example of a business plan for consulting firm

Consulting Firm Business Plan Template

Consulting Business Plan

You’ve come to the right place to create your consulting business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their consulting businesses.

Sample Consultant Business Plan & Template

Below are links to each section of your consulting business plan template:

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Consulting Business Plan FAQs

What is a consulting business plan.

A consulting business plan is a plan to start and/or grow your consulting firm. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan, and details your financial projections.

You can easily complete your consulting firm business plan using our Consulting Firm Business Plan Template here .

What Are the Main Types of Consulting Firms?

There are many types of consulting firms. Most consultant companies are in business concentrations such as Management, Strategy, Operations, IT, Human Resources, Financial Advisory, and Marketing/Sales.

What Are the Main Sources of Revenue and Expenses for a Consulting Business?

The primary source of revenue for consulting firms are fees paid by the client. The client will either sign a contract or agreement of the services it will choose and the pricing for those services beforehand.

The key expenses for a consulting business are the cost of leasing the office, employee cost, marketing/advertising costs, and any office technology or software.

How Do You Get Funding for Your Consulting Business?

Consulting businesses are most likely to receive funding from banks. Typically you will find a local bank and present your consulting business plan to them. Angel investors and other types of capital-raising such as crowdfunding are other common funding sources.

What are the Steps To Start a Consulting Business?

Starting a consulting business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Consulting Business Plan - The first step in starting a business is to create a detailed consulting business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your consulting business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your consulting business is in compliance with local laws.

3. Register Your Consulting Business - Once you have chosen a legal structure, the next step is to register your consulting business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your consulting business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Consulting Equipment & Supplies - In order to start your consulting business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your consulting business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Learn more about how to start a successful consulting business:

How to Start a Consulting Business

Consulting Business Plans

Did you know each of these plans was created in LivePlan? Learn More

Agricultural Consultants Business Plan

O'Connor & Partners offers management consulting to industrial-biotechnology, chemical,utility, and agricultural companies producing chemicals and energy from annually renewable feedstocks.

Architectural Engineering Business Plan

Pyramid Engineering brings four experienced engineers together to form a complete design team, offering services to governments, developers, and architects throughout the Northeast.

Auditing and Consulting Business Plan

Artemide Auditing & Consulting AG, an established Swiss company, provides specialized auditing, consulting, and investigative business services to individuals, investors, and small and medium business

Business Analysis Publishing Business Plan

The Wonderkind offers subscribers business/investment analysis from motivated business students via Internet forums and hard-copy publications.

Business Consulting Business Plan

Growth Management and Strategies serves the needs of small business clients that are in need of logistical, technical, and business strategy services.

Business Support Insurance Business Plan

Ideal Business Support Services is an outsource provider of support services to Insurance Agents.

Computer Consulting Business Plan

Calico Computer Consulting is a start-up sole proprietorship consulting business that provides technical assistance to local business, small office, and home office computer users.

Consulting Planning Business Plan

Business Solutions Consulting, is a start-up business offering full-cycle, business-to-business planning consulting.

Consulting Seminars Business Plan

Seminars is a start-up consulting company offering business planning training.

Engineering Consulting Business Plan

StructureAll Ltd. is a home office start-up consulting firm in Yellowknife, Northwest Territories, that specializes in structural engineering services.

Human Resources Consulting Business Plan

Human Capital Maximizers is a human resources consulting company, serving emerging companies market.

Import Export Business Plan

Visigoth Imports will provide complete import/export brokerage services including purchase contracts, shipping, warehousing, and delivery scheduling.

Integrated Communications Business Plan

Aero Technologies, Ltd., is a start-up company that offers high-tech communications systems to businesses in Botswana.

Investment Consulting Business Plan

Vista Investors is a start-up investment management firm, whose hallmark investment product will be the Vista Total Market Equity strategy, which will initially be offered through a mutual fund.

