HR Consultant Business Plan Template

Do you want to start HR Consultant business plan?

Are you thinking about starting an HR consultant business? If so, it is a great idea. That’s because you can start an HR consultant business with very few resources and a small team. Afterward, you can extend it to whatever size you want. But the start is relatively easier as compared to other businesses.

The first step in learning how to start HR consulting business is to write a good business plan for your idea.

You can write an HR consultant business plan yourself. Or you can hire business plan writing services. If you want to write the plan yourself, you can just follow the HR consultant business plan mentioned here.

Executive Summary

2.1 The Business

Dillinger HR Consultants will be an HR consultancy company started and owned by Riley Dillinger. The company’s primary aim will be to provide consultations to its clients about the management and procurement of their HR resources in Portland, Oregon. The range of services offered will vary from recruitment and training to payroll management for different clients.

2.2 Management of HR Consultant Company

When starting a human resource consulting firm, you need to ensure that all your resources are well-managed and utilized. You can do this through a business plan strategy. You can do an HR consultancy industry overview to understand what resources you will need to start your company.

The best portfolio of an HR consultant for small businesses and big ones is competent management of his own business. So, if you want to learn how to start an HR consulting firm, take guidance from this plan and others like business consulting business plan, etc.

Here, we are providing all the necessary details of Dillinger HR Consultants so that you can take help for developing your business plan.

2.3 Customers of HR Consultant Company

Our customers will belong to almost all work domains as professional cleaning and maintenance are required by all. However, our potential and recurring customers are identified as follows:

• HR Directors
• Small/ Medium Businesses & Work Councils
• Internal Consulting Departments
• Training Facilities

2.4 Business Target

Our target is to become a reliable source of HR consultancy and issue resolution to our clients when they need assistance.

Our financial targets for the first two years of our launch are shown below:

Franchise Business Plan

Helps the franchisee get business case approval from the franchisor

Company Summary

3.1 Company Owner

Riley Dillinger will be the owner of Dillinger HR Consultants. She completed her MBA two years back and worked for an administration firm after graduation. To pursue her dream of starting her own business, she decided to leave her job and start the Dillinger HR Consultants.

3.2 Why the HR Consultant company is being started

In her previous job, Riley had a lot of exposure to various types of organizations ad companies at every scale. She realized that a lot of companies struggle with their human resource department. And more prominent consultancy companies cannot offer services catered to each company. She realized that she could solve this issue by starting as an HR independent consultant and then extending the business to a startup HR consultancy.

3.3 How the HR Consultant company will be started

Step1: Plan Everything

When learning how to start an HR consultancy company, you will find that developing an HR consulting business plan template is vital. For this, you can refer to different business plans available on the internet like counseling practice business plan, etc.

Since Riley decided to start small and expand her business from there, this HR consulting business model is suitable for those who are just beginning and those looking to expand their business.

Step2: Define the Brand

The next step is to showcase your unique values and services to your customers. It is called developing a brand. And it helps a business stand out from its competition. Any good business plan, whether it is a life coaching business plan or a mortgage lender business plan, includes the necessary details about developing the brand.

Step3: Establish Your Corporate Office

To start her business, Riley decided to rent out a space in an office building in Portland. Her next step will be to hire sufficient staff to launch her company.

Step4: Establish a Web Presence

Step5: Promote and Market

The final step is to develop a marketing plan and execute it for the promotion of the business.

Start-up Expenses
Legal	$22,200
Consultants	$0
Insurance	$23,000
Rent	$33,000
Research and Development	$10,000
Expensed Equipment	$56,000
Signs	$3,400
TOTAL START-UP EXPENSES	$147,600
Start-up Assets	$266,000
Cash Required	$369,000
Start-up Inventory	$39,000
Other Current Assets	$240,000
Long-term Assets	$287,000
TOTAL ASSETS	$1,201,000
Total Requirements	$1,348,600
START-UP FUNDING
Start-up Expenses to Fund	$147,600
Start-up Assets to Fund	$1,201,000
TOTAL FUNDING REQUIRED	$1,348,600
Assets
Non-cash Assets from Start-up	$1,506,000
Cash Requirements from Start-up	$285,000
Additional Cash Raised	$50,000
Cash Balance on Starting Date	$35,000
TOTAL ASSETS	$1,876,000
Liabilities and Capital
Liabilities	$18,000
Current Borrowing	$0
Long-term Liabilities	$0
Accounts Payable (Outstanding Bills)	$48,000
Other Current Liabilities (interest-free)	$0
TOTAL LIABILITIES	$66,000
Capital
Planned Investment	$1,348,600
Investor 1	$0
Investor 2	$0
Other	$0
Additional Investment Requirement	$0
TOTAL PLANNED INVESTMENT	$1,348,600
Loss at Start-up (Start-up Expenses)	$461,400
TOTAL CAPITAL	$1,810,000
TOTAL CAPITAL AND LIABILITIES	$1,876,000
Total Funding	$1,348,600

