Dynamic Business Solutions LLC - Services Offered, Lean Management, and Marketing Business Approach - Example

Business Plan – Dynamic Business Solutions LLC Executive Summary Dynamic Business Solutions, LLC will provide consultancy services to small and medium sized business enterprises. The company’s target market will include business entities operating in cities and counties of South Carolina. The services offered by the company include lean management, human resources counselling, Quickbook accounting and marketing. Other secondary services, which will also be provided along with these primary services include financial consultancy, operational and sales related consultancy, IT consultancy, budgeting, capital projects planning and preparation of marketing and business plans. The consultancy fee will be charged from clients at a uniform rate of $ 60 per hour. In addition, other services which include filing of LLC papers will be charged at a rate of $ 70 per filing. The company aims at targeting companies, which have employee strength of 50 or less. Business Plan – Consultancy Firm This report presents a business plan for a consultancy business named Dynamic Business Solutions, LLC. The report includes discussion pertaining to the services to be provided by the company, pricing of its services, marketing plan and financial plan. The Company The consulting company will be run solely by the owner of the company, Dawn Russo Brooks. The owner, as a consultant, will provide consulting services in different areas to clients, which will primarily include lean management, human resources counselling, Quickbook accounting and marketing. Other secondary services, which will also be provided along with these primary services include financial consultancy, operational and sales related consultancy, IT consultancy, budgeting, capital projects planning and preparation of marketing and business plans. The company will primarily focus on providing services for new businesses, which have just started to operate. Apart from this, keeping in view the fact that a large number of small and medium sized businesses can be targeted as potential customers, the company will not consider large businesses and organizations in its initial stages of operations. Name and Location of the Company The consultancy business will be carried out in the name of Dynamic Business Solutions, LLC. The office of the company will be located in the city of Charleston, South Carolina. Legal Status As can be inferred from the name of the company, i.e. Dynamic Business Solutions, LLC, the company will be a limited liability company and therefore, the name of the company will contain the abbreviations “LLC” (NOLO, 2012). Services Offered by the Company As mentioned in the first section, the company will provide a wide variety of consultancy services. The services offered to clients by Dynamic Business Solutions, LLC can be categorised as primary and secondary consultancy services. The secondary services offered by the company, can be assumed to be related to the primary services or in some cases included within the primary services. These services are presented in the table as follows: Primary Services 1 Lean Management 2 Human Resource Counselling 3 Quickbooks 4 Marketing Secondary Services 1 Financial Consultancy Services 2 Operations and Sales Consultancy Services 3 Information Technology Consultancy Services 4 Budgeting and Planning Consultancy Services 5 Capital Project Planning and Budgeting Consultancy Services 6 Preparation of Business Plans 7 Preparation of Marketing Plans A brief description of the primary services which will be offered by the company is presented as follows: Lean Management With regard to lean management, the objective of the company will be to enable its clients to do more by utilizing fewer resources. The core strategy behind lean management will be to help organization identify their efforts and resources which are wasted during the ordinary course of their businesses or activities. In this regard, clients will be advised as to how they can make effective decisions which will ultimately lead to efficient management of their operations and workforce. Human Resources Counselling Keeping in view the ever changing dynamics of human resources and the challenges associated with the management of an organization’s human resource, Dynamic Business Solutions, LLC will assist its clients in dealing with those challenges. In this regard, apart from consultancy, the company will provide its clients with employee handbooks, hiring assistance and termination guidance, which will be helpful for them in dealing with situations relating to human resource management. Quickbooks One key feature of small and medium sized business entities is that they have a lot of work to do with minimal human resource. In this regard, bookkeeping and maintaining proper accounting and business