Management Consulting Business Plan

Coaching Company is a new start-up of a national management consulting franchise. The owner/operator will run seminars and one-on-one coaching for small business leaders with help from the national or

Office Consulting Business Plan

Office Space Solutions is a consulting firm specializing in the setup, or restructuring, of office space utilization, and work flow efficiency.

Scholarship Consulting Business Plan

ScholarshipAssist is a start-up business that assists college-bound students with their search for scholarship money.

Seminar Business Plan

Advanced Linguistic Pontificators are presenters of reading and time/stress management seminars and training.

SOHO Computer Consulting Business Plan

Creative Concepts Computer Design offers consulting services focused on the computer system needs of small business offices and home office users.

Personal Shopping Services Business Plan

Buy the Time is a start-up personal shopping service based in Seattle, Washington.

Technology Investment Business Plan

The Center for Technology and Investment is devoted to bringing investment in technology within reach of rural small business owners.

UK High Tech Consulting Business Plan

Acme Consulting--UK is a start-up company in the United Kingdom that provides consulting services to companies marketing high-technology products in international markets.

Wedding Consultant Business Plan

TLC Wedding Consultants will offer an all-inclusive, one-stop wedding planning service.

Consultants need business plans too! Check out these sample business plans for consultants and consulting related businesses. They'll help you format your plan, get the details right, and give your business the best possible chance for success.

If you’re looking to develop a more modern business plan, we recommend you try LivePlan . It contains the same templates and information you see here, but with additional guidance to help you develop the perfect plan.

example of a business plan for consulting firm

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Consulting Business Plan Template

Consulting business plan.

If you want to start a consulting firm or expand your current consulting business, you need a business plan. The following consulting business plan template gives you the key elements to include in a winning business plan. It can be used to create a business plan for any type of consulting business including but not limited to: business consulting, management consulting, IT consulting, and Human Resources consulting.

You can download the consulting business plan template (including a full, customizable financial model) to your computer here.

Sample Consulting Business Plan

Below are links to each of the key sections of a successful consulting business plan:

NOTE: If you are looking for a business plan consultant to write your plan for you, then click here .

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Consulting Business Plan Outline

How to write a consulting business plan

If you want to work as a consultant, you'll need a plan. Here's how to create one just for you.

A consulting business plan written up in a notebook

Consultants do things differently

If you’re a self-employed consultant your work isn't like other forms of business. Unlike retailers or manufacturers, you're not making and/or selling tangible products. And unlike service companies, you're not employing a team of people to provide solutions.

Remember you’re not not just selling your time. As a consultant, you will be paid for the skills, knowledge and abilities you've developed over your career.

We have some useful background reading about the benefits of becoming a consultant or contractor , which will help explain how such businesses work. But having decided to become a consultant, what's the next step?

Like all new small businesses, you'll need a plan. That plan will have to cover funding, growth, pay rates, expenses, marketing, equipment costs, training and qualifications. It will also have to cover your goals, and the strategy you'll use to reach them.

Consulting business plans are a little different to other business plans. Here's what you need to know to get your consulting career off the ground.

Who are you writing the plan for?

This is an important question to ask yourself before you start. For most conventional businesses the answer will be "For the bank and investors." That's because small businesses usually need startup funding to get off the ground.

But consultants setting up their own business might not need much funding – if any. It's still important to have a business plan though – not only to clarify the details in your own mind, but also to help you understand the potential risks and rewards.

A good business plan will combine elements of both finance and strategy, but the contents will vary depending on the target audience. We'll take a look at the options next.

A business plan for banks and investors

You may not need funding for capital equipment expenses or office rent. But you might need a loan to tide you over for the first few months, until you have a regular cash flow. The initial period for any new business can be a tough time – money worries will just make it tougher.

You may also decide that you want to make more of an impression by hiring office space, perhaps in a shared office environment. Or you might want funds to spend on marketing and advertising, particularly if you're offering consulting services in a competitive market.

