all their advertising done in-house is one of the major factors that buyers use to indirectly control price in this industry, and increase competition among firms. This must always be foremost in the minds of R&C’s management when offering services and setting prices.

1.1 Objectives

The Three-year goals for Roth & Calder Telemarketing Professionals, Inc. are as follows.

  • Achieve break-even by year two.
  • Establish a regional (East Coast) scope for operations within five years and a national presence within 10 years.
  • Establish minimum 95% customer satisfaction rate to establish long-term relationships with our clients and create a viable reputation.

1.2 Mission

It is the mission of Roth & Calder Telemarketing Professionals, Inc. (R&C) to provide comprehensive telemarketing consultation, and creation of telemarketing advertising campaigns for our clients in the Cawleweton region. It is our long-term goal to become THE preferred business-to-business telemarketing agency for the East Coast area. Our firm is not interested in simply producing a service for our clients. We believe in creating a long-term relationship with them so that the delivery of their message can reach the right people, at the right moment to insure effective communication with their market.

R&C is strictly a business-to-business company and seeks to provide answers to companies who desire to communicate with their customers via the phone. This can take the shape of advertising, surveys, seminar and conference invitations, etc. R&C has a combined 25 years of experience working with companies in delivering effective and professional telemarketing techniques.

1.3 Keys to Success

R&C’s keys to long-term survivability and profitability are as follows:

  • Differentiate our services so that our clients realize that we are able to better serve their needs rather than a more generic competitor or in-house telemarketing.
  • Keeping close contact with clients and establishing a well functioning long-term relationship with them to generate repeat business and a top notch reputation.
  • Establish a comprehensive service experience for our clients that includes consultation, analysis of telemarketing campaign goals and target markets, creation of streamlined and custom advertising campaigns based on needs, expectations, implementation, and follow-up analysis.

Company Summary

Roth & Calder will be a limited liability partnership registered in the state of Delaware for tax purposes. Its founder is Mr. Thomas Roth, formerly a marketing executive with General Foods. Mr. Roth has brought together a highly respected group of marketing, development, and telemarketing specialists who, combined, have a total of 25 years of experience in this industry.

The company has a limited number of private investors and does not plan to go public. The company has its main offices in Cawleweton. The facilities include conference rooms and office spaces. The company expects to begin offering its services in January.

The company’s potential clients will initially be all the companies in the Cawleweton area. We can service both small and large companies and provide virtually any consultation services in regards to telephone communications with clients.

2.1 Company Ownership

The company will have a number of outside private investors who will own 27% of the company’s shares. The rest will be owned by the senior management including Mr. Thomas Roth, (25%), Ms. Jane Calder (20%), Mrs. Susan Howell, (20%), and Mr. Leonard Gray (8%). All other financing will come from loans.

2.2 Start-up Summary

Start-up assets required include equipment, and additional expenses as well as cash to support operations until revenues reach an acceptable level. Most of the company’s liabilities will come from outside private investors and management investment, however, we have obtained current borrowing from Bank of America Commercial Investments, the principal to be paid off in three years. A long-term loan through VieilArgent Bank of Richburb will be paid off in ten years.

Services

Roth & Calder offers a complete, custom telemarketing campaign. The most common telemarketing campaigns are for the following purposes:

  • Generate sales leads
  • Set appointments
  • Market research
  • Surveys (including statistical analysis and political surveys)
  • Driving eyeballs to websites
  • Trial subscriptions
  • Database or mailing list information
  • Business development
  • Point-of-sale product promotion
  • Seminar and conference invitations.

In order to create the maximum effect for our clients, we provide a comprehensive program for them that may include some of the following services:

  • Identification of Program Objectives and Expectations.
  • Creation of customized lists of leads
  • Market research
  • Consultation and training of telemarketing personnel
  • Script writing for programs
  • Creation of follow-up programs for successful calls.

This is only a partial list of our services as each project is customized to our client and its scope, length, depth, reach, and cost are unique.

Market Analysis Summary

The telemarketing industry is, at the moment, a growing industry with most companies having an annual growth between 6.5% and 8%. This is due to businesses that are becoming increasingly aware of the need for market information and the desire to reduce customer turnover rates in a hard hit economy. However, long-term analysis of growth rates in this industry shows a cyclical pattern and R&C does not expect this high growth rate to continue.