records holds prime importance. Dynamic Business Solutions, LLC, will provide assistance to its clients in preparing timely and accurate accounting books and financial statements, so that the management of its clients are able to make efficient decisions based on their historical performance and information. Marketing The company will also provide consultancy services aimed at improving the marketing activities and strategies of the company. The services will enhance the promotional campaigns and strategies of the company and enable them to understand their respective customer base more. Dynamic Business Solutions, LLC will serve as a hub and source for small and medium enterprises to enhance their marketing activities in a more effective and efficient manner. Superiority over Competing Consultancy Firms and their Services The company will aim at capitalizing on its Unique Selling Point (USP), which is experience of providing consultancy services locally to a large number of small and medium sized business enterprises at one place. In this way, Dynamic Business Solutions, LLC will enable the owners of small and medium sized business entities to access consultancy services locally from a consulting service providing company which understands their requirements and have the necessary expertise related to their industry and respective nature of businesses. Marketing Plan for the Business In order to introduce the business to target clients, a marketing plan has been devised. Through its marketing plan, the company will target small and medium sized business entities in the city of Charleston, who have at least 50 employees in their workforce. Target Market and Identification of Customers The target market of Dynamic Business Solutions, LLC will be counties and cities in South Carolina, which will include Berkeley, Dorchester, Charleston (Charleston South Carolina Tri County Areas). In addition, the business will also target as its potential market certain cities which include Summerville, Goose Creek, Charleston, Mt Pleasant, Ladson, Moncks Corner, Knightsville, North Charleston, Folly Beach, James Island, and Johns Island. Keeping in view the demographics of these counties and cities, customers will be identified for the business. In addition to these preconditions, the company will only include those businesses in its target market, which have employee strength of not more than 50 individuals. This condition has been included because the company will primarily target small and medium sized businesses only. The table presented in the Appendix shows business entities operating in different sectors in the selected target market region. The table also presents a classification of the companies on the basis of number of employees working therein. Business Approach The owner of the business will run the operations of the company solely and if required more individuals will be recruited in future. The target clients of the company will include small and medium business enterprises having 50 or less employees. The plan to target these potential clients will be made in a way to understand their consultancy needs and the areas which require improvement. Dynamic Business Solutions, LLC will promote its consultancy services through various channels, which include Chamber of Commerce, Business to Business Groups, Postcard mailing and arrangement of meetings with owners of small and medium business enterprises. Pricing of Services The clients of the company will be charged by Dynamic Business Solutions, LLC on an hourly basis for the services they receive. All of the services offered by the company will be provided at a uniform rate of $ 60 per hour. However, filing of paperwork for obtaining Limited Liability Company status will be charged at $ 70 per filing, which will also include obtaining the Federal Employer Identification Number (FEIN) and the State ID number. This amount of $ 70 will not include fees payable to the State. A summary of Dynamic Business Solutions, LLC’s pricing of services is provided in the table as follows: Service Rate Includes Does Not Include Consultancy Services $ 60 per hour - - Limited Liability Company (LLC) paperwork filing $ 70 per filing Federal Employer Identification Number (FEIN) and State ID number Fees payable to the State Management Plan The management of the business will be carried out by the owner, as it will be solely owner-managed business. The owner of the business, Dawn Russo Brooks, holds a Masters degree in Business Administration and has 12 years’ experience of running small businesses. In addition she is also a member of Society for Human Resource Management (SHRM) and has also continued her education to obtain an MS degree in Human Resource Management. Apart from this, Ms. Brooks is also a certified Quickbooks user and holds a yellow belt certification of Six Sigma. Apart from Dawn Russo Brooks, there is no other