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Business Consulting Business Plan for Starting Your Own Firm
Do you know why your business is running into a loss? Or do you want to expand your product line but don’t know where to start? There are many times in businesses when business owners need some expert advice and strategist to help them with their goals. And that’s where the scope of a business consulting firm starts.
A business consulting firm hires experienced and qualified business consultants to provide credible and implementable strategies to businesses. The services of business consulting firms may range from training other’s employees to completely reviving a business organization. The business is extremely profitable due to its immense need and never-ending scope.
So, if you have made up your mind to enter this venture, the first step would be to create a business consulting business plan template. If you don’t know how to create an action plan for business consulting, you can take help from here. In this blog, we’re providing small business consulting business plan for a startup ‘Bruce Consulting Group’.
Business Consulting Business Plan Summary
2.1 The Business
Bruce Consulting Group will be a registered and licensed business consulting company based in Detroit. The firm will aim at providing expert solutions and detailed proposals/ startup and marketing plans to small and medium-sized businesses.
2.2 Management of Business Consulting Firm
For starting a business consulting firm, you’ll need to hire people who are experts in different fields and business domains. A good approach will be to decide your specialties and type of consultation services in your business consulting project plan. Defining your consultation types in your business consulting and resource management business plan will help you in acquiring the right talent and tools to provide your services.
In this sample business plan for business consulting firm, we will provide all details of how Bruce Consulting Group will be managing its resources and finances to provide excellent service as well as to earn target profits.
2.3 Customers of Business Consulting Company
Our major customers will be businesses of all types and sizes who may need business plans, employee training programs, outsourcing programs, legal advice, and more.
2.4 Business Target
Our targets are:
- To maintain a CSAT score of 90 to 95% throughout our service years
- To earn a net profit margin of $26k per month by the end of the first three years
- To extend our services to two more cities by the end of the first five years
Company Summary
3.1 Company Owner
Bruce Consulting Group will be owned by Bruce Pattinson. Bruce is a Chartered Financial Analyst. He has done his MBA and CFA from the University of Michigan. During the last twelve years, he has served in top organizations as an investment advisor.
3.2 Why the business consulting firm is being started
Bruce is famous for his expert analysis and easy-to-implement strategies. During his service years, he has gained huge experience in business strategies and operations. To spread his influence on a wider scale, Bruce decided to launch his own consulting firm.
3.3 How the business consulting firm will be started
Step1: Create Business Consulting Marketing Plan
The first step would be to develop a business plan for business consulting. Since this business demands huge responsibility, you’ll need a skilled team, experienced management, and a proper plan to run it. It is recommended to study some directives of a business consulting firm business plan examples to have an idea of what others are offering in this domain. You can also take help from this sample business plan for a business consulting company as it covers all details.
Step2: Define The Brand
The second step is to get registered and licensed and define your business values. This is also the time to set your services so that people can identify you and your competitive advantages.
Step3: Establish Physical & Web Presence
After planning everything, you should start establishing your official presence. For that, you’ll need to rent a facility and hire the required staff. Meanwhile, you should also establish a website presence so that people can find you easily from anywhere.
Step5: Promote and Market
Lastly, after launching your business, you will need to promote your services so that your target customers can discover who you are.
| Start-up Expenses | |
| Legal | $253,000 |
| Consultants | $0 |
| Insurance | $35,000 |
| Rent | $24,000 |
| Research and Development | $35,000 |
| Expensed Equipment | $48,000 |
| Signs | $4,000 |
| TOTAL START-UP EXPENSES | $399,000 |
| Start-up Assets | $321,000 |
| Cash Required | $348,900 |
| Start-up Inventory | $55,000 |
| Other Current Assets | $230,000 |
| Long-term Assets | $265,000 |
| TOTAL ASSETS | $1,219,900 |
| Total Requirements | $1,618,900 |
| START-UP FUNDING | |
| Start-up Expenses to Fund | $399,000 |
| Start-up Assets to Fund | $1,219,900 |
| TOTAL FUNDING REQUIRED | $1,618,900 |
| Assets | |
| Non-cash Assets from Start-up | $1,595,900 |
| Cash Requirements from Start-up | $364,000 |
| Additional Cash Raised | $51,000 |
| Cash Balance on Starting Date | $31,000 |
| TOTAL ASSETS | $2,041,900 |
| Liabilities and Capital | |
| Liabilities | $30,000 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $43,000 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $73,000 |
| Capital | |
| Planned Investment | $1,618,900 |
| Investor 1 | $0 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $1,618,900 |
| Loss at Start-up (Start-up Expenses) | $350,000 |
| TOTAL CAPITAL | $1,968,900 |
| TOTAL CAPITAL AND LIABILITIES | $2,041,900 |
| Total Funding | $1,618,900 |
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Services of Business Consulting Firm
While creating a business plan for a start-up business consulting you should clearly mention your services so that you can hire the required talent accordingly. Moreover, deciding your services before developing a plan for business consulting is also important to estimate costs, expenses, and sales.