The telemarketing industry is quite fragmented with companies that vary greatly in size, scope, services offered, and market share. Many companies are general advertising agencies that offer telemarketing services along with a wide range of other consulting services. In addition, many companies, not realizing the potential advantages of outsourcing, choose to develop their own telemarketing services.

Roth & Calder Telemarketing Professionals’ business strategy is to establish a focused approach to its services rather than being everything to its clients. Our company does not intend to be a call center, nor will it ever become so. We are a consulting firm that designs telemarketing campaigns for its clients and matches these clients with the appropriate call center who has the necessary capabilities. These services are where we can offer a higher standard of quality to our clients. This will allow us to charge a higher profit margin to our clients for these differentiated and more focused services. This will also require average project times to be somewhat longer, and therefore we expect initial profitability levels to be lower than average.

4.1 Market Segmentation

Virtually every company, whether large and small, requires some form of telemarketing at some point. Often it is a survey to determine customer satisfaction or awareness. Sometimes it is effectively communicating an upcoming event such as a conference. Other companies wish to know if telemarketing is a feasible method of sales generation. Because of this almost universal need for some form of telemarketing consultation that spans almost all industries, R&C has decided not to create any market segments it wishes to concentrate on nor focus on a target market. We have the capacity to service almost any company of whatever size. We think that at this point in the company’s history, any attempt to target specific markets would hinder our growth potential.

4.2 Service Business Analysis

The telemarketing industry is, at the moment, a growing industry with most companies having an annual growth between 6.5% and 8%. This is due to businesses that are becoming increasingly aware of the need for market information and the desire to reduce customer turnover rates in a hard hit economy. However, long-term analysis of growth rates in this industry shows a cyclical pattern and R&C does not expect this high growth rate to continue.

The telemarketing industry is quite fragmented with companies that vary greatly in size, scope, services offered, and market share. Many companies are general advertising agencies that offer telemarketing services along with a wide range of other consulting services. In addition, many companies, not realizing the potential advantages of outsourcing, choose to develop their own telemarketing services.

R&C believes that the greatest threat at the moment is in new entrants to the market who perceive an opportunity in a “high” growth industry. The most likely entrants will be existing advertising agencies wishing to horizontally integrate and enter new sub-markets. However, the one major disadvantage to new entrants is that all firms engaged in contracting to telemarketing agencies face significant switching costs when bringing on a new partner. Furthermore, R&C understands that in this industry there is a significant learning curve that creates declining “unit” costs as a firm gains more cumulative experience in the field itself and with long-term clients specifically.

Rivalry among different telemarketing agencies as stated before is quite intense. The telemarketing industry as a whole is mature with long-term moderate growth. Most of the largest agencies are mutually dependent when it comes to jockeying for position and market share. The fact that there are so many diverse and seemingly “generic” or general telemarketing agencies makes this a cutthroat industry.

The threat of clients backwardly integrating so as to have all their advertising done in-house is one of the major factors that buyers use to indirectly control price in this industry, and increase competition among firms. This must always be foremost in the minds of R&C’s management when offering services and setting prices.

4.2.1 Competition and Buying Patterns

Competition
Competition includes all potential advertising and telemarketing agencies plus call centers across the country. In addition we have indirect competition from organizations that handle all their telemarketing in-house. Practically speaking, this means we have the greatest threat from the largest telemarketing agencies such as Davis & Henke, Ludquist telemarketing, and other big, nationwide consulting companies that hold significant market share. The telemarketing consultation industry is highly fragmented, with a large number of small companies that mainly cater to small firms and a few large companies that seek the largest contracts from companies such as Sprint, GM, etc. This makes competition within the industry very intense. Through our focused strategy we intend to avoid such a debilitating environment and avoid its drawbacks such as price wars, etc.

Buying patterns and needs
Companies usually enter into contracts with telemarketing agencies based on their reputation of professionalism and effective campaigns in the past. This reputation is difficult to obtain by new firms unless its personnel bring it with them from previous companies such as ours. Price and scope are also important reasons for accepting contracts, especially if the company is small.

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Wedding Consultant Sample Business Plan

During the start-up stage of as a wedding consultant, having a detailed business plan such as this one is important.

