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Consulting Sample Business Plan 1. 0 Executive Summary
Acme Consulting will be formed as a consulting company specializing in marketing
of high technology products in international markets. Its founders are former
marketers of consulting services, personal computers, and market research, all
in international markets. They are founding Acme to formalize the consulting services
they offer. 
1. 2 Mission Acme Consulting offers high-tech manufacturers a reliable,
high quality alternative to inhouse resources for business development, market
development, and channel development on an international scale. A true alternative
to in house resources offers a very high level of practical experience, know how,
contacts, and confidentiality. Clients must know that working with Acme is a more
professional, less risky way to develop new areas even than working completely
in house with their own people. Acme must also be able to maintain financial balance,
charging a high value for its services, and delivering an even higher value to
its clients. Initial focus will be development in theEuropean and Latin American
markets, or for European clients in the United States market. 1. 3 Keys
to Success - Excellence in fulfilling the promise completely confidential,
reliable, trustworthy expertise and information.
- Developing visibility
to generate new business leads.
- Leveraging from a single pool of expertise
into multiple revenue generation opportunities: retainer consulting, project consulting,
market research, and market research published reports.
2. 0 Company
Summary Acme Consulting is a new company providing high-level expertise in
international high-tech business development, channel development, distribution
strategies, and marketing of high tech products. It will focus initially on providing
two kinds of international triangles: - Providing United States clients
with development forEuropean and Latin American markets.
- Providing European
clients with development for the United States and Latin American markets.
As it grows it will take on people and consulting work in related markets,
such as the rest of Latin America, and the Far East, and similar markets. As it
grows it will look for additional leverage by taking brokerage positions and representation
positions to create percentage holdings in product results. 2. 1 Company
OwnershipAcme Consulting will be created as a California C corporation based
in Santa Clara County, owned by its principal investors and principal operators.
As of this writing it has not been chartered yet and is still considering alternatives
of legal formation. 2. 2 Startup Summary Total start up expense
(including legal costs, logo design, stationery and related expenses) come to
$73,000. Start up assets required include $3,000 in short term assets (office
furniture, etc.) and $1,000,000 in initial cash to handle the first few months
of consulting operations as sales and accounts receivable play through the cash
flow. The details are included in the table. Start-up Plan _______________________________
Start-up Expenses Legal $1,000 Stationery etc. $3,000 Brochures $5,000 Consultants
$5,000 Insurance $350 Expensed equipment $3,000 Other $1,000 _______________________________
Total Start-up Expense $18,350 Start-up Assets Needed Cash requirements $25,000
Start-up inventory $0 Other Short-term Assets $7,000 Total Short-term Assets $32,000
Long-term Assets WORD DOCUMENT HAS NO NUMBER HERE Capital Assets $0 _______________________________
Total Assets $32,000 Total Startup Requirements: $50,350 Left to finance: $0 Start-up
Funding Plan Investment Investor 1 $20,000 Investor 2 $20,000 Other $10,000 Total
investment $50,000 Short-term borrowing Unpaid expenses $5,000 Short-term loans
$0 Interest-free short-term loans $0 Subtotal Short-term Borrowing $5,000 Long-term
Borrowing $0 Total Borrowing $5,000 Loss at start-up ($23,000) Total Equity $27,000
Total Debt and Equity $32,000 
2. 3 Company Services Acme offers expertise in channel distribution,
channel development, and market development, sold and packaged in various ways
that allow clients to choose their preferred relationship: these include retainer
consulting relationships, project based consulting, relationship and alliance
brokering, sales representation and market representation, project-based market
research, published market research, and information forum events. 2.
4 Company locations and facilitiesThe initial office will be established
in A quality office space in the Santa Clara County "Silicon Valley" area of California,
the heart of the U.S. high tech industry. 3. 0 Services Acme offers
the expertise a high-technology company needs to develop new product distribution
and new market segments in new markets. This can be taken as high-level retainer
consulting, market research reports, or project-based consulting. 3.
1 Service Description1. Retainer consulting: we represent a client company
as an extension of its business development and market development functions.