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Services

Starting your own HR consulting business is all about planning. You need to decide on the services that you will provide to your clients. A good idea about the scope of your services will help you to plan your business. It will also help you create the HR consulting services business plan.

To understand how services are presented in a business plan, you can take a look at an HR consulting business plan sample or something related, like a staffing company business plan.

Riley decided to limit her company’s services at the beginning but expand them later on. Therefore, this sample HR consulting proposal is suitable for developing the business plan for any company. It doesn’t need to be related to business HR consulting. It can even be a courier services business plan. You can easily take help from here.

• Policies Development

One of the significant services of Riley’s HR Consultants will be to help companies in the development and streamlining of their policies. It can include things like:

• Hiring
• Firing
• Disciplinary Conduct
• Workplace Violence, etc.

• Recruitment Operations

We will also offer recruitment aid services to our clients. It can include providing our clients with part-time or full-time employees. We will take care of the whole process, from sourcing to staff induction. Or we will just match our clients with an appropriate employee pool that they can choose from.

• Provision of Contract Staff

Contract Staffing is a brilliant solution for many services. We will help our staff in temporary staffing with limited-time contracts where the employees can immediately meet the client’s needs.

• Training and Development

Productivity and efficiency are key terms that are used by every business, big and small. We will help our clients take this idea from an abstract realm to reality by helping them in developing training plans for maximum efficiency.

• Performance Management

Riley’s HR Consultants will also help people develop and implement robust performance management systems so that their employees attain maximum productivity and attain their goals faster.

Marketing Analysis of HR Consultant Company

For starting a HR consultancy, you need to have an in-depth knowledge of your customers and competition. You can gain this insight through a marketing analysis. These are a part of business plan for HR consulting firm. It will give you an idea of how to price and market your services.

A good marketing analysis of HR marketing consultants should include all past, present, and future market predictions to run the business accordingly. These analyses form an essential part of any HR consulting proposal example. And these, together with the financial goals of the company, determine how to start an HR consulting business and how to run it.

5.1 Market Trends

According to IBISWorld, HR consulting services in the US have a market valued at $24 Billion as of 2021. And the market is expanding at a rate of 5.8% every year. It means that more and more companies are demanding assistance to develop and improve their human resource departments. Many businesses are looking for temporary contract human resource provision, and starting an HR consultancy firm is a great way to take advantage of this market.

5.2 Marketing Segmentation

The customers of Riley’s HR Consultants are categorized into the following groups:

Business Plan for Investors

5.2.1 HR Directors

Our main clients will be the HR directors and managers of different companies. Our HR advisors will help them improve the human resource functions in each department and the entire company. This group is expected to require our services frequently throughout the year.

5.2.2 Small/ Medium Businesses & Work Councils

Our second biggest clients will be small and medium-sized businesses and work councils. Our consultants will help them in solving human capital problems of various scopes. These may include providing HR support, managing cultural transformations and developing management strategies, etc.

5.2.3 Internal Consulting Departments

Our consultants will also regularly work with internal consulting departments of companies to ensure proper human resources are available for the ongoing project. These clients are expected to avail of our services quite often.

5.2.4 Training Facilities

One of the aims of Riley HR Consultants is to make companies self-sufficient. In that respect, we will also provide training seminars and plans catered for our customers. Our smaller clients are expected to utilize the most to make their startups more efficient.

