They strongly believe that dealing with questionable data and lowly-skilled workforce is a waste of time. Therefore, as they venture into newer markets, they face the risk of loosing out. As they go into markets looking at new opportunities, they are very insightful about company reputation.
Our focus will vary from providing services to large and medium-sized firms to small start up companies. However, small-sized firms will be the main target of our firm. Dushane will also provide attractive lucrative offers to companies that have management problems and are incapable of tackling problems when they first enter the U.S. markets.
Service Business Analysis
The consultancy "industry" is not only crushed but also incompetent, with hundreds of thousands of small companies along with individuals offering consulting services and focusing on the few dozen recognized corporations.
Our competitors vary from key global brand-names to hundreds of thousands of entrepreneurs. The main challenge for Dushane will be to establish itself as a genuine consulting firm, placed as a comparatively safe corporate acquisition.
Strategy and Implementation Summary
Dushane will concentrate on only the local American markets and in limited service sectors: live advertising, event production, cross promotions, and creative consulting. For Dushane, the most significant of all the categories of probable clients are managers of not only U.S. firms, but also international companies.
Dushane Urban Marketing Consultants will charge at the higher edge of what the marketplace will bear, contesting the "name-brand" consultants. The charges match the general posture of Dushane as offering high-level capability. Sales approximations forecast incomes of about $100,000 in the 1ST year and $200,000 by the third year.
Project consultancy services will start from $5,000 for each day, $2,000 for each day will be charged for providing market research reports, and $10,000 for each month will be charged for event planning and management. In addition, our live advertising charges will range from $3,000 to $15,000.
The sales annual projections for the next 2 years are summed up below in table 4.
Table 4: Sales Forecast
Cross Promotions and Live Advertising
Direct Cost of Sales
Subtotal Direct Cost of Sales
The Dushane business needs an extremely superior level of global proficiency and skills, which implies that it will not be effortlessly leveragable in a typical consultancy company-method wherein workforce manage the every day activities and create profits. The sole-proprietor will automatically be engaged in the completion of the foundational business proposals, offering his experience and know-how to customers.
The comprehensive yearly personnel estimates for the first 2 years are given in table 5 below:
Table 5: Personnel Plan
Self-Employed Market Researchers
Table 7 outlines the "break-even analysis," together with "monthly units" and "sales break-even points."
Table 6: General Assumptions
Current Interest Rate
Long-term Interest Rate
Sales on Credit %
Table 7: Break-even Analysis:
Monthly Units Break-even
Monthly Revenue Break-even
Average Per-Unit Revenue
Average Per-Unit Variable Cost
Estimated Monthly Fixed Cost
Financial Bail-out plan for investors
Scarce Venture Capital will be used to support investors in bailing out their investment. While, the use of this method may result in a lack of initial financing, it is highly profitable in the long run as investors will look for market risk instead of technical risk and they would prefer to invest in post-development stage of the company. For investors sustaining up-to 5,000 units, we will make it clear that assured repurchase cost of one unit will not move beyond $1 per unit. This same also applies for those investors who purchase more than 5000 units.
Projected Profit and Loss:
The annual estimates of profit and loss for the next 2 years are given in table 8 below:
Table 8: Pro Forma Profit and Loss
Direct Cost of Sales
Total Cost of Sales
Sales and Marketing and Other Expenses
Total Operating Expenses
Profit Before Interest and Taxes
Projected Cash Flow
Projections of cash flow are vital for Dushane success. The yearly cash flow estimates have been included in Table 9 below.
Table 9: Pro Forma Cash Flow
Cash from Receivables
Subtotal Cash from Operations
Additional Cash Received
New Current Borrowing
New Long-term Liabilities
Subtotal Cash Received
Expenditures from Operations:
Payment of Accounts Payable
Subtotal Spent on Operations
Subtotal Cash Spent
Net Cash Flow
Projected Balance Sheet
The balance-sheet displays wholesome growth of net-value along with a powerful financial standing. The yearly estimates have been included in table 10 below.
Table 10: Pro Forma Balance Sheet
Other Current Assets
Total Current Assets…
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