This begins with complete understanding of the client company's situation, objectives,
and constraints. We then represent the client company quietly and confidentially,
sifting through new market developments and new opportunities as is appropriate
to the client, representing the client in initial talks with possible allies,
vendors, and channels. 2. Project consulting: Proposed and billed on a per-project
and per- milestone basis, project consulting offers a client company a way to
harness our specific qualities and use our expertise to solve specific problems,
develop and/or implement plans, develop specific information. 3. Market research:
group studies available to selected clients at $5,000 per unit. A group study
is packaged and published, a complete study of a specific market, channel, or
topic. Examples might be studies of developing consumer channels in Japan or Mexico,
or implications of changing margins in software. 3. 2 Competitive ComparisonThe
competition comes in several forms: 1. The most significant competition is
no consulting at all, companies choosing to do business development and channel
development and market research in-house. Their own managers do this on their
own, as part of their regular business functions. Our key advantage in competition
with in-house development is that managers are already overloaded with responsibilities,
they don't have time for additional responsibilities in new market development
or new channel development. Also, Acme can approach alliances, vendors,and channels
on a confidential basis, gathering information and making initial contacts in
ways that the corporate managers can't. 2. The high-level prestige management
consulting: McKinsey, Bain, Arthur Andersen, Boston Consulting Group, etc. These
are essentially generalists who take their name-brand management consulting into
specialty areas. Their other very important weakness is the management structure
that has the partners selling new jobs, and inexperienced associates delivering
the work. We compete against them as experts in our specific fields, and with
the guarantee that our clients will have the top-level people doing the actual
work. 3. The third general kind of competitor is the international market
research company: International Data Corporation (IDC), Dataquest, Stanford Research
Institute, etc. These companies are formidable competitors for published market
research and market forums, but cannot provide the kind of high-level consulting
that Triangle will provide. 4. The fourth kind of competition is the market-specific
smaller house. For example: Nomura Research in Japan, Select S.A. de C.V. in Mexico
(now affiliated with IDC). 5. Sales representation, brokering, and deal catalysts
are an ad-hoc business form that will be defined in detail by the specific nature
of each individual case. 3. 3 Sales Literature The business will
begin with a general corporate brochure establishing the positioning. This brochure
will be developed as part of the start-up expenses. Literature and mailings
for the initial market forums will be very important, with the need to establish
a high-quality look and feel for... ...[truncated because this plan is provided
for purposes of illustration only] 3. 4 Sourcing - The key
fulfillment and delivery will be provided by the principals of the business. The
real core value is professional expertise, provided by a combination of experience,
hard work. and education (in that order).
- We will turn to qualified professionals
for free-lance back-up in market research and presentation and report development,
which are areas that we can afford to contract out without risking the core values
provided to the clients.
3. 5 Technology Acme Consulting will maintain
latest Windows and Macintosh capabilities including: - 1. Complete
Email facilities in Internet, Compuserve, America Online, and Applelink, for working
with clients directly through email delivery of drafts and information.
- 2.
Complete presentation facilities for preparation and delivery of multimedia presentations
on Macintosh or Windows machines, in formats including on-disk presentation, live
presentation, or video presentation.
- 3. Complete desktop publishing facilities
for delivery of regular retainer reports, project output reports, marketing materials,
market research reports.
3. 6 Future Services In the future
Acme will broaden the coverage by expanding into coverage of additional markets
(e.g. all of Latin America, Far East, Western Europe) and additional product areas
(e.g. telecommunications and technology integration). We are also studying the
possibility of newsletter or electronic newsletter services, or perhaps special
on- topic reports. 4. 0 Market Analysis Summary Acme will be focusing
on high-technology manufacturers of computer hardware and software, services,
networking, who want to sell into markets in the United States, Europe, and Latin
America. These are mostly larger companies, and occasionally medium-sized companies.
Our most important group of potential customers are executives in larger corporations.
These are marketing managers, general managers, sales managers, sometimes charged
with international focus and sometimes charged with market or even specific channel
focus. They do not want to waste their time or risk their money looking for bargain
information or questionnable expertise. As they go into markets looking at new
opportunities, they are very sensitive to risking their company's name and reputation.