- Technology Driven Solutions (Digital Transformations)
Our primary service will be digitizing businesses by providing them with artificially intelligent solutions such as Chatbots. Our tech solutions will be based on enhancing productivity and efficiency in workspaces.
- Analytics and Innovation Consulting
Using Analytics techniques, we’ll turn daily information regarding finance, operations, risks, supplies, and workforce into organized analytics to figure out actionable strategies and models.
- Strategy and Operations Consulting
For complex problems and operations, we will carry out rigorous analysis to find out executable approach. We will provide complete solutions to startups about how to start their businesses. We’ll also provide plans to established businesses who may want to expand their offerings and workforces.
- Human Capital & Finance Transformation
We will offer HR solutions and programs to innovate staff changes, leadership, and talent to improve efficiency in an organization. We’ll also offer financial executive services to drive the companys’ growth.
Marketing Analysis of a Business Consulting Company
Business Plan for Investors
Marketing analysis is the study of market analytics from the financial and sales points of view. In this blog on how to write business consulting firm plan, we’re providing marketing analysis done for Bruce Consulting Group.
5.1 Market Trends
According to IBISWorld, more than 865k management consulting firms are running in the United States. The number is expected to increase in the coming years due to businesses’ inclination towards efficient digital solutions. At present, the industry is responsible for employing 1.6 million people. Moreover, Statista reports the current market size of consulting firms to be $69.9 billion in the United States. With the growth in business consulting startups, these stats of market share and employment are also bound to increase.
5.2 Marketing Segmentation
Marketing segmentation is yet another important component of a business consulting business plan template. In this, you have to divide your target market into distinct groups of customers. This is to analyze the buying capacities and trends of each of the target categories to estimate profits you can earn in a specific marketplace. Moreover, this practice also enables you in deciding on the pricing strategy, and advertisement mediums.
In this short business plan for business consulting, we’re providing the marketing segmentation done for Bruce Consulting Group. As the type of customers hugely depends on your offerings, you should also study another example of business consulting firm business plan to know more customer groups associated with different services.
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5.2.1 Budding Entrepreneurs
Start-up companies will be our topmost group of target customers. Entrepreneurs who are starting some business for the first time lack experience in planning all aspects of the business. They will need our help in making financial and marketing plans, business proposals, HR programs, training programs, and more.
5.2.2 Newly Established Companies
The second group of our target customers will be 2 to 3-year-old companies and businesses. These businesses are expected to avail of all our services to efficiently manage their operations and to boost their growth.
5.2.3 Old Companies & Organizations
Old companies who are looking for solutions to revive their operations, workforce and capabilities will also be our primary customers. They are expected to be the biggest consumer of our digital transformation solutions. Moreover, companies that are established for a long-time usually need employee training programs, infrastructure renewal programs, and software development programs to keep pace with the modernizing world.
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Budding Entrepreneurs | 33% | 40,000 | 41,000 | 43,000 | 44,000 | 45,000 | 10.00% |
| Newly Established Companies | 29% | 31,000 | 32,000 | 33,000 | 34,000 | 35,000 | 10.00% |
| Old Companies & Organizations | 38% | 49,000 | 51,000 | 52,000 | 54,000 | 55,000 | 11.00% |
| Total | 100% | 120,000 | 124,000 | 128,000 | 132,000 | 135,000 | 10% |
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5.3 Business Target
Our business targets are:
- To maintain a CSAT score of 90 to 95% throughout our service years
- To extend our services to two more cities by the end of the first five years
5.4 Product Pricing
Our prices are slightly higher than those of our competitors. This is because of our highly skilled team and our exclusive solutions. Although our services are priced at a higher rate, we expect to get more customers due to our competitive benefits and also because of the value we offer to our customers and their work.
