Human Resources Consulting Business Plan
Human Capital Maximizers (HCM) is a human resource consulting company located in Portland, Oregon. HCM has expertise in a wide range of HR areas and is targeting the emerging company market. HCM will offer this market the ability to compensate client’s employees with stock options from their company. This will be especially appealing to many start-up companies that find capital scarce.
Major Adversity, the founder and owner will be leveraging his past and current personal/professional relationships to generate business for Human Capital Maximizers. Major will be the sole employee until month six when he will be hiring a human resource specialist/manager to help out with the consulting. Human Capital Maximizers will show increasing profitability over the next three years.
1.1 Keys to Success
The keys to success are to provide a needed service while providing a flexible means of compensation.
Human Capital Maximizers’ mission is to provide human resource consulting for emerging companies. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.
The objectives for the first three years of operation include:
- To create a service-based company whose primary goal is to exceed customer’s expectations.
- To increase our number of clients served by 20% per year through superior performance and word-of-mouth referrals.
- To develop a sustainable start-up consultancy firm that can survive off its own cash flow and has significant equity holdings in emerging companies.
Human Capital Maximizers is a HR consultancy firm serving the Portland area market. HCM will be set up as an Oregon Corporation owned by Major Adversity and will focus on emerging companies.
2.1 Company Ownership
Human Capital Maximizers is a privately held Oregon corporation founded and owned by Major Adversity.
2.2 Start-up Summary
Human Capital Maximizers will incur the following start-up expenses:
- Two desks, two chairs, and two lockable file cabinets.
- Two computer systems including a CD-RW, printer and a third computer to serve as a server.
- DSL router and DSL connections.
- Two telephones, fax machine, and copier.
Please note that the following items which are considered assets to be used for more than a year will labeled long-term assets and will be depreciated using G.A.A.P. approved straight-line depreciation method.
Human Capital Maximizers provides human resource consulting to emerging companies in the Portland/Vancouver market. Human Capital Maximizers will charge a below market rate and take stock options in the company. Human Capital Maximizers will provide consulting for the following service areas:
- Human resource management.
- Organizational management.
- Professional development.
- Employee relations.
- Labor relations.
- Benefits and compensation.
- HR policy and procedure.
- Executive search.
- Sexual harassment.
- Position classification.
- Personnel management systems.
- Performance evaluations.
The pricing structure will either be an hourly rate or a per project fee. These options will be settled on in negotiation with the client. In general, Human Capital Maximizers is willing to be as flexible as possible.
Market Analysis Summary
Emerging companies will be the target market for several reasons:
- They are in need of HR services as they are growing rapidly.
- They often do not have a large enough in-house solution as they are increasing in size.
- Capital is a scarce resource for emerging companies so the ability to accept stock options in replace of cash is appealing.
The emerging company market can be further broken down into two categories, technology and non-technology. The significance of the breakdown is not that significant because many of the networking activities are occurring in settings that do not differentiate between technology and non-technology.
4.1 Market Segmentation
Human Capital Maximizers market can be segmented into two different groups, emerging high-tech companies and emerging non-high tech companies. The emerging high-tech companies are going to be the larger of the two segments. Even with the Internet bubble bursting within the last year, there are still many different emerging high-tech companies proliferating. This is evidenced by the Business Journal of Portland which in their annual list of fastest growing companies for this year, 18 of the top 25 were technology companies.
There are also non-technology companies that are emerging in the Portland area and Human Capital Maximizers will be able to serve them as well.
4.2 Target Market Segment Strategy
Human Capital Maximizers’ two markets will be primarily targeted through networking activities. Some networking will be conducted through the Oregon Entrepreneur Association, an association that supports entrepreneurial ventures in the local area. This organization has monthly meetings that are in round-table format, allowing members to socialize.
Human Capital Maximizers will also be networking from personal/professional contacts that Major has developed professionally in the last five years in the HR/start-up industry. HCM will also be relying on word of mouth to grow its customer base.
Investment Consulting Sample Business Plan
Using this sample business plan will assist you in starting up your own investment consultancy.
