HR Consulting Firm Business Plan
Executive Summary
HR Solutions is a human resources consulting company based in Everett, WA. The company is starting this year, with the principle, Lori Morris, heading the company. The greater Seattle area has low unemployment and a booming economy, meaning that HR consulting services are in high demand, and it is believed that there is significant growth potential in this market. The basic business model for launch is to begin with recruiting services, which will serve two purposes to generate quick cash flow, and to build a client base that can later be sold a range of consulting services. The target market will be medium-sized businesses in the area, in particular businesses that are 150-300 people in size.
The marketing strategy will focus on B2B inbound, and on networking within the local business community. Both approaches are necessary. Inbound often takes a long time to bear fruit, given the length of the traditional B2B buying cycle, and how much time it takes to build up content and reputation using this strategy. So while the business is working on that, networking will be the absolute best way to build business in the first year. For this and other reasons, the first year is expected to turn a loss, with a profit only occurring in the 10th month. However, the company is expected to have some serious positive momentum at that point, which will allow it to be profitable from thereon out.
Company Identification
HR Solutions is a human resources (HR) consulting company, located at 3216 Wetmore Avenue in Everett, Washington. We are a strategic partner working with small and medium-sized organizations both onsite and offsite to design and implement HR strategies for staffing, development, total rewards, policy and procedure, compliance and organizational culture. Our consultants include specialists that work with larger businesses and generalists who are able to provide the basics of HR structure to new businesses that are not yet large enough to employ a full-time HR professional. We ensure that our employees are highly credentialed and well recognized as leaders and contributors to our industry as a whole, lending a high-level of credibility to our services.
Mission of the Company
Our mission is to make small and medium-sized companies as successful as possible. We believe that employees are critical to success in business. Recognizing that finding and retaining great talent is not easy for small businesses who lack HR training, it is therefore our mission...
This is a foundational goal of all business, and we propose to do this by executing a couple of key business strategies. The first strategy is to employ efficient sourcing, qualifying and monitoring to maintain an average time to fill rate of 30 days or less for all posted positions, which is 12 days faster than the national average time of 42 days (Society for Human Resources Management, 2018).
By reducing the the time to fill rate for an open position we help eliminate disruptions in productivity and fulfill our mission of keeping organizations focused on business objectives. We can manage this by defining and tracking all aspects of the hiring process to identify opportunities and mitigate delays.
The second goal is to hire and maintain a minimum of four employees at all times that meet the definition "expert level" in the practice of human resources. To serve our mission...
…contract, and then key
revenue milestones. The owner will have a target for net margin in mind at all times and will seek to manage growth on the basis of ensuring that margins are not sacrificed in the name of either revenue or scaling.
F. Financial Statements
These are found in Appendix B & C.
G. Financial Report
The pro forma financial statements highlight that the first year of the business will be one where the owner needs to invest substantially in building the business. The owner is putting in her own capital into the business, and will gradually grow the team. For most of the first year, the company is expected to operate at a loss, and this will have to be covered by the owner. As consulting business grows, and new consultants are brought on, the company is expected to turn a profit by the 10th month. The entire second year will be profitable. One of the benefits of the chosen business model is that the revenue streams are recurring for consulting fees and retainer. If churn can be minimized, the business should continue to be profitable. The investment is still going to be less than $100,000, which should be covered by the owner and the money to which she has access.
The balance sheet is fairly simple for this type of company. There are few physical assets some office equipment and laptops. Some of the equipment might even be second-hand. But this business model focuses on consulting services so there are not that many fixed assets. The challenge will really be to maintain cash flow through the first year, preferably without debt. The owner might have to put in a substantial amount of personal capital initially, which will show in the negative equity figure, but over the course of the econd year…