Professional experience... [truncated because this plan is provided for purposes
of illustration only] 4. 1 Market Segmentation - Large manufacturer
corporations: our most important market segment is the large manufacturer of high-technology
products, such as Apple, Hewlett-Packard, IBM, Microsoft, Siemens, or Olivetti.
These companies will be calling on Acme for development functions that are better
spun off than managed in-house, and for market research, and for market forums.
- Medium sized growth companies: particularly in software, multimedia, and
some related high growth fields, Triangle will be able to offer an attractive
development alternative to the company that is management constrained and unable
to address opportunities in new markets and new market segments.
4.
2 Industry AnalysisThe consulting "industry" is pulverized and disorganized,
thousands of smaller consulting organizations and individual consultants for every
one of the few dozen well-known companies. Consulting is a disorganized industry,
with participants ranging from major international name brand consultants to tens
of thousands of individuals. One of Acme's challenges will be establishing itself
as a "real" consulting company, positioned as a relatively risk free corporate
purchase. 4. 2. 1 Industry ParticipantsThe consulting "industry"
is pulverized and disorganized, thousands of smaller consulting organizations
and individual consultants for every one of the few dozen well-known companies.
At the highest level are the few well established major names in management
consulting. Most of these are organized as partnerships established in major markets
around the world, linked together by interconnecting directors and sharing the
name and corporate wisdom. Some evolved from accounting companies (e.g. Arthur
Anderson, Touche Ross) and some from management consulting (McKinsey, Bain). These
companies charge very high rates for consulting, and maintain relatively high
overhead structures and fulfillment structures based on partners selling and junior
associates fulfilling. At the intermediate level are some function specific or
market specific consultants, such as the market research firms (IDC, Dataquest)
or channel development firms (ChannelCorp, Channel Strategies, ChannelMark).
Some kinds of consulting is little more than contract expertise provided by somebody
looking for a job and offering consulting services as a stop-gap measure while
looking. 4. 2. 2 Distribution PatternsConsulting is sold and purchased
mainly on a word-of-mouth basis, with relationships and previous experience being
by far the most important factor. The major name-brand houses have locations
in major cities and major markets, and executive-level managers or partners develop
new business through industry associations, business associations, and chambers
of commerce and industry, etc., even in some cases social associations such as
country clubs. The medium-level houses are generally area-specific or function
specific, and are not easily able to leverage their business through distribution.
4. 2. 3 Competition and Buying PatternsThe key element in purchase
decisions made at the Acme client level is trust in the professional reputation
and reliability of the consulting firm. 4. 2. 4 Main Competitors
- The high-level prestige management consulting:
Strengths: international
locations managed by owner-partners with a high level of presentation and understanding
of general business. Enviable reputations which make purchase of consulting an
easy decision for a manager, despite the very high prices. Weaknesses: General
business knowledge doesn't substitute for the specific market, channel, and distribution
expertise of Triangle, focusing on high-technology markets and products only.
Also, fees are extremely expensive, and work is generally done by very junior-level
consultants, even though sold by high-level partners. - The international
market research company:
Strengths: International offices, specific market
knowledge, permanent staff developing market research information on permanent
basis, good relationships with potential client companies. Weaknesses: market
numbers are not marketing, not channel development or market development. Although
these companies compete for some of the business Triangle is after, they cannot
really offer the same level of business understanding at a high level. -
Market specific or function-specific experts
Strengths: expertise in market
or functional areas. Triangle should not try to compete with Normura or Select
in their markets with market research, or with ChannelCorp in channel management.
Weaknesses: the inability to spread beyond a specific focus, or to rise above
a specific focus, to provide actuial management expertise, experience, and wisdom
beyond the specifics. The most significant competition is no consulting at
all, companies choosing to do business development and channel development and
market research in-house. Strengths: no incremental cost except travel; also,
the general work is done by the people who are entirely responsible, the planning
done by those who will implement. Weaknesses: most managers are terribly overburdened
already, unable to find incremental resources in time and people to apply to incremental
opportunities. Also, there is a lot of additional risk in market development and
channel development done in house from the ground up. Finally, retainer-based
antenna consultants can greatly enhance a company's reach and extend its position
into conversations that might otherwise never hanve taken place. 4.