Investment Consulting Business Plan
Our firm’s hallmark investment product will be the Vista Total Market Equity strategy and will be initially offered through a mutual fund that is registered by the U.S. Securities Exchange Commission (SEC). Technological advancements also permit for other economically feasible distribution channels, such as separately managed portfolios for large accounts. The details of our particular investment product offerings are revealed in another section of this plan. However, it’s worth stating up front that we are extremely encouraged by a research piece to be published in the Journal of Portfolio Management, that supports the philosophy behind our primary product offering. Ennis Knupp, a premier institutional investment consulting firm, published a study called, “Failure of the Multiple-Specialist Strategy: The Case for Whole Stock Portfolios.” One of the underlying tenets is that specialization within equity portfolio management has gone too far; thus resulting in sub-optimal portfolios.
VISTA INVESTORS will be structured as a partnership designed to capitalize on industry research performed by one of the founding entrepreneurs, Michael Douglas, during his professional career in investment management research. Last year alone, Mr. Douglas conducted research visits at the investment offices of over 30 firms. In addition, he conducted literally hundreds of meetings with key investment professionals from around the globe either in person or via telephone conference. Mr. Douglas’s team presents this business plan as a “start from scratch” outline of what a successful investment management organization should look like as the industry evolves in response to political, social, technological, and other influences.
VISTA INVESTORS will offer high net worth or “angel” investors opportunity to assume minority ownership positions in exchange for contributions to VISTA INVESTORS’ operating capital and for providing seed assets to establish the investment products described herein. This document alone does not constitute an offer of any type, nor does it provide any guarantee, financial, or otherwise. Risks associated with the VISTA INVESTORS’ business plan are not limited to those detailed in this document.
The purpose of VISTA INVESTORS is to create value for owners, employees, and investors via the establishment of an investment management organization designed for the Third Generation. The Third Generation is defined in a cutting-edge research effort by Merrill Lynch & Co., Inc. and Barra Strategic Consulting Group as a phase in the investment industry requiring a special set of capabilities for success. Our team has drawn upon this study, numerous other studies, and perhaps most importantly, our own experience in the industry, to define a plan for the success of VISTA INVESTORS.
Buy and sell decisions are implemented quickly and efficiently across all portfolios. Where applicable, a trading rotation is used to avoid any type of systematic advantage or disadvantage an account may experience. Under virtually no circumstances would we deviate from our discipline.
1.3 Keys to Success
Probably the single most important factor that defines success in the investment management business is performance. Thus, one of our primary goals is the achievement of a rating by Morningstar, an organization widely known by both individual and institutional investors for its marks of accreditation in the mutual fund industry. To be rated by Morningstar, funds must have a minimum performance history of three years.
VISTA INVESTORS will be structured as a partnership designed to capitalize on industry research performed by one of the founding entrepreneurs, Michael Douglas.
This company is unique because it differs substantially from the way most existing investment management firms originated. Most of the firms created in the last 25 years were started by the departure of portfolio managers from the nation’s largest banks, insurance companies, and brokerage firms. Generally, these individuals were deep in investment research talent but novice as it concerns the business and operating side of running an organization. The business plan for VISTA INVESTORS is different. VISTA INVESTORS is to be created by someone deep in knowledge of all aspects concerning investment management organizations. Investment talent will be acquired and retained by offering key individuals competitive compensation to include equity stakes. Biographies for individuals selected for the management team are enclosed.
VISTA INVESTORS believes the goal of U.S. equity portfolios should be to outperform the broad market, as measured by the Wilshire 5000 or Russell 3000. Exposure to economic sectors will roughly approximate those of the benchmark. Our view is that any deviation from the benchmark represents a bet, or in our case, a calculated risk that will determine over or under performance. Portfolios will also maintain market cap exposure to large cap (>$10 billion), mid cap ($2 billion to $10 billion), and small cap (<$2 billion) securities. Like weightings to economic sectors, the weight of the portfolio allocated to large, medium, or small stocks represents a bet relative to the benchmark. On average, our portfolios will hold roughly 2/3 of their value in large cap stocks, and 1/3 of their value in mid and small cap stocks. This distribution among capitalization ranges represents a modest bet that mid and small cap stocks will outperform, consistent with studies showing small company stocks outperform larger companies in the long run.