For all of this, you'll need money. You could apply for a bank loan, look for grants, or try other forms of capital-raising such as crowdfunding. Whichever method you choose, any potential investors will want to see the important numbers. That means you'll need to cover the following points in your business plan:

Some of this information will be difficult for you to estimate. It might be even harder for you to present clearly. Use your accounting software to help with figures and to produce professional tables and charts. Then, an accountant can help you include the right information in your plan.

A business plan for you

Of course, you might not need any funding. Perhaps you have enough savings to keep you going for a few months and clients already lined up. Or you may be starting your consulting career after an inheritance or unexpected windfall.

If money isn't an immediate concern, you can afford to be less formal when drafting your plan. That means making sensible predictions and setting goals for yourself, not just financial targets – though you should include those too.

This isn't an exercise in creative writing. The purpose of creating a plan is to help you concentrate on what you want to achieve. Some points to consider include:

Reasons for being a consultant

Why are you doing this? It's important to answer honestly. If the answer is “to make more money” or “because I'm good at what I do” then write that down. Write down all the reasons you can think of, then read them back. Do they sound convincing? Make sure you know your true motivation, as it will help you focus on your goals.

Consulting can mean you have an irregular income. Sometimes you might be busy, other times less so. It makes sense to keep some money in savings accounts, especially if you'll be paying tax at the end of the year instead of while you're earning.

Relationship risks

Think about the impact of consulting on your family or friends. Consultants often work irregular hours, sometimes from home, and they might be working at weekends. That can put a strain on relationships. Be realistic about this and set boundaries around when and where you will work.

Which clients to avoid and which to take on

You will already have an idea of the types of client you don't want to work for, because you know the industry you work in. For example, known late-payers can damage your cash flow so it's sensible to avoid them where possible. Look for clients who are reliable, as they’ll help make your business a success. Know that you can let go of clients who are more trouble than they're worth.

Training and certification

In many industries, especially IT, it's important to keep your skills up to date. But your clients are unlikely to pay for you to go on training courses – that's an expense you'll have to cover yourself. How will you stay up to date? Think about industry magazines, websites, forums, news feeds, conferences, courses, distance learning, peer groups and self-teaching strategies.

Personal goals

Perhaps you're planning to be a consultant for the rest of your working life. Maybe you want to do it for a couple of years and then move back in-house as an employee. Or you might want to start employing other consultants at some stage and build up an agency – maybe even sell it. It doesn't matter what your personal goals are, as long as you have some. Write them down and bear them in mind when making big decisions.

What to do with your profits

This is a good opportunity to think about how much money you want to make . Consider how much you will charge and what you will do with your commission. For example you may decide to use 50% to cover costs, pay yourself with 30% and put 20% back into your business.

Some of this information would be inappropriate to include in a financial business plan for banks or investors. But it can be very helpful in guiding you through the early part of your consulting career.

Five top tips for writing a good consulting business plan

Business plans can be difficult documents to write. If you've never done it before, thinking clearly and logically about your business strategy may not be easy. Here are some tips to help you succeed:

1. Write the first draft

Don't worry about grammar, structure or neatness. Just get the thoughts out of your head and onto the paper or screen. Some people find this easier to do in an informal setting, such as a library or café.

2. Do your research

Understand the market you're going to be working in. Get to know all the details, as it'll help you write a more effective consulting business plan.

3. Identify your USP

That's your unique selling proposition. Why should companies hire you and not one of your competitors? Think carefully about what you're particularly good at, then use that as a basis for marketing yourself.

4. Get feedback

Talk to your peers, friends, previous business associates and potential customers. Show them your plan and listen to their feedback.

5. Keep it simple

Don't write dozens of pages. You'll bore the investors and your plan will end up on a pile where nobody will ever look at it again – including you. Stick to the important points.

Update your business plan regularly

A business plan isn't a static document. It should change and evolve over time as your business grows. You will learn a great deal in your first few months working as a consultant, and that knowledge should be applied to your business plan. It's a good idea to review your plan every month.

You may find that some of what you initially wrote turns out to have been misguided, inaccurate or just plain wrong. That's normal. Nobody can predict every step a business will take. The important thing is to learn as you go along – and make use of that knowledge to improve your plan.