3 Market Analysis As indicated by the illustrations, we must focus on a few
thousand well-chosen potential customers in the United States,Europe, and Latin
America. These few thousand high-tech manufacturing companies are the key customers
for Acme. 
Potential Customers Customers Growth rate ____________________________________________________
U.S. High Tech 5,000 10% European High Tech 1,000 15% Latin America 250 35% Other
10,000 2% ____________________________________________________ Total 16,250 n.a.
5. 0 Strategy Summary Acme will focus on three geographical markets,
the United States,Europe, and Latin America, and in limited product segments:
personal computers, software, networks, telecommunications, personal organizers,
and technology integration products. The target customer is usually a manager
in a larger corporation, and occasionally an owner or president of a medium-sized
corporation in a high-growth period. 5. 1 Pricing Strategy Acme Consulting
will be priced at the upper edge of what the market will bear, competing with
the name brand consultants. The pricing fits with the general positioning of Triangle
as high-level expertise. Consulting should be based on $5,000 per day for
project consulting, $2,000 per day for market research, and $10,000 per month
and up for retainer consulting. Market research reports should be priced at $5,000
per report, which will of course require that reports be very well planned, focused
on very important topics very well presented. 5. 2 Sales Forecast The
sales forecast monthly summary is included in the appendix. The annual sales projections
are included here in the following table. Sales Forecast Sales
1995 1996 1997 __________________________________________________________________
Retainer Consulting $200,000 $250,000 $325,000 Project Consulting $270,000 $325,000
$350,000 Market Research $122,000 $150,000 $200,000 Strategic Reports $0 $50,000
$125,000 Other $0 $0 $0 Total Sales $592,000 $775,000 $1,000,000 Cost of sales
1995 1996 1997 __________________________________________________________________
Retainer Consulting $30,000 $20,000 $30,000 Project Consulting $45,000 $25,000
$31,000 Market Research $84,000 $45,000 $50,000 Strategic Reports $0 $20,000 $40,000
Other $0 $0 $0 Total Cost of Sales $159,000 $110,000 $151,000 
 5.
3 Strategic Alliances At this writing strategic alliances with Smith and
Jones are possibilities, given the content of existing discussions. Given the
background of prospective partners, we might also be talking to European companies
including Siemens and Olivetti and others, and to United States companies related
to Apple Computer. In Latin America we would be looking at the key local high-technology
vendors, beginning with Printaform. 6. 0 Management Summary The initial
management team depends on the founders themselves, with little back-up. As we
grow we will take on additional consulting help, plus graphic/editorial, sales,
and marketing. 6. 1 Organizational Structure Acme should be managed
by working partners, in a structure taken mainly from Smith Partners. In the beginning
we assume 3-5 partners: - Ralph Sampson
- At least one, probably
two partners from Smith and Jones
- One strong European partner, based in
Paris.
The organization has to be very flat in the beginning, with each
of the founders reponsible for his or her own work and management. 6. 2 Management Team The Acme business
requires a very high level of international experience and expertise, which means
that it will not be easily leveragable in the common consulting company mode in
which partners run the business and make sales, while associates fulfill. Partners
will necessarily be involved in the fulfillment of the core business proposition,
providing the expertise to the clients. The initial personnel plan is still
tentative. It should involve 3-5 partners, 1-3 consultants, 1 strong editorial/graphic
person with good staff support, 1 strong marketing person, an office manager,
and a secretary. Later we add more partners, consultants and and sales staff.
Founders' resumes are included as an additional attachment to this plan.