Market Analysis
Potential Customers	Growth	Year 1	Year 2	Year 3	Year 4	Year 5	CAGR
HR Directors	38%	31,000	37,200	44,640	53,568	64,282	10.00%
Business & Work Councils	25%	22,000	26,400	31,680	38,016	45,619	10.00%
Internal Consulting Depts	21%	19,000	22,800	27,360	32,832	39,398	10.00%
Training Facilities	16%	13,000	15,600	18,720	22,464	26,957	11.00%
Total	100%	85,000	102,000	122,400	146,880	176,256	10%

 

5.3 Business Target

• To become the most sought out HR consultants in Portland, Oregon.
• To expand the range of our offered services with passing time and increase the area of our approach.
• To earn a net profit of $50k per month by the end of our third year.
• To have around two dozen regular clients, 5 of which need to be big guns.
• To maintain a customer satisfaction score above 90%.

5.4 Product Pricing

Our prices will be a little higher as compared to our competitors. But we will offer a more excellent range of services for that price along with 24/7 customer support. We will also ensure that our clients have access to our on-site services whenever they require them.

Marketing Strategy

To make your name in a bustling industry, you will need a marketing plan. In fact, it is one of the most crucial parts of learning  how to set up an HR consulting business.

You can find examples of marketing analysis in any HR consulting business plan template. In this business plan HR consulting, we are providing the sales strategy for Riley’s HR consultants so that more and more people will pay attention to the business.

6.1 Competitive Analysis

• Our clients can contact us at any time through our website or social media. They can also use our provided contact numbers to connect with our support systems.
• We will establish solid customer care services to maintain good relationships with our clients.
• We will also take feedback from our clients to make necessary changes and deal with our customers in the best possible manner each time they hire us.

6.2 Sales Strategy

• We will offer continuous support to our customers.
• We will offer 25% customers to our first ten clients for a period of 6 months.
• For our shorter-term clients, we will offer a 10% discount.
• We will advertise our services through social media, billboards, posters, and Google Ads.

6.3 Sales Monthly

6.4 Sales Yearly

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6.5 Sales Forecast

Sales Forecast
Unit Sales	Year 1	Year 2	Year 3
Recruitment Operations	987	1,046	1,109
Provision of Contract Staff	876	929	984
Training & Development	568	602	638
Policies & Performance Services	432	458	485
TOTAL UNIT SALES	2,863	3,035	3,217
Unit Prices	Year 1	Year 2	Year 3
Recruitment Operations	$1,250.00	$1,450.00	$1,682.00
Provision of Contract Staff	$1,500.00	$1,740.00	$2,018.40
Training & Development	$1,750.00	$2,030.00	$2,354.80
Policies & Performance Services	$2,500.00	$2,900.00	$3,364.00
Sales
Recruitment Operations	$1,233,750.00	$1,517,019.00	$1,865,326.56
Provision of Contract Staff	$1,314,000.00	$1,615,694.40	$1,986,657.83
Training & Development	$994,000.00	$1,222,222.40	$1,502,844.66
Policies & Performance Services	$1,080,000.00	$1,327,968.00	$1,632,869.45
TOTAL SALES	$4,621,750.00	$5,682,903.80	$6,987,698.51
Direct Unit Costs	Year 1	Year 2	Year 3
Recruitment Operations	$800.00	$880.00	$924.00
Provision of Contract Staff	$900.00	$990.00	$1,039.50
Training & Development	$950.00	$1,045.00	$1,097.25
Policies & Performance Services	$1,250.00	$1,375.00	$1,443.75
Direct Cost of Sales
Recruitment Operations	$789,600.00	$920,673.60	$1,024,709.72
Provision of Contract Staff	$788,400.00	$919,274.40	$1,023,152.41
Training & Development	$539,600.00	$629,173.60	$700,270.22
Policies & Performance Services	$540,000.00	$629,640.00	$700,789.32
Subtotal Direct Cost of Sales	$2,657,600.00	$3,098,761.60	$3,448,921.66

Personnel plan

A consultancy firm depends on its relationships with its clients. Riley decided to implement some selection criteria when hiring initial employees to develop and maintain excellent relationships with the customers. She also made these criteria a part of the HR consultancy business plan pdf as you will find in any HR consulting business plan template.