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Wedding Consultant Business Plan

Executive Summary

TLC Wedding Consultants is a full service company that provides complete consulting services for weddings, holy unions and anniversaries. Our consultants are experienced and dedicated professionals with many years of event planning experience. TLC is unique in that we give our clients our undivided attention. We listen to their needs and work with them to create the event of their dreams. Our clients’ wishes become our commands. So whether our client wants a Western, Tropical, Las Vegas or more traditional wedding, we can help. Our services include weddings, honeymoons, receptions, anniversary consultations, budget planning, answers to etiquette questions, as well as full-service referrals to florists, hair stylists, entertainers, musicians, etc.

1.1 Mission

TLC Wedding Consultants is a full service company that provides complete consulting services for weddings, holy unions and anniversaries. Our consultants are experienced and dedicated professionals with many years of event planning experience. TLC is unique in that we give our clients our undivided attention. We listen to their needs and work with them to create the event of their dreams. Our clients’ wishes become our commands. So whether our client wants a Western, Tropical, Las Vegas or more traditional wedding or anniversary party, we can help. Our services include weddings, honeymoons, receptions, anniversary consultations, budget planning, answers to etiquette questions, as well as full-service referrals to florists, hair stylists, entertainers, musicians, etc.

1.2 Objectives

Whether this is our client’s first wedding, a renewal of their vows or their anniversary, we want every detail of their event to be both a pleasurable and a memorable experience. Therefore we offer a host of packages and services specifically tailored to the needs of each couple. We are confident that this business venture will be a success and we estimate that our net income will increase modestly by the second year.

1.3 Keys to Success

The keys to our success are as follows:

  • Service our clients’ needs promptly and efficiently.
  • Maintain an excellent working relationships with vendors such as florists, hair salons and bridal shops.
  • Maintain a professional image at all times.

Company Summary

TLC Wedding Consultants is a start-up company that provides wedding, holy union, and anniversary consulting services to brides, grooms and other family members. We are a full-service bridal consulting group and our goal is to put the “fun” back into planning a wedding, holy union or anniversary party. Too many people become overly stressed and frustrated when planning these wonderful events. We are experienced and professional consultants and will use our expertise to help create memorable and stress free events for our customers. By doing this, our clients can sit back and enjoy their event. The result? We create events suited to the couple’s unique style–a true expression of their relationship and individuality as a couple.

2.1 Company Ownership

This business will start out as a simple proprietorship, owned by its founders, Darla and Micah Johnson. As the operation grows, the owners will consider re-registering as a limited liability company or as a corporation, whichever will better suite the future business needs.

2.2 Start-up Summary

The company founders, Darla and Micah Johnson, will handle day-to-day operations of the plan and will work collaboratively to ensure that this business venture is a success.

2.3 Company Locations and Facilities

Initially this will be a home-based business; however, by Year 5, we intend to expand our facilities into a well-equipped and operational office.

Services

We are a full-service wedding consultant group and provide the following services: etiquette advice, event scheduling, discounted invitations and products, vendor confirmation, rehearsal attendance, supervision of both ceremony and reception setup and budget planning.

Market Analysis Summary

Nearly $35 billion are spent every year on weddings and receptions. Therefore, professional wedding consultants are a commodity, not a calamity. TLC Wedding Consultants are full-service wedding consultants that offer a variety of services to our clients. We pride ourselves on being professional and courteous at all times and we have packages to suit everyone’s needs.

As previously stated, marriage is a billion dollar industry, therefore, just about everyone we meet is a potential client. However, we mostly advertise to brides, grooms, and family members.

4.1 Market Segmentation

Although the flash and excitement of impending nuptials can be intoxicating, it can also be overwhelming. Therefore, we primarily market our services to the people who need them most–brides and grooms. In 1997, 2.4 million marriages took place in the United States. According to the Encarta Encyclopedia, the current US marriage rate of nine marriages per 1,000 people is still the highest rate among the industrialized countries. This marriage rate is expected to remain at the same level in the near future. In the Eugene, OR area where TLC Wedding Consultants plans to operate their business, over 1,500 marriages are registered each year, which creates a sizable market potential for this line of business.