6. 3 Personnel Plan The detailed monthly personnel plan for the first
year is included in the appendices. The annual personal estimates are included
here as Table 5. Personnel Plan 1995 1996 1997 _________________________________________________________________
Partners $144,000 $175,000 $200,000 Consultants $0 $50,000 $63,000 Editorial/graphic
$18,000 $22,000 $26,000 VP Marketing $20,000 $50,000 $55,000 Sales people $0 $30,000
$33,000 Office Manager $7,500 $30,000 $33,000 Secretarial $5,250 $20,000 $22,000
Other $0 $0 $0 Subtotal $194,750 $377,000 $432,000 7. 0 Financial Plan
We will maintain a conservative financial strategy, based on developing capital
for future growth. 7. 1 Important Assumptions The table in this section
summarizes key financial assumptions, including 45-day average collection days,
sales entirely on invoice basis, expenses mainly on net 30 basis, 35 days on average
for payment of invoices, and present-day interest rates. General Assumptions
1995 1996 1997 ______________________________________________________________________
Collection days 43 45 45 Payment Days 35 35 35 1995 1996 1997 ______________________________________________________________________
Short Term Interest Rate 8.00% 8.00% 8.00% Long Term Interest Rate 10.00% 10.00%
10.00% Payment days 35 35 35 Tax Rate Percent 0.00% 0.00% 0.00% Expenses in cash%
25.00% 25.00% 25.00% Sales on credit 100.00% 100.00% 100.00% Personnel Burden
% 14.00% 14.00% 14.00% 7.2 Key Financial Indicators The chart summarizes
key financial benchmarks. Unfortunately, as we increase sales we will have to
show a decline in performance of collection days and gross margin. 
7. 3 Break-even Analysis 
Break Even Analysis: ___________________________________________________
Monthly Units Break-even 125,000 Monthly Sales Break-even $125,000 Assumptions:
Average Unit Sale $1.00 Average Per-Unit Cost $0.20 Fixed Cost $100,000 7.
4 Projected Profit and Loss The detailed monthly pro-forma income statement
for the first year is included in the appendices. The annual estimates are included
here. Pro-forma Income Statement 1995 1996 1997 ______________________________________________________________________
___ Sales $592,000 $775,000 $1,000,000 Cost of Sales $159,000 $110,000 $151,000
Other $1,000 $0 $0 _________________________________________________ Total Cost
of Sales $160,000 $110,000 $151,000 Gross margin $432,000 $665,000 $849,000 Gross
margin percent 72.97% 85.81% 84.90% Operating expenses: Advertising/Promotion
10.00% $36,000 $40,000 $44,000 Public Relations 10.00% $30,000 $30,000 $33,000
Travel 10.00% $90,000 $60,000 $110,000 Miscellaneous 10.00% $6,000 $7,000 $8,000
Payroll expense $194,750 $377,000 $432,000 Leased Equipment $6,000 $7,000 $7,000
Utilities 20% $12,000 $14,000 $17,000 Insurance 20% $3,600 $2,000 $2,000 Depreciation
$0 $0 $0 Rent 25% $18,000 $23,000 $29,000 Payroll Burden $0 $0 $0 Contract/Consultants
$0 $0 $0 Other $0 $0 $0 _________________________________________________ Total
Operating Expenses $396,350 $560,000 $682,000 Profit Before Interest & Taxes
$35,650 $105,000 $167,000 Interest Expense ST $3,600 $12,800 $12,800 Interest
Expense LT $5,000 $5,000 $5,000 Taxes Incurred $0 $0 $0 Net Profit $27,050 $87,200
$149,200 Net Profit/Sales 4.57% 11.25% 14.92% 7. 5 Projected Cash Flow
Cash flow projections are critical to our success. The monthly cash flow
is shown in the illustration, with one bar representing the cash flow per month
and the other the monthly balance. The annual cash flow figures are included here.