7.1 Company Staff

• 1 Manager
• 6 Certified HR consultants
• 2 Customer Care Managers
• 1 Web Developer to manage online sites
• 1 Sales Executives to organize and promote sales
• 1 Accountant
• 1 Receptionist

7.2 Average Salary of Employees

Personnel Plan
	Year 1	Year 2	Year 3
Manager	$40,000	$44,000	$48,400
Certified HR Consultants	$122,000	$134,200	$147,620
Customer Care Managers	$70,000	$77,000	$84,700
Web Developer	$25,000	$27,500	$30,250
Sales Executives	$15,000	$16,500	$18,150
Accountant	$15,000	$16,500	$18,150
Receptionist	$30,000	$33,000	$36,300
Total Salaries	$317,000	$348,700	$383,570

Financial Plan

The success of a business depends on many factors, of which financial standing is one. To ensure the success of your business, you need to maintain it in good financial standing. To do this, you need to manage your operations and problems in a timely fashion. To ensure that your business won’t suffer any loss, you need to develop a financial plan and make it a part of your business plan for HR consulting firm. You can take guidance for this from an HR consulting business plan template.

Here we’re providing the detailed financial plan developed for Riley’s HR Consultants. You can get an idea of business finances and how to manage them from here.

8.1 Important Assumptions

General Assumptions
	Year 1	Year 2	Year 3
Plan Month	1	2	3
Current Interest Rate	8.12%	8.20%	8.26%
Long-term Interest Rate	8.40%	8.44%	8.47%
Tax Rate	24.03%	24.21%	24.60%
Other	0	0	0

8.2 Break-even Analysis

Break-Even Analysis
Monthly Units Break-even	5340
Monthly Revenue Break-even	$132,500
Assumptions:
Average Per-Unit Revenue	$231.00
Average Per-Unit Variable Cost	$0.62
Estimated Monthly Fixed Cost	$163,800

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8.3 Projected Profit and Loss

Pro Forma Profit And Loss
	Year 1	Year 2	Year 3
Sales	$4,621,750	$5,682,904	$6,987,699
Direct Cost of Sales	$2,657,600	$3,098,762	$3,448,922
Other	$0	$0	$0
TOTAL COST OF SALES	$2,657,600	$3,098,762	$3,448,922
Gross Margin	$1,964,150	$2,584,142	$3,538,777
Gross Margin %	42.50%	45.47%	50.64%
Expenses
Payroll	$317,000	$348,700	$383,570
Sales and Marketing and Other Expenses	$145,000	$148,000	$156,000
Depreciation	$2,300	$2,350	$2,500
Leased Equipment	$0	$0	$0
Utilities	$2,900	$3,000	$3,100
Insurance	$2,100	$2,100	$2,100
Rent	$2,900	$3,000	$3,200
Payroll Taxes	$24,000	$25,000	$27,000
Other	$0	$0	$0
Total Operating Expenses	$496,200	$532,150	$577,470
Profit Before Interest and Taxes	$1,467,950	$2,051,992	$2,961,307
EBITDA	$1,467,950	$2,051,992	$2,961,307
Interest Expense	$0	$0	$0
Taxes Incurred	$293,590	$410,398	$592,261
Net Profit	$1,174,360	$1,641,594	$2,369,045
Net Profit/Sales	25.41%	28.89%	33.90%

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	$51,000	$55,080	$59,486
Cash from Receivables	$22,000	$23,760	$25,661
SUBTOTAL CASH FROM OPERATIONS	$73,000	$79,570	$85,936
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	$74,000	$79,000	$85,000
Expenditures	Year 1	Year 2	Year 3
Expenditures from Operations
Cash Spending	$42,000	$42,000	$45,000
Bill Payments	$27,000	$28,000	$31,000
SUBTOTAL SPENT ON OPERATIONS	$69,000	$70,000	$76,000
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	$69,000	$74,520	$80,482
Net Cash Flow	$21,000	$23,000	$25,000
Cash Balance	$27,000	$30,000	$33,000

 