employee or director in the management of the business. However, if the company requires additional experts and individuals, they can be hired or even services can be outsourced. But, there are no hiring or recruitment plans in place currently. Financial Plan The financial plan for Dynamic Business Solutions, LLC is presented in this section. The financial plan includes the forecasting of revenues and expenses and an overall budgeting of operational activities of the company during the next three years. Revenues Forecasting – Monthly and Annual Keeping in view the pricing of the services provided earlier in this report, the revenues from services provided by the company have been forecasted as follows: Revenues   Number of Consultancy Hours per week 30 Consultancy Fee per Hour $ 60.00 Weekly Consultancy Fee Revenue $ 1,800.00 Number of Weeks in a month 4 Monthly Consultancy Fee Revenue $ 7,200.00 LLC Filings per month 5 Fee per LLC Filing $ 70.00 Monthly LLC Filing Fee Revenue $ 350.00 Total Monthly Revenue $ 7,550.00 Total Annual Revenue $ 90,600.00 Source: (Byrd, Hickman, & McPherson, 2013; Jiambalvo, 2010) It is important to mention here that there are a few assumptions made while determining the forecasted revenues, which are as follows: There will be 30 hours of consultancy services provided each week in a month. There will be a total of 5 LLC Filings per month The rates for each revenue sources have been mentioned in the table. Expenses Forecasting – Monthly and Annual Since the company will be managed by the owner herself and no other employees will be hired, therefore expenses of the business will be minimal. The monthly expenses for the business will include stationery, utility expenses and fuel expense. Following is a forecast of the expenses incurred by the business on monthly and annual basis: Expenses   Stationery $ 50.00 Rent $ 500.00 Utility Expenses $ 50.00 Fuel Expense $ 150.00 Total Monthly Expenses $ 750.00 Total Annual Expenses $ 9,000.00 Source: (Byrd, Hickman, & McPherson, 2013; Jiambalvo, 2010) Based on this annual forecasting of revenues and expenses, an operational budget for the company can be made for the next three financial years. The budget is provided as follows: Three Year Operational Budget Year 1 Year 2 Year 3 Revenue $ 90,600.00 $ 104,190.00 $ 119,818.50 Expenses $ 9,000.00 $ 10,350.00 $ 11,902.50 Net Profit $ 81,600.00 $ 93,840.00 $ 107,916.00 Source: (Byrd, Hickman, & McPherson, 2013; Jiambalvo, 2010) The above presented three years’ operational budget provides an overview of the trends forecasted in the revenues, expenses and net profits of the company. It is pertinent to note here that the while forecasting this operational budget for the company for the next three years, it has been assumed that the revenues will grow at a uniform rate of 15 percent annually. Reference List Byrd, J., Hickman, K., & McPherson, M. (2013). Managerial Finance. San Diego: Bridgepoint Education Inc. Charleston Regional Development Alliance. (2013). Business - Build Your Report. Retrieved November 28, 2013, from http://www.crda.org/business/build_your_report/ Jiambalvo, J. (2010). Managerial Accounting. Hoboken: John Wiley & Sons, Inc. NOLO. (2012). How to Form an LLC in South Carolina. Retrieved November 28, 2013, from http://www.nolo.com/legal-encyclopedia/south-carolina-form-llc-32017.html Appendix Total Establishments by Number of Employees: Industry Code Description Number of Employees Total Establishments 1-4 5-9 10-19 20-49 50-99 100-249 250-499 500-999 1000 or more Total 235,543 16,376 8,576 3,288 2,196 1,544 453 237 54 17 11 Agriculture, forestry, fishing and hunting 279 40 28 6 4 1 1 0 0 0 0 Mining, quarrying, and oil and gas extraction 52 10 6 1 3 0 0 0 0 0 0 Utilities 500-999* 36 10 2 12 8 2 2 0 0 0 Construction 11,509 1,478 944 249 165 91 21 6 2 0 0 Manufacturing 20,338 470 203 74 60 69 26 24 9 2 3 Wholesale trade 8,655 757 390 158 117 64 15 12 1 0 0 Retail trade 35,481 2,621 1,121 691 442 231 83 45 8 0 0 Transportation and warehousing 8,874 571 295 98 73 74 17 11 2 1 0 Information 7,591 248 134 34 36 24 10 4 3 1 2 Finance and insurance 8,105 1,066 633 250 116 47 10 8 2 0 0 Real estate and rental and leasing 4,203 884 664 139 50 21 6 3 1 0 0 Professional, scientific, and technical services 17,659 1,962 1,354 298 154 104 26 19 3 4 0 Management of companies and enterprises 2,715 82 33 18 13 8 7 0 2 1 0 Administrative and support and waste management and remediation services 21,770 949 539 148 102 70 41 32 12 4 1 Educational services 4,620 193 85 34 26 29 9 9 0 1 0 Health care and social assistance 34,358 1,649 706 445 244 174 42 26 6 1 5 Arts, entertainment, and recreation 4,721 250 123 39 32 39 11 5 0 1 0 Accommodation and food services 32,103 1,529 402 219 378 396 104 26 3 1 0 Other services (except public administration) 11,535 1,557 883 384 169 94 22 5 0 0 0 Industries not classified 37 24 23 1 0 0 0 0 0 0 0 Read More