We believe our process will be successful in the future for the following reasons:
- It provides the opportunity to outperform the market without taking undue risks.
- It does not concentrate heavily in a narrow segment of the market (e.g. small cap growth stocks, energy stocks, telecom stocks), thus portfolios are more likely to maintain a stable asset base when certain areas rotate out of favor and prompt redemptions.
- It simplifies investor’s portfolios by reducing the number of managers or funds they need in their overall asset allocation.
A recent research piece by Ennis Knupp, a leading institutional investment consultant, provides support for what they call “whole stock” portfolios. They believe manager specialization has gone too far resulting in inefficient structures that provide index-like returns at excessive fees.
The decision-making process is one of consensus. The portfolio management team meets weekly to discuss the portfolio and any changes to it. In rare cases, if we fail to reach a consensus decision, the CIO will act as the arbiter, usually prompting for additional research, but if necessary, providing a final decision. Our investment model is one in which portfolio managers are also analysts. This concept of portfolio managers/analysts making decisions on a team was recognized and adopted for its proven success in a few select firms that have been extremely successful from both an investment and business perspective.
Portfolio manager/analyst responsibilities include idea generation, due diligence, and completion of research projects directed by the CIO. While each portfolio manager/analyst has experience in various areas, they are generalists in the sense that they are not assigned specific sector responsibilities. We find this allows individuals to remain stimulated by their jobs. At least one research assignment per month will be that of an in-depth review of an economic sector. We find this provides sufficient coverage per economic sector and enhances the team’s overall coverage of the broad market.
Market Analysis Summary
Much of our analysis focuses on the mutual fund segment of the investment industry because it is such a large component of the overall landscape. We have additionally provided information as it pertains to the management of separately managed portfolios (i.e. “separate accounts”). To understand the data here, one must understand that separate account managers must register their firms with the SEC. Thus, they are known as “Registered Investment Advisors.” For VISTA INVESTORS, the technologies we have selected will enable us to capitalize by utilizing both product types, mutual funds and separate accounts.
Our analysis supports the 20% to 25% projected growth rates by outside sources. Probably the most important aspect to these projections are the factors that will fuel these rates of growth. The following section contains some of the key variables to creating this growth environment. All are expected to have a positive impact on the investment industry for at least the next three years.
4.1 Business Participants
The number of participants in the investment industry is large. They range from providers of a single investment product to multi-product firms with literally hundreds, if not thousands, of investment product offerings. The several-trillion-dollar industry certainly has the size to support a large number of firms. However, many participants are not “complete” firms as it pertains to the capabilities required for success in today’s, but more importantly, tomorrow’s environment.
4.2 Target Market Segment Strategy
Our target market will be highly dependent on the stage of our product in its development cycle. Most of the marketing opportunity will occur beyond the first year of product development. However, some initial opportunities do exist. For example, the firm can utilize its transfer agent’s distribution services, which would put the product in a highly visible online platform. Additional opportunities include marketing to programs that invest specifically in “emerging managers.” Furthermore, the high net worth and retail marketplace can be accessed to a limited degree, even in the early stages, through similar creative opportunities and already-established relationships with clients.
Like manufacturing organizations, investment management firms must develop products to provide to their customers. This plan provides substantial market analysis to support the trends expected to occur in the field of investment management and the types of investment products that will be demanded. VISTA INVESTORS’ hallmark product offering will be the Vista Total Market Equity strategy, an investment product offering based on the evidence supporting investor’s desires to outperform the overall market via a single, diversified vehicle and to avoid the need to create complex investment structures such as those employed by institutional investors.
4.3 Positioning Statement
While it’s important to show some level of consistency with the latest trends in the industry, it’s more important to provide a solution that will stand the test of time. The decade of the 1990s is littered with examples in which individual investors have chased past performance and have sought unrealistically high returns by investing in recently hot investment vehicles, often concentrated in niche areas such as technology specific funds (e.g. Internet mutual funds) or style specific funds (e.g. small company growth mutual funds).