Plan for consulting success

A consulting business plan is written as much for you, the consultant, as for anyone else. The point of writing it is to concentrate on what's important. That clarity is what will help you succeed.

So don't look at a business plan as just another box to be ticked. It's a fundamental process when starting any business, particularly a consulting business where you will need initiative and drive to succeed.

Take the time to write a proper business plan, and keep it regularly updated as your business grows. You can use our free business plan template . You'll find it an invaluable guide to becoming a successful consultant.

Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

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Sample Business Plan for Consulting Firm

Executive Summary Of Sample Business Plan for Consulting Firm

Sample Plan 5 is an innovative management consulting firm business plan offering a variety of business solutions to clients across a broad cross-section of industries. From financial services to operations optimization to managing organization growth, Sample Plan 5 is adept at effectively managing a variety of client projects.

Founded by The Owner, the organization is in the midst of an aggressive expansion phase with client acquisition and profit growth being two of the primary objectives.

As the economy continues to rebound from what analysts agree was the deepest economic condition in nearly a century , organizations of all sizes will be in need of the types of services that are offered through Sample Plan 5.

The organization has already developed a strong reputation in the industry for the delivery of quality services that positively impact the client.

Moving forward, The Owner plans to leverage these experiences along with her vast professional network amassed over the course of her career to strengthen the client portfolio and improve the year-to-year profit standing of the firm.

Useful Resource: How to write an executive summary for a business plan

Financial Objectives

The following table and graphs illustrate the financial goals of Shade Station during the next five years. The financials are explained in detail throughout the duration of the plan.

sample business plan for consulting firm

To see the complete financial plan of consulting business plan click here .

Pro Tips: Learn how to create a financial plan for business plan by pros.

Industry at a Glance

The industry is composed of companies that provide advice and assistance to organizations on issues ranging from strategic and organizational planning to financial budget planning.

Although sample business plan for consulting firm is a relatively new industry, major consulting firms are among the most respected businesses in the world, and their advice is routinely sought by the corporate and governmental sectors.

In the five years that have led up to 2011, IBISworld .com estimates that industry revenue increased at an average annual rate of 0.7% to $165.5 billion.

Compared with the industry’s overall growth during the past 10 years. this rate is somewhat sluggish. reflecting the extent of the recent economic downturn.

The recession’s effect on the industry caused sales to plummet by 3.6%. LH in addition to decreasing revenue. firms laid-off employees. causing industry employment to fall by 7.0% over the course of the last two years.

Industry at Glance, Business Plan Sample

Click here to read more about the industry at a glance and sample business plan for consulting firm.

Projected Industry Growth

The Consulting Industry is currently in the mature stage of its life cycle. Over the five years leading up to 2016, research gathered via IBISworld .co m shows that the industry’s contribution to the overall economy is projected to grow at 2.5% annually. This is roughly in line with GDP growth over the same period.

Like many industries, the Consulting industry’s growth has been slowed by the recent recession. Furthermore, more corporations are keeping consulting services in-house and hiring fewer consultants.

As a result, the industry’s growth is expected to remain below the levels experienced in the past. The benefits of consultants on human resources and management strategy are becoming increasingly accepted by the business community.

Some businesses view outside consultants as a necessity when providing impartial advice. Although consultants have been increasingly taken 1n house, businesses are still hiring outside consultants to improve their bottom lines.

To read more about the projected growth of the industry click here .

Key External Drivers

For more information about external drivers , click here .

What follows is a listing of key objectives for Sample Plan 5.

1. Client portfolio expansion

The Owner has set client portfolio expansion as one of the primary objectives for this phase of business growth and development. The founder will aggressively pursue this objective, projecting to add no less than x clients during the course of the next calendar year.

2. Increased revenues

Founder The Owner has set a goal of no less than x worth of revenues being generated over the course of the next calendar year. Through a diverse suite of services and stellar delivery, this goal is easily attainable and will be the catalyst that propels the firm towards future revenues and profits.