Another customer segment is represented by the numerous family members and guests attending weddings, anniversaries, and similar events. This segment requires event preparation services like gift ideas, etiquette tips, etc. Besides the wedding arrangements, which TLC Wedding Consultants believe to be their major client assignments, other events the company will provide services to include corporate retreats, etiquette training, etc. This customer segment is estimated to have the annual volume of 1,000 orders in the Eugene, OR area.

4.2 Target Market Segment Strategy

TLC Wedding Consultants will offer its services mostly to the brides and grooms, as well as to the family members. The company will position itself as an experienced provider of wedding planning services. Unlike most of its competitors, TLC will be offering a full range of services and thus provide the convenience of one-stop shopping for its clients. This will significantly reduce the customers’ time and efforts preparing for such an important event as a wedding. Moreover, by utilizing numerous supplier contacts that the company owners have established and economies of scale, TLC Wedding Consultants will be able to pass on to its customers sizable cost savings.

4.2.1 Market Needs

The market needs for wedding planning services are strongly shaped by the customers’ desire to have a perfectly planned and executed wedding ceremony. Although both major customer segments, brides and grooms and family members, plan and budget for the wedding ceremony as far as a year or more in advance, they often realize that they cannot make all the necessary preparations by themselves in a cost effective manner. Strongly affected by the established social values, such customers seek professional advice to ensure that all the important aspects of the wedding ceremony meet or exceed perceived expectations.

4.3 Service Business Analysis

The wedding services market is fragmented with the overwhelming majority of the incumbents offering only a limited line of services. There are numerous florists, hair stylists, and caterers to choose from. However, there are almost no companies that will provide the full range of services associated with the wedding planning and execution.

4.3.1 Competition and Buying Patterns

Competitive analysis conducted by the company owners has shown that there are 20 companies currently offering some sort of wedding planning services in the Eugene area. However, the majority of the incumbent competitors offer only a limited line of services like catering, flower arrangements or gifts. In fact, of these 25 competitors only three offered a range of services comparable with what TLC Wedding Consultants plan to offer to its customers. The following is the list of the major competitors with a brief description of their services:

Rent-An-Action offers ceremony preparation, rehearsing and execution services.
Cross & Reeves provide flower and catering arrangements and wedding consulting services.
Lafayette Wedding offers its clients entertaining, catering, floral design and hair styling services.

The market research has also shown that customers anticipate the complete wedding consulting services to be expensive and they budget accordingly. In fact, lower prices are very often associated with poor service quality. By aggregating a complete range of wedding services under one roof, TLC Wedding Consultants will offer its customers the ease of one-stop shopping.

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Advertising Consulting Business Plan

If starting up an advertising consulting business is on the cards then this sample business plan will get you off to a good start.

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Advertising Consulting Business Plan

Executive Summary

Introduction
It is the mission of Marrowstone Advertising Consultants to provide comprehensive marketing consultation and creation of advertising campaigns for the nonprofit industry. It is our long-term goal to become THE preferred advertising agency for nonprofit institutions nationwide. Our firm is not interested in simply producing a service for our clients. We believe in creating a long-term relationship with them so that the delivery of their message becomes a seemless, thought-provoking experience that engenders action.

The Company
Marrowstone Advertising Consultants will be a limited liability partnership registered in the state of Delaware for tax purposes. Its founder is Mr. Curtiss Cole, a former marketing executive with the Boy Scouts of America. Mr. Cole has brought together a highly respected group of marketing, development, and graphic art specialists who, combined, have a total of 35 years of experience with nonprofit organizations.

The company has a limited number of private investors and does not plan to go public. The company has its main offices in Reston, Virginia. The facilities include a design lab, conference rooms and office spaces. The company expects to begin offering its services in January.

The Services
The firm offers a complete, custom advertising campaign that covers all audio-visual and printed media. Examples include radio and television ads, billboards, building advertisements, brochures, direct mailing, business cards, etc. Management has designed a proven and effective seven step process to building a winning campaign.

The company’s main clients will be small and start-up nonprofit institutions and local governments. By focusing on institutions such as these that have special needs, we believe we will be able to better serve our clients and produce a superior service that is more effective that other advertising firms.

The Market
Marrowstone Advertising Consultants will be concentrating on three main types of nonprofits who operate in the environmental, youth development, and cultural awareness fields. This is because these types of organizations have the greatest needs and/or are the best capitalized in the nonprofit industry.