The hard learned lessons for individual investors are that past performance is no guarantee of future performance, and that the market tends to favor one area for a period of time only to unpredictably rotate in favor of another area at a later time. Additional support for our strategy comes from the tendency for individual investors to mimic the strategies they see utilized by the nation’s largest institutional investors (e.g. pension funds and university endowments). Because of their size, institutional investors allocate their assets to various portions of the U.S. equity market (e.g. large cap growth, small cap growth, large cap value, small cap value, etc.) by selecting investment firms and products that are specialized in certain areas. These structures are complex, and as research contained herein suggests, inefficient as it pertains to the average investor. In fact, a prominent investment consulting firm is advocating what they call “whole portfolio” strategies for institutional clients where the overriding feature is to reduce the inefficiencies they have observed in their institutional client portfolios.
We are extremely encouraged about the outlook for our total market portfolio strategy. One of the underlying tenets of Knupp study (mentioned in Section 1.0) is that specialization within equity portfolio management has gone too far; thus resulting in sub-optimal portfolios. Many portfolios piece together numerous managers, resulting in index-like structures at high fees that are incapable of providing the performance sought after by active portfolio management in the first place. In fact, the study estimates the annual cost to institutions of operating a multi-manager portfolio at 1.20%. This is a huge amount when considering the negative effects this would have on a portfolio held for the long-term. Additionally, we can state with nearly 100% confidence that this cost is even higher for individual investors. The prescription to institutional investors by the study is to embrace the entire opportunity set represented by an asset class via utilization of more simplified structure. Simply put, we concur.
We’ll go one step further to purport this is even more important as it applies to individual investors. The level of acceptance of “Whole Stock” portfolios among institutions remains to be seen. Some institutions may find difficulty with the concept simply because the large size of their portfolios makes it prohibitive to reduce the number of managers within their portfolios. However, this concept is one to be embraced by individuals because it simplifies their portfolios, while at the same time reduces the need for outside counseling. The trend toward more simplified portfolio structures is simply a reversion to the way things were prior to the specialized categories and labels developed for equity products over the last couple decades.
4.4 Service Business Analysis
The investment industry is a classic example of a traditional industry embracing technology to become more efficient. It is clearly fragmented, and while the past few years have seen some consolidation, fragmentation will remain due to the differentiation in investment products, both real and perceived. It’s important not to understate the complexities of this industry. While mature by some measure, a dynamic change (e.g. advancements in communications and other technologies) and a positive environment for investing have created opportunities that will perpetuate well into the next decade.
“The investment industry is complex. It has many moving parts and it’s experiencing dynamic change. If this was not the case, opportunity probably would not exist.”
– Mike Douglas
The beauty of investment management is that great economies of scale can be achieved with successful investment product offerings. When organized efficiently and provided with the appropriate technology and support services, the size and number of accounts becomes irrelevant. Essentially, the underlying portfolio (product) is the same. Additionally, related products can be easily derived from the main product platform. At a recent investment conference, the CEO of IOMEGA stated, “…derivative products are important in any industry.”
We would certainly agree. Thus, we have provided for introduction of closely related products to be launched during the later stages of our start-up (see Multi-Product Platform). These derivative products include a balanced product (our Total Market Equity strategy combined with a non-proprietary, fixed-income product), a large stock product (the large cap portion of our Total Market Equity strategy), and an extended market product (the mid and small cap portion of our Total Market Equity strategy). As an investment track record is developed, marketing opportunity expands. Additionally, a successful product can be leveraged into derivative products, thereby increasing asset gathering potential.
A study by Merrill Lynch shows that mutual funds with 4-star or 5-star ratings (the two highest levels) accounted for 74% of net asset flows over the last four years; however, there are virtually no guarantees when it comes to investment performance. This is evidenced by the SEC mandated disclosures attached to all mutual fund disclosure. If a firm takes all the steps to “stack the deck” in its favor, the probability of achieving the desired success is significantly increased. In the following sections we outline a plan that identifies the right people to execute the investment process within an environment conducive to efficient investment management practices. As it pertains to the investment management industry, a properly “stacked deck” (i.e. the optimal organization) is a competitive advantage that cannot easily be achieved by many of the firms in existence today for a variety of reasons.