3. Diversify client portfolio

The diversity of services gives The Owner the ability to develop a diverse client portfolio which will be another of the primary objectives. By doing this the organization in effect insulates the profit position from the cyclical nature of the economy and protects long-term growth prospects.

For a complete guide for key objectives for sample business plan for consulting firm here .

SWOT Analysis

What follows is a listing of the core strengths and weaknesses of the Alice Cardenas Consulting Company.

Funding: The lone weakness in what has proven to be an otherwise sound business model and approach would be a lack of funding. Founder The Owner is confident that if a suitable funding source is secured, she can position the organization to become one of the industry’s true market leaders.

Click here for complete detail of the SWOT analysis .

To date Sample Plan 5 has relied primarily on word of mouth networking and the Internet to drive the organization’s marketing message.

These two elements will remain the core of the marketing model with enhancements made to each that strengthen the market position and increase the volume of qualified business opportunities.

The organization currently has a website but plans are to totally revamp the current website and develop a more appealing presence using state of the art web development technologies.

In addition to the improved website, the organization will also aggressively integrate social networking into the marketing efforts leveraging both Facebook.com and Twitter.com as well as an interactive online blog, managed by founder The Owner.

Rounding out Sample Plan 5 marketing model will be an improved networking component as the founder is committed to expanding her professional network by becoming actively involved in the local business and social communities.

You can read more about sample business plan’s marketing by downloading it.

Balance Sheet

The projected balance sheet for Sample Plan 5 is shown in the table below.

To view the full projected balance sheet, click here .

Our free real sample business plan pdf will show you how to write a plan that looks as elegant and professional as this one.

Click here to view an example of consulting business plan for consulting firm. Each business plan is professionally written by our MBA business plan writing consultant and is developed in close collaboration with the customer.

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Sample Plan 5 is an innovative management consulting company business plan that offers a wide range of business solutions to clients in a broad variety of sectors.

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BUSINESS PLAN

SALMON & SALMON

38260 Lake Superior Dr., Ste. 222 Philadelphia, PA 35008

This business plan is for a management consulting firm which intends to operate as a "virtual corporation." This will allow the firm to engage independent contractors with various skills and experience to meet the changing needs of their clientele.

EXECUTIVE SUMMARY

Present situation, service description, market analysis, marketing strategy, financial information, american consultants league code of ethics.

Salmon & Salmon (S&S) is a privately owned for profit management consulting business, and a sole proprietorship. Consulting services are concentrated primarily in the services industry focusing on industrial, commercial, and governmental products in the Washington, D.C. metropolitan area.

Salmon & Salmon formulate strategies and facilitate change to clarify client objectives and goals. They provide a quantitative measurement of change based upon analysis integrity and special expertise.

Long Range Vision

Our primary service in five years will continue to be management consulting services. Our primary market will include industrial, commercial, trade, professional associations, political organizations and advocacy groups. Our competitive position will be as a niche specialist and virtual corporation that can easily adapt to rapid changes in the marketplace. Total sales will exceed $100,000 and administrative services will be out-sourced.

Core Values

Salmon & Salmon believe:

Salmon & Salmon is a member in good standing with the American Consultants League and subscribes to their Code of Ethics. Our management team consists of the principal and owner, Pinky L. Salmon.

The primary objectives of our organization are:

Business Goals

Compared to past performance offering strategy formulation and business planning in the consulting industry, we intend to form a virtual corporation whereby skilled consultants will match performance expectations to industry realities. As a virtual corporation, other sole practitioners can be brought onto a project as independent contractors, thereby preserving the consultant's desire to maintain independence.

Considering our experience within the marketplace, we believe our clients demand more diverse services, especially small to medium size businesses. These companies typically do not have the financial resources to hire full-time professional staffs. They frequently look to "out-sourcing" or contracting for services focused on short-term task specific projects or on-going, less than full-time professional services.

All of our consultants come from environments where they managed large organizations, conducted comprehensive consultations in a variety of industries, and have proven records of obtaining results for their clients.