Profitability and growth in this untapped market is expected to be strong, as evidenced by the fact that over the past 15 years the U.S. has seen an explosion of nonprofits in new fields such as environmental awareness. Furthermore with the greater capitalization of such agencies, we are seeing a widening gap between these organizations needs and what conventional advertising companies can provide.

1.1 Objectives

The three year goals for Marrowstone Advertising are the following:

  • Achieve break-even by Year 2.
  • Establish a long-term contract with The Nature Conservancy.
  • Establish a minimum of 95% customer satisfaction rate to establish long-term relationships with our clients and create word-of-mouth marketing.

1.2 Keys to Success

Marrowstone Advertising’s keys to long-term survivability and profitability are as follows:

  • Differentiate our services to nonprofits so that our clients realize that we are able to better serve their needs than a more generic competitor.
  • Keeping close contact with clients and establishing a well functioning long-term relationship with them to generate repeat business and a top notch reputation.
  • Establish a comprehensive service experience for our clients that includes consultation, analysis of nonprofit’s goals and target markets. Creation of streamlined and custom advertising campaigns based on needs, total design work of all audio-visual advertising tools, implementation, and follow-up analysis.

1.3 Mission

It is the mission of Marrowstone Advertising Consultants to provide comprehensive marketing consultation and creation of advertising campaigns for the nonprofit industry. Our firm is not interested in simply producing a service for our clients. We believe in creating a long-term relationship with them so that the delivery of their message becomes a seemless, thought-provoking experience that engenders action. Marrowstone understands that nonprofit groups and institutions have special needs in delivering their information and messages to the public and creating inspiration to act on these messages.

Company Summary

Marrowstone Advertising Consultants will be a limited liability partnership registered in the state of Delaware for tax purposes. Its founder is Mr. Curtiss Cole, a former marketing executive with the Boy Scouts of America. Mr. Cole has brought together a highly respected group of marketing, development, and graphic art specialists who, combined, have a total of 35 years of experience with nonprofit organizations.

The company has a limited number of private investors and does not plan to go public. The company has its main offices in Reston, Virginia. The facilities include a design lab, conference rooms and office spaces. The company expects to begin offering its services in January.

The company’s main clients will be small and start-up nonprofit institutions and local governments. By focusing on institutions such as these that have special needs, we believe we will be able to better serve our clients and produce a superior service that is more effective that other advertising firms.

2.1 Start-up Summary

Start-up assets required are $122,300, which includes cash needed to support operations until revenues reach an acceptable level. Start-up expenses are $31,700. Most of the company’s liabilities will come from outside private investors and management investment, however, we have obtained $16,000 in current borrowing from Bank of America Commercial Investments, the principal to be paid off in two years. A long-term loan of $45,000 through Charter Bank of Richmond will be paid off in ten years.

2.2 Company Ownership

The company will have a number of outside private investors who will own 27% of the company’s shares. The rest will be owned by the senior management including Mr. Curtis Cole, (25%), Ms. Jennie Marks (20%), Mr. David Danielson, (20%), and Mr. Milo Winn (8%). All other financing will come from loans.

Services

Marrowstone Advertising Consultants offers a complete, custom advertising campaign that covers all audio-visual and printed media. Examples include radio and television ads, billboards, building advertisements, brochures, direct mailing, business cards, etc. Our proven and effective seven step process to building a winning campaign incudes the following:

  • Initial consultation.
  • Analysis of nonprofit’s goals and target market demographics.
  • Planning.
  • Creation of streamlined and custom advertising campaigns based on needs.
  • Total design work of all audio-visual/printed advertising tools.
  • Implementation (usually through subcontractors).
  • Follow-up analysis.

Each project is customized to our client and its scope, length, depth, reach, and cost are unique.

Market Analysis Summary

Marrowstone Advertising Consultants will be concentrating on three main types of nonprofits who operate in the environmental, youth development, and cultural awareness fields. This is because these types of organizations have the greatest needs and/or are the best capitalized in the nonprofit industry.

Profitability and growth in this little tapped market is expected to be strong, as evidenced by the fact that over the past 15 years the U.S. has seen an explosion of nonprofits in new fields such as environmental awareness. Furthermore with the greater capitalization of such agencies, we are seeing a widening gap between these organizations needs and what conventional advertising companies can provide.