Marketing Strategy of Business Consulting Business
After you have known everything about how to create an action plan business consulting you should start working on business consulting marketing plan. Because it is what you need to draw customers to your site. Without an effective marketing plan, your customers will never know your competitive advantages and specialties.
6.1 Competitive Analysis
Bruce Consulting Group will come up with the following competitive aspects:
- All of our financial executives, business consultants, and workers are highly experienced and skilled. Through critical and analytical analysis, our workers will come up with exclusive solutions for your business.
- Secondly, we believe in working together. Our experts will collaborate with you to understand your business and demands so that we can come up with a collaborative solution.
- Lastly, we believe that employees, no matter how skillful they are, should be trained continuously to keep pace with the innovating world. So, to keep our workforce skilled and updated at all times, we’ll ensure continuous training of our staff too.
6.2 Sales Strategy
- We’ll advertise our startup through Google Local ads service and local newspapers.
- We’ll ensure a strong web and social media presence.
- We’ll offer a 30% discount on our services for the first three months of our launch.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Technology Driven Solutions (Digital Transformations) | 43,000 | 45,580 | 48,315 |
| Analytics and Innovation Consulting | 48,000 | 50,880 | 53,933 |
| Strategy and Operations Consulting | 47,000 | 49,820 | 52,809 |
| Human Capital & Finance Transformation | 31,000 | 32,860 | 34,832 |
| TOTAL UNIT SALES | 169,000 | 179,140 | 189,888 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Technology Driven Solutions (Digital Transformations) | $64.00 | $74.24 | $86.12 |
| Analytics and Innovation Consulting | $58.00 | $67.28 | $78.04 |
| Strategy and Operations Consulting | $55.00 | $63.80 | $74.01 |
| Human Capital & Finance Transformation | $57.00 | $66.12 | $76.70 |
| Sales | |||
| Technology Driven Solutions (Digital Transformations) | $2,752,000.00 | $3,383,859.20 | $4,160,793.27 |
| Analytics and Innovation Consulting | $2,784,000.00 | $3,423,206.40 | $4,209,174.59 |
| Strategy and Operations Consulting | $2,585,000.00 | $3,178,516.00 | $3,908,303.27 |
| Human Capital & Finance Transformation | $1,767,000.00 | $2,172,703.20 | $2,671,555.85 |
| TOTAL SALES | $9,888,000.00 | $12,158,284.80 | $14,949,826.99 |
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Technology Driven Solutions (Digital Transformations) | $62.00 | $70.00 | $83.00 |
| Analytics and Innovation Consulting | $56.00 | $64.00 | $74.00 |
| Strategy and Operations Consulting | $52.00 | $60.00 | $70.00 |
| Human Capital & Finance Transformation | $54.00 | $63.00 | $71.00 |
| Direct Cost of Sales | |||
| Technology Driven Solutions (Digital Transformations) | $2,666,000.00 | $3,190,600.00 | $4,010,128.40 |
| Analytics and Innovation Consulting | $2,688,000.00 | $3,256,320.00 | $3,991,027.20 |
| Strategy and Operations Consulting | $2,444,000.00 | $2,989,200.00 | $3,696,644.00 |
| Human Capital & Finance Transformation | $1,674,000.00 | $2,070,180.00 | $2,473,043.60 |
| Subtotal Direct Cost of Sales | $9,472,000.00 | $11,506,300.00 | $14,170,843.20 |
Personnel plan
When you are developing a plan for business consulting you should create a detailed list of required employees. Through it, you’ll be able to devise selection criteria, interviewing, and testing techniques to find the most competent employees.
7.1 Company Staff
Anna will be the CEO herself. However, she’ll hire the following people.