4.4.1 The Three P’s
There are three P’s commonly associated with investment management organizations: People, Process, and Performance. The prior two determine the latter.
While this proposal highlights many areas (market research, financial projections, etc.), there are only two areas that will ultimately determine the level of success achieved by this group. The first is the people. Bright, energetic, talented, and knowledgeable individuals compose the core of the team presented to you. In addition, research explains that the most qualified investment professionals are attracted to efficient firms that are free from bureaucracy and that align interests via equity stakes. Process is the second critical element of this proposal. Cutting-edge research is provided in support of our portfolio management process. The implementation of our process is maximized by outsourcing virtually all functions not related to portfolio management and research, thereby exploiting the firm’s human capital.
Office Consulting Sample Business Plan
This business plan will provide you with the relevant details for drawing up the plan for your office consulting company.
Office Consulting Business Plan
Office Space Solutions improves businesses. Specializing in high-growth companies, it sets up, restructures and streamlines paper flow, communication and office systems. This includes assessments of office space organization and office process flow. The result is a complete turnaround including increased efficiency, reduced costs, greater income, and happier people.
Office Space Solutions has two strong competitive advantages. The first is extensive experience in office space management and work flow efficiency. Bev Johnson, the owner, spent the previous 10 years working with three start-up companies that grew rapidly. With each company, it was her responsibility to manage the personnel growth while improving employee productivity. This experience was priceless. Additionally, the value of networking based on Bev’s previous industry relationships will give Office Space Solutions a leg up on the competition.
Office Space Solutions’s mission is to provide the highest quality support services for its clients. Bev focus is to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Her services will exceed the expectations of her customers.
1.2 Keys to Success
- The objectives for the first three years of operation include:
- To create a service-based company whose primary goal is to exceed customers’ expectations.
- To increase the number of clients served by 20% per year through superior performance.
- To develop a sustainable start-up business that is profitable.
Office Space Solutions offers management support services to start-up and growing firms and companies. Bev sets up, restructures, and streamlines office space, paper flow, communication and office systems. Her work reduces office operation cost while increasing work efficiency and revenue for her clients.
2.1 Start-up Summary
Office Space Solutions has the following start-up expenses:
- Computer system with a printer, CD-RW, Microsoft Office, and Microsoft Access.
- Copier, fax, and one phone line.
- Website development.
- Various office supplies.
2.2 Company Ownership
Bev Johnson is the sole owner and consultant of Office Space Solutions. Office Space Solutions is a home-based business. All business meetings will occur at the client’s business or at a location close to the client’s business.
- Planning, setting up, or improving office procedures, including simplifying paper flow, minimizing wasted time and maximizing access to needed materials.
- Controlling costs and minimizing expenses with improved office efficiency and improved office methods.
- Managing office relocations including vendor negotiations and problem solving.
Market Analysis Summary
Office Space Solutions will be focusing on a very specific part of the business market:
- Start-up with more than five employees.
- Small businesses that are rapidly expanding operations.
The city has several support service businesses but none as visible as Office Space Solutions and none with the success record Bev Johnson has.
4.1 Target Market Segment Strategy
Office Space Solutions is focusing on new and growing companies that are often located in small offices. The targeted start-up business will have four or more staff in its office in addition to a owner. This is a perfect atmosphere for a support service because the services Office Space Solutions provides are out of the business’s field of expertise but so critical to their success.
Another reason for focusing on a growing businesses is that it is easier to be competitive with the smaller businesses. Presently, this segment of businesses is not being marketed by the Office Space Solutions’s competitors. For these reasons, Office Space Solutions will concentrate on the new and growing companies to be able to quickly grab market share.
4.2 Service Business Analysis
The competition consists of a few support service firms that offer a wide range of service offerings to city’s large companies. Though these firms replicate the offerings of Office Space Solutions, they are not targeting the vital area of new and growing businesses. Office Space Solutions will focus only on these companies. There is an advantage to hiring a service that is focused on your problems and is knowledgeable regarding your specific needs.