Detailed monthly numbers are included in the appendices. Pro-Forma
Cash Flow 1995 1996 1997 ____________________________________________________________________________
Net Profit: $27,050 $87,200 $149,200 Plus: Depreciation $0 $0 $0 Change in Accounts
Payable $49,413 $16,799 $13,764 Current Borrowing (repayment) $60,000 $100,000
$0 Increase (decrease) Other Liabilities $0 $0 $0 Long-term Borrowing (repayment)$50,000
$0 $0 Capital Input $0 $0 $0 Subtotal $186,463 $203,999 $162,964 Less: 1905 1905
1905 Change in Accounts Receivable $94,000 $5,750 $50,500 Change in Inventory
$0 $0 $0 Change in Other ST Assets $0 $0 $0 Capital Expenditure $0 $0 $0 Dividends
$0 $0 $0 Subtotal $94,000 $5,750 $50,500 Net Cash Flow $92,463 $198,249 $112,464
Cash balance $117,463 $315,712 $428,176 
7. 6 Projected Balance Sheet The balance sheet shows healthy growth
of net worth, and strong financial position. The monthly estimates are included
in the appendices. Pro-forma Balance Sheet 1995 1996 1997 ___________________________________________________________________
Short-term Assets Starting Balances Cash $25,000 $117,463 $315,712 $428,176 Accounts
receivable $0 $94,000 $99,750 $150,250 Inventory $0 $0 $0 $0 Other Short-term
Assets $7,000 $7,000 $7,000 $7,000 Total Short-term Assets $32,000 $218,463 $422,462
$585,426 Long-term Assets Capital Assets $0 $0 $0 $0 Accumulated Depreciation
$0 $0 $0 $0 Total Long-term Assets $0 $0 $0 $0 _________________________________________________
Total Assets $32,000 $218,463 $422,462 $585,426 Debt and Equity 1995 1996
1997 ___________________________________________________________________ Accounts
Payable $5,000 $54,413 $71,212 $84,976 Short-term Notes $0 $60,000 $160,000 $160,000
Other ST Liabilities $0 $0 $0 $0 Subtotal Short-term Liabilities $5,000 $114,413
$231,212 $244,976 Long-term Liabilities $0 $50,000 $50,000 $50,000 Total Liabilities
$5,000 $164,413 $281,212 $294,976 Paid in Capital $50,000 $50,000 $50,000 $50,000
Retained Earnings ($23,000) ($23,000) $4,050 $91,250 Earnings $0 $27,050 $87,200
$149,200 Total Equity $27,000 $54,050 $141,250 $290,450 Total Debt and Equity
$32,000 $218,463 $422,462 $585,426 Net Worth $27,000 $54,050 $141,250 $290,450
7. 7 Business Ratios Acme Consulting will be formed as a consulting
company specializing in marketing of high-technology products in international
markets. Its founders are former marketers of consulting services, personal computers,
and market research, all in international markets. They are founding Acme to formalize
the consulting services they offer. Ratio Analysis Profitability
Ratios: 1995 1996 1997 ____________________________________________________________________
Gross margin 72.97% 85.81% 84.90% Net profit margin 4.57% 11.25% 14.92% Return
on Assets 12.38% 20.64% 25.49% Return on Equity 50.05% 61.73% 51.37% Activity
Ratios: AR Turnover 6.30 7.77 6.66 Collection days 29 45 45 Inventory Turnover
0.00 0.00 0.00 Accts payable turnover 7.67 7.06 7.35 Total asset turnover 2.71
1.83 1.71 Debt Ratios: 1995 1996 1997 ____________________________________________________________________
Debt to net Worth 3.04 1.99 1.02 Short-term Debt to Liab. 0.70 0.82 0.83 Liquidity
Ratios: Current Ratio 1.91 1.83 2.39 Quick Ratio 1.91 1.83 2.39 Net Working Capital
$104,050 $191,250 $340,450 Interest Coverage 4.15 5.90 9.38 Additional Ratios:
1995 1996 1997 ____________________________________________________________________
Assets to sales 0.37 0.55 0.59 Debt/Assets 75% 67% 50% Current debt/Total Assets
52% 55% 42% Acid Test 1.09 1.40 1.78 Asset Turnover 2.71 1.83 1.71 Sales/Net Worth
10.95 5.49 3.44 Appendices The appendices to this plan include:
- Complete financial results including accountantsÕ statement and
copies of tax forms for past years.
- Complete set of sales literature,
brochures, catalogs, etc.
- Resumes from key managers
- Detailed monthly
pro forma sales forecast, personnel plan, profit and loss, cash flow, and balance
sheet. Important: months are not all shown in this sample plan, because of page
format constraints. Business Plan Pro normally prints appendices in landscape
mode, so it can show all the months.
Sales Forecast in Detail
Personnel Plan in Detail 
Profit and Loss Projection in Detail 
Cash Flow Projection in Detail 
Projected Balance Sheet in Detail 
End of sample plan
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