Position for Growth

Our position for growth is to understand our customers, competition, and industry. We intend to employ ethical and results driven consultants who are willing to remain independent and intent upon expanding their business development efforts.

We will jointly (principal and independent consultant) focus our business development efforts on companies with revenues exceeding $1.0 million, companies who are prime contractors to the federal government, national and international trade associations, and other businesses in the service sector.

The marketplace in Southern Pennsylvania is undergoing changes because of downsizing within the federal government. Currently, services to the federal government are concentrated within the telecommunications, computer and other high technology businesses.

Market Environment

The second level of service is to those companies who are the prime contractors on government contracts or companies other than those providing government services. This secondary level is where Salmon & Salmon has focused its efforts.

The present stage of services is in the test market stage.

Clients using our services are small businesses obtaining financing, negotiating leases, purchasing other businesses or starting a new enterprise. They have requested an expansion of our services to include a full-service package of consulting services.

Most of our management is in place, however, we require a Human Resource, Marketing and Technology, and Computer consultant to complete our team.

Financial Resources

Financial resources are based upon the personal assets of Pinky L. Salmon. Current cash available is $8000.00.

Pinky L. Salmon is a certified professional consultant. For more than 20 years, she has provided management consulting services to private and public sector clients. Ms. Salmon's expertise includes: strategic formulation, business planning, system analysis and operational audits. Ms. Salmon was a Senior Analyst for a management and engineering firm in Washington, D.C. subsequent to establishing Salmon & Salmon. She frequently contributes articles to local business publications and magazines.

Ms. Salmon is also a public speaker for a variety of business associations such as Rotary Clubs, the Association of Part Time Professionals, Tennessee Women in Business, etc.

She holds a B. A. degree in Business Administration from Northwestern University in Chicago, IL. She is certified in Total Quality Management principles. Ms. Salmon is a member of the American Consultants League, Sarasota, Florida and is an Executive Director the Business Advisory Council of Southern Pennsylvania.

In August 1993, Salmon & Salmon became licensed to do business in Pennsylvania. Salmon & Salmon conducted its market research throughout 1994 while simultaneously setting up operations. In January 1995, Salmon & Salmon positioned itself to offer management consulting services to medium size companies and trade associations.

Management Team

Pinky L. Salmon is the principal and owner of the company. She is responsible for daily operations and performing the client's requirements within the scope of individual contracts. She is also responsible for business development including planning, advertising, public relations and identifying new markets.

Outside Support

The services of an outside certified public accountant is required for income tax returns and financial statement preparation. A marketing professional assists the principal to make appropriate decisions related to marketing strategy. A transition management consultant assists the principal to make appropriate decisions related to the company's goals and vision.

People/Talent We Require

Pinky L. Salmon recognized that additional project support professionals are required to properly support clients' expanding requirements. Initial negotiations are underway with established consultants to market and collaborate on joint projects.

Salmon & Salmon's consulting service consists of strategic formulation and business planning. The service is used by enterprises (clients) who need to identify long term goals, get a new idea or venture "off the ground" or expand, acquire or refinance a project.

Development of other services is in progress and future services are planned using a network of other consultants. For example, when developing a business plan or strategy with a client, emerging requirements and/or deficiencies are often identified. Having the capability to offer services such as human resources, marketing and telecommunications will be a unique feature of Salmon & Salmon.

Useful Purpose and Benefits

Benefits that Salmon & Salmon offers are:

Outside management advisors provide tremendous support for management decisions and creativity. Outside advisors are:

The fundamental thrust of our marketing strategy consists of attracting executives and business owners by personal contact and through conducting one hour seminars. We intend to reach management and business owners by conducting seminars on business planning strategies, and publishing "How To" reports at no cost to the prospective client. Advertising will be placed in the classified ads of leading business publications and through earned media.

Financial expectations for 1996 and 1997 are very conservative. By 1998, we expect to collect a return on investment.