An analysis of the market using the five forces of profitability indicates that there will be a short time where growth of market share and profitability will be extremely high while demand outstrips supply. As new entrants move into the market this opportunity will disappear. This is the time for Marrowstone to create its reputation and niche in the industry.

4.1 Market Segmentation

There are various nonprofit institutions nationwide that concentrate on various public issues. Marrowstone will be focusing on the following groups of clients:

  • Environmental nonprofit institutions.
  • Youth development nonprofit institutions.
  • Cultural nonprofit institutions.
  • Other.

We are concentrating on these specific market segments for a variety of reasons. The environmental segment which includes organizations such as the Sierra Club and the Nature Conservancy is the fastest growing segment at the moment, and Marrowstone’s management concludes that in the near future, they will also include some of the largest nonprofits in the nation. Youth development nonprofits such as the Boy Scouts, Camp Fire girls, 4-F, and The Boys and Girls Club includes some of the largest and most well capitalized nonprofit organizations in the country. Finally, although they tend to be small in size, there are a huge number of cultural nonprofits such as museums.

The market analysis table and graph which follows shows the number of each type of organization in the greater Washington D.C. area. This will be our initial geographical focus for the first three to four years of our company’s existance. Later, as we expand to a nationwide scope, our future business plans will include all our potential clients across the country.

4.2 Service Business Analysis

The advertising industry for nonprofits is at the moment, an unfulfilled market with demand greater than supply. Many nonprofit organizations have found that only the largest and most expensive advertising agencies will enter into contracts with nonprofits and this leaves a great void which must be filled by in-house advertising.

Marrowstone believes that the greatest threat at the moment is in new entrants to the market who will also perceive this opportunity. The most likely entrants will be pre-existing advertising agencies wishing to horizontally integrate and enter new sub-markets. However, the one major disadvantage to new entrants is that all firms engaged in contracting to advertising agencies face significant switching costs when bringing on a new advertising partner. Furthermore, Marrowstone understands that in this industry there is a significant learning curve that creates declining “unit” costs as a firm gains more cumulative experience in the field itself and with long-term clients specifically.

Rivalry among different advertising agencies as stated before is quite intense. The advertising market as a whole is mature with low growth. Most of the largest agencies are mutually dependent when it comes to jockeying for position and market share. The fact that there are so many diverse and seemingly “generic” or general advertising agencies makes this a cutthroat industry.

The threat of clients backwardly integrating so as to have all their advertising done in-house is one of the major factors that buyers use to indirectly control price in this industry, and increase competition among firms. This must always be foremost in the minds of Marrowstone’s management when offering services and setting prices.

4.2.1 Competition and Buying Patterns

Competition
Competition includes all potential advertising agencies that are willing to accept nonprofit contracts and nonprofit organizations that handle all their advertising in-house. Practically speaking, this means the largest advertising agencies such as Werner & Voss, Price, Waterhouse, & Cooper, and other large, nationwide agencies that hold significant market share. The advertising agency industry is highly fragmented, with a large number of small companies that mainly cater to small firms and a few large companies that seek the largest contracts from companies such as McDonald’s, GM, etc. This makes competition within the industry very intense. Through our niche strategy we intend to avoid such a debilitating environment and avoid its drawbacks such as price wars, etc.

Buying patterns and needs

Companies usually enter into contracts with advertising agencies based on their reputation of professionalism and effective campaigns in the past. This reputation is difficult to obtain by new advertising firms unless its personnel bring it with them from previous firms such as ours. Price and scope are also important reasons for accepting contracts, especially if the company is small.

nonprofit organizations have very different needs that other firms. Companies offering a product or service need to inform the public about the benefits of their product/service and then inspire them to purchase by leading them through an implicit or explicit cost-benefit analysis. On the other hand, nonprofits must appeal to a person’s higher sense of community duty in order to obtain contributions. Advertisements must be a thought-provoking experience that engenders action. This is a far more difficult task to achieve than ordinary marketing and usually requires more resources and time than product/service marketing. Many advertising agencies do not desire to accept these types of contracts and leave it to the nonprofit organizations to create their own marketing. This leads to higher costs, more emphasis on obtaining contributions, and less effective management of the organization’s goals.

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