- 1 Co-Manager to help manage business operations
- 3 Management Consultants to help companies improving efficiency
- 2 IT Consultants to provide technical solution consultation
- 2 Human Resource Consultants to help companies develop their HR department
- 2 Operations Consultants to help companies optimize their performance
- 3 Financial Consultants to help monitor companies’ financial situations
- 1 Accountant to maintain financial records
- 1 IT Expert to run the company’s database
- 1 Web Developer to manage the online presence
- 1 Call Operator
- 2 General Assistants
- 1 Driver
7.2 Average Salary of Employees
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Co-Manager | $13,000 | $14,300 | $15,730 |
| Management Consultants | $27,000 | $29,700 | $32,670 |
| IT Consultants | $20,000 | $22,000 | $24,200 |
| Human Resource Consultants | $20,000 | $22,000 | $24,200 |
| Operation Consultants | $21,000 | $23,100 | $25,410 |
| Financial Consultants | $30,000 | $33,000 | $36,300 |
| Accountant | $9,000 | $9,900 | $10,890 |
| IT Expert | $7,000 | $7,700 | $8,470 |
| Web Developer | $6,600 | $7,260 | $7,986 |
| Call Operator | $6,000 | $6,600 | $7,260 |
| General Assistants | $12,000 | $13,200 | $14,520 |
| Driver | $7,000 | $7,700 | $8,470 |
| Total Salaries | $178,600 | $196,460 | $216,106 |
Financial Plan
The last thing to include in your business consulting firm business plan is the financial plan. Though starting a business consulting firm doesn’t require any specific inventory or equipment, still the costs of starting and running it are high due to the following major expenses.
- Costs involved in hiring the most skillful employees.
- Costs of keeping your employees updated and skilled all the time by continuous training.
- High costs of software development and digital transformation services provided to other companies.
- Costs involved in training workforce of other companies (client companies).
Thus, all the expenses for providing your services, and retaining your workforce need proper planning and management. To efficiently manage these finances, resources, and earnings, the only way is to create a financial plan. In this blog, we’re providing the financial plan of Bruce Consulting Group so that you can get an idea of gross margins, projected cash flow, and other important components of an accurate financial plan.
8.1 Important Assumptions
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 8.12% | 8.18% | 8.21% |
| Long-term Interest Rate | 8.30% | 8.35% | 8.40% |
| Tax Rate | 23.76% | 24.03% | 24.80% |
| Other | 0 | 0 | 0 |
8.2 Break-even Analysis
| Break-Even Analysis | |
| Monthly Units Break-even | 5350 |
| Monthly Revenue Break-even | $135,040 |
| Assumptions: | |
| Average Per-Unit Revenue | $239.00 |
| Average Per-Unit Variable Cost | $0.69 |
| Estimated Monthly Fixed Cost | $164,230 |
8.3 Projected Profit and Loss
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $9,888,000 | $12,158,285 | $14,949,827 |
| Direct Cost of Sales | $9,472,000 | $11,506,300 | $14,170,843 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $9,472,000 | $11,506,300 | $14,170,843 |
| Gross Margin | $416,000 | $651,985 | $778,984 |
| Gross Margin % | 4.21% | 5.36% | 5.21% |
| Expenses | |||
| Payroll | $178,600 | $196,460 | $216,106 |
| Sales and Marketing and Other Expenses | $123,000 | $130,000 | $131,000 |
| Depreciation | $2,230 | $2,300 | $2,400 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $3,020 | $3,100 | $3,200 |
| Insurance | $2,100 | $2,130 | $2,200 |
| Rent | $2,500 | $2,600 | $2,700 |
| Payroll Taxes | $32,000 | $33,000 | $34,000 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $343,450 | $369,590 | $391,606 |
| Profit Before Interest and Taxes | $72,550 | $282,395 | $387,378 |
| EBITDA | $72,550 | $282,395 | $387,378 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $14,510 | $56,479 | $77,476 |
| Net Profit | $58,040 | $225,916 | $309,902 |