8.5 Projected Balance Sheet

Pro Forma Balance Sheet
Assets	Year 1	Year 2	Year 3
Current Assets
Cash	$275,000	$308,000	$338,800
Accounts Receivable	$24,000	$26,880	$30,213
Inventory	$4,300	$4,816	$4,900
Other Current Assets	$1,000	$1,000	$1,000
TOTAL CURRENT ASSETS	$282,000	$315,840	$355,004
Long-term Assets
Long-term Assets	$10,000	$10,000	$10,000
Accumulated Depreciation	$19,400	$21,728	$24,444
TOTAL LONG-TERM ASSETS	$24,400	$27,328	$30,744
TOTAL ASSETS	$294,000	$329,280	$370,440
Liabilities and Capital	Year 4	Year 5	Year 6
Current Liabilities
Accounts Payable	$18,700	$20,944	$23,541
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
SUBTOTAL CURRENT LIABILITIES	$19,000	$21,280	$23,919
Long-term Liabilities	$0	$0	$0
TOTAL LIABILITIES	$15,000	$16,800	$18,883
Paid-in Capital	$30,000	$30,000	$31,000
Retained Earnings	$53,000	$57,770	$63,547
Earnings	$193,400	$210,806	$231,887
TOTAL CAPITAL	$285,000	$310,650	$341,715
TOTAL LIABILITIES AND CAPITAL	$300,000	$329,280	$370,440
Net Worth	$293,400	$319,806	$351,787

8.6 Business Ratios

Ratio Analysis
	Year 1	Year 2	Year 3	INDUSTRY PROFILE
Sales Growth	7.25%	8.03%	8.90%	3.00%
Percent of Total Assets
Accounts Receivable	9.21%	10.20%	11.31%	9.80%
Inventory	5.39%	5.97%	6.62%	9.90%
Other Current Assets	2.11%	2.34%	2.59%	2.40%
Total Current Assets	149.80%	151.00%	152.00%	158.00%
Long-term Assets	11.55%	11.60%	11.64%	12.00%
TOTAL ASSETS	100.00%	100.00%	100.00%	100.00%
Current Liabilities	4.90%	4.94%	4.98%	4.34%
Long-term Liabilities	0.00%	0.00%	0.00%	0.00%
Total Liabilities	7.59%	7.65%	7.72%	7.38%
NET WORTH	100.45%	101.25%	102.19%	110.00%
Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	94.60%	97.15%	99.87%	99.00%
Selling, General & Administrative Expenses	93.56%	96.09%	98.78%	97.80%
Advertising Expenses	1.52%	1.56%	1.60%	1.40%
Profit Before Interest and Taxes	41.50%	42.62%	43.81%	33.90%
Main Ratios
Current	34	35	36	32
Quick	33	33.8	34.645	33
Total Debt to Total Assets	0.18%	0.18%	0.17%	0.40%
Pre-tax Return on Net Worth	74.08%	74.89%	75.00%	75.00%
Pre-tax Return on Assets	96.30%	101.12%	106.17%	111.30%
Additional Ratios	Year 1	Year 2	Year 3
Net Profit Margin	33.56%	34.60%	35.67%	N.A.
Return on Equity	55.80%	57.53%	59.31%	N.A.
Activity Ratios
Accounts Receivable Turnover	7.7	7.8	7.8	N.A.
Collection Days	100	100	100	N.A.
Inventory Turnover	32.4	34.02	35	N.A.
Accounts Payable Turnover	15.6	16	16.3	N.A.
Payment Days	27	27	27	N.A.
Total Asset Turnover	2.5	2.5	2.6	N.A.
Debt Ratios
Debt to Net Worth	-0.04	-0.03	-0.04	N.A.
Current Liab. to Liab.	1	1	1	N.A.
Liquidity Ratios
Net Working Capital	$244,000	$257,664	$272,093	N.A.
Interest Coverage	0	0	0	N.A.
Additional Ratios
Assets to Sales	0.85	0.87	0.89	N.A.
Current Debt/Total Assets	1%	0%	0%	N.A.
Acid Test	29	29.12	29.16	N.A.
Sales/Net Worth	2.1	2.2	2.2	N.A.
Dividend Payout	0	0	0	N.A.

FAQ

1. How do I start an HR consulting business?

You can start HR consulting business with any team size. You just need a strong HR consulting business model for which you can take help from this document.

2. What should I charge for HR consulting?

The charges you take for HR consultant services will depend on the type of services. But on average, HR consultants charge anywhere from $100 to $300 per hour.

3. How do HR consulting firms work?

HR consulting firms aid companies in dealing with their HR departments or managing their human resources in case they don’t have one. You can find more details in the above document.

4. How do you write a human resource business plan?

You can write a human resource business plan by conducting an HR consulting industry analysis. For reference, you can take help from this document.

Download HR Consultant Business Plan Template in pdf