In addition, the target clients are prone to want a long-term relationship with critical services. If they are happy they will generally stay with the same service provider. It is more cost effective then jumping through the hoops each time it needs a space management, or work flow assessment.
4.3 Market Segmentation
The market for office space and work flow organizers can be broken down into two important segments:
Start-ups with five or more employees. These start-ups rarely have the in-house expertise to solve office space or work flow management problems. As a general role, there is a tremendous amount of wasted effort and space in start-ups. The focus is always on getting a product or service out to customers with very little thought about how the office organization is working against them. The city is growing at a rate of 10% annually and the numbers of start-ups increase each year in all the city’s major industries and service areas. Office Space Solutions believes that this is an underserved segment and with her successes and connections, Office Space Solutions would become an invaluable service to these target clients. As these companies move from the start-up phase to the growth phase, Office Space Solutions will receive this repeat business.
Small rapidly growing companies. These companies have already reached some margin of success and are planning to expand their operations; yet this doesn’t mean that they are efficient. The success of their product or service may be hiding problems in the operation that will emerge as greater pressure is placed on company performance. Each stage of growth in a company, present challenges that can hurt its performance and success. Office Space Solutions can provide these companies a focused approach that is responsive to unique client demands, assisting them in achieving their future sales goals.
SOHO Computer Consulting Business Plan
Use this sample business plan to guide you through the process of starting a computer consulting business.
SOHO Computer Consulting Business Plan
Creative Concepts Computer Design will provide computer and technical consulting to local small businesses as well as home PC users. In doing so the company will focus on marketing, responsiveness, quality, and creating and retaining customer relations.
Creative Concepts will initially be a sole proprietorship with minimum outside financing. Creative Concepts will be a home office start-up, utilizing one studio room in the owner’s home and serving customers in the local Eugene, Oregon area. Creative Concepts will be initially owned by Bram Ekstrand. Depending on growth, the company will possibly add additional employees and expand operations.
Market research indicates an available market niche able to be occupied by additional businesses of this nature. The very nature of the computing industry, with its extraordinary rate of technological development, creates a constant need for businesses skilled in updating and advising customers on computer-related issues. Home PC users will provide the majority of our business revenue. These jobs will typically consist of minor upgrades services and advising. Business Week expects the computing industry to grow at a rate of 12% and the processor speeds to continue to expand for years to come, providing a rich resource for sales.
Creative Concepts has decided to focus mainly on the home PC market for many reasons. These home customers typically request jobs that are easier, faster, and less resource intensive then the opposing small business customer. In addition, this market tends to offer more flexibility for service times allowing a more productive workday.
Our target market will focus on Eugene and the surrounding areas. Market research indicates there is an abundance of business for a small company such as Creative Concepts. If a need exists for increased business, such promotional mediums as radio or print ads will be explored. There are two main competitors for the computer upgrade business in the greater Eugene/Springfield area. These companies are VOS and Suntech Computers. Both of these companies charge rates in excess of Creative Concepts, therefore we expect to be able to attract the price-sensitive market without much work.
Total start-up expenses are modest. Since this is a service business and not product oriented, operational costs should remain low through the start-up process.
Fixed costs have been set at a reasonably accurate monthly level. This should allow for equipment maintenance and purchase or replacement of basic tools used in performing our services. Variable costs have been set per unit to allow for additional expenses such as gas or other travel costs specific to each job.
- To provide a service to the community that is in sufficient demand as to generate a profit.
- Gain a strong repeat customer base to maximize growth.
- Become a positive influence in the community in which we operate.
To become a contributing unit of society while delivering a product of exceptional quality, value, and in a timely fashion. We will treat every customer as if they were our only customer.
1.3 Keys to Success
- Marketing and Networking (being known to the public).
- Responsiveness (being an on-call computer paramedic with fast response time).
- Quality (getting the job done right the first time, offering 100% guarantee).
- Relationships (developing loyal repeat customers–retainers).
Creative Concepts will initially be a sole proprietorship.