Salmon& Salmon enjoys an established track record for excellent service for our customers. Their expressions of satisfaction and encouragement are numerous. We intend to continue our advances in the marketplace with a more comprehensive package of consulting services.

Major Market Segments

Key points in defining market segment for consulting services is based on 1989-1994 Statistical Summary Areas of Business concentration in Northern Tennessee. Listed in order of priority, these segments are as follows:

Note: Businesses with 5-99 employees represent 39% of the small businesses in the state of Pennsylvania. Micro businesses with 0-4 employees represent 59%.

Technical Services and R&D Segment

The stability of the first market segment is uncertain. Government downsizing and reductions planned for the next two years will have a direct impact on the ability of this segment to remain viable. Industry has been in a downsizing trend since 1985 and government has been slow to implement similar changes. Consequently, the need for technology to replace personnel should remain constant for firms providing R&D and technical services.

National and International Trade Associations

This segment of the market should remain fairly stable in spite of government downsizing. The proximity to Washington, D.C. and the rapid transmission of information relating to public policy and legislation is essential to this market segment.

Other Business Services

The market potential for consulting services for small businesses and start up enterprises is infinite. Two years of market research has revealed that this market segment has limitations. Unless the particular enterprise generates revenues of at least $1.0 million, the company typically is not in a financial position to pay consulting fees. Start ups, as a rule, are under financed and considered high risk clients.

In terms of consulting services provided by Salmon & Salmon, the company has several distinct advantages over the competition. First, all independent consultants have established reputations in a variety of industries including telecommunications, trade associations and government services. Consultants are computer literate and continually update their skills.

The breadth of options offered to clients is different from the competition. Salmon & Salmon is set up as a virtual corporation and can readily draw upon the resources of other independent consultants without maintaining a full-time staff of consultants.

In marketing, our most powerful assets are awareness, image and pricing. All independent consultants are well versed in business development techniques and fully understand the expertise of the other independent consultants. Should a client signal a need for services not directly related to the consultant's skills, the requirement will be passed on to the owner who in turn will take appropriate action.

Integrity, personal presentation skills and communicating product knowledge are paramount to carrying across quality and reliability to the client. Consultant's working under Salmon & Salmon's contract, exemplify these characteristics.

Pricing is far more competitive than larger consulting firms, simply because overhead is minimal and no full-time staff consultants will be used. Independent consultants will be subcontracted on a per project basis. Consultants will be responsible for preparing their reports and deliverables using criteria set down by Salmon & Salmon.

Vulnerabilities

There are two limitations inherent in our service. First, if an independent consultant does not complete a project because of unforeseen circumstances, Salmon & Salmon will have to develop a contingency plan acceptable to the client. A termination clause in the contract or letter of agreement will address such situations and should alleviate this problem and minimize the risk to the client.

Secondly, retaining a consultant who does not share the company's vision and method of operation is a weakness. Salmon & Salmon will employ only those independent consultants that have previously been contracted with S&S, or those who have a close personal relationship with S&S thereby reducing this potential weakness.

Unexploited Opportunities

An altogether new application for this service would be "spreading a wider net" when developing new business and tapping into new markets to identify opportunities for other consultants. Little risk is incurred by any consultant.

Salmon & Salmon's marketing strategy is to enhance, promote and support the fact that our services increase our clients' productivity and profit margins. Our consultants have the necessary "hands-on" expertise required to perform and in-depth, logical, practical and critical analysis of a client's needs, business strategies, goals, and short and long-term objectives at each stage of development and implementation.

To prove the value of our service, we involve the client in the entire consulting process from the conceptual stage to the finished product. Getting the client involved in every functional area of the business, is necessary so he/she will understand that these areas must be given equal attention in formulating short and long-term goals and objectives. The measurable benefit of this approach is a definite competitive edge and improvement of the client's chances of a prospective lender or investor funding the venture. It also ensures continued success, viability, profitability and growth.