| Net Profit/Sales | 0.59% | 1.86% | 2.07% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $56,000 | $60,480 | $65,318 |
| Cash from Receivables | $18,000 | $19,440 | $20,995 |
| SUBTOTAL CASH FROM OPERATIONS | $74,000 | $80,660 | $87,113 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $75,000 | $82,000 | $88,000 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $34,000 | $35,000 | $36,000 |
| Bill Payments | $19,000 | $20,000 | $21,000 |
| SUBTOTAL SPENT ON OPERATIONS | $53,000 | $55,000 | $57,000 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $62,000 | $66,960 | $72,317 |
| Net Cash Flow | $15,000 | $16,000 | $17,000 |
| Cash Balance | $28,300 | $29,000 | $31,000 |
8.5 Projected Balance Sheet
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $284,000 | $318,080 | $349,888 |
| Accounts Receivable | $25,000 | $28,000 | $31,472 |
| Inventory | $4,000 | $4,480 | $4,900 |
| Other Current Assets | $1,000 | $1,000 | $1,000 |
| TOTAL CURRENT ASSETS | $291,000 | $325,920 | $366,334 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $21,000 | $23,520 | $26,460 |
| TOTAL LONG-TERM ASSETS | $29,000 | $32,480 | $36,540 |
| TOTAL ASSETS | $302,100 | $338,352 | $380,646 |
| Liabilities and Capital | Year 4 | Year 5 | Year 6 |
| Current Liabilities | |||
| Accounts Payable | $21,000 | $23,520 | $26,436 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $16,800 | $18,816 | $21,149 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $15,940 | $17,853 | $20,067 |
| Paid-in Capital | $31,000 | $32,000 | $32,800 |
| Retained Earnings | $56,900 | $62,021 | $68,223 |
| Earnings | $202,000 | $220,180 | $242,198 |
| TOTAL CAPITAL | $277,800 | $302,802 | $333,082 |
| TOTAL LIABILITIES AND CAPITAL | $293,740 | $338,352 | $380,646 |
| Net Worth | $310,000 | $337,900 | $371,690 |
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8.6 Business Ratios
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 7.13% | 7.90% | 8.75% | 3.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 9.20% | 10.19% | 11.29% | 9.80% |
| Inventory | 5.74% | 6.36% | 7.05% | 9.90% |
| Other Current Assets | 2.12% | 2.35% | 2.60% | 2.40% |
| Total Current Assets | 150.54% | 152.00% | 154.00% | 158.00% |
| Long-term Assets | 11.85% | 11.92% | 11.97% | 12.00% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.67% | 4.71% | 4.75% | 4.34% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Total Liabilities | 7.41% | 7.47% | 7.54% | 7.38% |
| NET WORTH | 101.05% | 101.86% | 102.80% | 110.00% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 95.22% | 97.79% | 100.53% | 99.00% |
| Selling, General & Administrative Expenses | 94.00% | 96.54% | 99.24% | 97.80% |
| Advertising Expenses | 1.65% | 1.69% | 1.74% | 1.40% |
| Profit Before Interest and Taxes | 41.28% | 42.39% | 43.58% | 33.90% |
| Main Ratios | ||||
| Current | 37 | 38 | 38 | 32 |
| Quick | 33.4 | 34.6 | 35.465 | 33 |
| Total Debt to Total Assets | 0.21% | 0.19% | 0.18% | 0.40% |
| Pre-tax Return on Net Worth | 74.84% | 75.23% | 76.18% | 75.00% |
| Pre-tax Return on Assets | 93.95% | 98.65% | 103.58% | 111.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 32.81% | 33.83% | 34.88% | N.A. |
| Return on Equity | 56.19% | 57.93% | 59.73% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7.7 | 7.8 | 7.9 | N.A. |
| Collection Days | 100 | 100 | 100 | N.A. |
| Inventory Turnover | 32.4 | 34.02 | 36.7 | N.A. |
| Accounts Payable Turnover | 16.4 | 16.5 | 16.6 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 2.4 | 2.5 | 2.6 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | -0.03 | -0.03 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $237,500 | $250,800 | $264,845 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.83 | 0.84 | 0.87 | N.A. |
| Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
| Acid Test | 28.01 | 28.56 | 29.28 | N.A. |
| Sales/Net Worth | 2.1 | 2.1 | 2.2 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
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