The goal will be to start the venture as inexpensively as possible, with minimal outside financing. Creative Concepts will be a home office start-up, utilizing one studio room in the owner’s home.
2.1 Company Ownership
Creative Concepts will be initially owned by Bram Ekstrand as a sole proprietorship. Possibly later adding additional employees and expanding operations as well as clientele.
2.2 Start-up Summary
Total start-up expenses are modest. This is composed of mostly equipment costs along with a few dollars for research of consumer wants and desires and a few pads of stationary. Exact allocations are shown on the table. Since this is a service business and not product oriented, operational costs should remain low through the start-up process.
Creative Concepts will offer computer support and upgrade service to clients of two major categories, home PC users and small office users. These categories will define 95% of our operations.
3.1 Service Description
Our services can be obtained through direct hourly compensation, or if preferred or more applicable, through a contract situation with pre-defined limits.
3.2 Competitive Comparison
Our services are more thorough and precise than any existing competition in the surrounding metro area. Since we have no extravagant overhead we can be focused on delivering exactly what the customer wants, something other computer support providers in this area have a hard time with.
Creative Concepts will operate in an environment with technology that is constantly evolving. Keeping up to date will be of vital importance to the profitability of this venture. Keeping this in mind, we will maintain working, as well as functional, knowledge of all the latest software available to the public. Our customers will receive the most current versions of all software and hardware upgrades requested.
Market Analysis Summary
Creative Concepts Computer Design will provide computer support in both a consulting and technical capacity to home PC users as well as small business owners. Since Creative Concepts is currently a one man operation it will be limited in growth to the capacity of work able to be completed. Personal market research indicates an available market niche able to be occupied by additional businesses of this nature. The very nature of the computing industry, with its extraordinary rate of technological development, creates a constant need for businesses skilled in updating and advising customers on computer-related issues.
4.1 Market Segmentation
The existing computer service market is so extensive categorizing it is a rather difficult task. For our revenue-oriented purposes we will define the market into home PC users and small business clients. Home PC users will provide the majority of our business revenue. These jobs will typically consist of minor upgrades services and advising. The small business market will be defined as customers with five or more computers or a network requiring service or repair.
4.2 Target Market Segment Strategy
Creative Concepts has decided to focus mainly on the home PC market for many reasons. These home customers typically requests jobs that are easier, faster, and less resource intensive then the opposing small business customer. In addition, this market tends to offer more flexibility for service times allowing a more productive workday.
4.2.1 Market Needs
As reported by ComputingNet magazine, there is a substantial need for individuals capable of performing computer upgrades and repairs in a timely and cost-effective manner in this region. Creative Concepts is directed specifically at that market niche.
4.2.2 Market Trends
Both the software and hardware side of the computer industry continue to turn out new and revised computer components at alarming rates. For Creative Concepts this means job security well into the future.
4.2.3 Market Growth
As reported by the Wall Street Journal, there seems to be no end to the development of the computer market. Business Week expects the computing industry to grow at a rate of 12% and the processor speeds to continue to expand for years to come.
4.3 Service Business Analysis
Secondary market research shows computer service customers tend to be very loyal providers that do good work and satisfy their needs. An analysis of Creative Concepts’ main competitors shows no overwhelming strengths that would be significant barriers to possible success. Likewise, identifying competitor’s weaknesses has illuminated several areas that Creative Concepts can target as marketing strategies.
4.3.1 Main Competitors
There are two main competitors for the computer upgrade business in this area.
- VOS. They are a well established provider of computer upgrades and services.
- Suntech Computers. Smaller and less known then VOS, Suntech provides many services for residents living in East and South Eugene.
Both of these companies charge rates in excess of Creative Concepts, we will be able to attract the price-sensitive market without much work. Our second main advantage is the accessibility of our services. The time conscientious customer will appreciate our swift work.
4.3.2 Competition and Buying Patterns
As previously noted, there are other providers of similar services in the area. Our services will be second to no one and our prices will be rock bottom. By providing superior service word of mouth alone will bring in many new clients. The satisfaction our consumers find will keep them as our business.
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