Pricing and Profitability

Fees are set high enough to give Salmon & Salmon credibility in the eyes of the prospective client. Fees are charged on an hourly or daily rate, fixed fee, or on a retainer basis depending upon the client's needs. The hourly or daily fee applies to very short-term assignments - a few days or one week at most. Fixed fees are preferred by clients, because they serve to establish a total dollar commitment risk on the part of Salmon & Salmon. This makes the marketing task of Salmon & Salmon easier. Annual retainer fees are acceptable when a client, who has used our services frequently want consultants "on-tap" which can be called upon whenever the need arises without paying the hourly or daily fee. Salmon & Salmon will not accept contingency fees.

Selling Tactics

Current selling tactics include advertising, seminars, direct calling, mail and networking through professional and business associations.

Advertising and Promotion

The company advertises in Market Monthly, a business magazine with over 2,000 subscribers. Pinky Salmon is a frequent featured writer for this publication.

The primary objectives are to increase Salmon & Salmon awareness and name recognition among business managers and generate qualified sales leads.

In 1994, the company participated in one Chamber of Commerce trade show. No sales were generated.

Research indicates that the best way to reach potential clients is to conduct one hour "How To" seminars and publish a "How To" booklet at no cost to prospective clients on topics of specific interest. Salmon & Salmon conducted seminars and presentations in the area of total customer service and effective business planning. The purpose was to establish company image and generate leads.

Advertising is costly and has not been successful in generating revenues. Referral business and direct contact with executives and centers of influence has been the primary source of business for Salmon & Salmon.

The company will arrange for interviews on business talk radio and local cable programs.

Direct Mail

The company has no plans for using direct mail.

Sales Support Collateral Materials

Sales support materials consist of a company portfolio, which includes magazine article reprints. Business cards, presentations, proposals and stationery are coordinated to reflect the company's message and image.

Investment in Advertising and Promotion

In 1994, advertising expenses represented 34% of revenues. In 1995, advertising expenses represented 10% of revenues. Revenues increased 54% in 1995.

Salmon & Salmon is investing in promoting more seminars and publishing "How To" pamphlets. Local banks and Chambers of Commerce have expressed interest in sponsoring "How To" seminars charging a minimal fee.

Business Relationships

Salmon & Salmon has formed valuable business relationships with management, computer and marketing consultants. Built upon this foundation, the company is moving forward with its virtual corporation concept. Forming strategic alliances and collaborating with established consultants will produce stable revenues, credibility, and increase market presence.

The company is pursuing a marketing strategic alliance with consultants in Human Resources, Marketing and Computer specialists. Our plans include those consultants marketing our services within their product line. In turn, Salmon & Salmon will offer the independent consultants' services to augment S&S' product lines.

1996 Budget

Management Consulting Firm: Salmon & Salmon

Cash Flow Forecast

Start-up cost were financed from personal assets of Pinky L. Salmon. Salmon & Salmon conducts business from a home office appropriately equipped for business activity. Therefore, rent deposits, fixtures and remodeling costs are not applicable. S&S plans to move from a home office to a commercial office in 1997, as part of a business "incubation" arrangement.

I, Pinky L. Salmon hereby certify that: I am a member in good standing of the ACL. I am competent in my field. I will always make every attempt to identify the client's real problem. I will always specify my role in the client's project or assignment. I will adapt to the individuality of my client's problems. My recommendations will be feasible. I will at all times avoid a conflict of interest. I will never deceive my client. I will never fail to perform my services. I will never be negligent. I will always inform my client of the risks of any undertaking. I will always inform my client of my basic approach to his problem. The matter of my fee will always be presented forthrightly so that my client will always know what his or her money will buy. I will maintain total confidentiality with regard to my client's business. I will always work to the best of my ability to insure the quick success of my client's project. Charges for expenses over and above my regular fee will always be fair and accurate. I will never accept fees or commissions from others for recommending equipment, supplies or services to my client. I understand that proven infraction to any of the above rules will cause immediate revocation of my CC accreditation as well as loss of membership in The American Consultants League.

example of a business plan for consulting firm

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